The dominant consumer trend in Vietnam, Predicting Vietnam’s consumption trends in the next 10 years of Euromonitor (The Market Research Company in 80 countries) in 2019 shows that consumption trends are changing quickly.
The dominant consumer trend in Vietnam in the new period (2019 – 2030)
Vietnam’s consumer market is always attractive thanks to the characteristics of:
- Demographic
- Economic growth
- High speed of urbanization.
Vietnam’s real GDP will increase by 91.4% in the period between 2019 and 2030. At the same time, the consumption amount will also skyrocket during this period.
By 2030, 46 million urban consumers will have a consumer spending of US $169 billion. Meanwhile, for 61 million people in rural areas, it will be 173 billion USD.
More importantly, the middle class – mainstream consumers are growing fast.
It is predicted that by 2030, 49% of households will have an annual income from 5,000 to 15,000 USD. Increasing from 33.8% compared to that of 2018.
Opportunities for developing commerce in Vietnam are huge, businesses need to adapt to market changes and catch up with new trends.
Here are the main consumer trends of Vietnam in the coming year.
First consumer trend: More experience
Nowadays people come to the store not just to buy things, because they can buy them over the Internet.
Customers choose to buy in-store to have experiences that online shopping cannot provide.
Go to the store, they can experience it;
- Quality Service
- Artistic creative space in the store
- In-depth advice from staff
- Try the product …
Although price sensitive, Vietnamese people are still willing to pay more to experience.
The dominant consumer trend in Vietnam in the technology era
Consumers, especially Generation Z, are accustomed to using smartphones, accessing social media and ordering online.
With more than 50% of the population accessing the internet on smartphones, social media plays an important role in promoting products in Vietnam.
In addition, the search, booking, moving and delivery apps like Grab, AhaMove, Foody … became popular. These online services can help companies reach out to potential customers. And also improve the convenience of loyal customers.
On the other hand, Vietnamese people still prefer to buy cheap items online. They are also concerned about product quality factors and safe payment …
Therefore, omni-channel advertising / sales combining flexibly between outreach channels is the preeminent model for companies to maximize sales.
The trend of “premiumization” of consumers
The rise of the high-income class (estimated at 10 million in 2020, compared to 2.6 million in 2012) also drives a huge demand for “high-end”.
Consumers increasingly need to express themselves and want differentiation through products that are “personalized” for themselves.
This demand is not limited to the luxury segment with high-income consumers. It also has its own style and affordable prices, which will also benefit from this trend.
For example, Xiaomi created a specific ecosystem (Mi ecosystem for Mi fans) including high quality products at low prices or The Coffee House chain is bringing the space to enjoy high-class coffee at affordable prices.