CHAPTER 1: INTRODUCTION

In today's competitive business landscape, companies are not only judged by their financial

performance but also by their ability to adapt and thrive within their business environment. This

applied business environment report focuses on Cocoon Vietnam, a Vietnamese brand known for its

ethical beauty practices that has become a symbol of conscious consumption. The report analyses

Cocoon Vietnam's business environment, focusing on macroeconomic and microeconomic factors,

industry trends, and consumer behaviour. It also explores strategic initiatives like sustainable

sourcing, community engagement, and digital marketing. The report provides recommendations for

Cocoon Vietnam to enhance its competitive advantage, capitalise on emerging trends, and sustain

growth in the ever-evolving cosmetics industry.

CHAPTER 2: FINDINGS AND DISCUSSION

1. Task 1

2.1.1 Overview of the company

In 2013, young Vietnamese beauty care enthusiasts created the first vegan product line, Cocoon,

known for its natural, benign products. The brand gained attention in the market due to its

innovative packaging and humane messages. Despite fierce competition, Cocoon conquers

customers with its beautiful stories and strict commitment to ingredient safety. Cocoon, derived

from the Vietnamese word "cocoon," is a concept aiming to beautify Vietnamese skin and hair

using 100% vegan cosmetic products. The company focuses on preserving the nutrients of

Vietnamese plants, using safe, benign ingredients, and rejecting animal testing. As society

advances, vegan cosmetics are becoming popular, and Cocoon is committed to researching and

continuously producing 100% vegan cosmetics products that retain the nutrients of Vietnamese

plants, are safe and benign, and do not use animal-based ingredients. The logo represents

incubation, nurturing, and beauty, with a cocoon shape symbolizing incubation and nurturing. A

flower shape symbolizes freshness and purity, while a green colour signifies life, development, and
environmental friendliness. The capital letter C represents the word cocoon and the first letter of

cruelty-free, meaning not tested on animals. Bringing Vietnamese people healthy, youthful, and

vibrant skin and hair from simple and familiar ingredients that you eat every day. Protect the ethical

beauty of Vietnam by not using animal ingredients and saying no to animal testing. Applying the

benefits of the foods around us combined with scientific understanding to create cosmetic products

that are safe and effective for everyone. Avoid animal-based cosmetic ingredients like honey,

beeswax, and silk, opt for cocoon and maximize active ingredients and plant extracts' capabilities.

Using natural and vegan ingredients from typical regions of Vietnam, such as Dak Lak coffee, Ben

Tre coconut, Tien Giang cocoa butter, Cao Bang rose, grapefruit, pennywort, squash,... The

company promotes ethical beauty in Vietnam by avoiding animal-based ingredients and testing,

ensuring safe, effective products for Vietnamese skin, and developing new products based on

endemic fruits using modern extraction technology. Short-term goal: Cocoon, a pioneer in the

vegan cosmetics market, aims to become Vietnam's most popular brand, prioritizing customer

satisfaction in all its activities. Long-term goal: Cocoon aims to become the leading vegan

cosmetics brand in Southeast Asia, while also raising environmental and animal awareness about

the benefits of nature-friendly cosmetics. Cocoon products are vegan cosmetics without animal

ingredients and are not tested on animals. They include skin, hair, bath, body, and lip care lines,

using natural Vietnamese ingredients like squash, roses, and turmeric. They are certified by

international organizations like Leaping Bunny and PETA. This brand's product portfolio resembles

a map of typical products from each country's region. Cocoon sources raw materials from

agricultural factories and follows the CGMP criteria of the Ministry of Health, ensuring a

production process that meets health standards.

Figure 1:the Cocoon rose cleansing oil Figure 2: squash toner Figure 3: the Cocoon pomelo hair tonic

2.1.2 Market structure

Focus on the Vegan Market: Cocoon can concentrate on creating and selling cosmetic products free

from animal ingredients, catering to consumers who value environmentally friendly alternatives.

