The Needfor Stamina
September 29, 2006
The Needfor Stamina. Check it out:(Saigon Times Magazine Via Thomson Dialog NewsEdge) As living standards are on the rise, a recent survey has found that durability is the most important factor to consumers when purchasing goods
[QQ] A recent survey has revealed that products durability and use are the most important qualities to consumers when purchasing goods, a shift from years before when price was always the most important factor. The survey indicates that Vietnamese consumers are more conscious of the future than ever before. Not only do they want products that will last, but they are increasing their savings for the future. And while the commercially-powerful younger generation may not have the buying experience of the older crowd, they are set to make more highly informed decisions thanks to modern tools such as the Internet.
The survey on consumer behavior was conducted by the HCM City Consumer and Enterprise Research Center early this year, covering 660 consumers over 18 years of age in HCM City (48% of those surveyed), Hanoi (29%), and the Mekong Delta (23%).
Compared with previous surveys the center conducted, this survey shows many changes which can be explained by the improvement in living standard as Vietnams economy has grown quite fast recently. According to a survey conducted in 2000, there were up to 14 factors impacting consumer satisfaction. Of those, the three main factors were dealing with invoice, price and time of delivery. These were all concerns in a less-sophisticated society without solid infrastructure. With higher production quality and consumer standards now, people want their products to work well and last long.
The new survey shows that while the durability of products is the most important factor now, people often base much on their own experience to choose products. When buying a vehicle or an electric product, people often look for information from their friends and relatives while their main information source when buying secondary products is from their own experience.
However, as global trade penetrates into Vietnam, there are a variety of scientific and technological means blitzing peoples lives. The new generation (people from 18-30 years of age) in Vietnam seems to assimilate into this modern international society quite well. They are the ones who most often look for product information on the Internet. Thus, the ratio of using the Internet to look for products is increasing.
Looking towardsthe future
According to the survey, most of the people asked said they spend most of their money on food. Spending of single people on food accounts for 23.5% while that of household is 28.9%, said Vu Tien Dung, head of the survey. Their second spending is usually on such utility services as Internet, water supply, phone, electric service, while savings is also high on the list.
If income increases, they will increase their savings for future investment. Cash is their main savings form which they keep home, accounting for 62% of total people asked. Only 37% said they have deposits in banks. Dung also noted that the reason of this tendency is due to a lack of confidence in banks.
The survey also shows that the majority of people reduce their spending on food when they have the opportunity to save in that category. When having more money, consumers first priority is often to increase savings, followed by investing in their children, taking care of family, travel, and study. As to health care and life insurance, consumers said they will pay more for this only when and if their income increases.
Asked what they planned to spend in the next six months, more than 30% of consumers with lower income and 40% with middle income said they will spend on travel compared with 52.1% of those with higher income. Jewelry also has a high ratio with 27%, equivalent to that of electronic products, mobile phones, and health care.
Market force
Vietnam has a young population with people from 18 to 45 years of age as the main market force. The survey shows that people belonging to 18-30 years old group are those who favor new products. They are also more easily changeable than previous generations.
They are first consumers to buy new products and they, more than anyone else, set trends and their buying habit is the most significant factor forming the nations consumption tendency. Products are one of their means of self-assertion. Information they get mostly comes from the Internet.
However, the age range of 30 to 45 provides a very significant market impact, accounting for more than 50% of all sales. They are not the first customers to buy new products but are those who generally form a products market. This group accounts for more than half of the market force; thus, they are the main target of most enterprises, Dung added.
The poor tend to be more quality conscious than the rich. People in the Mekong Delta are the ones who were most concerned with quality while those in HCM City, a region with a higher human development index than others, showed their interests in promotional programs, said Dung.
According to the survey, product brand-name, design, service quality, price and promotion are all important factors for consumers while shopping. People of higher income care more for product design, and service quality plays a more important role in the choosing process of people in Hanoi. x
Copyright 2006 The Saigon Times Magazine. Source : Financial Times Information Limited - Asia Intelligence Wire
Related Tags: survey shows, important factor, market force, people, products, survey
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