With competition heating up in the realm of fast-moving consumer goods (FMCG) in 2024, there’s a pressing need for brands to pinpoint their distinctive growth drivers to maintain a competitive edge.

According to the report released by Worldpanel by Kantar Vietnam on March 27, Vietnam’s FMCG sector finds itself at a critical juncture. Despite positive economic growth projections for 2024, consumer confidence remained subdued at the end of 2023.

The FMCG retail landscape in Vietnam is undergoing a transformation towards more convenient and modern formats. However, not all modern trade channels are poised for success.

Mini stores are gaining popularity due to expanded product offerings and the advantages of proximity and convenience. This surge comes at the expense of hypermarkets and supermarkets, whose value contribution is gradually declining.

For brands striving to establish a presence in smaller formats, every inch of shelf space becomes invaluable real estate. Brands must optimize space to cater to a wider range of shopper needs and missions through strategic product selection within limited space.

Meanwhile, the online sphere is witnessing exponential growth in significance, attracting a larger consumer base and fostering increased purchase frequency.

Kantar’s data also indicates that over half of FMCG brands struggled to keep up with the competition in 2023, especially within growing categories where approximately one-third of brands began to fall behind.

Furthermore, there’s a growing emphasis on value consciousness, where consumers prioritize essential goods but are willing to invest in categories and products that offer value beyond mere functionality.

In an environment focused on value, simply offering promotions to drive short-term sales growth may not always be conducive to brand growth. Evaluating the effectiveness of different types of promotions allows brands to gauge the true impact of their pricing and promotional strategies and refine them accordingly.