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Vietnamese consumers shop fast-moving consumer goods less often: Kantar Worldpanel

The Hanoitimes – Because of the busy schedule, people have a tendency to shop less often for fast-moving consumer goods (FMCG), resulting in fewer shopping occasions for categories and brands to be picked up off the shelf, according to Kantar Worldpanel.
Normally, the biggest challenge to FMCG growth is consumers’ rapidly changing needs and expectations, but in Vietnam, the fact that consumers go shopping on FMCG goods less often is a major challenge to producers, stated a recent survey by market research firm Kantar Worldpanel.

According to the survey, consumers today are not only focusing on their basic needs but also moving to new aspirations. They have the tendency to reduce their budget on grocery expenditure and instead choose non-FMCG items.

In 2017, Vietnam’s market saw an average of 16 new FMCG products per day, of which one third are related to packaged food.

Because of the busy schedule, people have a tendency to shop less often for fast-moving consumer goods (FMCG), resulting in fewer shopping occasions for categories and brands to be picked up off the shelf.

This may be explained by its competing position with mini-stores and online ones in terms of speed and convenience and with hypermarket in terms of good deals and shopping experience. Online stores, from a very small base, keep growing exponentially, especially in the health & beauty sector, by continuously adding new shoppers.

Vietnam’s retail picture promises a lot of changes in the near future. The FMCG market grows more slowly in both urban (mainly in four major cities Hanoi, Ho Chi Minh City, Da Nang, Can Tho) and rural Vietnam, posting modest growth.

In line with the global trend, achieving growth in FMCG industry is getting more difficult, the survey concluded. Consumers, thus, continue shopping less often with fewer categories in their shopping basket, which leads to the lower volume of in-home consumption.

Source: http://www.hanoitimes.vn/economy/2018/07/81E0C9D2/vietnamese-consumers-shop-fast-moving-consumer-goods-less-often-kantar-worldpane/