2. Market research top-line Mar 2011
HCMC HA NOI DANANG
HIGHLIGHTS: How inflation affects on consumption’s behavior and
consumers’ attitude
3. About
Viettrack is a monthly research news-letter developed by FTA Research & Consultant,
the representative of ESOMAR in Viet Nam. It is conducted base on a monthly
research. It aims at delivering comment, evaluation and true feeling of research
objects about present time’s economic situation as well as promotion campaigns or
products to producers and marketers. It is expected to help them understand to offer
better service to unsatisfied demand of consumers.
Viettrack is done according to ISO 20252:2006, the international quality standard in
market research and ESOMAR Code of Conduct.
Viettrack Mar 2011 is conducted on general population (18-50) in 3 largest cities of
Vietnam (Hochiminh, Hanoi, Danang) with N=600. This study aims at finding how
inflation affects on consumption’s behavior and consumers’ attitude in 2011. Thus,
this information will help marketers to have some suitable adjustment in their
strategy in the current situation.
5. Inflation impact
Sensitivity group Almost consumer in HCM, HN and Da Nang is affected by
inflation.
The group is affected more than others is:
Da o Who live in Da Nang.
Location?
Nang
o Older age (41-50).
o Married .
Age 41-
group? 50
Marri
Status?
ed
Total HCM HN Da Nang 18 - 30 31 - 40 41 - 50 Single Married
Mean 2.48 2.41 2.46 2.56* 2.43 2.46 2.58* 2.41 2.52*
%
N= 600 200 200 200 268 162 170 244 356
Note: (*) is significant difference at 95% confidence interval / Lưu ý: (*) là khác biệt có ý nghĩa ở 95% độ tin cậy
6. Economic information follow up
Ha Noi Almost consumers in 3 cities follow inflation information frequently. Inflation seems
26%
(vs DN: 11%, HCM: 20%) be one of the hottest issues right now.
Just some don’t pay much attention to the economic situation. They are:
Female
22% Ha Noi people (26%)
(Vs Male:16%)
Female (22%)
Class D Class D (23%).
23%
(Vs BC:17%, A 20%)
Total HCM HN Da Nang Male Female Class A Class B Class C Class D
Mean 3.15 3.14 3.00 3.33* 3.22 3.12 3.19 3.20 3.21 3.07
%
N= 600 200 200 200 300 300 134 158 172 136
Note: (*) is significant difference at 95% confidence interval/ Lưu ý: (*) là khác biệt có ý nghĩa ở 95% độ tin cậy
7. Social and economic concern
Total
%
Top concern: the economic situation which impact on
Electricity price increase
consumer’s life directly and immediately. They are: price
increase in electricity, food, oil, gas, gold and economic Food price increase
depression.
Economic depression
Less concern: social situation – long term issues including
unemployment, corruption, nature disaster, climate changing. Oil price increase
Not concern: safe and security problems including crime Gold price increase
increasing, terrorism…) and absolute pays no worry about
Unemployment
political instability in Middle East, Korean war, foreign
currency aid cuts. Vietnamese doesn’t pay attention to world Gas price increase
issues, which don’t affect their life directly.
Corruption
Natural disasters
USD-VND Ex-rate increase
Climate changing
N=600
8. Consumer confidence
Consumers are losing their confidence in Vietnam economy. Almost think that it will keep the same (48%)
or worse (36%).
o Pessimistic group : o Optimistic group
• Living in HCMC • Living in Da Nang.
• Older age group (31-50) • Younger age group (18-30).
• Class A • Single
• Married
Optimistic Da Nang %
18 - 30
Pessimistic
HCM % Single
41 - 50 Total average
31 - 40 41 - 50
Class A Married
Married 31 - 40
Total average Class A
HN HCM
Single HN
Da Nang
18 - 30
10. Investment/Uses spare money
In general, almost use their spare money in bank saving service first then
buying gold – the low risk areas right now. However, Danang people prefer
buying gold (48%) to bank saving (33%).
