FMCG Monitor September 2015
Brighter View in Urban while Rural still has much promise for growth
Some highlights in the September issues:
Key economic indicators
The Vietnam economy continues lifting up in Q3 with GDP growth at 6.8%, higher than in Q2. In the meantime, CPI reported no increase in September.
In long term, FMCG market is still at a very minor growth rate in Urban whilst still grows ~9% in Rural.
In the short term, both Urban and Rural are moving up in value and volume. Urban enjoys further recovery at 5.4% value growth in Q3 versus 1.9% in Q2 – the highest growth witnessed since Q1 2014.
By attracting more new buyers, Beverage categories perform well in both Urban and Rural.
Modern Trade grows by 6% in sales in Urban but still struggles to gain any more share in the market. In Rural Street Shops are able to grow share as Wet Market falls back.
Spotlight on Asia
Vietnamese and other Asian FMCG brands gain ground on global competitors with 5 “Power Levers” of growth.
> They are masters of metamorphosis
> They have a purpose, and play an active role in society
> World-class innovation with a local twist
> They digitise and humanise
> Data-led intuition
David Anjoubault – General Manager of Kantar Worldpanel Vietnam comments: “Local players are expertly leveraging their deep rooted knowledge of local consumers and acting fast. They now compete better and better against their global counterparts in the Vietnam FMCG market and today we find that they are more and more preferred in consumer’s mind.”
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