Vietnam's consumer demand not yet recovered

TN News

Email Print

A woman buys fruit at a Coopmart supermarket in downtown Ho Chi Minh City

Demand for fast-moving consumer goods was sluggish in the three months ending July 14 in both urban and rural areas, a study by global market research firm Kantar Worldpanel has found.

It rose by just 8 percent year-on-year and by around 11 percent in rural areas.

Personal care products spearheaded growth in urban areas while beverages continued to hold top position in rural markets.

Overall, the greatest growth was seen in sales of baby diapers and yoghurt. In cities diaper sales were up 20 percent while in rural areas demand for yoghurt spurted by 38 percent.

Among distribution channels, mom-and-pop shops topped in FMCG sales growth with 9 percent.

After a few months of stagnancy supermarkets saw demand for FMCG recover, with sales increasing by 6 percent.

Modern mini stores, including minimarkets and convenience stores, saw sales grow by 74 percent due to the mushrooming of outlets.

Minimarkets are opening at an average rate of two to three a month.

In 2010 only around 10 percent of urban households bought FMCG from mini-stores at least once per year, while now, one among five urban households go shopping for FMCG in that channel at least once per year and spend VND90,000 (US$4.25) on average per trip.

"In the next 10 years every urban household is expected to shop from a mini store at least once a year," David Anjoubault, general manager of Kantar Worldpanel Vietnam, said.

Like us on Facebook and scroll down to share your comment

More Business News