Consumers adapt to the evolving market

Pull back on non-essentials

• Leaner times mean tighter belts - 62% of Vietnamese consumers say they expect to cut non-essential spending.

• Less consumers in Vietnam are restraining their non-essential spending compared to SEA and Global.
  

• In addition, while a modest number of global and SEA consumers responded “not concerned about personal financial situation” (14% and 13% respectively), over 25% of Vietnamese consumers are “not concerned”.

• This still manifests in a ‘pull back’ in consumer spend, especially in discretionary categories.
  

_{Q. Considering the current economic climate, which of the following best describes your situation regarding non-essential spending?}

Category mix will shift

• Cutbacks impact some discretionary (non-essential) categories more sharply - for instance, 54% of consumers expect to spend less on luxury products
• Spending ‘pull backs’ take a different shape across categories and likely within categories too (e.g., smaller vs. larger ticket sizes.)
• 54% of Vietnamese respondents say they will spend less on luxury items, followed by travel (42%) and consumer electronics (38%) because cost increases are prohibitive

_{Q. Thinking about your spending over the next 6 months, to the best of your ability, please describe your expectations on spend across the following categories}

‘Phygital’ is now a thing

• Online shopping continues apace - 64% of Vietnamese consumers expect to increase their frequency - but physical shopping remains vital for experience and quality assurance.
  
• 64% of Vietnamese consumers plan to shop online more frequently 
• But it is unlikely that in-store shopping will become obsolete, since:
  
  • 74% consumers prioritise the ability to check the product quality, 
  • 58% prefer to view/test products before buying
  • 40% are less COVID-19 concerned.

_{Q. Looking ahead to the next 6 months, how do you think consumer behaviour will change?}

Hybrid working is phasing out

• In-office work is now the norm for Vietnameses - with 48% expected to work from the office - creating shifts in mobility and channel patterns.
• The resulting changes to mobility patterns skews channel preferences (e.g. quick grocery run vs. pantry filling) and formats (planned vs. impulse).
  
• 48% projected to return to working from the office - creating shifts in mobility and channel patterns

_{Q. Thinking about what your employer requires at this time, which of the following statements best reflect a typical working week for you?}

ESG commands a premium

• Consumers are willing to pay more for products with sustainability cues 
• This requires reshaping portfolios - whether organically or via M&A and is key to price increases that are needed to meet escalating costs and compressed margins 
  
• 96% of Vietnamese respondents will pay more for products by companies with a reputation for ethical practices

_{Q. Considering the current economic climate, to what extent would you be willing to pay a higher than average price for a product that is…?}

Data privacy creates concern

• Consumers care deeply about privacy when interacting with various types of companies/platforms such as social media websites, media companies, portal travel websites or travel agencies, retail companies, etc.
• Therefore, they are taking actions as a result of their concern such as:
  • 57% not sharing more personal data than needed
  • 44% manage/reject data privacy terms
  • 40% opt out of communication with company

_{Q. To what extent are you concerned about the privacy of your personal data when interacting with the following types of companies?}