Manufacturers urged to meet new consumption trends
Manufacturers urged to meet new consumption trends
The way people buy and consume goods has changed a great deal after the COVID-19 pandemic, and enterprises should understand this to develop suitable products, a seminar heard in HCM City yesterday.
Speaking at the seminar held by the High Quality Vietnamese Product Business Association, Nguyen Cao Ngoc Dung, a senior manager at NielsenIQ Viet Nam, said the pandemic has accelerated the ascendance of wellness as a dominant consumer value all around the world.
Consumers are increasingly aware that all aspects of their lives – where they live, how they work, what they eat, and how they exercise, socialise and travel – impact their health outcomes, mental influence and overall sense of well-being.
They strive to protect themselves against immediate threats to their health and well-being, she said.
Be it daily hygiene habits or minimising exposure to disease and pollution, these fundamental health priorities are top of mind for them, she said.
Health will remain a focus for consumers and continue to be a driver of growth.
The OTC (over the counter) and health supplements category saw substantial and consistent growth in the past two years, including 17 per cent last year in the Asia-Pacific.
Talking about the reasons why health has become a priority, she listed several ranging from a desire to live a longer, healthier life and look and feel better to the sway of social media and the burden of rising costs of healthcare.
A Nielsen IQ survey found 39 per cent of consumers in the Asia-Pacific bought products with healthy elements in the last two years, 29 per cent bought those with relaxation properties and 26 per cent those with special nutritional properties.
Consumers were also willing to pay a premium for products that offer specific benefits such as nutrition, fewer or no preservatives, sustainability, hygiene, and protection, she said.
It is imperative for manufacturers to identify where their brands sit in the current hierarchy of needs of consumers and try to meet or exceed expectations, she added.
In Viet Nam, home care, personal care and food products enjoyed good growth in the first quarter of this year.
Like in the rest of the region, Vietnamese consumers are sensitive to price changes and are willing to cut spending if prices rise.
So when deciding to raise prices, firms must have convincing reasons, she said.
Consumers tend to eat more at home, so manufacturers and retailers should have suitable and convenience products and delivery services to meet customers’ demand.
Some 59 per cent of Vietnamese consumers said they have mainly bought domestically-made products because they know the origin of products and want to support local firms, and 63 per cent of consumers said they will continue to shop online post pandemic.
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Vu Kim Hanh, chairwoman of the High Quality Vietnamese Product Business Association, said consumers were obsessed with the pandemic and looked for foods that boost their health and immunity but are convenient.
Consumers are increasingly looking for natural and environment-friendly products and those with health benefits.
Demand for plant-based products and alternative protein products had grown significantly and will continue to rise in the future, she said.
Plant-based products have developed strongly in many countries.
In Viet Nam, most of plant-based products available in the market are imported. So firms conduct research on this segment, she added.
