Economic Outlook and Pressure Groups
Vietnam’s economy saw robust growth in Q3 2022 with GDP YTD growth hitting a 12-year high at 8.83%. Consumer optimism is increasing as more households believe that the economic outlook will improve in the next year.
However, when we take a closer look at consumer confidence on a personal level, many people are still under financial pressure exacerbated by inflation and rising costs of living.
To help brands quickly adapt to consumer behaviour changes, we introduce a new way of anticipating buyer behaviour by segmenting them into pressure groups, based on their levels of personal financial confidence.
Consumer confidence returned to pre-pandemic levels
Q3 2022 saw financial difficulties alleviated to the levels before the pandemic. Consumers are optimistic that the financial situation in their families will improve in the next 12 months.
Introducing pressure groups
Along with strong GDP growth, Consumer Price Index (CPI) has also reached an all-time high in October 2022. In Vietnam, prices have been increasing since the final quarter of 2021. If we take a more granular look at consumer confidence, more than half of consumers are still under pressure, with rising grocery prices being the top concern.
Financial pressure, exacerbated by inflation, means that shoppers will continue to react and adapt in ways that we must support.
Understanding how consumers across the financial spectrum react to changes such as rising prices is crucial to developing the right strategy to cater to them and boosting your brand’s performance during this financially challenging time.
High income does not imply comfortable spending
In our most recent Consumer Confidence Survey, only 3 out of 10 high and mid-high income households are comfortable with spending while the rest are feeling the strain to a certain extent. Struggling shoppers are cutting back on grocery spending one way or another. A careful dissection of consumer’s future spending intention will reveal which categories they are most likely to reduce their spending on in the future.
Kantar Expert Solutions
Kantar Expert Solutions help brands examine how each pressure group shops and reacts to rising prices differently under personal financial pressure. Using our data and in-depth analysis, you can answer the most critical questions about how price changes affect your customers:
- Who among your shopper base is the most under pressure, in comparison to your competitors’?
- How shoppers in different financial situations behave and react to changes, such as rising inflation?
- In what ways can you cater to your shoppers across the financial spectrum?
Download our report to learn more about how consumer groups in different financial situations respond to economic factors. Contact us if you would like to understand your consumers better.