Alibaba Buys Minority Stake in Vietnam Beauty Retailer Hasaki
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Alibaba has agreed to acquire a minority stake in Vietnamese cosmetics chain Hasaki, securing direct exposure to an omnichannel beauty network with more than 140 physical stores.
According to a report on November 18, 2023, the transaction gives the Chinese retail giant direct access to a domestic beauty and personal care sector valued at $2.2 billion that is growing at 7 per cent annually.
Hiep Dinh, founder and chief executive of Hasaki, confirmed the partnership with Alibaba International as modern specialty chains continue to displace independent merchants across Vietnam.
Terms and Network Scale
Hasaki operates a retail platform spanning its nationwide branch footprint, an e-commerce website, a mobile application and online store accounts. Ho Chi Minh City-based Koru Capital served as the financial advisor to Hasaki for the transaction.
Hong Kong venture capital firm Excelsior Capital Asia previously backed the retailer, which was founded in 2016. As of November 2023, the chain counts 3.8 million members and has approximately 750,000 monthly shoppers.
Modern Trade Displaces Independent Shops
Vietnam’s beauty trade is shifting away from fragmented street shops and individual vendors toward standardised retail chains. Structured store networks offer verified supply chains, which matter to consumers wary of counterfeit products in personal care.
Specialty chains also hold bargaining use against international beauty brands seeking reliable nationwide distribution. For commercial landlords, dedicated health and beauty outlets represent steady footfall drivers as shopping centres expand outside tier-one urban cores.
Strategic Deployment in Southeast Asia
Alibaba completed the transaction through Alibaba International Digital Commerce (AIDC), the business unit formed during the parent group’s corporate restructuring in March 2023. AIDC runs wholesale platform Alibaba.com alongside regional consumer operations including Lazada, AliExpress, Trendyol and Daraz.
AIDC lifted its third-quarter 2023 revenue by 53 per cent year-on-year to $3.36 billion. Backing offline networks provides Alibaba with logistics and customer-acquisition infrastructure that purely digital storefronts struggle to duplicate efficiently.
Competition for organised cosmetics sales in Vietnam has accelerated over the past three years. Mekong Capital backed local chain Beauty Box in 2021, following the market entry of Social Bella with support from L Catterton in 2020.
Building Offline Reach in Vietnam
The deal builds on previous capital deployments by Alibaba in Vietnamese consumer infrastructure. In 2021, Alibaba teamed up with BPEA EQT to lead a $400 million cash purchase of a 5.5 per cent stake in The CrownX, the integrated retail subsidiary of Masan Group.
That transaction paired Lazada’s online channel with Masan’s grocery network, setting a precedent for integrating tech operations with brick-and-mortar shelf space.
Hasaki has set a target to control at least 35 per cent of Vietnam’s domestic beauty and cosmetics market share by 2027.
Questions & Answers
Q.Why is Alibaba investing in physical store networks in Vietnam?
Why is Alibaba investing in physical store networks in Vietnam?
Backing offline networks gives Alibaba logistics and customer-acquisition infrastructure that purely digital storefronts struggle to duplicate efficiently. The investment also gives the company direct access to Vietnam's 2.2-billion-dollar beauty and personal care market, which is expanding at 7 per cent annually as consumers shift to structured retail chains.
Q.Which entity within Alibaba executed the transaction and what does it operate?
Which entity within Alibaba executed the transaction and what does it operate?
The transaction was completed by Alibaba International Digital Commerce, a business unit established during corporate restructuring in March 2023. Alongside wholesale platform Alibaba.com, the division oversees regional consumer platforms including Lazada, AliExpress, Trendyol and Daraz, generating 3.36 billion dollars in third-quarter 2023 revenue.
Q.What prior experience does Alibaba have with brick-and-mortar retail in Vietnam?
What prior experience does Alibaba have with brick-and-mortar retail in Vietnam?
In 2021, Alibaba and BPEA EQT led a 400-million-dollar deal to acquire a 5.5 per cent stake in The CrownX, Masan Group's retail subsidiary. That transaction linked Lazada’s online platform directly with Masan’s physical grocery network to integrate digital operations with physical shelf space.
Q.What is Hasaki's current scale and future market target?
What is Hasaki's current scale and future market target?
Hasaki operates more than 140 physical shops alongside its mobile application and e-commerce website, counting 3.8 million members and roughly 750,000 monthly shoppers. The retailer has set a strategic target to capture at least 35 per cent of Vietnam’s domestic beauty and cosmetics market by 2027.
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