FMCG Monitor May 2017

Modern Trade shows growth ahead of the market

Modern Trade shows growth ahead of the market

Key market highlights in May 2017 issues:

Key Indicators
The average CPI of the first 5 months is still over 4%. Although retail sales grow steadily, FDI and export are expected to continue improving, the 2017’s target of economic growth remains challenging for Vietnam.

FMCG Growth
In short term, Urban 4 key cities FMCG market slows slightly compared to previous period, yet still shows an upward trend. While Rural market keeps recovering thanks to the uplift in volume consumption.

Beverages enjoy good performance in both Urban 4 cities and Rural, many nice-to-have categories in Personal Care and Home Care also grow well. Most of Personal Care products increase volume consumption while arising products from Home Care such as box tissue, pocket tissue, liquid detergent, cleaning products… continue attracting new buyers. Are consumers now paying more attention to both personal and environmental hygiene!?

Hot Category
Fruit Juice is a top rising category in both Urban 4 cities and Rural in this period. Its growth is driven by higher consumption however the category also sees huge room to expand further in terms of shopper base. Can Fruit Juice brands be able to capture the health trend and leverage the growth?

Retail Landscape
Modern Trade channels are now growing faster than traditional channels in Urban areas thanks to the recovery of Hypermarket & Supermarket as well as continued development of Mini-Stores. In Rural, Medium-sized Street Shops keep widening, adding over 800 thousand households to their shopper base. It seems that Rural shoppers are now also heading toward upgraded and modernized shopping places.

Spotlight of the Month - Convenience store (CVS): A game changer for Vietnam’s retail?
Japan’s store chain 7-Eleven come to Vietnam and open its first store in June that promise the market getting more dynamic. More players enter the market, more stores open, this retail format is expanding its way into every street in Urban area. With proximity, modernity, fast and convenient shopping experience CVSs offer and “motorbike culture”, Vietnamese consumers might skip over the stage of modern trade development and leapfrog straight to this shopping channel!?

Link to the Fabrice Carrasco’s article for more details about Ministores.
Please click here to access the full article.

Urban 4 cities include Ho Chi Minh, Ha Noi, Da Nang and Can Tho.

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