Nielsen Q2.2017: The Truths About Rural Vietnam

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