By PwC Vietnam analysts
Mon, November 11, 2024 | 5:18 pm GMT+7
Vietnam is carving a unique niche within the Asia Pacific region as the leader in online shopping, reflecting the country’s rapidly evolving consumer landscape. Increasingly, Vietnamese consumers are combining their shopping habits with a commitment to sustainability, according to insights from PwC Vietnam analysts.
Consumers in Vietnam are actively embracing and using social media in order to discover new brands and seek reviews before making a purchase. Illustration courtesy of MonsterInsights.
As the economy in the Asia Pacific region shows signs of recovery, inflation continues to loom large over consumers’ financial decision-making, prompting a more mindful approach to spending. In Vietnam alone, a remarkable 63% of consumers plan to increase their grocery expenses over the next year, with clothing and healthcare products following closely behind, at 52% and 48%, respectively. These findings stem from PwC’s Asia Pacific Voice of the Consumer Survey 2024, highlighting sentiments specific to Vietnam.
The survey, which encompassed 7,000 respondents across the region, including 515 from Vietnam, indicates a shared concern among 63% of consumers citing inflation as the principal risk factor in the coming year. The desire for reassurance and reliability in the brands they choose is growing, compelling companies to forge deeper, trust-based relationships with their diverse consumer base.
Rakesh Mani, consumer markets leader at PwC Asia Pacific, underscores the challenges of today’s consumer landscape, pointing out that economic uncertainty, data privacy, and environmental issues compel companies to engage with consumers on a more emotional level. He states, “Companies that stand out will focus on building deeper trust with their consumers. Emotional resonance—whether through product innovation or omnichannel strategies—uplifts this transaction from mere exchanges to cultivations of loyalty.”
Blend the In-Store and Online Experience
To satisfy the shifting demands of modern consumers, brands and retailers are urged to adopt flexible omnichannel strategies that combine online and offline shopping experiences. Vietnam’s e-commerce platforms are flourishing, with a remarkable 67% of online shoppers making purchases via mobile phones, and 44% using PCs, while traditional in-store shopping remains a formidable 63% of total purchases.
Moreover, social media is becoming increasingly vital for consumers in Vietnam as they explore new brands and seek product reviews. Notably, 71% of respondents reported having purchased products directly through social media, far exceeding the regional average of 56%. Yet, this surge in online shopping comes with a drying well of trust; consumers are becoming wary of safety and reliability, with 77% expressing concerns about privacy and data sharing, paralleling the regional sentiment.
Sustainability and AI: Emerging Trends
A significant trend among Vietnamese consumers is the heightened emphasis on sustainability within their buying habits. A staggering 94% admit experiencing tangible impacts of climate change, compared to 88% across the region. Sustainability is compelling enough that 74% of consumers would consider paying up to 20% more for eco-friendly products made from recycled materials, while 85% would entertain purchasing hybrid or electric vehicles within three years.
Interestingly, the integration of artificial intelligence (AI) into shopping habits is gaining traction, with more than half of surveyed individuals feeling comfortable using AI for low-risk activities. However, human interaction remains preferred for more complex transactions. A significant 69% trust AI for product information gathering, while 63% find it useful for recommendations, and 59% feel confident in using AI for customer service inquiries.
Global megatrends, although seemingly distant, present valuable opportunities for companies in consumer markets to innovate with a view towards sustainable growth. Nguyen Luong Hien, consumer lead partner at PwC Vietnam, emphasizes the need for business leaders in Vietnam to act on these evolving consumer behaviors to drive growth. The Voice of the Consumer Survey 2024 underscores the importance of building consumer trust, encouraging companies to craft value propositions that resonate beyond mere price competition.
Understanding shopper missions and supporting ethical choices is paramount in nurturing consumer trust. Transparency and consistency need to be core tenets for brands, particularly when integrating GenAI strategies with robust risk management processes to foster early engagement with consumers. Furthermore, authenticity in sustainability practices, alongside transparent third-party certifications, will be crucial for ensuring a sustainable future.
By prioritizing these strategies, business leaders can successfully navigate current challenges while seeking to thrive within Vietnam’s dynamic consumer market—a landscape projected to evolve into one of the world’s largest by 2030.