LOCAL
INSIGHT
As consumers made the shift from lockdowns to a new normal in 2022, we have seen coexisting yet polarising trends driven by heightened health and hygiene concerns, the return to ‘freedom’, and rising commodity prices.
While embracing the “normal” lifestyle, consumers have adopted and sustained healthy habits, as seen in the sustained momentum of health improvement and hygiene-related products, such as home cleaning products.
Sectors that were heavily impacted during lockdowns, such as beverages, snacking and personal care, have made a strong comeback as people returned to the outdoors. Coca Cola and Pepsi are two brands that have benefited from the recovery, notching up double digit growth in their buyer base.
As prices have continued to rise throughout the year, Vietnamese shoppers have reacted in ways that are not the same for every category. Some shoppers have started to purchase bigger pack sizes to save money, such as in homecare and personal care categories. Leading brands like Downy and Pantene have successfully driven consumption volume by offering bigger pack sizes. In categories facing high inflation, such as cooking oil, shoppers are opting for more affordable alternatives , as seen in the growth of low-tier brands. In other categories they are switching to private labels, which has helped to fuel the 23% volume growth of private-label liquid laundry. Conversely we have witness a trend for trading up in the personal care sector. As restrictions ease, usage occasions for beauty categories increase, prompting consumers to invest in new advanced formats, premium brands or add more steps to their routines.
What do these winning brands have in common? They’ve become omnipresent and have rapidly adapted their strategies in light of changing consumer needs in the evolving FMCG landscape.
