RETAILER SENTIMENT: A STEP CLOSER TO RETAILERS TO WIN IN VIETNAM’S TRADITIONAL TRADE
With more than 1.3 million traditional trade stores in Vietnam, getting products into stores and in front of the consumer can be a big challenge for manufacturers. In fact, until recently, many manufacturers had shifted their focus away from the traditional trade channel in Vietnam, opting instead to set their sights on the expanding modern trade format.
Last year, however, traditional trade in Vietnam grew faster than modern trade for the first time in the last decade. Today, traditional trade accounts for more than 85% of sales in the fast moving consumer goods (FMCG) sector, representing nearly $USD10 billion. This trend has manufacturers taking a step back to once again review the pockets of opportunity that lies in the vast and fragmented traditional trade channel.
In most cases the shopkeepers of those traditional grocery retailers are also the store owners. And according to our Shoppers or Retailers Study, consumers most often do not even enter traditional trade outlets but rely on the shopkeeper when it comes to decision making. 2 out of 3 shoppers will ultimately buy a product because of a retailer’s recommendation. Outside of family and friends, the retailer is a key source of information when it comes to deciding what to buy.
Truly knowing the store that matter is critical to navigating a fragmented landscape and working collaboratively with those retailers to maximise consumer engagement will mean both parties prosper.
Download the full infographic with highlights of Tet 2016 in Vietnam’s traditional trade above.
Insights contained in this article are extracted from the second issue of the 2016 Retailer Sentiment Report Quarter 1. Every three months, the Retailer Sentiment Report will reveal sentiments from retailers, scan matters that are most concerned by retailers and capture trade schemes or brands that retailers support the most, and report on the latest perception of retailers towards specific topics. This round, it’s about “Understanding Tet 2016” from the retailer’s side.
*We welcome the opportunity to continue the conversation with you and your team on understanding retailers as well as consumers in Vietnam, engaging them and identifying opportunities to win in this fast-growing market. We look forward to continuing our dialogue to growing your business. If you have any queries for the study, please contact our Client Service representatives or email us at [email protected]. For more English-language insights from the Asia-Pacific market overall, visit our regional site.