Cocoon is not only a vegancosmetic brand but also the pride of Vietnamese people when this is the firstyoung Vietnamese company in vegan cosmetics that is not afraid of challengesand dar
BỘ GIÁO DỤC VÀ ĐÀO TẠO ĐẠI HỌC QUỐC GIA THÀNH PHỐ HỒ CHÍ MINH TRƯỜNG ĐẠI HỌC KINH TẾ - LUẬT - - FINAL PROJECT Subject: Digital Transformation & AI Class: 222MI5216 2022-2023 Lecture: Nguyễn Thế Đại Nghĩa INTRODUCTION Digital transformation became well known across the world in 2017, after it first started to be mentioned commonly about 2015 in general and in Vietnam, digital transformation began to be mentioned in 2018 With the era of the 4.0 industrial revolution, applying digital transformation and AI to business sectors has become an undeniable trend Applications of digital transformation appear in many aspects of life The natural cosmetics industry is no exception Cocoon is constantly upgrading quality, technology, and services to bring the best experience to customers The founder of Cocoon has committed that only using ingredients close to Vietnamese people and not testing on animals has made Cocoon a big score in the hearts of the public Cocoon is not only a vegan cosmetic brand but also the pride of Vietnamese people when this is the first young Vietnamese company in vegan cosmetics that is not afraid of challenges and dares to innovate according to the needs of customers and capture the market quickly Cocoon has distributed its products on a large scale in retail stores familiar to Vietnamese people and even on e-commerce platforms with huge sales every day As consumers become increasingly aware of the harmful effects of synthetic ingredients on their health and the environment, the demand for natural cosmetics is on the rise In response, natural cosmetics brands are constantly seeking ways to innovate and improve their products and services to meet customers' evolving needs One of the ways to achieve this is through the application of digital transformation and artificial intelligence (AI) in their production and marketing and management processes Cocoon has the potential to enhance its position in the market by leveraging the power of digital transformation It can be said that developing products and services, applying technology, and digitizing businesses to take full advantage of Cocoon's system and potential is identified as the core strategy of Cocoon at this time and in the future In the following report, the benefits of applying digital transformation and AI in Cocoon's operations will be clarified, a detailed implementation is mentioned and possible solutions to address it will also be suggested 2 TABLE OF CONTENTS BỘ GIÁO DỤC VÀ ĐÀO TẠO 1 ĐẠI HỌC QUỐC GIA THÀNH PHỐ HỒ CHÍ MINH 1 TRƯỜNG ĐẠI HỌC KINH TẾ - LUẬT 1 INTRODUCTION 2 1.1 The history of formation and development 4 1.2 Vision and Mission 4 1.3 Business model and Revenue model .5 1.4 Business operation overview 6 II Analysis of enterprise 7 2.1 SWOT analysis 7 2.2 Competitors analysis .9 2.3 Recommended solution for Cocoon .13 2.3.1 Application of Big data and AI in promoting customers’ experience 13 2.3.2 Store location 15 2.3.3 Improve the quality of human resources 16 2.3.4 Improving business activities 16 III Implementation 17 3.1 Planning 17 3.2 Implementing 18 3.3 Risk forecasting .22 IV Conclusion 24 4.1 Solution evaluating 24 4.1.1 Application of Big data and AI in promoting customers’ experiences 24 4.1.2 Improve the quality of human resources 25 4.1.3 Improving business activities 25 4.1.4 Store location 26 4.2 Solution controlling .26 CONCLUSION 30 GROUP MEMBER EVALUATION FORM 31 3 I Overview of the enterprise 1.1 The history of formation and development Cocoon - one of the pure Vietnamese cosmetic brands launched to the public in 2013, belongs to Nature Story Cosmetics Co., Ltd., - Vietnam The Cocoon brand was born with the simple reason of bringing healthy skin and beautiful hair to Vietnamese people with familiar and close ingredients that are used every day Thanks to its mission and commitment to consumers, Cocoon always creates products derived from Vietnamese nature, extracted from plants of clear origin, and constantly improves product quality After years of being introduced to the public, Cocoon has unexpectedly grown This brand has been conquering Vietnamese consumers with professionalism, outstanding quality, and efficiency through each product It is true that when it comes to "vegan cosmetics," people often think of Cocoon first Achievement - 08/2020, Cocoon received the "Animal test-free & Vegan" certification (not tested on animals and vegan) from the global animal rights organization PETA - 11/2020, approved in the non-animal testing program Leaping Bunny of Cruelty Free International - 12/2020, the Cocoon brand is certified "Vegan" by The Vegan Society - the world's oldest educational