11 August 2017 | Nielsen, in a report in Q2.2017, points out four myths of fast moving consumers good in rural Vietnam.
Myth: Rural consumers are less connected
Truth: Because values are converging, it works to approach in the same manner.
- What’s happening in Urban is happening in Rural
- Getting more and more Borderless in physical connection and mindset
- Easier REACH requires better monitoring of REASONATE & REACT
Myth: Less chance to push new products in rural
Truth: Launch in rural at the same time to capture the high demand for new products
- New products perform as well in Rural compared to Urban
- The key barrier is convincing retailers to carry them. But once you can do that, your new launch will be much more successful
Myth: Just focus distribution & low price in rural
Truth: Grow in rural with mainstream & premium and convince retailers the demand is there
- Up-trading is not just in desire but in action. But still misconnection among manufacturers and retailers and consumers
- What should be your optimal assortment for Rural to capture the up-trading
Myth: Expanding in rural is too costly & resource consuming
Truth: Focus on the high demand areas & stores and limit cost by working through distributors & semi-retailers.
- Expanding everywhere in Rural will be too expensive. But, reaching the majority of sales is feasible through proper targeting.
- Furthermore, consider working through distributors to increase reach more cost-effectively