Day: April 21, 2024

Hanoi: 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.

In addition, rising prices have led to a slowdown in in-home FMCG volume growth, even as average spending continues to rise. This raises the question: Is this increase driven solely by inflation, or are consumers changing their shopping baskets? Understanding the answer is crucial for developing effective marketing strategies.

Even in difficult times some brands thrive while others find growth elusive. While competitive pricing coupled with strategic promotions is a must, success in securing consumers’ share of wallet
hinges on brands’ ability to seize the opportunities to offer consumers smarter solutions and value-driven choices.

As for the impact of changing demographics on the FMCG market, the report says Vi?t Nam’s demographic structure is painting a new picture.

The once “golden population” is maturing, with an aging, urbanising population and smaller household sizes emerging.

This shift holds significant potential for FMCG businesses as demand for diverse products surges across different age clusters. Rising household incomes and decreasing household sizes, however, indicate a demand for evolving value proposition, where affordability might not be the sole driver.

Kantar suggested strategies for FMCG brands and manufacturers such as decoding drivers of changes in consumers’ shopping behaviour, mastering the multi-channel landscape, building a winning portfolio with consumer-centric innovation, and maximising promotions by focusing on quality over quantity.

Its data reveals that over half of FMCG brands struggle
d to keep pace with the competition in 2023, particularly within growing categories where approximately one-third of brands began to lag.

As competition intensifies in 2024, this highlights the urgent need for brands to identify their unique growth drivers to stay ahead of competition.

The FMCG retail landscape in Vietnam is shifting to more convenient and modern formats but not all modern trade channels can win, according to the company.

To succeed, brands need to understand the reason behind a shopper’s visit to each channel and adapt their approach accordingly.

With respect to building a winning portfolio with consumer-centric innovation, different strategies are required for different categories, depending on size, growth and competition landscape.

For FMCG manufacturers with a vast portfolio, identifying key categories to prioritise investments is crucial.

There are opportunities for rising FMCG categories as well as mature categories.

Finally, promotions are one of the most effective ways to driv
e immediate volume sales uplift though not all have the same impact.

By understanding the true effectiveness of different promotion types on brand growth, brands can harness the power of promotions to not only drive impact on revenue but also build brand loyalty./.

Source: Vietnam News Agency

Hanoi: 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.

In addition, rising prices have led to a slowdown in in-home FMCG volume growth, even as average spending continues to rise. This raises the question: Is this increase driven solely by inflation, or are consumers changing their shopping baskets? Understanding the answer is crucial for developing effective marketing strategies.

Even in difficult times some brands thrive while others find growth elusive. While competitive pricing coupled with strategic promotions is a must, success in securing consumers’ share of wallet
hinges on brands’ ability to seize the opportunities to offer consumers smarter solutions and value-driven choices.

As for the impact of changing demographics on the FMCG market, the report says Vi?t Nam’s demographic structure is painting a new picture.

The once “golden population” is maturing, with an aging, urbanising population and smaller household sizes emerging.

This shift holds significant potential for FMCG businesses as demand for diverse products surges across different age clusters. Rising household incomes and decreasing household sizes, however, indicate a demand for evolving value proposition, where affordability might not be the sole driver.

Kantar suggested strategies for FMCG brands and manufacturers such as decoding drivers of changes in consumers’ shopping behaviour, mastering the multi-channel landscape, building a winning portfolio with consumer-centric innovation, and maximising promotions by focusing on quality over quantity.

Its data reveals that over half of FMCG brands struggle
d to keep pace with the competition in 2023, particularly within growing categories where approximately one-third of brands began to lag.

As competition intensifies in 2024, this highlights the urgent need for brands to identify their unique growth drivers to stay ahead of competition.

The FMCG retail landscape in Vietnam is shifting to more convenient and modern formats but not all modern trade channels can win, according to the company.

To succeed, brands need to understand the reason behind a shopper’s visit to each channel and adapt their approach accordingly.

With respect to building a winning portfolio with consumer-centric innovation, different strategies are required for different categories, depending on size, growth and competition landscape.

For FMCG manufacturers with a vast portfolio, identifying key categories to prioritise investments is crucial.

There are opportunities for rising FMCG categories as well as mature categories.

Finally, promotions are one of the most effective ways to driv
e immediate volume sales uplift though not all have the same impact.

By understanding the true effectiveness of different promotion types on brand growth, brands can harness the power of promotions to not only drive impact on revenue but also build brand loyalty./.

Source: Vietnam News Agency

Hanoi: The prices of Vietnamese paddy and rice continued to increase last week, according to the the Vietnam Food Association (VFA).

Specifically, the average paddy price at fields rose by 214 VND to 8,000 VND (0.31 USD) per kilo, with the highest reported at 8,050 VND. The average price for paddy at warehouses expanded by 183 VND to 9,475 VND per kilo, the highest recorded at 9,650 VND.

Meanwhile, 5% broken rice was priced up to 14,200 VND per kilo; 15% broken rice, 13,950 VND; and 25% broken rice, 13,750 VND.

Premium white rice saw an increase of 35 VND per kilo to 14,010 VND.

For export, the price of 5% broken rice was 582 USD per tonne, higher than 579 USD of Thailand, and 581 USD of Pakistan.

Vietnam’s 25% broken rice was sold at 557 USD per tonne, as compared to 530 USD of Thai rice./.

Source: Vietnam News Agency

Lang Son: Prime Minister Pham Minh Chinh on April 21 visited the Huu Nghi International Border Gate and inspected some socio-economic development projects in Lang Son as part of his ongoing visit to the northern province.

At the international border gate, Chinh emphasised its important role in promoting the friendship and economic ties between Vietnam and China, between China and ASEAN, as well as between Lang Son and Guangxi provinces.

Chinh requested agencies and forces there to closely coordinate with each other to complete their tasks, contributing to consolidating and strengthening the relationship between Vietnam and China, concretising and implementing the “Joint statement on further deepening and elevating the comprehensive strategic cooperative partnership between the two countries and building a Vietnam-China community with a shared future that carries strategic significance’ reached by the two countries’ senior leaders.

They were also asked to maintain national defence and security, and firmly p
rotect national independence and sovereignty.

The same day, Chinh inspected a project on upgrading National Highway 4B’s section that runs through Lang Son province. The 62km road is expected to be completed this year, with a total cost of nearly 2.3 trillion VND (90.4 USD).

Presenting gifts to workers at the construction site, PM Chinh said the national highway is important in connecting and boosting economic ties between Vietnam and China, between Lang Son and neighbouring Cao Bang and Quang Ninh provinces, as it connects six international border gates with seaports.

He asked local authorities and relevant agencies to ensure resettlement for people who had to move to make room for the road construction and support them to stablise their lives soon.

When staying in Lang Son, PM Chinh also visited the 193-ha Mailand Hoang Dong-Lang Son Urban Area – a complex of international trade, entertainment, tourism, and golf course in the centre of Lang Son city.

On this occasion, the Government leader visited the
Victoria Mailand Hoang Dong International Bilingual Kindergarten, which is part of the Victoria School system – the bilingual multi-level school that meets Cambridge standards and follows the happy school model with the companionship of UNESCO.

On the same day, the PM attended the opening ceremony of the International Green Industry Expo 2024 – the first of its kind held in Lang Son province, attracting more than 188 domestic and foreign businesses.

The exhibition displays products and technological equipment in the fields of electricity production, electronics and green energy, solar power, wind power, large-tonnage automobiles, household appliances, lighting equipment, smart home devices, and agricultural products of Lang Son and neighbouring provinces./.

Source: Vietnam News Agency