Rural areas emerge as lucrative new market: Nielsen
| |
Visitors at one of 4 rural fairs held in Ninh Thuan province from July 4 to 19 - Photo: VNA |
When it came to identifying their digital consuming behaviours and key channels to reach them, television remained key while social media was evolving noticeably, it said.
Television reach in rural communities was at saturation point, with more than 90 percent owning a television at home and 57 percent having more than 10 television channels.
Ninety percent of rural consumers owned a mobile phone and 50 percent of them owned a smartphone.
While internet penetration remained relatively low, internet and digital platforms usage was on the rise among these consumers.
According to the report, nearly 24 million people in rural areas used the internet, which was on a par with their counterparts living in metropolitan places.
Social media emerged as one of the key platforms for obtaining information, entertaining and keeping in touch with relatives, friends and children, with 22.5 million Facebook users living in rural areas compared to 23.5 million in urban areas.
“As a result of being exposed more to media channels, there are a number of common themes emerging in relation to their attitudes and behaviours,” Nguyen Anh Dung, director of retail measurement services at Nielsen Vietnam, said.
Rural areas had been constantly growing as a new market for many manufacturers over the years.
In fact, in the first quarter of 2017 the rural market grew at 12.4 percent and accounted for 51 percent of total FMCG sales nation-wide, while urban only gained 6.5 percent.
When taking a deep dive into each price segment to see where the growth actually came from, mainstream and premium were the two key contributors to the growth of FMCG in rural areas, accounting for nearly 40 percent and 38.5 percent.
Seventy seven percent of rural consumers wanted to try new products and 95 percent appreciated having a wide range of products to choose from. Subsequently, these insights led to a point whereby new launches in rural areas performed better than in key cities. But with a highly diversified retail sector, ensuring products were reachable and available were instrumental and critical elements for success.
Traditional trade, a complex and highly competitive channel comprising more than 1.1 million individual outlets across 58 provinces (excluding Hanoi, Hai Phong, Da Nang, Can Tho and Ho Chi Minh City), was here to stay for the foreseeable future.
If businesses targeted 400,000 stores in top districts, those stores were highly likely to contribute up to 39 percent of retail sales.
Therefore, businesses were told to look at store segmentation or “where to focus” when thinking of expanding to this new potential market.
“As the rural Vietnamese community continues to evolve, transform and take centre stage as a key group for businesses, understanding who they really are, where, how and what they are buying and their most effective touch points will be prerequisites for future success,” Dung said.
See also

Vietnamese, Bulgarian news agencies ink cooperation pact
15:32 | 06/06/2023 Society

Hanoi: Agricultural development policies lack real-world effectiveness
06:00 | 04/06/2023 Metropolis

New Zealand provides 40 full micro-credentials scholarships for Vietnamese learners
16:23 | 26/05/2023 Society

Mong Cai city imports electricity from China’s Dongxing
10:37 | 25/05/2023 Energy

Seminar discusses orientations for rapid and sustainable national development
07:15 | 22/05/2023 Society

M&A to pick up in property market
07:00 | 19/05/2023 Property
See more news

Vietnam seeks ways to ease global minimum tax effects
14:00 | 17/05/2023 Society

Caged fish farming in hydro-power reservoirs helps people earn stable incomes
07:00 | 15/05/2023 Society

Investment of $304.3 million proposed to upgrade Mekong Delta roads
07:00 | 13/05/2023 Society

Government helps HCMC overcome obstacles
06:00 | 11/05/2023 Province

Hung Yen creates momentum to improve investment environment
07:00 | 09/05/2023 Province

HCM City unlocks resources for development
07:00 | 07/05/2023 Province

Hanoi GRDP up 5.8 percent in Q1
06:00 | 06/05/2023 Metropolis

Việt Nam makes efforts to crack down on IUU fishing
07:00 | 05/05/2023 Society

Industrial parks reach 80 percent occupancy
06:00 | 05/05/2023 Society

President Ho Chi Minh Mausoleum welcomes over 52,000 visitors during three holiday days
08:59 | 03/05/2023 Society

Nine Vietnamese universities listed in THE Impact Rankings 2023
10:05 | 07/06/2023 Infographic

Vietnamese authorities move to facilitate farm produce exports to China
09:22 | 07/06/2023 Foreign trade

Ambassador calls for more investment from Japan’s Tochigi prefecture
09:07 | 07/06/2023 FDI

Vietnam, China exchange market management experience
08:58 | 07/06/2023 Domestic market

Vietnam promotes green, circular economy
06:00 | 07/06/2023 Economy
Multimedia

Nine Vietnamese universities listed in THE Impact Rankings 2023
10:05 | 07/06/2023 Infographic

