3.4 % SECTOR GROWTH FMCG WHETHER IN RETAIL THE 1ST QUARTER 2015 STILL CONCERNED

VIETNAM , 16 May 06 , 2015 – After the sharp decline of the FMCG sector (FMCG ) in sales in 2014, sales of FMCG Q1’2015 quickly showed a recovery with 3.4% growth in sales volume (up 4.0 % in value) in six major cities of Vietnam such as Hanoi , Ho Chi Minh City , Hai Phong , Can Tho , Nha Trang and Da Nang . Drinks are major factors that control the growth recovery , but other categories such as food and household care products also showed signs of recovery in Q1’2015 . However , retailers that Nielsen has interviewed expressed concern about the future , although the growth rate was recorded.The report also found that more than 80% of sales in the FMCG Vietnam still come from traditional commercial channels covering about 1.3 million retail outlets across the country. The number of traditional retail stores to see Vietnam as one of the most complex market for fast moving consumer goods manufacturer to build strategic distribution and logistics management. Moreover, according to the Nielsen report, only 30% of traditional stores contributed to 80% of sales of the leading product portfolio. So to win in markets where the traditional commercial channels dominate this powerful, the manufacturer must identify the correct target of your door because not easy to get a foothold in the market major retailers, dynamic and always changing so.Apart from the complexity of traditional trade channels , the success or failure of a brand or product in the hands of the traditional retail stores this . Indeed , in a recent Nielsen study found that only 70 % of traditional retailers to comply with the requirements of manufacturers in delivering their product – this is the important point emphasis on success for a retail store . In the brand is supported by most of the retailers Vietnam , Hao Hao , Vinamilk and Coca – Cola is the third leading brand supported by most retailers , with more than half of all stores said they will store more products , and introduce these products to the purchaser .Ms. Nguyen Huong Quynh, Director of Senior Services division of Nielsen Retail Measurement Vietnam, said: “Although the consumer sector showing signs of growth recovery in Q1, the confidence index of retailers at only 71 points, indicating that retailers are still expressed concern. So to win the hearts of retailers is not easy. The major retailers are interested in factors directly impact their business, such as the storage of goods, profit, customer service support. The key for manufacturers is how to understand the relationship That mind most thoroughly and identify the target store to ensure that retailers can collaborate and store their products in stores throughout the year. This will require a combination where different strategies based on an understanding of retailers and consumers. “Faced with the challenge of winning the hearts and loyalty of retailers, Nielsen encourage manufacturers should focus on identifying the target store, and outstanding performance deploying activities in store.