Fast-moving consumer goods (FMCG) growth in Vietnam’s six major cities took a dip in the first quarter of this year, presenting challenges for manufacturers, according to a report released Wednesday by Nielsen.
The growth was 3.6 percent compared to 5.7 percent in the previous quarter. Beverage continued to contribute the most to total FMCG sales with 39 percent in the quarter.
“It’s believed that when consumer income reaches some certain extent, the consumption aspiration changes. Urban consumers are increasingly demanding and expecting better choices. They’re looking for more innovations and new consumption experiment,” said Nguyen Anh Dung, Director of Retail Measurement Services, Nielsen Vietnam.
“With lack of innovation, FMCG is becoming more basic items which consumers would still buy but only at a sufficient level,” Dung said.
According to Nielsen, Vietnam has the highest score for trying new products in Southeast Asia.
“This presents good challenges for manufacturers to provide true innovations for consumers,” Dung said