Certified Vegan and Sustainable: Cocoon may make efforts to ensure that its products meet vegan

and sustainable standards, possibly by obtaining certifications from reputable organizations.

Promote Your Brand as a Vegan Option: Cocoon can build an advertising strategy that emphasizes

the vegan nature of the product, targeting customers interested in a vegan and sustainable lifestyle.

Gamble on the Vegan Trend: Be able to compete in the growing vegan cosmetics industry, with

increasing awareness of animal and environmental protection.

Vegan Research and Development: Cocoon can invest in research and development to create new

and unique products in line with vegan market trends.

2.1.3 Functional departments

Figure 4: department diagram

CEO: Overall management of the company's operations, devising business strategies, coordinating

with partners and state agencies.

Accounting department: Performs tasks related to revenue and expenditure, financial reporting, tax

finalization, and budget estimation.

Chief Accountant: Responsible for the quality and timeliness of financial reports, supervising and

guiding accounting staff.

Accounting staff: Perform accounting operations, account for revenues and expenditures, prepare

financial reports, and tax finalization.

Production department: responsible for processing, packaging, and checking the quality of

vegetarian cosmetic products made from natural ingredients.

Production Manager: Manage and coordinate production activities, plan production, control quality,

and solve problems that arise during the production process.

Production staff: Participate in production stages, such as raw material processing, packaging,

quality inspection, and product transportation.

Sales department: responsible for sales, distribution, and warehouse management of Cocoon

cosmetic products nationwide.

Sales Manager: Make business plans, set sales goals, allocate resources, monitor and evaluate

business performance, train and support sales staff.

Sales staff: Approach and advise customers, carry out sales transactions, monitor and resolve

customer complaints and feedback, and report business results.

Marketing department: responsible for market research, marketing strategy development, branding,

and promoting Cocoon cosmetic products to customers.

Marketing manager: Propose marketing strategies, make marketing plans and budgets, coordinate

with relevant parties, such as the sales department, production department, external partners,

monitor and evaluate marketing effectiveness, and report marketing results.

Marketing staff: Perform marketing tasks, such as market research, data analysis, design and

produce marketing content, manage communication channels, such as website, social, email, events,

collaborate with influencers and beauty experts.

Human Resources Administration Department: Responsible for administrative management,

human resources, office, security, and working environment of the company.

Head of human resources administration department: Plan and implement human resources policies,

such as recruitment, training, evaluation, rewards and punishments, welfare regimes, managing

employee records, and resolving personnel issues related issues.

Human resources administrative staff: Perform administrative tasks, such as purchasing,

maintenance, office arrangement, registration, storage, welcoming guests, coordinating work

schedules, organizing activities internal dynamics, ensuring security and working environment

Legal structure

Cocoon Cosmetics Company, a brand of Nature Story Co., Ltd., was established in Vietnam in

2013. As a private enterprise, it specializes in manufacturing and trading cosmetics. With a charter

capital of 10 billion VND, the company has two shareholders, Mr. Nguyen Van A and Ms. Tran Thi

B, who hold 60% and 40% of the shares respectively.

Nature Story Co., Ltd. operates a 5000 m2 factory in Ho Chi Minh City, equipped with modern

equipment. The company has branches, representative offices, and nationwide distribution systems,

exporting to various markets including Thailand, Singapore, Malaysia, Indonesia, Philippines,

Cambodia, Laos, Myanmar, Brunei, and East Timor.

2. Task 2

PESTLE analysis

A fundamental framework in management studies, the PESTLE model aids in understanding the

factors influencing organisational performance and initiatives. Through an analysis of the intricate

relationships between Political, Economic, Social, Technological, Legal, and Environmental

issues and how they affect the operation of the organisation, this research seeks to comprehend

Cocoon Vietnam, a cosmetic enterprise.

