The Times Square tower in Ho Chi Minh City, Vietnam, on Sunday, February 25, 2024. Photographer: Maika Elan/Bloomberg
HO CHI MINH CITY: Economic outlook, demographic transformation and changing consumer trends are among macro shifts reshaping Vietnam’s fast-moving consumer goods (FMCG) landscape, according to marketing data and analytics company Kantar Worldpanel.
In its recent report on the Vietnam FMCG market outlook 2024, Kantar has a positive outlook for Vietnam’s economy, saying that despite obstacles and short-term headwinds, the long-term economic trajectory remains robust.
Nevertheless, rising costs have had and will continue to have an impact on shoppers’ budget management strategy. Value remains a key driver, with consumers making conscious choices about where to allocate their budgets.
“While rising prices and economic uncertainty may present a picture of tightened belts across the board, the consumer landscape is nuanced.
“Essential categories remain at the forefront of budgets, discretionary spending may see cuts, particularly in categories like eating out and entertainment.”
However, consumers have not entirely shut down their wallets, according to the report. They are still willing to “splurge,” but their spending is driven by value.
Added values in health, experiences and convenience may prompt them to seek out products that justify their worth.
This presents a unique opportunity for FMCG brands to navigate challenging times and position themselves for growth.
The key lies in understanding how different consumer segments are adapting their behaviour and adopting strategies that cater to these shifts. — Viet Nam News/ANN
