Connected Spenders to Drive up Vietnam’s Future Consumer Market

Tuan Minh

22:39 07/09/2017

BizLIVE - Vietnamese connected spenders, who will spend $800 billion over the next decade, are expected to become a new driving force for the country's economy.

Connected Spenders to Drive up Vietnam’s Future Consumer Market

Vietnamese connected spenders will spend $800 billion over the next decade.

Connected spenders, not the middle-income class, are poised to expand rapidly and will be the next source of growth that drives the global economy as well as the Vietnamese economy, according to the latest report jointly conducted by Nielsen and Demand Institute.
In the digital economy, connected spenders are those who have ability to access internet and are willing to spend their discretionary income. Connected spenders are a fast-growing new segment of consumers: digitally savvy consumers with discretionary income and are avid shoppers who punch above their income class in spending.
By 2025, these consumers will account for nearly 40% global population and they will contribute more than 50% to annual global spending. The East Asia and Pacific region will witness the greatest increase in the number of connected spenders, especially in the emerging markets like Indonesia, Philippines, Thailand and Vietnam.
According to the Nielsen Vietnam’s latest study, the number of connected spenders in Vietnam reached 23 million in 2015, and that figure is expected to nearly double to 40 million people by 2025.
Parallel, their spending will rise from $50 billion annually to $99 billion over the same time period, and by 2025, they are expected to account for a half of the total consumer spending.
The research shows that Vietnamese connected spenders will spend $800 billion over the next decade. “Therefore, for consumer-facing businesses seeking to grow in Vietnam, these are the consumers whose needs will need to be addressed,” said Rakesh Dayal, executive director of consumer insights at Nielsen Vietnam.
Young, High-income Earners Willing to Spend
According to the report, around one-third of Vietnamese connected spenders are between the ages of 21 and 34.
When it comes to income, over three-quarters of the consumers in Vietnam within the higher income bracket are connected spenders, and nearly two-thirds of those are middle income, and 43% falls into the lower income group.
Not surprisingly, the connected spenders’ youth spirit, urban status and aspirational purchasing power combine to form a group of consumers with very high level of confidence. The Nielsen Confidence Consumer Index has revealed that in 2015, connected spenders had a consumer confidence score of 117, versus 99 for other internet users.
Omnichannel Shoppers
Compared with other internet users, connected spenders are much more adept at omnichannel shopping in both physical stores and digital marketplaces. Compared with non–connected spenders, around 80% of them think shopping online is more fun and convenient.
Before buying, regardless of searching online or offline, they gather information from both sources. Around 4 in 5 read online reviews and refer to social media comments prior to purchasing a product whereas 2 out of 3 check out products in the physical store before purchasing them online.
They are also price-conscious, constantly on the lookout for special deals and promotions: more than half of them use price saving app to searching the best deals even when they planning a shopping trip online or in store.

 

TUAN MINH

Từ khóa: Nielsen

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