FMCG Monitor September 2016
Total Vietnam FMCG market is still expected to achieve 4% value growth in the full year 2016
Key market highlights in September 2016 issues:
Wholesale and retail sales (according to GSO Vietnam) still grew ahead of the GDP growth rate which is forecasted to be 6% in 2016. The full year 2016 CPI is expected to be ~3.5%.
Urban 4 key cities FMCG market (for in-home consumption) is still growing a bit ahead of Rural both in long term and short term. The total Vietnam FMCG market is still expected to achieve 4% value growth in the full year 2016.
In short term, Dairy is the main sector growing ahead other sectors, especially in Rural market where the Dairy consumption habits are still far behind those of Urban 4 key cities.
Liquid Milk is the major category driving the growth of Dairy sector. The category triggers bulkier basket among both Urban 4 key cities and Rural consumers, which probably driven by more promotions.
Street shops continue to hold strong position with their steady growth in both Urban 4 key cities and Rural Vietnam.
Spotlight of the Month
Internet connection is spreading widely in Vietnam and more accessible to the masses as smartphone ownership is also climbing very fast.
Fabrice Carrasco – Managing Director of Kantar Worldpanel Vietnam, Indonesia and Philippines comments in his recent post: “In Vietnam, online FMCG has enjoyed double-digit growth in recent years from a small base and we expect this trend to continue. In less than 3 years it has developed to become a reality in the non FMCG markets, while a lot of experts were assuming the country was not ready for such offer to be successful in this country. Yes, e-commerce is tomorrow’s reality of consumer goods products too, and the offers as well as the players are going to structure themselves quickly. So get ready to make the first move if you are serious about it because it will be a reality quicker than you think.”
Link to the Fabrice Carrasco’s article
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