The Revenue Growth Challenge for Beauty and Fragrance Brands in the Digital Era

The rapid rise of e-commerce in recent years has driven the beauty and fragrance industry to expand aggressively into online channels. While this shift opens up tremendous growth opportunities, it also intensifies competition. In this landscape, many brands face the pressing question: how can they sustainably increase online revenue without relying solely on paid advertising or continuous discount campaigns?

The solution lies not only in adjusting pricing or ad budgets but in developing a comprehensive, data-driven strategy that integrates compelling content marketing, omnichannel advertising, and effective customer data utilization.

In this article, let’s explore key challenges faced by beauty and fragrance businesses and actionable strategies to help brands optimize online sales performance and build a sustainable digital growth model.

Market Overview: Vietnam’s Beauty and Cosmetics Industry

Vietnam currently boasts one of the highest average salary growth rates in the Asia-Pacific region, signaling a steady rise in disposable income and stronger purchasing power for beauty and personal care products. Alongside the country’s robust post-pandemic economic recovery, consumer goods—particularly cosmetics—are witnessing remarkable increases in spending.

According to industry forecasts, Vietnam’s cosmetics market is expected to achieve a compound annual growth rate (CAGR) of 5.3% between 2025 and 2033, ranking third in ASEAN, just behind Indonesia and Thailand. The boom in e-commerce, with over 100,000 active sellers across online marketplaces, continues to accelerate the industry’s expansion.

However, behind these promising numbers lie both opportunities and challenges. The key question remains: How can beauty and fragrance brands fully leverage shifting consumer behaviors and the surge in online shopping trends?

Challenges of Selling Beauty and Fragrance Products Online

While the internet provides unprecedented access to customers, beauty and fragrance brands face unique challenges in the digital marketplace. The inability for customers to test or experience products firsthand often raises doubts about quality and authenticity—issues further complicated by the widespread presence of counterfeit goods that undermine consumer trust.

Intense Competition

As previously mentioned, the online cosmetics market in Vietnam is highly dynamic, attracting participation from both global brands and local sellers. The wide variety of products and business models opens new revenue opportunities but also demands sharper, more strategic approaches to customer engagement.

Modern consumers can easily compare prices, product quality, customer service, and shopping experiences across brands. This makes it essential for businesses to invest in clear brand positioning and distinctive value propositions to build long-term competitiveness.

Rising Advertising Costs

Advertising remains one of the most powerful tools for customer acquisition—but it’s becoming increasingly expensive. High competition and evolving algorithms continue to drive up campaign setup costs.

According to Databox, the average cost per 1,000 impressions (CPM) across all industries on Facebook Ads is USD 5.61 (~142,000 VND), while the average cost per click (CPC) is USD 1.86 (~43,000 VND).

This means brands must not only optimize their marketing budgets but also develop smart, conversion-focused strategies to ensure sustainable profitability.

Building Customer Trust

Gaining consumer trust is one of the greatest challenges for beauty and fragrance brands in the online space. As the market grows, counterfeit and low-quality products become more prevalent—especially in cosmetics, where imitation goods are common. This forces consumers to be more cautious and requires brands to invest more effort in building credibility and transparency.

Additionally, the online shopping mindset differs significantly from in-store experiences. Customers can’t rely on sensory evaluation—such as scent, texture, or true color—which makes them more hesitant about product quality and authenticity.

Strategies to Boost Online Revenue for Cosmetics and Perfume Brands

Quality products need smart marketing strategies. In an increasingly competitive market, brands must not only reach the right customers but also elevate their online shopping experience.

Optimize Product Content

In the online beauty industry, customers can’t touch or test products directly. That’s why visual content plays a crucial role in building trust and influencing purchase decisions. Here are some tips to make your product content more engaging:

• Use authentic visuals and videos to showcase true colors and textures, helping customers identify key product features. For example, lipstick brands can illustrate color swatches on various skin tones so buyers can easily visualize the right shade for their style.
• Write inspiring, informative descriptions that reflect the brand’s value. Emotion-driven language and storytelling techniques — such as highlighting ingredients, production technology, or creative inspiration — help strengthen brand connection and consumer trust.

Refine SEO Strategies

In online retail, visibility at the right time and place directly impacts conversions — making SEO an essential investment. It not only increases brand exposure but also reduces ad costs and builds long-term credibility.

Key focus areas for effective SEO:

• Keyword research based on user intent using tools like Keyword.io or Ahrefs. Don’t overlook long-tail keywords that capture high-conversion intent — e.g., instead of “luxury lipstick,” target “matte lipstick for sensitive skin.”
• Create high-value content through SEO-driven articles like skincare guides, product comparisons, or FAQs to engage customers longer. For instance, a brand selling organic cosmetics could write “5 Natural Ingredients to Hydrate Dry Skin” and link related products.
• Build high-quality backlinks from trusted sources such as beauty magazines or review blogs. A skincare brand might collaborate with beauty bloggers for product reviews, linking back to the brand.
• Perfect on-page SEO by optimizing titles, meta descriptions, URLs, loading speed, and logical content structure. Ensure product pages align with brand voice and identity.

Smart Pricing and Promotions

Beyond product quality, pricing and promotions are among the top factors influencing purchase decisions. A well-timed pricing strategy can drive conversions, boost sales, and strengthen brand awareness — but overuse may hurt profitability.

