Vietnam is a key retail market in APAC

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A recent report by wgsn shows that vietnam is a potential market for brands. In particular, domestic brands are gaining great affection from consumers.Vietnam is a key retail market in apacvietnam is a key retail market in apacin its newly released report, consumer trend forecasting company wgsn calls vietnam a key growth market in the asia-pacific region (apac) for brands and retailers in 2023. .This unit said that vietnam has emerged as a preferred destination for multinational companies because of the few production disruptions during the pandemic. The number of startups has also doubled from the start of the covid-19 epidemic to mid-2022.Along with that, improvements in logistics infrastructure contribute to boosting vietnam's e- commerce industry, which is estimated to be worth $49 billion  by 2025. Advertisementaccording to wgsn experts, vietnam will soon become the fastest growing digital economy in southeast asia and one of the fastest growing economies in asia in 2023, with a growth rate gdp is expected to be around 6.2%.

Notably, a survey by mckinsey & company earlier this year also showed that up to 70% of young gen y people (those born in 1981-1996) in vietnam expressed optimism about the country's economic future. This is the highest rate among asian countries surveyed by this unit.“vietnamese consumers increasingly Brazil Phone Number List trust domestic brands and products with 76% preferring 'made in vietnam' branded goods to foreign brands.Therefore, brands need to invest in initiatives that honor local communities and help connect with vietnamese youth,” said helen sac, wgsn's apac regional consulting director.With gen y and gen z (those born in 1996-2010) accounting for nearly half of vietnam's population, experts predict that domestic consumers will continue to lead a digitalized lifestyle. This target group will want an increasingly flexible and convenient multi-channel experience, as well as easy digital payments.



However, while household spending is forecast to increase 7.3% year-on-year this year, consumers are still inclined to increase savings amid the economic downturn.According to previous reports of wgsn, the retail spending pattern of vietnamese consumers consists of two characteristic factors. On the one hand, the pursuit of instant gratification, on the other, is an effort to increase savings.“to retain shoppers in 2023, brands and businesses should seamlessly combine face-to-face and online channels by investing in an online presence, exploring a 'click and collect' (order online and pick up in store), pay in-store for online orders, and upgrade multi-services," the wgsn report recommends.Vietnamese consumers are embracing the convenience and ease of digital payments. Therefore, brands need to start integrating this service to minimize problems and increase conversion rates.In addition, increasing the value of a brand through membership programs or loyalty partnerships will also be key for businesses to meet the retail spending pattern of consumers . Use vietnam.