FMCG Overview 2015 and What to expect for 2016
What was behind the FMCG slowdown in 2015? And what could we expect for 2016?
Key market highlights in 2015 issues:
Vietnam recorded a GDP growth rate of 6.68% while CPI recorded at low 0.6% versus a year ago.
FMCG market continues to increase in terms of sales yet momentum continued to slow down versus a year ago.
Not much change in Purchasing Behavior
Consumers seek value for money and are more selective when shopping.
Health & Convenience Trend
Healthy and convenient products keep attracting more new buyers.
Shopper preference for proximity and smaller formats
Street shops (including provision stores, ma&pa) offering proximity still dominate the market. Specialty stores, ministores and online channel are continuously emerging with double digit growth.
Potential trends for 2016?
- Shoppers get smarter
- Health & Wellness top of mind
- Time becoming more precious than ever
- Consumers spend more for self-indulgence
- Proximity & Smaller formats are still preferred
- Hypermarket & Supermarket is back
However, the daily expenses of consumer goods are and will remain in the coming years, the largest share of their monthly spending. The beverage, dairy, packaged food, personal care and home care categories have seen an exponential development of their offer in recent years. Today, the consumer has access to a wider choice of products and the competition is increasing as fast as the consumer needs, which are becoming more diversified.”