Rural areas – potential market for enterprises: Nielsen Vietnam
Businesses should bring their new products to rural areas as the consumption in the rural market is equal to that of the urban market, Nielsen Vietnam said in its fast moving consumer goods (FMCG) report.
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With regards to the FMCG performance in rural and urban areas, the report shows that the growth in rural areas was higher than that in urban regions but it was more fluctuated. Total rural FMCG growth increased 6.1% year-on-year while total urban FMCG growth rate rose only 4% year-on-year.
In terms of e-commerce, the report noted that nearly 24 million rural areas are using the Internet, with 22.5 million having facebook accounts, equivalent to the figures of urban regions.
According to Nguyen Anh Dung, Executive Director of Nielsen Vietnam’s Retail Measurement Services Division, some parts of rural regions offer better prospects than others.
Therefore he stressed that identifying these becomes very important to ensure maximum return on investment. At the same time, it requires manufacturers to have a great understanding of rural consumers who are experiencing a higher living standard and adopting urban-like media consumption and shopping behaviour.
Dung also emphasised the need for enterprises to make an effective business strategy to bring into full play the rural market’s potential.
Nielsen Holdings plc is a global measurement and data analytics company that provides the most complete and trusted view available of consumers and markets worldwide.
