Foundation for growth: CHLITINA lays groundwork for three-year plan in Vietnam to seize growth potential

Founded in 1989, CHLITINA is a premium skincare and beauty salon brand that was founded in Taiwan in 1989. The company boasts a franchise network of close to 4,800 stores in China, Taiwan and South East Asia.

The brand first entered Vietnam in 2018 when its franchise store opened in Ho Chi Minh City, Vietnam. Since the network has expanded but only has less than 10 stores in the country.

Laurence Marcout, CEO office manager told CosmeticsDesign-Asia​ that the firm has targeted plans to expand its network of franchisee beauty salons in Vietnam to 20 within the next three years.

“Our chairwoman Joanna Chen has identified Vietnam as an emerging market with interesting growth potential for CHLITINA. Women in Vietnam share a lot culturally speaking with women in China, especially in terms of standards of beauty,” ​she said.

The firm’s biggest market is China with over 4,500 stores, accounting for around 95% of its franchise stores and its sales. Its home market of Taiwan has over 200 stores. This makes Vietnam one of the firm’s smallest markets behind Hong Kong which has a network of around 12 stores.

According to Marcout, the firm’s performance in Vietnam, like many other beauty salons, suffered because of the COVID-19 pandemic.

“Vietnam is one of the few places where the coronavirus crisis has been very well managed, yet beauty salons have been hit hard by the disruptions in everybody’s lives. We now pin our hopes on the return to a normal situation in Vietnam.”​

Market potential

Despite the situation, CHLITINA is going ahead with its expansion plans in Vietnam as it believes it has the potential to be a fast-growing market for the company.

At the end of 2020, unveiled a grand flagship store situated at the heart of a posh, residential district in the southern part of Ho Chi Minh City.

The five-storey building houses a spa, a store, a café as well as training facilities for franchisees and beauticians joining the network. Since it opened its doors late last year, it has welcomed more than 200 members through its doors.

The flagship’s grand opening was held on March 20 with much fanfare, including an appearance from its brand ambassador, Vietnamese model and actress Thuy Diem.

“It is important for us to be there now so as to lay a solid foundation for future growth. This is one reason why we have opened a flagship beauty salon in Ho Chi Minh City. It will help Vietnamese consumers recognise and understand the brand better,”​ said Marcout.

Aside from Vietnam, CHLITINA has also been eyeing more potential in SEA, including Indonesia and Malaysia. “Both these economies look quite promising for us​,” said Marcout.

She added that the firm was preparing to expand into both countries before the pandemic derailed its plans.

For now, the firm will concentrate on its three-year plan in Vietnam, but Marcout assured that a regional expansion in SEA was inevitable. “Our plans have been delayed but not shelved.”​