FMCG fluctuated in Q2, reflecting market’s volatility

The nationwide growth of fast-moving consumer goods (FMCG) slowed down in the second quarter of the year, after reaching a record peak in the previous quarter.

Nationwide FMCG grew 5.8 per cent this quarter versus one year ago, according to the Nielsen Quarterly Market Pulse report released by Nielsen Viet Nam, a global performance measurement company.

All six super FMCG categories–beverages, food, dairy, household care, personal care and cigarettes–showed positive growth in the quarter.

Both food and dairy sectors grew 8.1 per cent, while home care grew 5.7 per cent, beverage grew 5.4 per cent, personal care grew 5 per cent and cigarettes grew 4.7 per cent.

However, in comparison with the last quarter, these numbers reflected a decline across categories.

Beverage still accounted for a large proportion of total FMCG sales in quarter two at 42 per cent. Food, cigarette and milk-based accounted for slightly below 16 per cent, 15 and 14 per cent respectively.

“After an impressive growth of 8.8 per cent in the previous quarter due to increasing demand for Lunar New Year (Tet) period, FMCG growth slowed down. It is thought that this stagnation is merely due to the low season after Tet,” said Nguyen Anh Dung, Director, Retail Measurement Services, Nielsen Vietnam.

“However, we should keep an eye on the growth during the reest of 2017, as the Vietnamese market has fluctuated the last two years. Manufacturers should get out of their comfort zones and tap into new markets to manage the fluctuation in growth and drive sustainable business,” Dung added.

The report also shows that rural areas continue to yield fruitful land for many manufacturers.

While urban growth hit 5.1 per cent this quarter compared to one year ago, rural posted a tronger growth, up to 6.5 per cent, mainly led by volume growth and contributed 57.5 per cent into the total FMCG sale.

“Over 60 per cent of Vietnamese population lives in the rural areas, and there are excellent opportunities for companies in this sector. Urbanisation, Internet access and smartphones change the lifestyle of rural consumers and bring them closer to their counterparts living in towns and big cities,” Dung emphasises.

Rural consumers were also willing to pay more for products with higher quality, he said. “It’s the best time ever for manufacturers to take advantages of today’s rural realities to expand their business and fully seize the growth opportunities.”

Market Pulse Report is based on the results of Nielsen Retail Measurement study of FMCG, on the major categories. The Nielsen Retail Measurement provides continuous tracking of product movement through defined retail outlets. The data are used to measure manufacturer and retailer effort as well as consumer offtake. — VNS



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