The first is the turbulence coming from the general economic downturn. Globally, the economy in 2023 is forecast to continue to decline before recovering in 2024.
For Vietnam, despite ending 2022 with record-high GDP growth, the economy is expecte to face many challenges in 2023, with the biggest risk being inflation.
According to Kantar, rising prices have made consumers more worrie about jobs and income, amid mass layoffs that have taken place since late last year. This leads to consumers tightening their spending and thinking more carefully when shopping.
Therefore Brands Retailers to Understand How Consumers React
Along with that, the balance between increasing prices and building brands, while offsetting the increase prices with product quality, and a message that matches consumer psychology, Kantar recommends.
Online shopping will be the second factor affecting fast consumption in Vietnam this year, in which, emerging trends will create Food Stores Email List growth drivers for online channels, such.
Data from Reputa late last year shows that Tiktok is not only stopping at entertainment but increasingly promoting in the e-commerce industry. This platform has surpasse Tiki and Sendo, becoming the top 3 e-commerce platforms in Vietnam.
One of the reasons is that Tik Tok has integrate with the shopping function, making it easier for consumers to access new brands or small brands.
In Addition Virtual Reality Experiences or Online to offline
The third influencing factor is the tendency to live a happy and healthy life. The pandemic has motivate consumers to seek out F&B products with nutritional benefits, or healthy food/drink alternatives (healthier, reuce-fat, sugar-free products).
For example, data from Worldpanel’s CMB Directory Lifestyle Survey 2021 – 2022 shows that up to 85% of respondents said they were willing to pay higher prices for healthier products.
Not only that, but drinks with different health benefits are becoming more and more popular, especially among Millennials showing that health concerns exist at all ages.
Finally, the trend of the sustainable living journey. After the pandemic the topic of sustainable living is more interesting, as more than half of consumers are aware of the environmental impact and make efforts to minimize it, according to a survey by Worldpanel.