charity - 11/2021, Cocoon received an "Inspiring Brand" award at the Asia Pacific Enterprise Awards (APEA 2021) This is a title honoring successful businesses while creating good values for the community -> From the philosophy of being vegan and sustainable, the Cocoon brand wants to convey to many people raising their awareness about environmental and animal protection 1.2 Vision and Mission - Vision: Developing Cocoon cosmetic brand with pride, a cosmetic brand 100% made in Vietnam - Mission: To create cosmetics that are both safe and effective for everyone by integrating the advantages of the foods we consume with scientific knowledge 4 1.3 Business model and Revenue model Cocoon’s key partners Organic ingredients retailers, KOLs Cocoon’s key activities Online store sales, social media marketing, doing market research Cocoon’s value proposition - High-quality and affordable beauty products - Cruelty-free cosmetics - 100% ingredients are clearly sourced and safe for the skin Cocoon’s customers relationship - Customer services - Social media Cocoon’s customers segment Young women between the ages of 15 and 30, who adore beauty and desire the self-assurance to express themselves are the target market, living in urban areas such as Ho Chi Minh, Ha Noi, Da Nang, Hai Phong Cocoon’s key resources - Resellers: distributed more than 300 points through national makeup sales networks - Website: The Cocoon original Vietnam Cocoon’s channels 5 - Location: Cocoon's office is in District 3 of Ho Chi Minh City - E-commerce: Products are distributed to 174 sellers on the e-commerce floor In 2022, Cocoon twice appeared in the top 5 prominent sellers in the Personal Care industry on the events of Shopee e-commerce site Shopee counts for 86.1% of total sales and 88.9% of volume Following that, Lazada accounts for 12.5% of total sales and 9.5% of volume Lastly, Tiki accounts for 1.4% of total sales and 1.6% of volume Cocoon’s cost structure - Costs of management and operation, marketing, distribution, and facilities - Employees’ salaries Cocoon’s revenue stream - Retail sales - Sales of cosmetic products 1.4 Business operation overview 1.4.1 Financial resources This vegan cosmetics company's sales in Vietnam is expanding significantly, by an average of 65% every year The Vietnamese market generated $1,037 billion in revenue for the Company in 2019 Cocoon earned $1,037 billion from the Vietnamese market as well Unlike many other domestic cosmetic firms, Cocoon selects a niche market and is a pioneer in the use of vegan products and the absence of animal testing Cocoon will have made $10 billion in sales by the end of 2021 1.4.2 Product portfolio Cocoon captures the psychology of Vietnamese customers, so the products are aimed at all types of customers Cocoon's product lines are very diverse and mainly focus on hair care products, skin care products, shower gels, body lotions and lip balms with many different prices and volumes depending on the product to meet everyone's needs - Skin care is divided into three main lines: Pumpkin line: suitable for acne-prone skin because this product line has the effect of cleaning dirt and unclogging pores Rose line: suitable for dry skin, dehydrated skin, and dull skin, so it will provide moisture and vitamins to the skin Coffee line: This is the most prominent and best-selling product line of Cocoon This product is used to remove dead skin cells, making skin brighter and smoother - Hair care: 6 Document continues below Discover more fCrhoumy:ền đổi số UEL1 Trường Đại học… 195 documents Go to course NHÓM-7- Phuclong - Hope it helps 45 Cocoon hair products have important ingredients such as grapefruit peel, lo1c0u0s%t, (7) coconut oil with the line of conditioners, shampoos, hair conditioners, hair serums, nourishing sprays They are free of preservatives and minerals - Lip care: Combo coffee lip scrub with tiny beans of Dak Lak cof[f2ee2h1ManId5-r2o1a7st]edG, roopuenp 7 nut butter, macadamia oil to help slough off dead cells onCtAheSlEipsGpRerOfeWct match with coconut oil lip balm contains natural ingredien1t7s such as coconut oil, shea butter and vitamins provide a plump, smooth, become rosy, moisturizing lip1s0 0% (5) 1.4.3 Trademark Cocoon is a Vietnamese cosmetic brand developed in 2013 by Nature Story Cosmetics Co., Ltd - Vietnam Cocoon was founded Pwriathcttihceaol b0je2ctGiveooogf le providing Vietnamese people with good skin and hair byTeuatilcizhinagbolenlyMnaactuhrainl e components Cocoon officially became the first Viet4namese cosmetic company to be authorized by Cruelty Free International's Leaping CBuhnunyyềnprogram, which 100% (1) assures no animal testing, by the end of 2020 In adđdổitiiosnố, the worldwide advocacy organization PETA has recognized Cocoon as "not tested on animals and vegan products." Cocoon got an award in the