1. Political factors

Political factors, including the COVID-19 pandemic and the EU-Vietnam Free Trade Agreement

(EVFTA), can have both positive and negative impacts on Cocoon Vietnam. The COVID-19

pandemic has provided the Vietnamese government with measures to support industries affected by

the pandemic, such as the cosmetics industry (Rahman, M, 2023). These policies can help Cocoon

Vietnam maintain its cash flow, invest in research and development, and expand its distribution

channels.

The EVFTA has eliminated 90% of tariffs on Vietnamese exports to the EU, creating more

opportunities for the cosmetics industry to grow and export (Rahman, M, 2023). Cocoon Vietnam

can leverage its vegan and cruelty-free brand identity to gain more market share in the EU. The

development of the legal system and rule of law in Vietnam has improved its legal environment,

creating a more secure environment for Cocoon Vietnam to operate and grow.

However, the human rights situation in Vietnam is poor, with restrictions on freedom of expression,

association, and peaceful public assembly. The government controls media and censors posts on

social media and personal blogs, which can pose challenges for Cocoon Vietnam in communicating

and promoting its brand and products.

Corruption is also a problem in Vietnam, with evolving regulatory regimes and commercial law

often leading to a lack of transparency, uniformity, and consistency in government policies and

decisions on commercial projects. This can cause difficulties and costs for Cocoon Vietnam in
obtaining licences, permits, and approvals for its operations and dealing with bureaucracy and red

tape.

2. Economics factors

Economic factors play a crucial role in shaping the business environment and performance of a

company. Some positive impacts on Cocoon Vietnam include GDP growth, stable exchange rates,

low inflation, and competition in the cosmetics market. The country's GDP in 2020 was among the

highest globally, reflecting its resilience and potential ( Lê Thị Mai Anh, 2023). According to the

World Bank Group, the government has implemented measures to contain the COVID-19 pandemic

and support recovery efforts, benefiting Cocoon Vietnam from strong domestic demand and the

growing middle class.

The stable currency of the dong (VND) is managed by the State Bank of Vietnam (SBV), which

helps maintain the balance of payments and prevent excessive fluctuations ( Lê Thị Mai Anh,

2023). This stable exchange rate can help Cocoon Vietnam plan production and pricing strategies

effectively and enhance its competitiveness and profitability. The market is highly competitive, with

many domestic and foreign brands vying for market share. Cocoon Vietnam must differentiate itself

by offering natural, vegan, and cruelty-free products suitable for the Vietnamese skin and climate.

However, economic fluctuations and uncertainties can create difficulties and risks for Cocoon

Vietnam in terms of profitability and competitiveness ( Lê Thị Mai Anh, 2023). External shocks

and domestic instability can reduce export revenues and foreign exchange earnings, while the

COVID-19 pandemic has increased the inflation rate, reaching 3.54% in June 2023. These

fluctuations can also make it harder to forecast and control cash flow, expenses, and profits.

Economic regulations and policies, such as the EU-Vietnam Free Trade Agreement (EVFTA), can

create opportunities for Cocoon Vietnam, such as reducing trade barriers and increasing market

access. However, they can also create difficulties and costs, such as updating products and
processes to meet legal requirements and dealing with bureaucracy in obtaining licences, permits,

and approvals.

Lastly, Cocoon Vietnam may face threats of substitution and imitation from other brands offering

similar or substitute products at lower prices and higher quality. These brands can erode Cocoon

Vietnam's market share and brand loyalty by offering cheaper or similar products. To maintain and

improve product quality and innovation, Cocoon Vietnam must invest more in research and

development, branding, and customer service.

3. Social factors

Social factors play a significant role in shaping the values, beliefs, attitudes, and behaviours of

society. Some positive impacts on Cocoon Vietnam include the growing trend of using vegan

cosmetics, which are considered more natural, organic, and cruelty-free than conventional

cosmetics. Cocoon Vietnam is one of the first Vietnamese brands to cater to this trend by offering

100% vegan cosmetic products made from natural ingredients from various provinces of Vietnam.

