Vietnam has been and will be witnessing changes in consumer behavior and attitude during the new coronavirus disease (COVID-19) outbreak and the post-epidemic period, according to global data and consulting company Kantar Worldpanel.
Kantar said in a recent news release on its website that the spread of COVID-19, which has become a global health emergency, has led to increased health consciousness among Vietnamese consumers.
In order to stay safe and protect themselves, many people avoid the crowd in their daily activities.
They shop fewer times with a bigger basket size on each trip.
Such a change in consumers’ behaviors could affect retail sales and fast-moving consumer goods (FMCG) turnover in the short term, the company said.
Spending on eating and drinking out and other activities outside the home is cut down during the coronavirus outbreak, however, FMCG for in-home consumption is expected to sustain growth.
The consumption of household cleaners and personal hygiene is also picking up due to the increase of self-protection.
Healthy foods like fruits and fruit juices that help increase immunity are projected to see a similar upward trend.
In terms of retail, smaller, clean and proximity shopping places like street shops, minimarkets, and convenience stores are temporarily favored against wet markets or larger super- or hypermarkets.
Furthermore, the number of transactions for online shopping and home deliveries is significantly increasing.
On the other hand, due to delays in import and export shipments caused by the COVID-19 outbreak, there are challenges for suppliers and traders to produce, distribute, and stock goods.
As a result, prices might see an uplift, which could demotivate consumer spending during the fight against the COVID-19, Kantar anticipated.
Regarding the impact of the epidemic in the middle-long term, the company said it could raise further the health and hygiene consciousness among Vietnamese consumers, which would in turn drive the further development of hygiene products for personal care and home care.
These products are currently small in terms of both consumer base and consumption, but are expected to become more popular as more and more consumers get used to buying these items at a higher level of consumption.
Beside, Kantar expected ecommerce to increase its share in the economy thanks to its convenience and advantage of less physical contact.
Its delivery model fits well with consumers’ needs during this time.
The online shopping platforms and delivery services are predicted to witness growth acceleration in both shopper base and incremental spend by attracting new shoppers who have never shopped online before and increased or upgraded spending from existing online shoppers.
The company concluded that with emerging channels growing in popularity, including minimarkets, convenience stores, and ecommerce, there will be a continuing shift from traditional shopping behaviors to omni-channel and multi-channel shopping, reinforcing the rising omni-channel trend in retail and FMCG markets in the coming time.