Four growth strategies for Vietnam’s FMCG industry that businesses need to pay attention to
Kantar Vietnam suggests 4 strategies to help grow the FMCG industry for Vietnamese businesses as follows:
1. Decoding the reasons behind changes in shopping behavior
Kantar data shows that more than half of FMCG brands are struggling to keep up with competitors in 2023, especially in categories recording strong growth, about a third of growth has begun to slow down.
In the context of increasingly fierce competition, determining the growth drivers of the industry as well as the brand from the perspective and thinking of consumers is absolutely necessary to enhance competitive advantage and regain market share. and takes the lead in expanding the industry.
2. Build an effective multi-channel strategy
Retail types in Vietnam are gradually becoming more modern and more convenient, but not all modern retail channels are achieving good growth. Supermarket & Hypermarket channels are gradually losing market share, giving way to the strong rise of convenience channels, small supermarkets and specialized sales chains (mother & baby chains, pharmacy chains and cosmetics). ).
By decoding the shopper journey for each channel/retailer and adjusting their strategy accordingly, brands can ensure their products are not only seen but purchased in the right places. right place, right time.
3. Optimize product portfolio
Each industry, each segment and product type has different ways of reaching buyers at each different point of sale. FMCG manufacturers with diverse product portfolios need to identify key categories and SKUs to maximize resources, achieve growth and expand categories.
4. Maximize the impact of promotions: Quality over quantity
In a context where consumers are tightening their wallets and prioritizing choices that bring value, rushing out promotional programs to boost short-term sales growth is not always effective in the long run. long for the brand. Measuring the effectiveness of different types of promotions will allow brands to evaluate the true impact of their pricing and promotions and better refine their pricing and promotions strategies.
The year 2024 promises to bring a lot of potential to Vietnam’s FMCG industry, with the prospect of strong recovery and growth. However, besides the opportunities, barriers and challenges in stimulating consumption still exist due to short-term macro and economic factors.
To succeed in this context, brands and businesses need to keep abreast of developments in the global and local economies, as well as changes in demographics and consumer trends, to flexibly adapt to changing circumstances. short-term challenges and building long-term strategies.