( Đình Thái Trương, n.d.).

The rise of social media and online platforms has also created opportunities for Cocoon Vietnam to

communicate and promote its brand and products to the public ( Hùng, V. N.,2023). The company

has an active presence on Facebook, Instagram, and YouTube, where it posts news, information,

promotions, reviews, and tutorials about its products(Busch, M., et al, 2017). Cocoon Vietnam also

cooperates with online platforms like Lazada, Shopee, and Watsons to distribute and sell its

products online.

However, there are also negative impacts on Cocoon Vietnam. Many Vietnamese consumers lack

education and awareness about the benefits and advantages of vegan cosmetics over conventional

ones (Đình Thái Trương,n.d). They are often influenced by international brands, particularly those

from South Korea, Japan, and France, which dominate the Vietnamese cosmetics market.

Additionally, many consumers may be sceptical or indifferent about the claims of domestic brands,
leading to challenges in educating and raising consumer awareness about the value and difference

of its products.

Last but not least, Vietnam's diverse customer base in terms of culture and geography captures the

tastes and customs of many locales. It is challenging for Cocoon Vietnam to modify and tailor its

goods and tactics to meet the varied demands and expectations of consumers across different areas

concerning cosmetics.

4. Technological factors

Technological factors play a significant role in the business activities and performance of a

company. Some positive impacts of technological factors on Cocoon Vietnam include the rise of

social media and online platforms, which have become an integral part of daily life and

communication for the Vietnamese people. These platforms provide opportunities for Cocoon

Vietnam to communicate, promote its brand, and engage with customers.

Green technology and innovation are also developing ( Ha. N. et al, 2022), helping Cocoon

Vietnam improve product quality, efficiency, and reduce environmental impact. The company uses

natural ingredients from various provinces of Vietnam, such as Dak Lak coffee, Tien Giang

avocado, or Cao Bang roses, grown organically and ethically without pesticides or chemicals.

Cocoon Vietnam invests in research and development to create new, innovative products that meet

international standards and expectations. ( Lazarus, S.,2020)

Nevertheless, in terms of online business and data safety, Cocoon Vietnam faces risks and hurdles

due to the cyber security law, which went into force in January 2019 (Rahman, 2023). This law

mandates that foreign service providers create offices and servers in Vietnam, keep user data

locally, filter postings within 24 hours, and give information to the government.

The highly competitive and fragmented cosmetics market in Vietnam is dominated by international

brands, particularly from South Korea, Japan, and France, which account for over 90% of the
market share. These brands have more resources, reputation, and influence, as well as advanced

technology and innovation capabilities (The Missing Middle: A Political Economy of Economic

Restructuring in Vietnam, n.d.), which can erode Cocoon Vietnam's market share and brand loyalty.

To maintain and improve product quality and differentiation, Cocoon Vietnam may need to invest

more in technology and innovation.

5. Legal factors

Legal factors play a crucial role in governing a company's business activities and transactions. The

EU-Vietnam Free Trade Agreement (EVFTA) has provided opportunities for the cosmetics industry

to grow and export, as it eliminates 90% of tariffs on Vietnamese exports to the EU. This can

benefit Cocoon Vietnam by using natural ingredients from different provinces of Vietnam, such as

Dak Lak coffee, Tien Giang avocado, and Cao Bang roses.

The development of the legal system in Vietnam has improved its rule of law, creating a more

secure environment for Cocoon Vietnam to operate and grow. The Law on Enterprises and the Law

on Investment have simplified procedures and conditions for establishing and operating businesses,

while the Law on Intellectual Property strengthens the legal framework for protecting trademarks,

patents, and trade secrets. The Law on Trade Union clarifies the roles and responsibilities of trade

unions, employers, and employees in labour relations, enhancing efficiency, productivity,

profitability, social responsibility, and reputation.

