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How inflation affects on consumption's behavior and consumers' attitude
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How inflation affects on consumption's behavior and consumers' attitude - Bão giá tác động hành vi & thái độ tiêu dùng thế nào - Việt Nam - Từ FTA

How inflation affects on consumption's behavior and consumers' attitude - Bão giá tác động hành vi & thái độ tiêu dùng thế nào - Việt Nam - Từ FTA

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How inflation affects on consumption's behavior and consumers' attitude Presentation Transcript

  • 1. Market research top-line Mar 2011 HCMC HA NOI DANANG HIGHLIGHTS: How inflation affects on consumption’s behavior and consumers’ attitude
  • 2. About Viettrack is a monthly research news-letter developed by FTA Research & Consultant, the representative of ESOMAR in Viet Nam. It is conducted base on a monthly research. It aims at delivering comment, evaluation and true feeling of research objects about present time’s economic situation as well as promotion campaigns or products to producers and marketers. It is expected to help them understand to offer better service to unsatisfied demand of consumers. Viettrack is done according to ISO 20252:2006, the international quality standard in market research and ESOMAR Code of Conduct. Viettrack Mar 2011 is conducted on general population (18-50) in 3 largest cities of Vietnam (Hochiminh, Hanoi, Danang) with N=600. This study aims at finding how inflation affects on consumption’s behavior and consumers’ attitude in 2011. Thus, this information will help marketers to have some suitable adjustment in their strategy in the current situation.
  • 3. Inflation & consumer attitude
  • 4. Inflation impact Sensitivity group  Almost consumer in HCM, HN and Da Nang is affected by inflation.  The group is affected more than others is: Da o Who live in Da Nang. Location? Nang o Older age (41-50). o Married . Age 41-group? 50 Marri Status? ed Total HCM HN Da Nang 18 - 30 31 - 40 41 - 50 Single Married Mean 2.48 2.41 2.46 2.56* 2.43 2.46 2.58* 2.41 2.52* % N= 600 200 200 200 268 162 170 244 356 Note: (*) is significant difference at 95% confidence interval / Lưu ý: (*) là khác biệt có ý nghĩa ở 95% độ tin cậy
  • 5. Economic information follow up Ha Noi  Almost consumers in 3 cities follow inflation information frequently. Inflation seems26% (vs DN: 11%, HCM: 20%) be one of the hottest issues right now.  Just some don’t pay much attention to the economic situation. They are: Female 22%  Ha Noi people (26%) (Vs Male:16%)  Female (22%) Class D  Class D (23%).23% (Vs BC:17%, A 20%) Total HCM HN Da Nang Male Female Class A Class B Class C Class D Mean 3.15 3.14 3.00 3.33* 3.22 3.12 3.19 3.20 3.21 3.07 % N= 600 200 200 200 300 300 134 158 172 136 Note: (*) is significant difference at 95% confidence interval/ Lưu ý: (*) là khác biệt có ý nghĩa ở 95% độ tin cậy
  • 6. Social and economic concern Total % Top concern: the economic situation which impact on Electricity price increase consumer’s life directly and immediately. They are: price increase in electricity, food, oil, gas, gold and economic Food price increase depression. Economic depression Less concern: social situation – long term issues including unemployment, corruption, nature disaster, climate changing. Oil price increase Not concern: safe and security problems including crime Gold price increase increasing, terrorism…) and absolute pays no worry about Unemployment political instability in Middle East, Korean war, foreign currency aid cuts. Vietnamese doesn’t pay attention to world Gas price increase issues, which don’t affect their life directly. Corruption Natural disasters USD-VND Ex-rate increase Climate changing N=600
  • 7. Consumer confidence  Consumers are losing their confidence in Vietnam economy. Almost think that it will keep the same (48%) or worse (36%). o Pessimistic group : o Optimistic group • Living in HCMC • Living in Da Nang. • Older age group (31-50) • Younger age group (18-30). • Class A • Single • Married Optimistic Da Nang % 18 - 30Pessimistic HCM % Single 41 - 50 Total average 31 - 40 41 - 50 Class A Married Married 31 - 40 Total average Class A HN HCM Single HN Da Nang 18 - 30
  • 8. Inflation & consumption’s behavior
