More Vietnamese consumers support local brands
More than two thirds of consumers in Vietnam or 69% believe local brands are most attuned to their personal needs and tastes, according to a report recently released by global measurement company Nielsen.
The report said consumer sentiment is a contributing factor to this rebalancing toward Vietnamese players.
It found that country of origin preferences differ by category, but consumer preference has started to favour local brands over global brands. Even in categories where global brands have historically dominated — such as shampoo, carbonated soft drinks, facial care, facial moisturiser and infant formula — local brands are growing more rapidly, echoed by positive consumer sentiment.
Around 80%-90% respondents in Vietnam say a brand’s country of origin is as important as or more important than nine other purchasing drivers, including selection/choice, price, function and quality.
The report also highlighted national pride is the key factor contributing to consumers’ choice of local versus global brands in Vietnam.A desire to support home-grown brands makes nearly half of Vietnamese respondents (48%) choose local brand instead of global one.
Besides, value for money (40%) and having positive experience with the brand (27%) are among the top-selected reasons for selecting a product.
“However, in recent years many local companies have not only survived the competition from multinationals, but have outperformed them in Southeast Asia,” she said.