Nonetheless, Cocoon Vietnam continues to face difficulties due to the intricate and inconsistent

legal structure in Vietnam and its application. There are often overlaps, conflicts, gaps, and

ambiguities in the legal provisions, leading to confusion and uncertainty for businesses and the

public. Additionally, discrepancies and delays in the enforcement and application of laws by

authorities and courts, as well as a lack of effective mechanisms for monitoring and evaluating legal

compliance, can cause problems and costs for Cocoon Vietnam.

6. Environmental factors
Environmental factors play a significant role in the business environment and performance of a

company. Some positive impacts of environmental factors include the availability and diversity of

natural resources in Vietnam, which can provide raw materials for the cosmetics industry. Cocoon

Vietnam can benefit from these resources by using natural ingredients grown organically and

ethically without pesticides or chemicals. Green technology and innovation are also being adopted

to improve product quality and efficiency, reduce environmental impact, and reduce costs.

However, climate change has negative impacts on the natural resources and consumers that Cocoon

Vietnam relies on. Extreme weather events can damage crops and plants, affecting the health and

well-being of consumers. Cocoon Vietnam may have to adapt and mitigate the effects of climate

change, such as securing and diversifying raw material sources, ensuring product quality and safety,

and satisfying changing consumer needs.

Vietnam faces environmental issues such as land degradation, forest degradation, loss of

biodiversity, water pollution, air pollution, and solid waste management. These issues can affect the

availability and quality of natural resources and consumers, reducing soil fertility, habitat, and

biodiversity. Compliance with environmental regulations and policies, such as the Law on

Environmental Protection (2020), the Law on Biodiversity (2008), the Law on Forest Protection and

Development (2017), and the Law on Water Resources (2012), can create opportunities and benefits

for Cocoon Vietnam, such as enhancing its environmental responsibility and reputation while

reducing risks and liabilities. However, they can also create difficulties and costs for Cocoon

Vietnam, such as requiring compliance with environmental standards and requirements and

implementing environmental management and monitoring systems.

3. Task 3

Vietnam's cosmetics sector is fiercely competitive, with several companies fighting for consumers'

loyalty and market share. Government regulations, external influences, and shifting consumer

behaviour present possibilities as well as dangers for Cocoon Vietnam. To evaluate the performance
and profitability of the company in an ever-changing industry, this task will undertake a SWOT

analysis and use Porter's Five-Force model.

1. SWOT analysis

Strengths Weaknesses
- The first Vietnamese cosmetic brand to be certified - The low level of education and

by Leaping Bunny and PETA as vegan and cruelty- awareness among consumers about the

free. benefits and advantages of vegan

- The wide range of products that cater to different cosmetics.

skin types and needs uses simple and familiar

- The competition and pressure from
ingredients from Vietnamese plants. Use of natural
domestic and foreign cosmetic brands in
ingredients from different provinces of Vietnam, such
terms of technology and innovation.
as Dak Lak coffee, Tien Giang avocado, or Cao Bang

roses. - The complexity and inconsistency of the

- The active presence and cooperation on social legal system and the implementation of

media and online platforms, such as Facebook, the laws in Vietnam.

Instagram, Youtube, Lazada, Shopee, and Watsons,

- The cyber security law and its
has a wide distribution network, covering more than
implications for the online business and
63 provinces and cities in Vietnam.
data protection of Cocoon Vietnam.
- The affordable and reasonable prices of the
- The cocoon products are readily copied
products are suitable for the average income of
and counterfeited due to their huge jar
Vietnamese consumers.
form, thick texture, and large scrub
- The products are of high quality, meeting
particles. They may also demand more
international standards and customer expectations.
usage per application.
 Opportunities Threats

