FMCG sales across Asia-Pacific grow 12 per cent : Nielsen

This is the second consecutive quarter Asia-Pacific has registered FMCG sales growth after a general decline for most markets in 2009. Vietnam led the pack with 16 per cent, India with 14.4 per cent, Philippines with 14.2 per cent, China with 11.9 per cent, Indonesia with 9.9 per cent and Thailand with 7.8 per cent. A total of 13 markets were surveyed, including Singapore, Malaysia, Hong Kong, Taiwan, South Korea, Australia and New Zealand.

While Vietnam did not register the same sizzling 27 per cent year-on-year growth over Q1, Peter Gale, managing director at Retailer Services Asia-Pacific, Middle East and Africa, says, “Growth in Vietnam remains at a very robust 15 per cent in Q2 2010. With the very strong consumer confidence in the county, we expect to see this FMCG growth continue throughout 2010.”  

In Q2 2010, Vietnam's consumer confidence index climbed 18 points from Q1 to 119, according to the Global Consumer Confidence survey by Nielsen.  Based on the Q2 consumer confidence index, Vietnam became the second most 'confident' country in the world, together with Indonesia.

Across the region, consumers increased spending on basic grocery items in 2009 perhaps to reduce dining-out expenses as a result of the economic downturn, but are switching back to personal care, health and more premium products.

The report also highlighted several trends in FMCG shopping behaviour in Asia. Shoppers in Vietnam, Malaysia, China and India were the most focused on promotions, and Indonesian shoppers were more likely to buy brands they trusted. Indonesia is also the country where the highest proportion of shoppers - 81 per cent - claims to choose stores based on the location.

Supermarkets and mini-markets gained popularity as shoppers used hypermarkets less frequently, perhaps in an attempt to avoid being faced with non-discretionary spending temptations. This was especially apparent in countries where hypermarkets are strongly developed such as Taiwan, Indonesia and Thailand. In Korea, the number of shopppers who used supermarkets as their main grocery channel grew 8 per cent, ending a decade-long decline.

The report highlighted a growth opportunity area in the private label concept, which is undeveloped across Asia. In most markets, private label consumption grew last year as shoppers became more value-conscious. Thailand registered a growth of over 25 per cent. 

Males across Asia as the main grocery shopper for their families, with the exception of Korea and Vietnam, grew from 14 per cent to 22 per cent on average over the last decade. Women shoppers were less likely to be stay-at-home housewives, except in India and Indonesia, where more than 60 per cent of main shoppers claim to be housewives. Markets with a high proportion of working women had the lowest number of shopping housewives. China registered the lowest at 10 per cent, followed by Thailand at 27 per cent.

Technology is changing the way Asians shop, with 90 per cent intending to shop online in the next six months. Korea and China were found to spend the most on online purchases. 71 per cent of Koreans shopped for grocery and personal care items online while 30 per cent used TV shopping channels.