A shopkeeper sits next to boxes of imported beer in Vietnam. (Photo: Getty/www.independent.co.uk)
Fast Moving Consumer Goods (FMCG) in the six key cities in Vietnam grew with 3.6% in the first quarter of this year, lower than an increase of 5.7% in the previous quarter, market research company Nielsen said in its latest Market Pulse report.
Among the seven super FMCG categories, beverage (including beer) continued to contribute the biggest to total FMCG sales with 39% in the quarter while other categories all showed stagnancy.
“It’s believed that when consumer income reaches some certain extent, the consumption aspiration changes. Urban consumers are increasingly demanding and expecting better choice. They’re looking for more innovations and new consumption experiment,” said Nguyen Anh Dung, director of retail measurement services at Nielsen Vietnam.
“With lack of innovation, FMCG is becoming more basic items which consumers would still buy but only at a sufficient level,” Dung added.
Nielsen noted that Vietnam has the highest score for trying new products in Southeast Asia with close to 88% of Vietnamese consumers say they purchased a new product during their last grocery-shopping trip, 19 percentage points higher than the region average of 69%.
“This presents good challenges for manufacturers to provide true innovations for consumers,” Dung said.