- The demand for natural and vegan cosmetics - The climate change and its effects on the natural

is increasing, as consumers are more aware of resources and the consumers

the environmental and ethical impacts of their - The environmental issues and regulations in Vietnam
- The substitution and imitation from other brands that
choices.
offer similar or substitute products
-The sustainable and respectful ecosystem
- Consumers are becoming more demanding and
of Cocoon inspires positive emotions and
discerning, expecting more value and benefits from
values for consumers, who want to
the products they use. They still have a preference
contribute to the protection of animals and
for foreign goods, as they perceive them as more
nature.
prestigious and reliable.
- The elimination of 90% of tariffs on Vietnamese
- The economic fluctuations and uncertainties due to
exports to the EU by the EVFTA
the COVID-19 pandemic and other external shocks.
- The domestic cosmetic market is growing, as

consumers prefer local brands over foreign ones,

especially with the government's policy of

"Vietnamese people use Vietnamese goods".

- The development of green technology and

innovation.

2. Porter’s Five Forces analysis

 Competition in the industry.

Cocoon VietNam operates in a highly competitive and fragmented industry, with many rivals

offering similar or substitute products. The competition is based on factors such as price, quality,

variety, innovation, distribution, promotion, and customer service. Cocoon VietNam may have a
competitive advantage in terms of its vegan and cruelty-free positioning, but it may also face

pressure from other brands that have lower costs, higher market share, or stronger brand loyalty.

 Potential of new entrants into the industry.

The threat of new entrants into the cosmetic industry is moderate, as there are some barriers to

entry, such as capital investment, regulatory compliance, product development, and market access.

However, there are also some opportunities for new entrants, such as the growing demand for

natural and ethical cosmetics, the availability of online platforms and channels, and the low

switching costs for customers. Cocoon VietNam may face challenges from new entrants that can

offer more innovative, differentiated, or affordable products.

 Power of suppliers.

The power of suppliers in the cosmetic industry is low, as there are many suppliers of raw materials,

packaging, and other inputs, and they have low bargaining power over the prices or terms of the

contracts. Cocoon VietNam may have some advantages in sourcing its ingredients from local and

organic farms, but it may also face risks of supply shortages, quality issues, or price fluctuations.

 Power of customers.

The power of customers in the cosmetic industry is high, as they have many choices of products and

brands, and they have high bargaining power over prices or discounts. Customers are also becoming

more informed, discerning, and demanding, and they can easily compare and switch products based

on their preferences, needs, or feedback. Cocoon VietNam may have some loyal customers who

value its vegan and cruelty-free philosophy, but it may also need to attract and retain more

customers by offering more value, benefits, or satisfaction.

 The threat of substitute products.

The threat of substitute products in the cosmetic industry is high, as many products can perform the

same or similar functions as cosmetics, such as natural remedies, homemade solutions, or medical

treatments. Customers may also reduce their consumption of cosmetics due to health,

environmental, or ethical concerns, or due to the changes in their lifestyle, habits, or preferences.

Cocoon VietNam may have some differentiation in terms of its vegan and cruelty-free features, but

it may also need to innovate and adapt to the changing customer needs and expectations.

4. Task 4

1. Core values and ethical standards

Cocoon, a natural product company, values good citizenship and social responsibility to its

employees, customers, suppliers, and stakeholders. The company's core values, ethical standards,

and principles are described, along with how it adjusts its management and administrative views to

meet these requirements.

1. Core values

 Among the core values of the natural vegan cosmetics company, Cocoon VietNam are respect

for humankind, the environment, and science.

 Nature: Cocoon employs natural components like squash, mint, tea tree, coffee, and other

things that Vietnamese people are accustomed to. In its cosmetics, Cocoon does not utilize

any hazardous substances or materials originating from animals.

 Humanity: Cocoon has earned certification from the Leaping Bunny program and PETA for

producing vegan and cruelty-free goods. In addition to protecting the environment and

public health, Cocoon uses inexpensive, readily available chemicals to make Vietnamese

people look more attractive.

