Baby products take lead in FMCG sector growth
Products serving babies grew 12% in the second quarter of 2018, the highest recorded in fast moving consumer goods (FMCG) categories after months, according to a report of Nielsen, a global measurement and data analytics company.
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The report also revealed that in the period, FMCG sales in urban areas nationwide inched up 0.7%. FMCG’s value growth increased 1.3% while volume growth declined 0.6%.
Six among seven major FMCG products increased in the Q2, including beverages (with beer), dairy products, household care products, personal care products, baby products and cigarettes. Only the food category suffered a drop of 1.9% in the reviewed time.
Sales of FMCG products through modern trade channels surged 11.9%. Meanwhile, turnover through traditional ones in urban areas slightly rose 1.2%, but decreased 2.4% in rural areas.
Director of Retail Measurement Services at Nielsen Vietnam Nguyen Anh Dung said although the country’s gross domestic product reached 7.1% in the first six months of the year, the FMCG sector has yet to reflect positive development of the economy as well as existing opportunities.
Consumers are no longer focusing just on basic needs but moving to new aspirations, and so have a tendency to cut their spending on FMCG to spend on non-FMCG items such as real estate, equipment, vehicles, entertainment and technology.
Manufacturers should pay heed to consumers and place them in the centre of decision-making process, as consumers will provide important signals for sustainable development if their demands are met, Dung said.