  • 9. Investment/Uses spare money  In general, almost use their spare money in bank saving service first then buying gold – the low risk areas right now. However, Danang people prefer buying gold (48%) to bank saving (33%). Total Da Nang % Bank saving Buy gold Invest in business Invest in real estate Buy USD Invest in security N=600 N=200
  • 10. Expenditure As this inflation situation, activities that consumer has to cut down are traveling, luxury products, clothing, beauty care service, home appliance, entertainment, telecommunication (telephone, internet). Necessities products/ services are the group they cannot reduce including education, transportation, food & beverage, electric, waters, healthcare services. Hanoi people cut down budget across categories. Total HCMC HN DA NANG Education 9 64 27 7 57 36 15 79 7 2 52 46 % Foods&Drinks 15 57 28 14 44 43 18 74 8 13 55 33 Healthcare 18 68 15 11 65 25 23 74 4 20 64 16 Transportation 20 42 38 21 30 50 21 67 13 20 30 51 Electric, waters 25 42 33 22 39 39 24 61 16 31 26 44 Communication 29 59 12 30 58 13 23 63 14 36 55 10 Home appliance 44 47 10 38 50 12 47 44 10 47 46 7 Entertaiment 45 42 13 37 40 24 45 51 5 54 35 11 Beauty 55 37 8 52 38 10 57 39 4 57 34 9 Clothes 57 34 9 53 29 19 56 42 3 63 31 6 Luxury goods 62 31 7 57 29 14 60 37 3 72 25 3 Travel 65 29 6 60 25 15 63 36 2 72 25 2 N= 600 200 200 200 Giảm Bình thường Tăng
  • 11. Shopping habit In the inflation, consumer trends to switch shopping channel from modern trade (supermarket, hyper market, convenience store, etc.) into wet market. They especially shopping more when having sales promotion. Total % Shopping at wet market Shopping when having sales promotion Shopping at grocery store Shopping at hypermarket Shopping at supermarket Shopping at convenience store Shopping at fair, exhibition N=600
  • 12. Daily activities Consumers reduce almost entertainment activities including watching film, music, eating out and party, drinking.Total/tổng cộng % Mean 1.67 Using electric utilities Using internet 1.64 Go out for coffee 1.60 Go out for eating 1.48 Using air condition 1.45 Party, drinking 1.43 Watching film, music, play 1.34 Laudry 1.21 N=600
  • 13. FMCG consumption Confectionary, products from milk, skincare products are the categories could be hurt in the inflation. Total Mean % Seasoning product 1.92 Personal care product 1.91 Baby care 1.90 Cleaning products 1.88 Skincare products 1.75 Products from milk 1.71 Confectionary/ 1.57 N=600
  • 14. FMCG brand choice  Except confectionary, almost consumers are loyal with their most often use brand. Total Mean % Baby care 1.96 Seasoning product 1.95 Cleaning products 1.93 Personal care product 1.93 Skincare products 1.93 Products from milk 1.91 Confectionary 1.84 N=600
  • 15. FMCG pack size choice Not much change in pack size choice. consumer trends to purchase the normal or smaller pack size for confectionary, skincare products, products from milk and babycare product only. Total N=600 % Mean Cleaning products 2.01 Seasoning product 2.00 Personal care product 2.00 Baby care 1.95 Products from milk 1.91 Skincare products 1.84 Confectionary 1.74
  • 16. Conclusion
  • 17. Conclusion In general, the high inflation rate situation at the beginning of 2011 affects all 3 largest cities of Vietnam (HCMC, Hanoi, Danang). Their confidence in Vietnam economy seems be losing their confidence  people may be more careful with money spending in near future. The most concerns are the economic situation including price increase in electricity, food  economical fuel/ electricity consumption products could be welcome at this time. They would like to use their spare money in bank saving service first then buying gold those would be safe more than high profit (invest in business and real estate or stock).
  • 18. Conclusion Living in the inflation, consumer has to cut down some expenditures which is not necessaries. FMCG seems be not affected (except confectionary) and consumers are loyal to FMCG brand and pack size they use most often  to survive this period, confectionery should be more active. The shopping channel is change as consumers switch from shopping at modern trade into wet market  should consider to focus on branding and brand activation at wet market and GT.
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