Retail News | 30.07.2018
With GDP growth of 7.4% in Q1 2018, Vietnam’s economy recorded its strongest quarterly performance in a decade and exceeded the government’s annual target of 6.7%. The growth reflected across sectors including agriculture, industry and services. From a macroeconomic perspective, conditions and prospects for the remainder of the year appear positive.
The bright economic environment was also reflected in consumer’s confidence which reached an all-time high in the first quarter of 2018, due to the increased positivity about local job prospects and the state of personal finances, according to The Conference Board® Global Consumer Confidence™ Survey, in collaboration with Nielsen.
However, these positive sentiments did not lead to strong Vietnam FMCG sales, with the market up just 1.8% in quarter 1. The growth was slower than expected and reflected the volatility of FMCG industry, possibly due to changing consumer behaviors.
Although Traditional Trade including “wet markets” still dominates in Vietnam, Modern Trade has gained impressive momentum. On the back of rapid store expansion, the Modern Trade channel grew 10.7%, outperforming Traditional Trade channel which grew at 2.4%.
Besides, knowing “what’s hot, what’s not” among super FMCG categories is essential to driving growth. In that context, one category showing ample growth opportunity is foods. Foods was among the top 3 fastest growing super categories in 2017 - according to the latest report “What’s Next In Food?”.
With finite time and infinite change, consumers’ circumstances and priorities are continually changing with shifts to urban centres, commuter congestion, evolving roles and the impact of technology. As a result, convenience becomes a growing demand. But convenience solutions need to have different and multiple interpretations for different segments of society.
30/07/2018 10:45:34 AM
14/08/2018 4:21:39 PM