Vietnam’s rural areas continue potential land for FMCG manufacturers
Vietnam’s rural area continues to be the highly potential land for many manufacturers of fast moving consumer goods (FMCG), according to the Nielsen Quarterly Market Pulse report released recently by Nielsen Vietnam.
The report from the global performance measurement company showed while urban has gained 4.7 percent growth this quarter compared to one year ago, rural has shown a stronger growth, up to 7.6 percent, mainly led by 7.4 percent volume growth and contributed 54 percent into the total FMCG sale.
“On the heels of improving consumer confidence in the recent quarter, Vietnam’s GDP grew 6.9 percent in the first nine months of the year. This momentum was enhanced by consumers' optimistic perception of personal finance along with their willingness to spend,” Nguyen Anh Dzung, Director, Retail Measurement Services, Nielsen Vietnam, said.
“Despite the rise in GDP this year, Vietnam’s FMCG market has fluctuated over the past two years. The volatility which is reflected in super categories puts a lot of challenges for the manufacturers to make sound decisions to fully seize the market growth opportunities and drive a profitable business.”
According to Dzung, rural area of Vietnam, however, remains a high-potential opportunity for many manufacturers. And in rural, traditional trade channel, a complex and highly competitive channel, is still where most of the sales are taking place. Getting products to each and every retailer in rural to expand the distribution to drive more sales has long thought be to a challenging game for manufacturers.
“Therefore, stores segmentation or “where to focus” is what businesses are suggested to going after whenever thinking of expanding to this new potential market. As the rural Vietnamese community continues to evolve, transform and takes centre stage as a key group for businesses, understanding who they really are, where, how and what they are buying and their most effective touch points will be prerequisites for future success,” added Dzung.
According to the report, the nationwide growth of FMCG in the third quarter of the year bounced back, after taking a dip in the previous quarter. This quarter, the nationwide FMCG reached 6.4 percent versus one year ago, mainly comes from an increase of 5.8 percent volume growth.
When looking deeper into six super FMCG categories nationwide of beverage, food, milk base, household care, personal care and cigarette, the report found that beverage enjoyed a hefty increase, at 8.5 percent, led by an increase of 6.4 percent in volume. Cigarette also showed positive growth in this quarter, at 5.9 percent.
On the other hand, according to the report, other super categories showed stagnancy. For example, the food sector expanded a mere 4.6 percent in quarter three from the second quarter with 5.9 percent. Milk and dairy products had the same fate with growth of 4.2 percent, down from 7.4 percent in the previous quarter.
Market Pulse Report is based on the results of Nielsen Retail Measurement study of FMCG, on the major categories. The Nielsen Retail Measurement provides continuous tracking of product movement through defined retail outlets. The data are used to measure manufacturer and retailer effort as well as consumer off-take.
“On the heels of improving consumer confidence in the recent quarter, Vietnam’s GDP grew 6.9 percent in the first nine months of the year. This momentum was enhanced by consumers' optimistic perception of personal finance along with their willingness to spend,” Nguyen Anh Dzung, Director, Retail Measurement Services, Nielsen Vietnam, said.
“Despite the rise in GDP this year, Vietnam’s FMCG market has fluctuated over the past two years. The volatility which is reflected in super categories puts a lot of challenges for the manufacturers to make sound decisions to fully seize the market growth opportunities and drive a profitable business.”
Fast moving consumer goods market in rural area has shown a strong growth of 7.6 percent.
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“Therefore, stores segmentation or “where to focus” is what businesses are suggested to going after whenever thinking of expanding to this new potential market. As the rural Vietnamese community continues to evolve, transform and takes centre stage as a key group for businesses, understanding who they really are, where, how and what they are buying and their most effective touch points will be prerequisites for future success,” added Dzung.
According to the report, the nationwide growth of FMCG in the third quarter of the year bounced back, after taking a dip in the previous quarter. This quarter, the nationwide FMCG reached 6.4 percent versus one year ago, mainly comes from an increase of 5.8 percent volume growth.
When looking deeper into six super FMCG categories nationwide of beverage, food, milk base, household care, personal care and cigarette, the report found that beverage enjoyed a hefty increase, at 8.5 percent, led by an increase of 6.4 percent in volume. Cigarette also showed positive growth in this quarter, at 5.9 percent.
On the other hand, according to the report, other super categories showed stagnancy. For example, the food sector expanded a mere 4.6 percent in quarter three from the second quarter with 5.9 percent. Milk and dairy products had the same fate with growth of 4.2 percent, down from 7.4 percent in the previous quarter.
Market Pulse Report is based on the results of Nielsen Retail Measurement study of FMCG, on the major categories. The Nielsen Retail Measurement provides continuous tracking of product movement through defined retail outlets. The data are used to measure manufacturer and retailer effort as well as consumer off-take.
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