Consumers adapt to the evolving market

Global Consumer Insights Pulse Survey: Vietnam cut

Key themes

Pull back on non-essentials

Category mix will shift

‘Phygital’ is now a thing

Hybrid working is phasing out

ESG commands a premium

Data privacy creates concern

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?

What can industry leaders to do address these themes?

Six priorities to address - that help pave the way for greater impact

Consumer Insights

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Get in touch

Rakesh Mani

Partner, South East Asia Consumer Markets Leader, PwC Malaysia

Tel: +60 3-2173 1188

Dinh Thi Quynh Van

Chairwoman, PwC Vietnam

Tel: +84 24 3946 2246

Johnathan Ooi Siew Loke

Partner, Deals and Consulting Services Leader, PwC Vietnam

Tel: +84 28 3823 0796

Luong Thi Anh Tuyet

Partner, Assurance Services, PwC Vietnam

Tel: +84 28 3823 0796, Ext. 2036

Giang Bao Chau

Partner, Tax and Legal Services, PwC Vietnam

Tel: +84 28 3823 0796

Mohammad Mudasser

Director, Working Capital Management, PwC Vietnam

Tel: +84 28 3823 0796, Ext. 3322