22
MAY 2017
FOOD FOCUSTHAILAND
SURF THE
AEC
The report has showed high growth of dairy and personal care
products inDecember 2016and theywere kept growing further and
beyondotherproducts in the rural areas.Vietnamesecompaniesare
also trying to seek for the growth opportunity that has occurred
simultaneouslywithhighmarketpotential in the ruralareasofVietnam.
Ascompare to thesameperiod in2015,Vietnamesepeoplehave
found to spend21%moreon the facial cleansingproduct, 10.8%of
rural families are searching for this kind of product and spending
1.3% more on it. On the average, 100 grams of facial cleansing
product are sold at 59,000Dongor around88Baht.
In the rural areas, the sales volume of dairy product is found to
be increasedby8%or 6%more than2015. Itsgrowth ishigher than
theone in the4major cities, includingHoChiMinh,Hanoi,Danang,
andCanTho.
Both types of products are more attractive to local consumers
and theirmarket growthpotentialshavebeenperceived from time to
time. It is noticeable that more than 80% of rural consumers have
never bought facial cleansingproduct before.
The report of Kantar Worldpanel has also emphasized on the
emerging of people in the Millennium era. They were born during
1980-2000.About36%ofVietnamesepopulationhasbeenclassified
into this group. Their living styles are different from the population
Morespendingondairyand
personalcareproducts
inthecountrysideofVietnam...
Oneattractivemarket
forThailand
whose ages aremore than 40 years old. About 50% of Millennium
people have relied on the internet in searching for any information
since it makes them have more contemporary look than other
channels. Theywill be in the savingmodewhen theyneed to spend
on grocery products. Millennium group of people in Vietnam have
spentashighas36% inFMCGmarket. It ishigher thanotherASEAN
countries, such as Indonesia, Thailand and thePhilippines.
In a meantime, Thai Trade Center, Ho Chi Minh City, Vietnam
alsocommented that ruralareashavebecome theattractivemarkets
for foreign entrepreneurs because of higher purchasing power and
soaring needs of consumption, especially in the FMCG segment,
which strong growth has been seen in thismarket every single day.
More importantly, Thai-imported FMCG is the favorite product that
gets popularity in themarket because of high consumer confidence
and its competitivepriceas compare to other local products.
However, in order to create product accessibility among this
consumer group,Thai entrepreneursmight need tofind thepotential
distributors that havewide range of connection in the local markets
andmost importantly theymustbeable to trust.Joining theexhibitions
in that particular regionhaspresentedasonepossiblealternative in
finding the right local distributors for Thai entrepreneurs.
In thebeginningof2017,KantarWorldpanel, theexpert
inconsumerbehaviorsurvey,has reported thesituation
of Fast-Moving Consumer Good: (FMCG) in the
countryside of Vietnam. People in the rural areas of
Vietnam were found to spend more on dairy and
personal care products.
