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Vietnam is listed as one of the fastest growing regions in economies with a boost in the middle class’ vision to upgrade their lifestyles. The country has a GDP forecast to reach 6,6% by 2034 as well as an increase in income levels and urbanisation. This is driving a hike for the products and services provided over all the customer segments. It also holds a major part of the youth population with more than 50% of the overall population coming under the age of 35. Digital exposure among people is also growing at an exponential level.
Here are the marketing approaches to grab the attention of the consumers of Vietnam.
Buying Through Omnichannel
According to NielsenIQ Vietnam, Vietnamese consumers buy online for an average of four times a month. This record surpassed their monthly supermarket visits. Therefore, brands and retailers have to invest in a convenience-type omnichannel buying experience with flexible and seamless experiences that offer a holistic value that is not just driven by price.
The brand's social media accounts and websites are becoming a crucial part of marketing. Brands and retailers have to strategize a unified front in all the commerce channels to address the increased shopper count who are expecting a seamless experience in all channels such as e-commerce, offline, and mobile. Instead of a bigger store in one place, they have to think of building micro-centers for distribution and community building.
AEON is a Japanese department retailer that is currently developing an omnichannel shopping experience that allows people to shop in offline outlets through hotline, app, and e-shop. Zara opened a new platform in Vietnam offering several perks such as free shipping for all the purchased items and options for click-and-collect and home delivery.
Prioritising Value
Retailers and brands have to use value-based strategies such as affordable and cost-saving products. This will help attract middle-class consumers who are cautious about spending more money. They will be expecting group deals, bundle deals, and referrals. There must be tangible offerings such as first-time buying deals, complimentary shipping, and an extension in warranty.
More than 40 % of Vietnamese buyers prefer the brands to provide points-driven multi-tier loyalty programs. Labels can use this to leverage members-only programs and zero- and first-party data to offer personalization. They can also think of partnering with mass retailers to offer cheaper assortments and explore unique ownership and payment services like rental, installments, and Buy Now, Pay Later (BNPL) services.
Lotte Mall West Lake Hanoi entered Summer 2024 with a points-based activation, named ‘Dive into Summer,’ that rewarded buyers with points after shopping something for a minimum amount. Vietnam-based conglomerate Vingroup introduced a tier-driven, unified loyalty program VinClub for the shoppers to get offers, rewards, membership cards, and privileges.
Pop-ups
Vietnam holds only a limited number of landscapes for modern retailing and mall developments are still in the works. Brands and retailers can use this opportunity to set up temporary and flexible retail outlets for low investments. This will provide the recognition needed for the brands. Luxury and premium brands can provide experiences and spaces that offer accessibility over exclusivity for middle-class consumers. They can also offer them entry-level luxury products as complimentary.
Brands that are trying to correlate with younger consumers can address the budding mindsets of making the new base by going with an experimentative approach to heritage and hyperlocal aspects such as collaborating with street vendors, wet markets, and more. The spaces that the brands and retailers create must be flexible, simple, and mobile.
Lotte Mall West Lake Hanoi hosted more than 30 diverse pop-up stores with product offerings from Chanel Beauty to LEGO with interactive touchpoints such as make-up workshops and gaming shows. Maison 21G of Singapore had a pop-up in Takashimaya mall in Ho Chi Minh City when it was in the queue for permanent space at the mall.
Unique Community Building
More than 53% of Vietnamese consumers are inspired by online communities before making a buying decision. Vietnamese people have a heavy dependence on word-of-mouth and recommendations from their family, friends, close ones, and online influencers. They have their own set of local communities that discuss every matter, including buying behaviors. Therefore, brands and retailers have to be familiar with their target audience and build a community that can assist them in buying.
They have to present content, such as collaborative collections with celebrities and influencers, that can drive brand discovery and sales. The community can built by using gamified rewards that can encourage the users to create content and write reviews which can help the brands to turn their shoppers into Key Opinion Consumers (KOCs) and brand advocates. The contents should be more informative and educational about the brand and the products. With the live-streaming market following in the footsteps of the Chinese market, retailers and brands have the opportunity to use that platform to showcase their collections. AI avatars can be a major segment in this area.
Bad Rabbit collaborated with the Vietnamese actress Uyển Ân to create a collaborative collection as a part of curating its content community. Kiehl's utilized beauty creators and their own experts to drive livestream sales which resulted in a 43% hike in livestream GMV in 30 days.
Cover Image: Liệu Uyển Ân x *Bad Rabbit** collection, courtesy Kenh14*