Following two years of low sales during Tet (the Lunar New Year), things are expected to look up for the fast moving consumer goods industry this time around since the Vietnamese economy has recovered and consumers have a positive outlook...
A rising affluent class, more nuclear families, the booming development of digital technology, and an increasing demand for personalisation among consumers will offer opportunities and challenges for FMCG brands in the coming years, according to Kantar Worldpanel Vietnam.
The fast moving consumer goods sector is forecast to grow at 6.4 per cent this year in the country’s four major cities and 8.7 per cent in rural areas, according to global data and consulting company Kantar Worldpanel.
The COVID-19 outbreak has hit fast-moving consumer goods (FMCG) businesses but not all categories and retailers will suffer negative impacts, according to global data and consulting company Kantar Worldpanel.
The personal care sector has enjoyed strong growth of 7 per cent a year on average, higher than the fast moving consumers goods (FMCG) market, thanks to the skincare and make-up segment.
Nguyen Thi Duyen, 35, from the rural commune of Duc Thuong in Ha Noi, spends an extra VND500,000(US$21.5) on milk after her 11 year-old son was said to be “shorter than others” in his class.
Sixty per cent of households in urban centres like Ha Noi, HCM City, Da Nang, and Can Tho will buy fast moving consumer goods online by 2025, according to Kantar Worldpanel, a global data, insights and consulting company.
The internet and smartphones are offering manufacturers and retailers the opportunity to promote their products via effective methods of communication.
The fast moving consumer goods market will remain strong in the long term in the country’s four major cities of Ha Noi, Da Nang, HCM City, and Can Tho and see an acceleration in rural areas.
With increasing incomes, consumers are paying greater attention to products of high quality and health foods, and producers and distributors need to focus on such products.
More than VND68 trillion (US$2.9 billion) is expected to be spent on media advertising by companies in Viet Nam, with fast-moving consumer goods manufacturers to make up the bulk of the spending.
Vietnamese customers’ rapidly changing needs and expectations and lower spending on fast moving consumer goods are the biggest challenges to FMCG producers, according to a new report released by consumer and retail research company Kantar Worldpanel.
Sales of fast moving consumer goods have slowed down this year in both urban and rural areas, according to Kantar Worldpanel, a global expert in shoppers'' behaviour.
Fast moving consumer goods are expected to have another year of strong growth in 2018 and rise 6-7 per cent over the preceding year, according to a Kantar Worldpanel report on Viet Nam FMCG market.