Vietnamese consumers continue to pay the greatest attention to health
In the first quarter of 2020, among Vietnamese consumers' top 6 concerns, there came the welfare and well-being of their parents, with 10% of respondents saying they were worried about that, according to the latest update of The Conference Board's global consumer confidence index survey conducted in collaboration with Nielsen.
“Since the Tet holiday, schools have been closed, many parents have not only struggled with having children at home all day but also worried about their education. In the context that many people work at home, it is natural to take care of the health and happiness of their parents.” said Louise Hawley, General Director of Nielsen Vietnam.
The consumer confidence survey also shows that consumers primarily view the spread of the Covid-19 epidemic as a health crisis instead of an economic one. In the first quarter of this year, Vietnamese consumers continued to rank health (49%, an increase of 4% compared to the fourth quarter of 2019) as their No. 1 concern. This means health has been a top concern in Vietnam for four consecutive quarters.
Despite being ranked second, job stability has witnessed a significant increase in the number of Vietnamese consumers interested, while the rate of interest in work and life balance has dropped sharply.
“People become increasingly aware of the impact of the Covid-19 pandemic on their job. On the other hand, when companies start conducted the work from home model, the interference between home and work poses challenges but also saves time for many employees” Ms. Louise Hawley analyzed.
Vietnamese consumers tend to spend idle money less
In the first quarter of 2020, Vietnamese consumers had a significant reduction in idle money spending. Vietnamese people acknowledge that they have spent less (-4%), new clothes (-9%), travel (-5%), home improvement / decoration (-4%), outside entertainment (-9%) and new technology products (-6%).
Ms. Hawley emphasized that the Corona virus has disrupted the lives of billions of people around the world, including Vietnamese people, and is changing their attitudes, behaviors and desires rapidly.
Efforts to prevent the epidemic, such as restricting social interaction, forced social distancing, and closing certain store systems have cut consumer spending. More and more people are spending time at home, which means they will spend less money and time outside during the quarter, avoiding entertainment venues like theaters, bars, restaurants and any form of tourism.
This quarter, premium health insurance packages surpassed “outside entertainment” to reach fifth place in the top 7 of idle consumer spending. Despite a slight decrease compared to the previous quarter, Vietnam is still the country with the highest percentage of users who choose to use idle money for premium insurance packages with 38%.
Ms. Hawley said that Vietnamese people are always optimistic. While only 5% said they were not afraid of the disease, nearly half of the respondents believed that the situation would last 2-3 months. Despite this optimism, behaviors developed during social distancing will tend to continue, including preparing food and eating at home with family. In addition, affected people will find ways to reduce spending and this time will be an opportunity for businesses to convey useful value.
Compared to the last quarter of 2019, the confidence of Vietnamese consumers remained stable with an increase of 1 point. The main reason for this slight increase is consumer optimism about improved job prospects while optimism about personal finance and spending remains stable. However, this index decreased compared to the same quarter last year, largely due to the impact of the Covid-19 pandemic.
Writer: Henry Tran