Sunset Town – A journey to love on Vietnam's Phu Quoc Island
14:06 | 06/06/2023 Tourism

Children's artwork displayed at HCM City exhibition
06:00 | 04/06/2023 Lifestyle

A memorable summer with fireworks and fun festivals in Đà Nẵng
09:41 | 02/06/2023 Tourism

Top models to compete in national modeling reality TV show
09:30 | 02/06/2023 Lifestyle

Viet Nam-Laos agreement on mutual judicial assistance in civil matters ratified
15:41 | 06/06/2023 Policy

PM issues directive to enhance data sharing for e-commerce development
09:06 | 02/06/2023 Policy

Deputy PM urges acceleration of electricity licensing for finished wind, solar power projects
10:06 | 25/05/2023 Policy

Specific mechanisms, policies needed to drive HCM City’s growth
06:02 | 20/05/2023 Policy

More assistance for supporting industry
06:00 | 06/06/2023 Support industries

Cement industry suffers financial losses during Q1
09:54 | 02/06/2023 Industry

Việt Nam has major opportunities to engage in global Halal industry Deputy minister
06:00 | 31/05/2023 Industry

Cut on automobile registration fees to facilitate auto industry
14:33 | 30/05/2023 Industry

Ambassador calls for more investment from Japan’s Tochigi prefecture
09:07 | 07/06/2023 FDI

Vietnam – attractive destination for Italian firms: forum
13:00 | 04/06/2023 FDI

FDI enterprises urge investment environment improvement
06:00 | 01/06/2023 FDI

Vietnam's five-month FDI rises sharply nationwide
13:03 | 29/05/2023 FDI

SBV Governor explains high lending rates, credit room management
09:50 | 05/06/2023 Finance-Banking

Important: Multi-target monetary policies needed
06:00 | 02/06/2023 Finance-Banking

Dozens of commercial banks cut savings interest rates
09:31 | 30/05/2023 Finance-Banking

Central bank continues to reduce policy interest rates
06:12 | 27/05/2023 Finance-Banking

HCM City promotes digital transformation in waste management
15:14 | 06/06/2023 Environment

PM urges stronger wildfire prevention measures amid strong heatwaves
06:00 | 28/05/2023 Environment

Vietnam targets development of green, plastic waste-free tourism
06:00 | 28/05/2023 Environment

Đồng Nai afforestation programme kicks off
06:00 | 27/05/2023 Environment

Police warn against illegal forex trading platforms
06:00 | 06/06/2023 Science - Technology

Over 77,000 computers in Vietnam suffer data encryption in 7 months Bkav
06:00 | 04/06/2023 Science - Technology

Vigorous changes in science and technology
06:00 | 03/06/2023 Science - Technology

Internet speeds up as four of five undersea cables repaired
08:56 | 02/06/2023 Science - Technology

Vietnamese, Bulgarian news agencies ink cooperation pact
15:32 | 06/06/2023 Society

Hanoi: Agricultural development policies lack real-world effectiveness
06:00 | 04/06/2023 Metropolis

New Zealand provides 40 full micro-credentials scholarships for Vietnamese learners
16:23 | 26/05/2023 Society

Mong Cai city imports electricity from China’s Dongxing
10:37 | 25/05/2023 Energy

• Tripadvisor highlights the sole hotel in Da Nang in the prestigious Travelers' Choice Best of the Best award
09:30 | 28/05/2023 Vietnamese Brands

Pfizer Vietnam, VNVC sign MoU to protect public health
09:00 | 26/05/2023 Vietnamese Brands

Vietjet offers 50% discount on SkyBoss Business tickets
08:55 | 26/05/2023 Vietnamese Brands

Positioning Vietnam’s Green National Brand
06:00 | 26/05/2023 Vietnamese Brands

Children's artwork displayed at HCM City exhibition
06:00 | 04/06/2023 Lifestyle

Top models to compete in national modeling reality TV show
09:30 | 02/06/2023 Lifestyle

International festival provides platform to young musicians
06:00 | 30/05/2023 Lifestyle

Bát Tràng ancient pottery exhibited at Việt Nam National Museum of History
06:00 | 28/05/2023 Lifestyle

Vice-Chairman of Da Nang City People's Committee “DIFF is a push to fuel tourism”
15:06 | 06/06/2023 Tourism

Sunset Town – A journey to love on Vietnam's Phu Quoc Island
14:06 | 06/06/2023 Tourism

Experience healing with world-renowned practitioners at Four Seasons Resort The Nam Hai, Hoi An
14:15 | 05/06/2023 Tourism

A memorable summer with fireworks and fun festivals in Đà Nẵng
09:41 | 02/06/2023 Tourism