Perspectives · Cosmetics Industry

Influencers can drive sales, but they do not build memory

Local Vietnamese cosmetics brands are paying to be remembered today, only to be forgotten tomorrow.

Quick summary

Influencers create reach and short-term conversions, but do not create independent brand memories. When the KOL budget stops, the recognition also stops because the brand has never owned any identifying asset in the customers' minds. The solution does not lie in choosing better KOLs but in building a robust identity system.

Sinh Vũ observes a repetitive loop in the domestic cosmetics industry: a brand launches, pours budget into KOLs, sales spike for a few weeks, then silence. Pour in more budget, and sales return. Stop, and silence returns. Eventually, the budget is no longer sufficient to maintain that rhythm. The brand disappears, not because of poor products but because it never built anything in the customers' minds.

The mechanism of a single purchase

When a KOL reviews a product, what happens in the viewer's mind is not "I need to remember this brand." What happens is "this person is trustworthy, this product looks okay, I'll give it a try." The purchase decision is anchored in the credibility of the reviewer, not in the brand. Customers remember "the serum that sister X introduced," not the brand name on the box.

Byron Sharp refers to this as the issue of Mental Availability: the ability of a brand to come to mind at the moment a customer is ready to buy. Mental Availability cannot be built by others on behalf of the brand. It is built by consistently repeating unique identifying signals long enough to leave a trace in memory. KOLs create reach. Consistent repetition creates memory.

80%The failure rate of new cosmetic products within the first 12 months. Source: widely cited industry estimates in Nielsen's report on fast-moving consumer goods.

Why do local brands easily fall into traps

The barriers to entry in the Vietnamese cosmetics industry are almost nonexistent. A contract manufacturer, a bottle sourced from a Chinese supplier, a cheap outsourced design file: products can be launched within weeks. As a result, the market is flooded with similar-looking serums and creams, lacking any strong identifying signals to differentiate them. In this context, KOLs become the quickest path to instant differentiation because their personal credibility overshadows the similarities of the products.

But this is the trap. Brands are borrowing credibility instead of building it. Every dollar spent on KOLs makes their faces more memorable, not the brand itself. When the budget runs out, that face moves on to another brand. The brand is left empty-handed.

Over 1.3 billion USDThe value of imported cosmetics in Vietnam increased by 17% according to data from the Import-Export Department, Ministry of Industry and Trade. Domestic products account for less than 10% of the market share, highlighting the competitive pressure local brands face.

Influencer marketing is not wrong, the usage is what’s wrong

Sinh Vũ does not see KOLs as the enemy of the brand. The issue lies in the order: most local brands use KOLs before establishing a foundation of identity, rather than after. When a brand does not own any unique identifying assets, such as distinctive colors, consistent language, or an uncopyable story, KOLs are merely temporary sales pumps. Once the brand has that foundation, KOLs can become a true amplification channel.

Cocoon is a case worth studying. They built a story around the regional origins of their ingredients, achieving Leaping Bunny and PETA certifications before widely engaging KOLs. When KOLs talk about Cocoon, they amplify things that already exist and can be verified. Customers buy not just because of the face on the video but because the story behind that product has its own weight.

Distinctive assets only create Mental Availability when consistently repeated long enough to form traces in memory.

Jenni Romaniuk, Building Distinctive Brand Assets (Ehrenberg-Bass Institute)

Identity assets belong to you

Jenni Romaniuk defines Distinctive Brand Assets through two dimensions: Fame (level of popularity) and Uniqueness (level of distinctiveness). A true identifying asset must achieve both. The orange color of Hermès is an asset. The unnamed pastel blue on your cream box is not, as it is neither unique nor popular enough to anchor in anyone's memory.

Identifying assets can include colors, packaging shapes, brand language, distinctive scents, or an uncopyable origin story. The common thread: they belong to the brand, not to the person currently reviewing on their phone. When you invest in building and consistently repeating these assets across all touchpoints, packaging, website, social media channels, customer service language, the brand begins to accumulate memories in customers' minds without anyone doing it for them.

38%Customers are willing to pay a higher price for brands that are perceived as "meaningful and different" compared to competitors in the same segment. Source: Kantar BrandZ, around 2020.

The way out: build first, amplify later

For a local cosmetics brand that is dependent on KOLs, the real question is not "Should we stop using KOLs?". The question is: "If all KOL channels stopped today, what would remain of the brand in customers' minds?"

If the answer is "not much," that is a clear sign that the budget is flowing into a bottomless pit. Each KOL campaign generates purchases but leaves nothing cumulative. The solution is to stop allocating the entire marketing budget to amplification channels and dedicate a portion to building identifying assets that can accumulate over time. There is no need to stop using KOLs. It is necessary to invest in things that will remain after the last KOL contract ends.

  • Identify one or two distinctive identity assets and commit to consistent repetition.
  • Build a brand origin story or perspective that cannot be replicated by competitors.
  • Ensure packaging, language, and brand behavior are consistent across all touchpoints, not just in KOL clips.
  • Measure not only the campaign sales but also the brand's natural recognition over time.
Note on the data: The figure that 80% of new cosmetic products fail within 12 months is widely cited in industry reports and often referenced in Nielsen's research on fast-moving consumer goods. There is no single published report that can verify this figure specifically for the Vietnamese cosmetics market. Sinh Vũ uses this figure as a directional indicator of risk, not as an accurate statistic for the domestic market.

References

Byron Sharp, How Brands Grow (Ehrenberg-Bass Institute). Jenni Romaniuk, Building Distinctive Brand Assets. McKinsey & Company, The Business Value of Design, 2018. Kantar BrandZ ~2020. Data on the Vietnamese cosmetics industry: Import-Export Department, Ministry of Industry and Trade.

Frequently asked questions

Should Vietnamese cosmetic local brands use KOLs?

KOLs are amplification tools, not the foundation of a brand. Using KOLs effectively occurs when the brand already has a clear identity: colors, language, and unique stories. At that point, KOLs amplify what already exists. Conversely, if there is no foundation, KOLs only buy views without accumulating anything for the brand.

Why do customers buy through KOLs but not return for a second purchase?

"Because the first purchase decision is anchored in the credibility of the KOL, not in the memory of the brand. Customers remember 'the serum that sister X reviewed' but not the brand name. The next time, sister X reviews a different product, and the customer buys that instead. This is an issue of Mental Availability (the ability to be present in the customer's mind when they have a need), and KOLs cannot build that for the brand."

Where should you start if you want to break free from the KOL dependency loop?

"Start with the question: if all logos and brand names were removed from the packaging, would customers still recognize your product? If not, the brand does not own any identifying assets. The next step is to identify one or two distinctive identifying assets (colors, shapes, language, origin stories) and then invest in consistently repeating them across all touchpoints, even without KOLs."

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