Vietnam records highest rate of online shopping in Asia Pacific: PwC

Vietnam stands out among the Asia Pacific region with the highest rate of online shopping. Vietnamese consumers are also increasingly prioritizing sustainability in their consumption practices, write PwC Vietnam analysts.

While the Asia Pacific region's economy shows signs of recovery, inflation remains a significant concern, leading consumers to become more mindful of how they spend.

In Vietnam, over the next 12 months, 63% of consumers plan to increase spending on groceries, followed by clothing (52%) and healthcare products (48%), according to PwC’s Asia Pacific Voice of the Consumer Survey 2024 - Vietnam highlights.

The survey, which polled over 7,000 consumers in the region, including 515 from Vietnam, also reveals that for the majority (63%) of consumers, inflation is considered the leading potential risk over the next 12 months.

Shoppers are prioritizing reassurance and reliability from the brands they engage with. This means that consumer-facing companies need to know how to build multi-faceted trust and form meaningful bonds with a newly-empowered and diverse consumer base.

Rakesh Mani, consumer markets leader at PwC Asia Pacific, commented: "Consumers today are confronted with multiple forces, including economic uncertainty, data privacy concerns and a heightened awareness of environmental and social issues.

"Companies that stand out will focus on building deeper trust with their consumers. That emotional resonance - whether via product innovation, omnichannel fluency or sustainability cues - elevates the exchange beyond the plane of merely transactional and encourages deeper loyalty.”

Blend the in-store and online experience

Brands and retailers must embrace a more flexible omnichannel strategy to meet consumers’ evolving expectations for a dynamic mix of online and offline experiences.

With the popularity of e-commerce platforms, Vietnam stands out with the highest rate of online shopping (67% via mobile phone and 44% via PC), although in-store shopping also remains strong (63%).

Additionally, consumers in Vietnam are actively embracing and using social media in order to discover new brands and seek reviews before making a purchase. 71% say they have purchased products directly through this platform, significantly higher than the regional average of 56%.

However, there appears an erosion of trust, with consumers questioning the safety and reliability of social media and reporting negative online shopping experiences. 77% are concerned about privacy and data-sharing, similar to the Asia Pacific average rate of around 74%.

Sustainability and AI are taking waves

Vietnamese consumers are increasingly prioritizing sustainability in their consumption practices, as 94% report experiencing disruptive effects of climate change in their daily lives (the region’s figure is 88%).

Notably, 74% express willingness to pay up to 20% above the average price for a product that is made from recycled/sustainable materials, and 85% would consider buying a hybrid or electric vehicle in the next three years.

The survey also found that more than half of Vietnamese consumer respondents are comfortable using artificial intelligence (AI) to replace human interaction for low-risk activities, yet still prefer direct human interaction for complex transactions.

69% trust AI to assist in gathering product information, followed by providing product recommendations (63%) and handling customer service (59%).

Global megatrends may seem abstract and ‘far away’, whether it is the disruptive impact of technology or sustainability, but they present opportunities for consumer-facing companies to innovate for sustainable growth.

Nguyen Luong Hien, consumer lead partner at PwC Vietnam, said: “As business leaders in Vietnam navigate the evolving consumer landscape, it is crucial for them to take decisive steps to drive growth. The Voice of the Consumer Survey 2024 report highlights the importance of building consumer trust and offers strategies to meet the immediate needs of consumers."

It emphasizes the significance of offering value beyond price, tailoring strategies based on shopper missions and supporting ethical choices. Transparency and consistency are essential in cultivating trust, and a clear GenAI strategy with risk management can engage consumers and build trust early on. Embracing genuine sustainability practices with transparency and third-party certifications is also crucial for a sustainable future.

By focusing on these actions, business leaders can adapt to current challenges, accelerate growth and thrive in Vietnam's evolving consumer market, which is projected to become one of the world's largest markets by 2030.