Big C has reported a 67 percent increase in the number of transactions during the Covid-19 period, while Vinmart saw a 30 percent and Co-opmart 16 percent increase.
A survey by Kantar WorldPanel found that Vietnam’s spending on FMCG (fast-moving consumer goods) saw a 2-digit growth rate in the first four months of 2020, especially in urban areas. However, a 1-digit growth rate will return when the pandemic is over.
Shopping carts were filled with goods in three categories – essential food, sanitary products, and products that improve health.
As people had to stay home and restrict travel, they tended to order more snacks and personal care products.
Modern shopping channels such as supermarkets and hypermarkets witnessed higher growth than traditional channels such as wet markets and groceries thanks to the increase in number of transactions.
Convenience stores, mini marts and online shopping also played an important role in FMCG growth.
|Among mini marts, Bach Hoa Xanh saw a growth rate of 70 percent, Vinmart+ 86 percent and Satrafoods 10 percent. As for online shopping, the number of transactions via Facebook increased by 126 percent, Shopee 102 percent and Tiki 69 percent.|
Among supermarkets and hypermarkets, Co-op reported a 16 percent growth rate, and Big C 60 percent.
Among mini marts, Bach Hoa Xanh saw a growth rate of 70 percent, Vinmart+ 86 percent and Satrafoods 10 percent. As for online shopping, the number of transactions via Facebook increased by 126 percent, Shopee 102 percent and Tiki 69 percent.
Nguyen Phuong Nga from Kantar WorldPanel Vietnam said the changes in consumer shopping behavior brought outstanding growth to many retailers during the pandemic period in Vietnam, and this could be a springboard for retailers to maintain growth in the long term.
Experts predict there will be changes in the FMCG growth model, depending on brands and sectors, as well as geographic and demographic differences.
Sanitary, personal care and home products are expected to continue to sustain growth. The sales of cooking spices, junk food, packaged foods and frozen foods, and meal replacement will decrease.
Long-term necessities such as shampoo, toothpaste, and dishwashing liquid will return to what they used to be.
Non-essential products such as cosmetics, alcoholic beverages and perfumes will recover slowly.
A newly released report from the Vietnam High-quality Product Business Association showed that in the near future, consumers in HCM City will prioritize their spending on food and healthcare, while people in Hanoi will pay higher attention to non-essential goods (garments and household-use goods) and people in other provinces to cosmetics and sanitary products.
The report also pointed out that consumers hesitated to shop offline but loved online shopping, which explains the recent online shopping boom.
At least 82 percent of polled consumers said they bought things online during the social distancing period and 98 percent of these same consumers said they would continue buying products online in the future.
The opening of the domestic market as committed in the EU – Vietnam Free Trade Agreement (EVFTA) will lead to the strong penetration of foreign businesses to expand their retail chains in the country.
Chair of the Vietnam Retail Association (VRA) Vu Thi Hau, at a recently held event, complained about the suffering borne by Vietnamese retailers.