 Science: To preserve the greatest possible advantages of the natural ingredients in its

products, Cocoon employs cutting-edge technology and scientific knowledge. Cocoon

guarantees the efficacy and safety of its products for all users.
 2. The ethical standards

Cocoon VietNam is a cosmetic brand that follows the principles of veganism and cruelty-free

production, some of the ethical standards of Cocoon VietNam are:.:

-Utilising organic components derived from Vietnamese flora. To make goods that are high in

vitamins, minerals, and antioxidants, Cocoon VietNam employs common components that

Vietnamese people often use in their everyday lives, such as squash, mint, tea tree, coffee, and

grapefruit essential oil.

- Creating items without any dangerous ingredients. Ingredients that might irritate skin or lead to

health issues, such as triclosan, hydroquinone, formaldehyde, phthalates, and parabens, are not used

by Cocoon Vietnam. Additionally, it refreshes the list in accordance with the guidelines set out by

the Vietnamese Ministry of Health and prohibits hundreds of dangerous chemicals.

- Committing to no animal testing or cruelty. Cocoon VietNam is the first Vietnamese cosmetic

brand to be approved by the Leaping Bunny programme of Cruelty-Free International and certified

by PETA as a brand that does not test on animals or use animal-derived ingredients². It also

supports animal welfare organisations and campaigns.

2.4.1 Corporate Social Responsibility of Cocoon Cosmetics

Cocoon VietNam’s corporate social responsibility is manifested in their support for various social

and environmental causes, such as animal welfare, environmental protection, education, health, and

community development:

 Giving away small green sprouts, for a green Earth: Cocoon attaches small succulent pots in

each package to encourage customers to take care of the “mini lungs” of the Earth.
  Exchange old bottles for new products: Cocoon encourages customers to recycle old bottles

by exchanging them for new products, reducing the amount of plastic waste to the

environment

 Cloth bags with Cocoon’s brand and a message to refuse single-use plastic bags: Cocoon

gives customers fashionable and convenient cloth bags, and reminds them to limit the use of

plastic bags

 Accompanying Ho Chi Minh City University of Education “Protecting the environment,

restoring the ecosystem”: Cocoon supports organizing the first environmental seminar and

contest in 2021, aiming to convey knowledge and awareness of environmental protection to

students and young people

 Cocoon x Animals Asia AAF: Discover the limited edition to protect the bears: Cocoon

contributes to the fund of Animals Asia in Vietnam, to rescue and nurture the bears that are

exploited for bile.

 Cocoon x Suboi: Love Your Nature - Cứ tự nhiên đi: Cocoon collaborated with artist Suboi

to promote love and respect for the natural self, particularly the LGBTQ+ community, with

a limited edition Squash Makeup Remover featuring rainbow flag packaging.

CHAPTER 3: CONCLUSION
Cocoon, a leading brand in Vietnam, offers high-quality cosmetic products, impressive packaging,
and environmental programs. It is a pioneer in the vegetarian cosmetics trend, improving formulas
and promoting green and animal protection. However, Cocoon faces both opportunities and
challenges in the Vietnamese cosmetics market. The market is growing, with high consumer
demand and a growing vegan trend. Challenges include fierce competition, rapid technological
changes, and difficulty controlling raw material sources and product quality. To survive, Cocoon
must maintain its competitive advantage through differentiation, ethics, sustainability, innovation,
expansion, stakeholder relationships, and community and societal values.

Cocoon Vietnam understands external macro-environmental factors affecting the cosmetic

enterprise. Social factors highlight the growing trend of vegan cosmetics, while cybersecurity law
poses risks. Legal factors, driven by the EVFTA and improvements in Vietnam's legal system,
present growth opportunities, but the complex and inconsistent legal structure introduces hurdles.
Environmental factors emphasize the abundant natural resources available to Cocoon Vietnam but
also highlight the need to address climate change impacts and comply with environmental
regulations.