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Outward looking consumers (08/10)
06/08/2010 - 115 Lượt xem
Vietnam has Asia’s second youngest population with 57 per cent of the country being under 25 years of age, a key demographic for retail sales.
“A large youth population is a powerful machine in boosting Vietnam’s total consumption market,” said Ralf Matthaes, managing director of TNS Vietnam.
Multi media world
Young dynamic Vietnamese are increasingly accessing products through the internet, television and smart mobile phones that also serve as a bridge to advertise within the demographic.
In the short term, television is still the country’s dominant media force, but shifts are emerging from broadcast TV to free-to-choose TV through cable and satellite feeds.
Cable channels received by households have surpassed broadcast channels, with subscription growth hitting 64.2 per cent in Hanoi compared with 46.9 per cent earmarked by broadcast channels. In Ho Chi Minh City, the figures are 70.5 against 32.6 per cent.
“Along with more services offered by TV cable providers, Vietnamese are getting greater exposure to the world through using TV for function ability rather than just through viewing,” said Mai Huong, managing director of media firm Saatchi and Saatchi.
Vietnamese external views and changes in shopping habits are also reflected by the booming internet penetration.
Internet usage in the country exploded by 367.6 per cent from 2003 to 2007, with much of the growth attributed to the under 25-year-old bracket who account for over 70 per cent of Vietnamese cyber inhabitants. These young leading forces are really turning their virtual world activities into imposed ways to do everything in the near future, according to Truong Sy Anh, deputy managing director of TNS media.
“People choose when they consume media and growth in internet usage will be key to catching up to the rest of Asia,” said Matthaes.
The same trend is being seen with mobile phone and portable devices. There were 11 million mobile phone subscribers in 2006, accounting for 13.2 per cent of the population and growing by an average 59.7 per cent through 2003-2006.
The research anticipates that retail spending on digital products may reach $34.2 billion or 7.3 per cent of all entire consumer spending by 2008, accounting for year-on-year growth of 20 per cent.
“Screens are converging. TVs are becoming more game-like, mobile phones are more movie-like, and technology by and large is improving,” said Huong.
Shopping centres, supermarkets, high-end apartments
Recreational shopping, housed in luxurious spaces will be a leading trend in Vietnam as higher incomes and living standards are backed by the country’s surging economy, according to market observers.
Together with being more technology savvy, Vietnamese are becoming more financially powerful with the gross domestic product (GDP) per capita having increased seven-fold over the past 15 years to $740 per capita in 2006.
Matthaes said that a growing middle class would require heightened domestic and shopping requirements.
The research highlights the potential of Vietnam’s consumer potential as the country of 85 million people is experiencing the fastest moving consumer goods (FMCG) growth in Asia.
The TNS report went on to suggest that eating habits look set to change as foreign fast food outlets look to stamp their presence on the market, although, according to Matthaes, “88 per cent of Vietnamese still love their Pho”.
“Consumption will continue to increase, but products and services will need to better fit Vietnamese tastes and needs,” said Matthaes.
“Vietnam’s national pride and traditional values are still strong.”
Rural areas the rising star of consumerism
Rural locations, which hold up to 76.5 per cent of the country’s population and contribute 62.5 per cent to Vietnam’s GDP were emerging as a prosperous market that needed to be better exploited, said Hoang Nguyen, senior account manager, TNS Vietnam’s World Panel.
Though over half of rural inhabitants were low income wage earners in comparison to urban dwellers, Hoang said more needs to be done to recognise what could potentially be a massive engine for growth.
“Technology and services in general are left open,” Hoang added. Mobile phones now reach 33 per cent of the rural population while the internet is still in its infancy at only 1 per cent usage rates. This is set to change as the government improves rural areas’ infrastructure and public works. Therefore, rural consumers should be our next road,” said Hoang.
Source: VIR
