Global Consumer Insights Pulse Survey: Vietnam cut

Consumers adapt to
the evolving market
April 2023
“ As the global economy faces challenges and
societies adapt to the new normal, consumer
spending habits are shifting. Consumers are
reducing their spending, shifting between
digital and physical spaces, and prioritising
trustworthy products and companies.

Business leaders must closely monitor these

trends and adapt accordingly to remain
competitive in the constantly evolving market."

Johnathan Ooi

Partner, Deals Leader

PwC Viet Nam

2
Key themes
Changes in shape of demand More friction in the aisles Trust matters greatly

1 3 5
Pull back on non-essentials ‘Phygital’ is now a thing ESG commands a premium
Leaner times mean tighter belts - Online shopping continues apace - Environmental and social cues
62% of Vietnamese consumers 64% of Vietnamese consumers attract price premiums - for instance,
say they expect to cut non-essential expect to increase their frequency - 96% of Vietnamese consumers
spending (vs 69% globally) but physical shopping remains would pay extra for products
vital for experience and quality made by ethical companies.
assurance

2 4 6
Category mix will shift Hybrid working is phasing out Data privacy creates concern
Cutbacks impact some discretionary In-office work is now the norm for Consumers care deeply about
(non-essential) categories more Vietnameses - with 48% expected privacy - 57% of Vietnamese
sharply - for instance, 54% of to work from the office - creating consumers cite concerns - and
consumers expect to spend less shifts in mobility and channel are taking action accordingly in how
on luxury products patterns they interact with companies

Source: PwC Global Consumer Insights Pulse Survey 3

1. Pull back on non-essentials

Q. Considering the current economic climate, which of the following best describes your situation regarding
non-essential spending?

% of consumers responding “I have stopped entirely” and “I am holding back”

Our take

Vietnam SEA Global ● Less consumers in Vietnam are

restraining their non-essential
spending compared to SEA and
Global (see chart).

● In addition, while a modest

62% 73% 69% number of global and SEA

consumers responded “not
concerned about personal
financial situation” (14% and 13%
respectively), over 25% of
Vietnamese consumers are “not
concerned”.

● This still manifests in a ‘pull back’

Stopped entirely / holding back No change in consumer spend, especially in
discretionary categories…

Source: PwC Global Consumer Insights Pulse Survey 4

2. Category mix will shift

Q. Thinking about your spending over the next 6 months, to the best of your ability, please describe your expectations
on spend across the following categories

% of consumers expecting to spend less over the next 6 months Our take

● Spending ‘pull backs’ take a different

shape across categories…
● … and likely within categories too
(e.g., smaller vs. larger ticket sizes)

54%
of Vietnamese respondents say they
will spend less on luxury items,
followed by travel (42%) and
consumer electronics (38%) because
Source: PwC Global Consumer Insights Pulse Survey cost increases are prohibitive 5
3. ‘Phygital’ is now a thing

Online shopping is increasingly the go-to for Vietnamese consumers; however, physical shopping remains key to
product quality assurance and in-store experience

Q. Looking ahead to the next 6 months, how do you think Our take
consumer behaviour will change?
% of Vietnamese respondents

Online shopping

Efficient delivery or
64% 10% 24% 2%
64%
of Vietnamese consumers plan to shop
42% 15% 40% 3%
collection services online more frequently

Using click and

40% 17% 34% 9%
collect services
… but it is unlikely that in-store shopping
will become obsolete, since:
Physical stores 24% 23% 50% 3% ● 74% consumers prioritise the ability
to check the product quality,
● 58% prefer to view/test products
Increase Decrease No change I will not do this before buying
● 40% are less COVID-19 concerned.
Source: PwC Global Consumer Insights Pulse Survey 6
4. Hybrid working is phasing out

Q. Thinking about what your employer requires at this time, which of the following
statements best reflect a typical working week for you?

% of respondents
Our take

● In-office work is the norm again,

and this is particularly so in
Vietnam
● The resulting changes to mobility
patterns skews channel
preferences (e.g. quick grocery run
vs. pantry filling) and formats
(planned vs. impulse)

48%
projected to return to working from the
office - creating shifts in mobility and
Source: PwC Global Consumer Insights Pulse Survey
channel patterns
7
Notes: 1) Required to work in a hybrid way: Hybrid and flexible way of working combined
5. ESG commands a premium

Q. Considering the current economic climate, to what extent would you be willing to pay a higher than average price
for a product that is…?