Here’s how to strike the right balance:

• Psychological pricing: Set prices ending in “9” (e.g., 999,000₫ or 189,000₫) to create a sense of better value.
• Dynamic pricing: Adjust based on search trends, demand, and competition — for instance, slightly raise lipstick prices during Valentine’s season, or offer discounts during low-demand periods.
• Segmented pricing: Offer different product lines for various customer groups. For example, L’Oréal owns Maybelline and NYX (affordable) as well as Lancôme and Giorgio Armani Beauty (premium).
• Behavior-based promotions: Offer personalized discount codes for loyal customers or flash sales to trigger FOMO (fear of missing out).
• Gift-with-purchase campaigns: Include mini-size or sample gifts to enhance perceived value, especially during new product launches.

Leverage Influencer Marketing

Influencer marketing uses the credibility of public figures to deliver brand messages effectively. But success lies in thoughtful planning — not just partnering with popular names.

Steps to implement it effectively:

• Define campaign objectives: Whether to raise awareness, drive sales, or build trust. Collaborate with top beauty influencers for reach or assign exclusive discount codes to measure conversions.
• Select the right influencers: Nano or micro-influencers (with smaller but more engaged audiences) can target specific niches cost-effectively, while macro-influencers expand brand reach. Always ensure alignment between influencer persona and brand values.
• Adapt content to platforms: Use TikTok and Instagram Reels for short, trendy clips, while YouTube or Facebook fit longer, in-depth content.
• Preserve influencer authenticity: Avoid overly scripted campaigns — authentic, personality-driven content builds stronger audience trust and engagement.

Build a Strong Buyer Community

A loyal customer community drives repeat purchases, fosters interaction, and sustains brand growth. Engaged customers not only buy more but also become brand advocates through organic word-of-mouth.

Ways to cultivate a thriving community:

• Membership programs: Offer point-based rewards, exclusive discounts, birthday gifts, or early access to new products.
• Interactive content: Share beauty tips, tutorials, or livestreams while encouraging users to post reviews and personal experiences — creating a ripple effect of trust.
• Remarketing strategies: Retarget customers who viewed or abandoned carts to remind them and increase purchase completion rates.
• Community events and giveaways: Host mini-games or special promotions to spark engagement and strengthen customer relationships.

Tools for Data Measurement and Revenue Optimization

Data serves as the foundation for businesses to evaluate strategy effectiveness, identify growth opportunities, and optimize costs. Below are key tool categories that help track, analyze, and enhance revenue performance efficiently.

• Customer Behavior Tracking Tools:

Google Analytics, Facebook Pixel, and Hotjar enable businesses to understand user behavior and traffic sources, thereby improving the shopping experience, increasing conversion rates, and reducing bounce rates.

• Sales Performance Measurement Tools:

Platforms such as Google Data Studio and Power BI track sales performance across different channels and visualize results through dashboards. This allows business owners to easily monitor, evaluate, and refine their commercial strategies.

• Advertising Optimization Tools:

Google Ads, Facebook Ads Manager, and TikTok Ads Manager allow precise targeting by age, interests, and behaviors while optimizing ad budgets to achieve maximum efficiency.

• Customer Relationship Management (CRM) Tools:

CRM software like HubSpot and Zoho helps store customer data, track purchase history, and enhance customer care campaigns to improve retention rates. When integrated with Mailchimp, businesses can automate email campaigns based on user behavior, announce special offers, or introduce new products.

GLEADS Partners with Businesses to Drive Revenue Growth

Is your business seeking solutions to attract customers and optimize revenue in a highly competitive market? A well-planned marketing strategy is the key to reaching the right audience and boosting conversion rates.

GLEADS acts as a strategic partner in digital marketing, helping businesses improve website rankings, optimize advertising performance, and achieve sustainable sales growth. We provide effective marketing solutions while supporting your long-term development journey.

GLEADS Competitive Advantages

• Deep understanding of market trends and consumer behavior in the cosmetics and perfume industry.
• Tailored marketing strategies for each product segment and target audience.
• Multi-channel digital marketing solutions combining SEO, Google Ads, social media, and email marketing to maximize campaign performance.
• Engaging and creative content strategies that define brand style and strengthen market differentiation.
• Commitment to measurable results, providing clear campaign performance tracking, and ROI insights.

GLEADS Service Implementation Process

GLEADS applies a professional, optimized workflow to help cosmetics and perfume brands grow online revenue sustainably.

Step 1: Market Analysis

Before launching any campaign, GLEADS conducts in-depth research on market trends, consumer behavior, and purchasing habits within the cosmetics and perfume industry. Competitor strategies are assessed to identify market opportunities and develop a tailored roadmap.

Step 2: Website Assessment and Optimization

Our team evaluates SEO factors, page load speed, UX/UI, and content quality to ensure a strong foundation for attracting and converting customers. Areas requiring improvement are optimized to enhance search performance and the online shopping experience.

Step 3: Multi-Channel Digital Marketing Strategy

Based on your business objectives, we design a comprehensive marketing plan combining SEO, advertising, social media marketing, and email campaigns. Each channel is strategically planned to complement the others and maximize overall campaign effectiveness.

Step 4: Content Production and Optimization

GLEADS has a skilled content production team that creates SEO-optimized articles while strictly adhering to brand voice guidelines, ensuring consistency across all platforms and campaigns.

Step 5: Continuous Monitoring, Measurement, and Optimization

We leverage advanced tools such as Google Analytics, Google Search Console, and SEMrush to track campaign performance, assess conversion rates, and make timely strategy adjustments. Detailed reports are provided to give businesses full visibility on campaign efficiency and cost optimization.

In summary, boosting online revenue for cosmetics and perfume brands goes beyond product quality. It requires a structured marketing strategy that builds customer trust and enhances the shopping experience. We hope the insights and guidance shared by GLEADS can help businesses develop effective revenue growth solutions.

Are you ready to accelerate sales and establish a strong market presence? Contact GLEADS today for a free consultation and optimized digital sales strategy!