Most shoppers influenced to buy items not on groceries shopping list: expert

Many Vietnamese shoppers are frequenting convenience locations or channels offering best prices and promotions to make impulse purchases, says Shadab Ansari, consumer and marketing insights director with market research firm NIQ.

Ansari’s observation is contained the latest report released by NIQ, a world leading authority on consumer and shopper insights.

“Shopper Trends” highlights changes in shopping behavior in Vietnam, providing valuable insights for FMCG manufacturers and retailers. It points to critical shifts in channel shopping behavior and factors driving these changes, providing insights for targeting shoppers across diverse channels.

A key insight mentioned in the report is that Vietnamese shoppers are engaging in more impulse buying despite having clear purchase plans before a shopping trip.

Vietnam’s economy experienced accelerated growth in Q1/2024 compared to the same period a year ago, driven by the industrial and construction sectors. However, the FMCG sector experienced a slowdown in volume growth, even as prices began to stabilize, with “a contribution towards growth coming from the festive categories,” the report says.

Three shopping behavior changes

It reveals changing trends in shopping behavior, particularly three changes in the decision-making process.

Firstly, shoppers are replacing supermarket visits with emerging channels. Visits to supermarkets for fresh food purchases are declining as an increasing proportion of shoppers move to smaller-format stores like minimarts and online channels.

Secondly, while 88% of grocery shoppers plan their shopping, almost all make impulse purchases during their trips. This highlights the importance of in-store marketing and promotional strategies to trigger spontaneous buying decisions. The NIQ report says 93% of shoppers usually buy additional grocery items they had not planned, suggesting that promotions or deals impact impulse buying decisions.

Thirdly, about 30% of shoppers conduct online searches before grocery purchases, highlighting the importance of a robust digital presence for retailers. Digital channels should also act as a touchpoint to provide information to shoppers and be leveraged for engagement.

Online shopping has continued to rise in Vietnam, with shoppers increasingly turning to e-commerce platforms, super apps, and the apps/websites of modern trade retailers. This shift is most pronounced in non-food and personal care products, although traditional trade remains significant for food and beverages, the report says.

Convenience and contactless shopping have made it a preferred option for many Vietnamese shoppers, it adds.

Consumer preferences

Vietnamese shoppers are becoming more discerning and price-sensitive, mainly when price changes occur. Deal-seeking behavior is increasing, but shoppers are still willing to pay a premium for trusted brands and high-quality products, the report notes.

Vietnamese shoppers remain loyal to trusted brands, but are also exploring other labels, especially for staple products. While they are more familiar with the emergence of new brands and products, they are not as eager to try them out as they used to be. Therefore, brands must balance competitive pricing with high product quality to meet consumer expectations, the report says.