% of Vietnamese respondents
Our take
ESG-centric products
● Consumers are willing to pay more for
products with sustainability cues
Ethically produced 96% 3% 1% ● This requires reshaping portfolios -
whether organically or via M&As…
Bespoke or custom made 95% 4% 1%
● … and is key to price increases that are
Traceable supply chain 95% 3% 2% needed to meet escalating costs and
compressed margins
Recycled / sustainable materials 93% 4% 3%

Produced / sourced locally 87% 10% 3%

Avoid testing / cruelty to animals 65% 30% 5% 96%

of Vietnamese respondents will pay
To some/great extent Not at all Don’t know more for products by companies with a
reputation for ethical practices
Source: PwC Global Consumer Insights Pulse Survey 8
6. Data privacy creates concern

Vietnamese consumers are concerned about personal data privacy

when interacting with various types of companies

Q. To what extent are you concerned about the privacy of Q. Which of the following actions have you taken
your personal data when interacting with the following as a result of your concern?
types of companies? Top 3 answers by % of Vietnamese respondents
% of Vietnamese respondents are tally of somewhat, very and extremely
concerned

1 2
57% 44%
not sharing more manage/reject data
personal data than privacy terms
needed

3
40%
opt out of comm.1
with company

Source: PwC Global Consumer Insights Pulse Survey

Notes: 1) Opt out of receiving communications from companies 9
“ Winning companies will prioritise greater
focus and flexibility during this spell of
disruption and uncertainty. This means taking
a sharper position on one's differentiating
capabilities while gaining a deep
understanding into demand patterns across
shoppers and channels, planning and
forecasting processes, supply chain realities,
and the workforce and digital infrastructure
that bring it all together."

Rakesh Mani
Partner, SEA Consumer Markets
Leader
PwC South East Asia Consulting

10
 What can industry leaders do to address these themes?
Six priorities to address - that help pave the way for greater impact

1 2 3 4 5 6

Strategic ESG emphasis Data-led Future-proofed Organisation for DX transformation

differentiation for stakeholders consumer intimacy supply chain execution for cost reduction

Focus on product Get on the front foot Refocus from ‘customer’ Invest in understanding Recognise the people Rewire organisational
portfolio evolution and with tech-enabled to ‘consumer’ - and the possible outcomes capabilities needed to digital capabilities to
brand relevance to sustainability data build privileged access and implications of the deliver frictionless improve demand
articulate tangible collection, reporting, to the consumer as a changing omnichannel experiences; invest in sensing and inventory
differentiation to a more communications. source of growth. landscape and the bets upskilling/reskilling management for
promiscuous that can be made today across functions. greater efficiency and
consumer. Link authenticity and Build deeper insight into to gain advantage. resilience to volatility.
transparency to the occasions, needs and Support new ways of
Move from Covid-era business proposition purchase behaviours to Translate this into clear working needed within Unlock the next wave
“reaction” mode to a to serve consumers provide more reliable decisions on innovation, to break functional of cost and value from
“lead” mode that allows with a more relevant messages and offers assortment, and route to decision silos and new business models
bolder differentiation of portfolio. with data-led marketing. market grounded in institutionalise change (e.g., personalisation)
portfolio and purpose. strategic differentiation. with urgency. supported by effective
data, systems.

Source: PwC Global Consumer Insights Pulse Survey 11

Useful resources

February 2023 Global Consumer Insights Pulse

survey (Global report)

https://www.pwc.com/gx/en/industries/consumer-markets/
consumer-insights-survey.html

The gathering storm: Strategies for resilience and

renewal in Asia Pacific consumer markets (Blog)

https://www.pwc.com/gx/en/about/pwc-asia-pacific/strategies-for-
resilience-and-renewal-consumer-good-landscape.html

Consumers are worried, what can businesses do?

(Podcast)

https://www.bfm.PH/podcast/enterprise/enterprise-biz-bytes/
consumers-are-worried-what-can-businesses-do

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PwC Vietnam | Consumer & Retail Contacts

Rakesh Mani Dinh Thi Quynh Van Vo Tan Long

Partner General Director Partner
SEA Consumer Markets Leader Tax and Legal Services Consulting Services
PwC South East Asia Consulting PwC Vietnam PwC Vietnam
rakesh.s.mani@pwc.com dinh.quynh.van@pwc.com vo.tan.long@pwc.com

Johnathan Ooi Luong Thi Anh Tuyet Giang Bao Chau

Partner, Deals Leader Partner, Assurance Services Director
PwC Vietnam PwC Vietnam Tax and Legal Services
jonathan.sl.ooi@pwc.com luong.t.anh.tuyet@pwc.com PwC Vietnam
giang.bao.chau@pwc.com

Mohammad Mudasser
Director
Working Capital Management
PwC Vietnam
mohammad.mudasser@pwc.com

The content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.

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