Transforming the fast-growing consumer market in the world.

Consumer psychology has shifted to the use of large and medium-sized products, low cost and promotional offers. This article ace-world-trading will help you know more about this industry

Overall picture of FMCG market

Although urban FMCG consumption grew by 3% in volume and 9% in value terms; FMCG consumption in rural areas grew by 10% in volume and 13% in value over the same period in 2016, but the urban market has not survived the slowdown since the third quarter of 2016. The market in rural areas began to show signs of slower growth.

Industries, Personal care products grew the most, especially in rural areas

In particular, in urban areas, the FMCG market witnessed relatively low growth in all sectors from food to cosmetics and even one-third of FMCG's declined in terms of volume at In urban areas, the heaviest items were non-essential personal care items such as deodorant rolls (23% reduction), razor blades (23% reduction), pocket tissues (21%), (down 11%) ...
Meanwhile, while still maintaining double digit growth in all categories (excluding packaged food), the rural market has begun to show signs of slowing down.
On the commodity side, in spite of the declining growth of the overall FMCG market in urban areas, convenience items such as snack and bean products (47%), handwash (24%), instant tea (20%), box tissue (27%) ... which dominate the rankings of new entrants in 2016, the first quarter of 2016 continues to grow.

See more: Logistic economy

Consumer Psychology Like large and medium size products, low cost and with promotional
On the other hand, according to experts, the decline of economic growth has been occurring also affect the psychology of consumers and change their trend of spending.
With limited budget, consumers tend to buy more when there is a promotion. The average consumption of an urban household for promotional products increased by about 38%, while the average consumption for non-promotional products increased by only 3%.
At the same time, consumers continue to shift to larger product packs in the majority of sectors with 62% of the product lines growing in average size.

According to consumer psychology through advertising

The FMCG sector is considered to be fertile but the level of competition is extremely high. If the business does not invest in branding continuously means that the playing field for the opponent.
Therefore, it would not be too surprising if the top companies spend trillions of dong each year on advertising and marketing their images.
Although it has spent VND1,269 billion on advertising in 2015, it is still a sensation that Sabeco's appeal is lower than its foreign counterparts, especially Heineken, as the frequency of advertising this product is dense. The media, especially at the Champions League football matches.

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Consumers also look to lower-end products to save costs; However, the tendency to switch to higher-end products is still seen in high-income groups.
In addition, the Kantar Worldpanel report also shows consumer trends are more convenient in urban consumers. In the first quarter of 2016, most retail channels in urban areas declined, except for mini-supermarkets and convenience stores that were rapidly expanding their networks. In particular, in 2016, mini supermarkets and convenience stores reached 23% of urban households.
Industry experts "In order to sustain growth under current constraints, manufacturers need to set up an effective stratification strategy to take advantage of the changes in consumer demand."
"Low and middle income consumers will continue to look for value options. Therefore, there is a need for appropriate strategic adjustments to sustain growth in this group.
Meanwhile, high-income consumers will continue to lead the new trend in health, nutrition, convenience and luxury. This suggests we need to provide more value at a price that consumers in this group can accept, "the expert emphasized.