Winners of top three most chosen brands in packaged foods presented by Kantar Worldpanel Vietnam. (Photo: VNA)Speaking at its “10 years of consumer choice in Vietnam’ event last week, NguyenPhuong Nga, the company’s business unit director, said Vietnam’s GDP per capitain 2021 is 3,743 USD, up 3.6 times in 10 years.
With higher purchasing power, consumers are having new needs and adopting newdevices such as washing machines, air conditioners, laptops, microwaves,tables, and cars.
In FMCG (Fast Moving Consumer Goods), “premiumisation" demand has grown,she said.
In food and beverages, demand for ‘safety’ and ‘health’ has been drivingconsumer choices, while branded/packaged products are on the rise as ahealthier diet, reduced fat, and sugar-free products are adopted, she said.
Nga said "the size of the average Vietnamese household has decreased over10% over the past decade. As households get smaller, new forms of connectionand consumption are emerging.
“The household consumption of most FMCG categories is lower, which leads to thehigher need for small-sized pack offerings,” she said.
FMCG brands have relentlessly innovated to attract and retain consumers totheir brands.
In 2021, new FMCG products are launched every hour, she said.
“To a big brand, consumer retention can be more challenging. However, stayingout of the innovation game could impact negatively on business growth.”
Digital mainstream
With internet development, the online shopper base has increased 10 times andin FMCG 20 times over the past seven years.
This enormous development is fueled mostly by e-commerce sites and modern traderetailers. The FMCG online basket is becoming more diverse with the growth offood and beverages.
“The way consumers make purchase is messy and it will be messier," shesaid.
Online is now playing role in every stage of a consumer journey, she said,adding that small brands, who are very digital focused, have more opportunityto interact with costumers and gain their business, she said.
Online is expected to become a key source of sales in coming years.
In addition, consumers have higher demand for personalisation, not only withproducts but also in every moment that brands interact with them, she said.
They have greater demand for convenience, not only with the product but also inevery single step of the buying journey.
Expectations for transparency and social responsibility will be higher as willthe opportunities for those brands who can show and act their commitments, sheadded.
Also at the event, Kantar Worldpanel revealed its top three most chosen brandsin dairy and dairy substitutes, packaged food, beverages, home care andpersonal care in four key cities (Hanoi, HCM City, Da Nang and Can Tho) and inrural areas.
Vinamilk, TH and Ngoi Sao Phuong Nam;Vinamilk and Fami; and Ong Tho are the top three most chosen brands in dairyand dairy substitutes in four key cities and rural areas, respectively.
Hao Hao, Nam Ngu and ChinSu; Nam Ngu and 3 Mien; and Hao Hao are the top threemost chosen brands in packaged food in four key cities and rural areas,respectively.
In beverages: Coca Cola, Tiger and Nescafé; Saigon Beer and Nescafé; and CocaCola are in the top three most chosen brands in cities and rural areas,respectively.
Bien Hoa Sugar, Vim and Aquafina were chosen as the top three risers of thedecade in FMCG.
The brands were chosen based on an innovative metric that measures how manyhouseholds are buying a brand (penetration) and how often (frequency) itprovides a true representation of shopper choice./.
VNA
