Instead of competing with other super apps through integrating financial and insurance services, this food delivery app from Korea has decided to launch a cosmetics brand.
In an interview with Zing, Jinwoo Song, the CEO of Baemin Vietnam, said that they started this project 1.5 years ago with consumer surveys and meticulous market analysis of the cosmetics industry. Now, the company has officially launched its first cosmetics brand called Lazy Bee, with products manufactured in Korea.
“Many people wonder why a food delivery app like Baemin would launch a cosmetics brand. But I want to emphasize that we are not just a food delivery app, but a lifestyle platform. We want to bring more experiences to our customers, especially our young customers,” said Jinwoo Song.
When asked if the Korean technology unicorn will continue to heavily invest in the food delivery sector in Vietnam, the leader emphasized that this is still the area that brings the main user base to the app. Based on this user base, the company can develop other services to enhance the customer experience.
Newly launched cosmetic products are sold directly on Baemin app. Photo: Lan Anh.
So, the ambition of Baemin’s super app is becoming clearer and more distinctive. In recent years, Grab, Gojek, and Be have continuously integrated a range of services, from ride-hailing, delivery, food delivery, grocery shopping, to financial services, insurance, and travel…
Meanwhile, Baemin has launched Baemin Studio – innovative products and familiar household items, and now Lazy Bee cosmetics, alongside its food delivery, grocery shopping, and meal prep services.
These moves come as the food delivery industry’s growth has slowed down following the pandemic. According to a report from Momentum Works, the total value of goods in this sector only increased by 5% to $16.3 billion in 2022 compared to the previous year.
In Vietnam, Baemin holds a 12% market share of the food delivery industry in 2022, ranking third but still far behind the two giants GrabFood (45%) and ShopeeFood (41%). Momentum Works believes that the future challenge will be focused on the apps that do not have much presence in the market, as the competition will only be between 1-2 apps due to the fact that only these companies have enough strength to compete with each other.
It is unclear whether Baemin’s decision to enter the beauty industry at this time is appropriate or not, as the cosmetics market is also witnessing fierce competition among brands in the same segment. The company’s confidence comes from the figures showing that the size of Vietnam’s cosmetics market is currently around $2.63 billion and is expected to grow at an annual rate of 3.32% until 2027.
Baemin said that in the first 1-2 months of launch, Lazy Bee will only be sold through the Baemin app in Ho Chi Minh City before diversifying its distribution channels and expanding to other cities such as Hanoi or Danang.
Baemin is an online food delivery app present in Vietnam since May 2019, operated by Woowa Brothers Vietnam, a member of Woowa Brothers (South Korea). In 2021, Woowa Brothers joined Delivery Hero – a food delivery technology company that provides services in more than 50 countries, including 16 Asian countries.
@Zing News
Discover more from Vietnam Insider
Subscribe to get the latest posts sent to your email.