category of "Inspiring Brands" at the Asia Pacific Enterprise Awards (APEA 2021) in November 2021 222IS2102 Group-6 - 1.4.4 Location ewewewew Cocoon manufactured by Nature Story Cosmetics 5C9o., Ltd Address: 38C-39C Quarter 1, National Highway 1A, Tan Thoi Hiep Ward, DCihsturiycềt n12, City H1C0M0% (1) Cocoon currently has more than 300 locations all over Vieđtnổai msố 1.4.5 Human resources To efficiently distribute goods to consumers, a distributCorhmapusttehra0ve2a-AstIroanngd sales force in both number and quality Overall, the Cocoon team has a strong Digital… feeling of responsibility for the task, as demonstrate1d8by imaginative, appealing communication, and has contributed to specific triumphs.Chuyền 100% (1) đổi số II Analysis of enterprise 2.1 SWOT analysis STRENGTHS 221MI5207 Group 3 1 Strong brand reputation and recognition: Cocoon Vietnam has established itself as a trusted and reputable brand in the VietnameseTmeaarckheta, bknloewMn afocrhitisne reasonable price products and reliable services 11 Chuyền đổi 75% (4) số 2 Wide range of products: The company offers skincare products, lip care, body care and hair care, catering to various customer preferences and needs This 7 extensive product portfolio provides customers with ample choices and contributes to Cocoon's competitiveness 3 Skilled and experienced workforce: Cocoon Vietnam boasts a dedicated team of skilled professionals who contribute to the company's success Their expertise in areas such as design, manufacturing, and customer service enables Cocoon to deliver quality products and services 4 Commitment to sustainability: Cocoon Vietnam demonstrates a strong commitment to sustainability and ethical practices This commitment resonates with environmentally conscious customers, enhancing the company's reputation and attracting a loyal customer base WEAKNESSES 1 Limited online presence: Compared to some competitors, Cocoon Vietnam's online presence and e-commerce capabilities are relatively limited This could hinder its ability to tap into the growing trend of online shopping and reach a broader customer base 2 Dependence on physical retailer stores: Cocoon's reliance on physical stores as the primary sales channel exposes it to risks associated with external factors such as pandemics, economic downturns, or changes in consumer behavior Diversifying sales channels could mitigate these risks 3 Cocoon is a young company so there are still many problems in operating the company Typically, Cocoon does not control orders and inventory management and lacks professionalism 4 Cocoon has a problem of lack of professional human resources: Because there is no official store, the training of employees in the direction and core of the company wants to convey to customers is still limited Up to now, customers have been consulted through the staff of the retail stores but not directly by the staff of Cocoon OPPORTUNITIES 1 Growing demand for high-quality and sustainable products: The increasing awareness and demand for eco-friendly and sustainable products present an opportunity for Cocoon Vietnam to capitalize on its commitment to sustainability and cater to environmentally conscious consumers 8 2 E-commerce growth in Vietnam: The expanding trend of online shopping in Vietnam provides an opportunity for Cocoon to enhance its online presence, reach a larger customer base, and tap into the convenience and accessibility of e- commerce 3 Expansion into new markets: Cocoon can explore opportunities to expand its operations into other Southeast Asian markets where there is a growing demand for beauty products This expansion could drive revenue growth and increase brand recognition regionally 4 Diversification of product offerings: Introducing new product lines or expanding existing ones to include more affordable options can help Cocoon attract a broader customer base, appealing to different market segments and increasing sales potential 5 Collaboration with artists and influencers: Partnering with artists and designers to create unique and locally inspired products can differentiate Cocoon's offerings and appeal to customers seeking distinctive and culturally relevant designs THREATS 1 Intense competition: Cocoon faces strong competition from both local and international brands that offer similar products Competitors with established market presence and strong brand recognition pose a threat to Cocoon's market share and customer loyalty 2 Fluctuating raw material prices and supply chain disruptions: Changes in raw material prices and supply chain disruptions can impact Cocoon's production costs and lead to price fluctuations 2.2 Competitors analysis There are three prominent competitors of Cocoon in the Vietnam market: The Body Shop, Klairs and Innisfree This table will show detailed analysis of these competitors 9