Total Da Nang
%
Bank saving
Buy gold
Invest in business
Invest in real estate
Buy USD
Invest in security
N=600 N=200
11. Expenditure
As this inflation situation, activities that consumer has to cut down are traveling, luxury products, clothing, beauty care
service, home appliance, entertainment, telecommunication (telephone, internet).
Necessities products/ services are the group they cannot reduce including education, transportation, food & beverage,
electric, waters, healthcare services.
Hanoi people cut down budget across categories.
Total HCMC HN DA NANG
Education 9 64 27 7 57 36 15 79 7 2 52 46 %
Foods&Drinks 15 57 28 14 44 43 18 74 8 13 55 33
Healthcare 18 68 15 11 65 25 23 74 4 20 64 16
Transportation 20 42 38 21 30 50 21 67 13 20 30 51
Electric, waters 25 42 33 22 39 39 24 61 16 31 26 44
Communication 29 59 12 30 58 13 23 63 14 36 55 10
Home appliance 44 47 10 38 50 12 47 44 10 47 46 7
Entertaiment 45 42 13 37 40 24 45 51 5 54 35 11
Beauty 55 37 8 52 38 10 57 39 4 57 34 9
Clothes 57 34 9 53 29 19 56 42 3 63 31 6
Luxury goods 62 31 7 57 29 14 60 37 3 72 25 3
Travel 65 29 6 60 25 15 63 36 2 72 25 2
N= 600 200 200 200
Giảm Bình thường Tăng
12. Shopping habit
In the inflation, consumer trends to switch shopping channel from modern trade (supermarket, hyper market,
convenience store, etc.) into wet market. They especially shopping more when having sales promotion.
Total
%
Shopping at wet market
Shopping when having sales promotion
Shopping at grocery store
Shopping at hypermarket
Shopping at supermarket
Shopping at convenience store
Shopping at fair, exhibition
N=600
13. Daily activities
Consumers reduce almost entertainment activities including watching film, music, eating out and party,
drinking.
Total/tổng cộng % Mean
1.67
Using electric utilities
Using internet 1.64
Go out for coffee 1.60
Go out for eating 1.48
Using air condition 1.45
Party, drinking 1.43
Watching film, music, play 1.34
Laudry 1.21
N=600
14. FMCG consumption
Confectionary, products from milk, skincare products are the categories could be hurt in the
inflation.
Total
Mean
%
Seasoning product 1.92
Personal care product 1.91
Baby care 1.90
Cleaning products
1.88
Skincare products
1.75
Products from milk
1.71
Confectionary/
1.57
N=600
15. FMCG brand choice
Except confectionary, almost consumers are loyal with their most often use
brand.
Total
Mean
%
Baby care 1.96
Seasoning product 1.95
Cleaning products 1.93
Personal care product 1.93
Skincare products
1.93
Products from milk
1.91
Confectionary
1.84
N=600
16. FMCG pack size choice
Not much change in pack size choice. consumer trends to purchase the normal or smaller pack size
for confectionary, skincare products, products from milk and babycare product only.
Total
N=600 % Mean
Cleaning products 2.01
Seasoning product 2.00
Personal care product 2.00
Baby care 1.95
Products from milk 1.91
Skincare products 1.84
Confectionary
1.74
18. Conclusion
In general, the high inflation rate situation at the beginning of 2011 affects all 3
largest cities of Vietnam (HCMC, Hanoi, Danang). Their confidence in Vietnam
economy seems be losing their confidence people may be more careful with
money spending in near future.
The most concerns are the economic situation including price increase in electricity,
food economical fuel/ electricity consumption products could be welcome at this
time.
They would like to use their spare money in bank saving service first then buying
gold those would be safe more than high profit (invest in business and real estate or
stock).
19. Conclusion
Living in the inflation, consumer has to cut down some expenditures which is not
necessaries. FMCG seems be not affected (except confectionary) and consumers are
loyal to FMCG brand and pack size they use most often to survive this period,
confectionery should be more active.
The shopping channel is change as consumers switch from shopping at modern trade
into wet market should consider to focus on branding and brand activation at wet
market and GT.
