While health had been the top concern for four consecutive quarters in Vietnam, 49% of Vietnamese consumers indicated health as their top concern in the first quarter of 2020, up 4% compared to the last quarter of 2019, which is the highest level globally, according to the latest report from Nielsen Vietnam.
| Vietnamese consumers indicated health as their top concern in the first quarter of 2020. |
As such, Vietnamese consumers are looking for products made under the highest safety standard with high quality ingredients and containing healthy supplements such as vitamin C, Vitamin D, Omega 3 or probiotics.
Even prior to the Covid-19 outbreak, nearly two thirds of Vietnamese consumers were willing to trade up on price for products with quality and safety assurance; far higher than the global average of 49%. The trend is likely to intensify as consumers seek for stronger reassurances after the pandemic.
Covid-19 has brought changes in consumer habits and shopping trends that can be seen in the increase of the importance of healthy products as well as the growth around non-perishable products to make sure people have enough food in the pantry to feed their families who have been spending more time at home.
“When consumers are looking for reassurance on product quality, a familiar name with strong equity and reputation can be a shortcut to reassurance on quality, said Louise Marie Hawley, managing director of Nielsen Vietnam. “We do know that local origin is incredibly important here in Vietnam and can offer an advantage over less familiar brands.”
With consumers looking for reassurance on safety and trust, as a result familiar brands and products can have an advantage. These consumer behavior changes have been observed in the countries of the rebound horizon as defined in Nielsen Thought Leadership about Life beyond Covid. Compared with the global average, more Vietnamese consumers had a preference for local products, with 17% saying they only buy local while 59% say they mostly buy local products (vs the global average of 11% and 54%), according to the Nielsen Global Consumer Loyalty Survey in 2019.
As such, this represents a chance for local products to reinforce their credentials. However, they also must continue to deliver good value and represent a strong offering overall to be chosen by consumers and ensure to justify their place on shelf.
