FMCG Monitor August 2015

Overall market growth has increased at the highest rate since Q3 last year

The increase in FMCG market is expected till the end of year

Some highlights in the August issues:

Macro forces that impact on the grocery market

> The context of complicated global economy

> Global stock market fluctuations

> Oil production on the up, oil & gas price on the decrease

> The impact of China’s yuan devaluation to emerging markets

> Vietnam devalued the dong by 5.1 % against the dollar so far

> Electricity price on the rise

Key economic indicators

Vietnam devalued the dong (VND) by 5.1% against the dollar in the first 8 months. Oil, gas prices cut more, coupled with the low CPI rate.

FMCG Trends

In spite of the slightly positive movements in the long term, overall market growth has increased at the highest rate since Q3 last year. Urban momentum is coming back while Rural seems more stable in the short term.

Hot Categories

In Urban, Dairy picks up after decline in the past seven months. Personal Care and Home Care are doing well. In the meantime, Rural holds much promise for almost sectors. Especially, Beverages are growing very fast.

Retail Landscape

Though Street Shops still preserves its dominance in local market, emerging channels esp. mini-market, CVS, specialty stores (especially in Dairy and Baby Product) continuously speed up with double-digit growth in urban area. 

Spotlight on Vietnam

Local players keep up the good work in Rural, especially in Dairy and Beverages. They also gain more ground in Home Care.

David Anjoubault – General Manager of Kantar Worldpanel Vietnam comments: “Since the national campaign “Vietnamese buy Vietnamese brands” launched in 2009, consumers’ preference towards local brands has increased accordingly. A local image, today, doesn’t mean lower quality and lower price, local players are now putting more effort into their work to prove they are “value for money” and affordable, and we see them gain share especially in Home Care. Yet, they still struggle to compete in Health and Beauty sectors where global players are so strong. Hence, moving fast with a tiered approach will be the key to capture all consumer needs.”

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