76% Vietnamese consumers increasingly trusted domestic brands

DNHN - 76% of Vietnamese consumers prefer 'Made in Vietnam' branded goods to foreign brands, indicating growing confidence in domestic brands and products.

According to a recently published report by WGSN (a global company specializing in trend forecasting), Vietnam is a key growth market in the region and the most optimistic country in the world regarding its economic future. Asian nation.

Approximately 70% of young Millennials (also known as Generation Y - the generation between Generation X and Generation Z) are optimistic about positive growth.

Vietnam has become a preferred destination for multinational corporations as a result of the pandemic's limited production disruptions.

Domestic technology firms and investment capital in technology will help Vietnam become a regional technology hub.

In addition, the number of startups has doubled between the beginning of the Covid-19 epidemic and mid-2022.

In addition, improvements in logistics infrastructure contribute to the growth of Vietnam's estimated $49 billion e-commerce industry by 2025.

According to WGSN experts, Vietnam will become Southeast Asia's fastest-growing digital economy and one of Asia's fastest-growing economies by 2023, with a GDP growth rate of approximately 6.2%.

Notably, a survey conducted earlier this year by McKinsey & Company revealed that up to 70% of young millennials (those born between 1981 and 1996) in Vietnam were optimistic about the country's economic future. This rate is the highest among the Asian nations surveyed.

Seventy-six percent of Vietnamese consumers prefer 'Made in Vietnam' branded goods over foreign brands. Therefore, brands must invest in initiatives that honor local communities and facilitate connections with Vietnamese youth, according to Helen Sac, regional consulting director for APAC at WGSN.

With Millennials and Generation Z (born between 1996 and 2010) comprising nearly half of Vietnam's population, experts anticipate that domestic consumers will continue adopting a digital lifestyle. This audience will desire a multichannel experience that is increasingly flexible and convenient, as well as digital payment options.

Even though household spending is projected to rise 7.3% annually this year, consumers are still inclined to increase their savings in light of the economic downturn.

Similar to WGSN's Annual Shopper Asia Forecast, the retail spending patterns of Vietnamese consumers in 2023 will include two distinct elements: the pursuit of instant gratification, on the one hand, and the desire for long-term value, on the other. On the one hand, there is an effort to increase savings.

To retain customers in 2023, the WGSN report recommends that brands and businesses invest in an online presence, a form of "click and collect" service (order online, pick up in-store), in-store payment for online orders, and a multi-service upgrade.

As consumers in Vietnam embrace the convenience and simplicity of digital payments, brands must begin integrating digital payments and diverse payment methods across channels to minimize problems and increase the conversion rate, as the use of cash will continue to decline in the coming years.

Increasing the value of a brand through membership programs or loyalty partnerships with related brands will also be essential for companies to meet retail spending trends. Vietnamese customers.

Even though the APAC region has finally entered the post-pandemic era in 2023, rising inflation and high-interest rates will continue to fuel concerns about the rising cost of living. Passion and novel personal experiences will determine consumer spending, enabling consumers to find joy and value in daily life.

Ha Anh (t/h)