Connect to the World Marketplace!
Connect to the World Marketplace!
| Followers | Followings | |
0 |
Follow Us | 0 |
Posted Date:01/25/2016
The growth rate of consumer spending (CAGR) of Vietnam in the 2011-2020 period is forecast to among the highest in the ASEAN region, reaching 8%, higher than the 5% both Indonesia and Malaysia, and the Philippines Thailand and Singapore and was 4% (source: Global Insights, Bain Analysis).
Many research reports by market research firm International is common that, Vietnam is emerging as a consumer market promising.
As estimated by BMI in reporting food and beverages from Vietnam, quarter 1/2013, the compound growth rate of food consumption (food consumption) Vietnam period 2012-2017 was 9.43%. In particular, the compound growth rate of canned food sales was 5.17%, 4.65% confectionery.
For beverages, compound growth rate of revenue is 8.47% coffee, carbonated beverages 6.96%.
Because of population structure among the youngest in the world, with 56% of the population under 30 years old (according to Nielsen), total consumer spending in Vietnam is expected to double and reach approximately 173 billion in 2020 (source: Euromonitor, Global Insight, Bain Analysis).
Nielsen also announced the growth of the market for fast moving consumer products (FMCG) in Vietnam as of 3/2012 quarter was 23%, surpassing the major markets like India, China (Grocery Report 2012- Nielsen).
Another important factor to promote more investment by business in FMCG sector is forecasting GDP growth of 7.2% in Vietnam will reach in 2017, according to estimates by the Economist Intelligence (Vietnam Country Report, January 4/2013-EIU, page 7).
As reported in the consumer goods sector Bain & Companyâ??s new, Vietnamâ??s economy is developing very high speed, so retail spending will increase in all types of retail, especially Modern grocery, personal commodities and entertaining. In Vietnam, the â??champion of indigenous retailâ?? which has dominated in the model as a modern grocery, jewelry and electronics.
Research by Euromonitor estimates, the full-scale retail market in Vietnam will reach approximately $ 34 billion in 2016. The total retail market size of the real in 2011 Vietnam was $ 29 billion.
According to Euromonitor, the leading retail sector in Vietnam in 2016 will consist of garments; electronic; Modern grocery; health and beauty; personal goods and recreation; home and garden; Traditional grocery.
The strong growth will take place in sub-sectors such as modern grocery; personal goods and entertainment. Modern retail trends through modern channels will also place a stronger and gradually replace the traditional grocery form, which long existed in Vietnam linked to living habits and consumption of people .
In 2011, the traditional grocery distribution sector in Vietnam reached $ 11 billion scale, the forecast market size in 2016 will drop to 10.7 billion (down 1%).
However, if the 2011 model new modern grocery market size reached $ 1.6 billion, the 2016 is expected to increase to 2.8 billion (up 12%).
Similarly, in the field of personal goods and recreation scale will also increase from 2.4 billion in 2011 to $ 4 billion in 2016, up 11%.
Bainâ??s analysis may partly explain why large FMCG firms of Vietnam as Masan, Vinamilk, Kinh Do â?¦ again can win in front of the big multinationals, which are very strong in terms of capital and distribution systems.
The key element to the success of domestic enterprises listed Bain include: (1) local scale, (2) ability to lead on price, (3) the localization factors.
In summary, according to Bain, the loyalty of our customers is very important for local businesses to win in the retail sector. It is vital that the consumer business in the country is pretty well positioned.
In some cases, even corporations multinational retailers like Walmart and glorious defeat, failure to grasp the key to â??localizeâ??. Walmart had failed in Korea, because the group does not know how to adjust business strategy to suit the local market. In other words, they do not do so, â??South Koreaâ?? of his brand here.
The recent analysis of Vietnam cunng consumer sector showed revenue growth potential of the sector is not large. Total revenue of the areas related to consumer products in Vietnam is expected to rise to $ 140 billion in 2016.
In particular, the growth of real spending by consumers (CAGR) 2011-2016 was 3% in the retail, consumer goods (non-food and beverage) 6%, food and beverage industry Other 3% (source: VINaconnect Report, Euromonitor and Bain Analysis).
According to Euromonitor reports and Bain Analysis, expenditure in the field of food and non-alcoholic beverages in Vietnam could reach 276 billion dollars by 2016.
With a per capita income is increasing, reaching about $ 1,521 in 2012, Vietnamâ??s market promises to be the new star of consumer goods in Asia.
But the remaining problem is whether Vietnam can now take advantage of the great opportunity or not?
No review are found
