The economy and consumer confidence are expected to continue to be high, but the rapid growth of the FMCG (FMCG) is largely dependent on businesses to capture market changes. how.
This is a new judgment made by Nielsen in the recent report to provide an overview of the retail market in Asia in general and Vietnam in particular.
Economy is optimistic, consumers are increasingly spending
Vietnam’s economy, as recognized by Nielsen, started quite slowly at the beginning of 2017, but by the end of the year, the growth rate showed positive prospects for the economy. Accordingly, GDP reached 6.8%, higher than 0.1 percentage point set by the Government in the context of many difficulties. This growth is fairly uniform, reflected in all sectors: agriculture, industry, and services.
FDI inflows are also considered one of the important factors of the S-shaped country development in recent years. Vietnam attracts FDI thanks to familiar factors such as cheap labor with abundant supply as well as flexible investment support policies. Statistics show that the amount of FDI poured into Vietnam in 2017 increased 44% over the same period, estimated at 29.68 billion USD.
The tourism industry also showed strong growth thanks to the very positive growth of the industry as well as a number of Government initiatives, boosting the economy such as delaying tax increases and applying low loan policies to support domestic business assistance.
The optimism of the economy is also reflected in consumer confidence in each quarter – according to Nguyen Huong Quynh, General Director of Nielsen Vietnam.
“All the indicators related to consumers ‘job prospects, personal financial ability as well as consumers’ willingness to spend that Nielsen observes and measures Consumers’ optimism about the future “, Ms. Quynh said.
The race in all aspects of speed in the market
In terms of retail market, and especially FMCG, Nielsen data shows that in 2017, FMCG sales in urban areas reached a growth of 5%. However, this market still has many volatile factors that require businesses to make more efforts to capture more sustainable growth opportunities.
In the FMCG market, beverages, food and tobacco are the main sectors contributing to the growth in urban Vietnam. On the other hand, rural areas continuously for many years have shown strong potential that businesses have yet to fully exploit.
“Although there are still many fluctuations quarter-by-quarter, the rural market always records better growth than in urban areas”, Ms. Quynh said.
“In order to win in the Vietnamese market, businesses need to have more specific studies to develop appropriate development strategies for each geographical area as well as each separate trading channel. “
The Nielsen side also emphasized that domestic enterprises are showing strong growth, in direct competition with multinational enterprises. These businesses have been reshaping the retail market in Vietnam, especially in rural areas and secondary cities and towns.
In addition, there are about 1.4 million stores nationwide, contributing nearly 83% of FMCG’s sales. However, modern trade channels are also seeing a positive shift, especially small stores in modern stores (convenience stores, mini supermarkets …) have increased. Strong growth in store numbers over the past few years.
Vietnam’s economy, according to Nielsen, will grow even more strongly in 2018 and consumer confidence will continue to be high. However, this unit affirmed that the growth rate of the FMCG market will largely depend on how businesses operating in this field grasp the changes of the market and will have orientations. to keep up with the constantly changing pace of the market.
Thus, the market will continue to discuss more about the story of “fast fish eat slowly fish” in 2018 as the speed of rapid changes in consumer behavior, technology and business models as well as Other factors will directly affect businesses.
Growth opportunities are still present and it is important that businesses invest money and resources to capture and transform to adapt to new demand from consumers and the market.
“And another important thing for businesses to win in the Vietnamese market is that businesses need to have more specific studies to develop appropriate development strategies for each geographic area. as well as individual trade channels, “said Ms. Nguyen Huong Quynh.
* Source: Young intellectuals