The sales of Fast-Moving Consumer Goods (FMCG) of traditional and modern trade channels (measured in urban areas only) slightly rose by 0.7 percent in the second quarter (Q2) of 2018. 

The growth in value is fast than volume growth. The value growth reached 1.3 percent while the output growth fell to 0.6 percent, according to the Q2 Market Pulse report published quarterly by Nielsen the global business performance measurement company.

According to the report, six out of seven major FMCG experienced rebound in this quarter, including beverage (including beer), dairy products, home care products, personal care products, baby care products, and tobacco. Particularly, the group of baby care products recorded the highest growth rate of 12 percent, an outstanding growth in many consecutive quarters. Only the group of food products saw a decline of 1.9 percent.

Nguyen Anh Dung, Senior manager cum Head of Retail Measurement Services at Nielsen Vietnam said that “While the Gross Domestic Product (GDP) of Vietnam reached 7.1 percent in the first six months of 2018, FMCG was not reflecting the positive developments of the economic conditions”.

However, the growth opportunities still exist. The revenue at modern sales channel are growing at a double-digit rate. Wholesale and retail sale channels including stores with wholesale and retail activities is also recording a rapid growth momentum. Seasonality has offered excellent opportunities for certain categories of products, such as snacks, milk, drinks and confectionery, etc. to innovate and connect with users in creative ways.

Regarding the business situation of commercial channels, modern channels developed by up to 11.9 percent while traditional ones remained slow. In terms of areas, the FMCG sales of traditional channels in urban area slightly increased by 1.2 percent, while that in rural areas recorded negative growth of 2.4 percent.

FMCG have become essential products in the lives of consumers, while other products are gaining a lot of excitement because of novelty or special experiences. Consumers are willing to spend more and that leads to the strong growth of tourism and entertainment sectors, and electronic products such as mobile phones and automobiles, etc.

“Thus, it is time for manufacturers to change and bring the excitement back to FMCG industry. The most important thing is to listen to consumers and put them at the centre of all decisions that the manufacturer will make. They will provide important signals that lead to sustainable growth if manufacturers can meet their needs and expectations”, said the representative of Nielsen Vietnam. 

Source: https://www.intellasia.net