Market research top-line Mar 2011
How inflation affects on consumption’s behavior and
consumers’ attitude
HIGHLIGHTS:
HCMC HA NOI DANANG
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.
Inflation & consumer attitude
Inflation impact
Almost consumer in HCM, HN and Da Nang is affected by inflation.
The group is affected more than others is: o Who live in Da Nang. o Older age (41-50). o Married .
Da Nang Location?
41-50
Age group?
Married Status?
Sensitivity group
Total HCM HN Da Nang 18 - 30 31 - 40 41 - 50 Single Married
2.48 2.41 2.46 2.56* 2.43 2.46 2.58* 2.41 2.52* Mean
600 200 200 200 268 162 170 244 356 N=
%
Note: (*) is significant difference at 95% confidence interval / Lưu ý: (*) là khác biệt có ý nghĩa ở 95% độ tin cậy
Economic information follow up
Total HCM HN Da Nang Male Female Class A Class B Class C Class D
3.15 3.14 3.00 3.33* 3.22 3.12 3.19 3.20 3.21 3.07 Mean
600 200 200 200 300 300 134 158 172 136 N=
Almost consumers in 3 cities follow inflation information frequently. Inflation seems
be one of the hottest issues right now.
Just some don’t pay much attention to the economic situation. They are:
Ha Noi people (26%)
Female (22%)
Class D (23%).
Note: (*) is significant difference at 95% confidence interval/ Lưu ý: (*) là khác biệt có ý nghĩa ở 95% độ tin cậy
Ha Noi (vs DN: 11%, HCM: 20%)
Female (Vs Male:16%)
Class D (Vs BC:17%, A 20%)
26%
22%
23%
%
Social and economic concern
Top concern: the economic situation which impact on
consumer’s life directly and immediately. They are: price
increase in electricity, food, oil, gas, gold and economic
depression.
Less concern: social situation – long term issues including
unemployment, corruption, nature disaster, climate changing.
Not concern: safe and security problems including crime
increasing, terrorism…) and absolute pays no worry about
political instability in Middle East, Korean war, foreign
currency aid cuts. Vietnamese doesn’t pay attention to world
issues, which don’t affect their life directly.
Electricity price increase
Food price increase
Economic depression
Oil price increase
Gold price increase
Unemployment
Gas price increase
Corruption
Natural disasters
USD-VND Ex-rate increase
Climate changing
N=600
% Total
Consumers are losing their confidence in Vietnam economy. Almost think that it will keep the same (48%)
or worse (36%).
Consumer confidence
HCM
41 - 50
31 - 40
Class A
Married
Total average
HN
Single
Da Nang
18 - 30
Da Nang
18 - 30
Single
Total average
41 - 50
Married
31 - 40
Class A
HCM
HN
Pessimistic
Optimistic
o Pessimistic group : • Living in HCMC • Older age group (31-50) • Class A • Married
o Optimistic group • Living in Da Nang. • Younger age group (18-30). • Single
%
%
Inflation & consumption’s behavior
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%).
Investment/Uses spare money
Bank saving
Buy gold
Invest in business
Invest in real estate
Buy USD
Invest in security
Total Da Nang
N=600 N=200
%
Expenditure
65
62
57
55
45
44
29
25
20
18
15
9
29
31
34
37
42
47
59
42
42
68
57
64
6
7
9
8
13
10
12
33
38
15
28
27 % Total HCMC HN DA NANG
Education Foods&Drinks
Healthcare Transportation
Electric, waters Communication Home appliance
Entertaiment Beauty Clothes
Luxury goods Travel
Giảm Bình thường TăngN = 600 200 200 200
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.
60
57
53
52
37
38
30
22
21
11
14
7
25
29
29
38
40
50
58
39
30
65
44
57
15
14
19
10
24
12
13
39
50
25
43
36
63
60
56
57
45
47
23
24
21
23
18
15
36
37
42
39
51
44
63
61
67
74
74
79
2
3
3
4
5
10
14
16
13
4
8
7
72
72
63
57
54
47
36
31
20
20
13
2
25
25
31
34
35
46
55
26
30
64
55
52
2
3
6
9
11
7
10
44
51
16
33
46
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.
Shopping habit
Total
N=600
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
%
Consumers reduce almost entertainment activities including watching film, music, eating out and party, drinking.
Daily activities
Total/tổng cộng
N=600
Using electric utilities
Using internet
Go out for coffee
Go out for eating
Using air condition
Party, drinking
Watching film, music, play
Laudry
% Mean
1.67
1.64
1.60
1.48
1.45
1.43
1.34
1.21
Confectionary, products from milk, skincare products are the categories could be hurt in the
inflation.
FMCG consumption
Total
N=600
Seasoning product
Personal care product
Baby care
Cleaning products
Skincare products
Products from milk
Confectionary/
% Mean
1.92
1.91
1.90
1.88
1.75
1.71
1.57
Except confectionary, almost consumers are loyal with their most often use
brand.
FMCG brand choice
Total
N=600
Baby care
Seasoning product
Cleaning products
Personal care product
Skincare products
Products from milk
Confectionary
% Mean
1.96
1.95
1.93
1.93
1.93
1.91
1.84
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 Cleaning products
Seasoning product
Personal care product
Baby care
Products from milk
Skincare products
Confectionary
% Mean
2.01
2.00
2.00
1.95
1.91
1.84
1.74
Conclusion
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).
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.
Slide 20
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