Consumer confidence dips as counterfeit crisis rattles market

Consumer confidence dips as counterfeit crisis rattles market

Vietnam’s consumer goods market is sending mixed signals, with steady economic growth on one hand and weakening consumer confidence on the other.

According to a report by Worldpanel by Numerator (formerly Kantar Worldpanel), released on July 30, Vietnam’s economy continued to grow steadily in the second quarter, driven by strong performance in the industrial and service sectors. However, despite the positive GDP trend, the fast-moving consumer goods market is being weighed down by declining consumer confidence and more cautious spending patterns.

Despite Vietnam’s strong GDP growth, consumer confidence has dropped to its lowest point since the pandemic. This downturn is driven by multiple factors, including a volatile global trade environment and, more recently, news around the government’s heightened crackdown on counterfeit goods and low-quality food products.

The government’s crackdown, while necessary to safeguard consumers and ensure market integrity, has temporarily unsettled public trust. Heightened consumer anxiety and growing scrutiny around product authenticity are already beginning to reshape shopping habits.

The report pointed out that brands can expect increased scrutiny from consumers, who will be more critical in their purchases, actively seeking out trusted brands and verified sources. This will redefine value-consciousness, moving beyond just price to include quality, safety, and brand reliability. With rising costs, consumers are likely to focus on essentials, prioritising necessary consumer goods over discretionary items, leading to more intentional spending.

This new counterfeit goods crisis is shaking consumer trust and posing a serious challenge for brands and manufacturers. In an environment where product authenticity is under scrutiny, businesses must work harder to reinforce their value and reputation to win back confidence.

VIR