The report highlights critical shifts in channel shopping behaviors and factors driving these changes, as well as offers insights for targeting shoppers across channels.
One of the emerging shopper behaviors observed is many shoppers are now frequenting convenience locations or channels offering the best prices and deals. On top of this, they are also engaging in more impulse buying despite having clear shopping plans before the trip.
Vietnam’s economy experienced accelerated growth in Q1 2024 compared to the same period year ago, driven by the industrial and construction sectors. The FMCG sector experienced a slowdown in volume growth, even as prices began to stabilize, with a contribution towards growth coming from the festive categories.
NIQs latest report reveals changing trends in shopping behavior, reflecting changes in the decision-making process:
● Shoppers replace Supermarket visits with emerging channels: Visits to supermarkets for fresh food purchases are seen to be declining, as an increasing proportion of shoppers move to prefer smaller-format stores like minimarts and online channels.
● Planning vs. Impulse Purchases: 88% of grocery shoppers plan their shopping, yet almost all make impulse purchases during their trips. This highlights the importance of in-store marketing and promotional strategies to capture spontaneous buying decisions. NIQs latest report indicates that 93% of shoppers usually buy additional grocery items they did not plan, suggesting that promotions or deals can impact impulse buying decisions.
● Research Before Purchase: About 30% of shoppers conduct online search before grocery purchases, highlighting the importance of a robust digital presence for retailers. Digital channel should also act as a touchpoint to provide information to shoppers and be leveraged for engagement.
Online shopping continues to rise in Vietnam, with shoppers increasingly turning to e-commerce platforms, super apps, and the apps/websites of modern trade retailers. This shift is most pronounced in non-food and personal care products, although traditional trade remains significant for food and beverages. Convenience and contactless shopping have made it a preferred option for many Vietnamese shoppers.
Vietnamese shoppers are becoming more discerning and price-sensitive, mainly when price changes occur. Deal-seeking behavior is increasing, yet shoppers are still willing to pay a premium for trusted brands and high-quality products. Vietnamese shoppers remain loyal to trusted brands but are also exploring private labels, especially for staple products. Vietnamese shoppers are more familiar with the emergence of new brands and products, but they are still not as eager to try as before. Brands must balance competitive pricing with high product quality to meet consumer expectations. This dual trend underscores the importance of brands balancing competitive pricing with maintaining product quality.
NIQ’s insights highlight the dynamic nature of Vietnam’s retail landscape and the evolving preferences of its shoppers & shoppers. Understanding these trends is crucial for manufacturers and retailers to navigate the market and meet consumer demands effectively. By leveraging these insights, companies can optimize their strategies, enhance their digital presence, and implement effective promotional activities to drive growth.
