Alibaba strengthens presence in Vietnam with stake in beauty chain Hasaki

According to DealStreetAsia’s report on November 18, Chinese retail giant Alibaba has agreed to acquire a minority stake in Vietnam-based beauty and cosmetics chain Hasaki.

Backed by Hong Kong-based venture capital firm Excelsior Capital Asia, Hasaki has demonstrated resilience and growth in a challenging economic environment.

“We are thrilled to welcome Alibaba International as a financial investor. Despite the challenging macroeconomic conditions, this transaction is a testament to Hasaki's business model and capability,” said Hiep Dinh, founder and CEO of Hasaki.

Ho Chi Minh City-based Koru Capital served as the financial advisor for Hasaki in this deal. Established in 2016, Hasaki now boasts over 140 stores across Vietnam and operates a robust online retail platform, including a website, mobile application, and an e-commerce shopfront.

As of November 2023, Hasaki has amassed a total of 3.8 million members, with approximately 750,000 monthly shoppers. The company aims to capture at least 35 per cent of the domestic market share by 2027.

In their statement, Hasaki highlighted the fast-growing nature of the beauty and personal care segment in Vietnam, with the market valued at $2.2 billion and witnessing an annual growth rate of 7 per cent. This sector is undergoing a transformation, with modern retailers replacing traditional individual sellers and small stores.

Another notable investment in Vietnam's beauty sector was Mekong Capital's backing of Beauty Box in 2021, following L Catterton-supported Social Bella's market entry a year earlier.

Regarding the new investor in Hasaki, AIDC is a business unit spun off from Alibaba Group following corporate restructuring in March this year. AIDC manages Alibaba.com, China's largest integrated international online wholesale market, and owns several international retail businesses, including Lazada, AliExpress, Trendyol, and Daraz.

AIDC's financial report for Q3 2023 showed a 53 per cent revenue increase year-over-year, reaching $3.36 billion.

“In the coming years, we believe that international markets will offer significant growth potential. Therefore, we will intensify our investments in high-potential markets within selected regions and capitalise on highly probable opportunities,” a representative from Alibaba said.

In Vietnam, Alibaba has also invested in The CrownX, an integrated retail platform of Masan Group. In 2021, the Chinese behemoth, along with BPEA EQT, led an investor group to acquire a 5.5 per cent stake in The CrownX, totalling $400 million in cash.

Jardine Cycle & Carriage invests $350 million in THACO Truong Hai Corporation (THACO Group) – one of Vietnam’s largest privately held conglomerates - successfully issued bonds totalling approximately $350 million on November 14, marking the largest single bond offering in Vietnam since the beginning of the year.