Future Outlook of Vietnam Online Grocery Market: Ken Research
1. 1.85% Online Grocery Penetration Rate in 2021P Provides Enormous Opportunity for the Companies to Expand in Vietnam
The current penetration rate for grocery in Vietnam stands at 1.85%. The Ideal target audience for online grocery services is smartphone users aged 25-44. Companies must focus on developing strategies to attract customers and thereafter undertake strategies to retain those customers by regularly engaging with them. In terms of gender based penetration rate, Demand for online grocery has increased among the people living independently as they are increasingly outsourcing their chores through online grocery shopping. Employed Population at 15+ in Vietnam stood at 49 Mn as of 2021. Opportunity lies for the company to gain traction from female and male working population. Women are the major decision makers for grocery shopping in a household.
In order to attract more female customers, companies should focus on developing women centric strategies and providing cashback offers and promotional discounts. Demand for online grocery has also increased among the people living independently as they are increasingly outsourcinga their chores through online grocery shopping. Employed Population at 15+ in Vietnam stood at 49 Mn as of 2021. Opportunity lies for the company to gain traction from female and male working population.
2. Price, Delivery Cost and Delivery Time Amongst Most Influencing Factors Affecting Purchase Decision
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Price, Delivery Cost and Delivery Time Amongst Most Influencing Factors Affecting Purchase Decision but in terms of domination, the most beneficial factor of shopping online was identified as a possibility to compare prices and buy at a lower price. Customer prefer the operator that would offer similar products at a lower price. Moreover, faster delivery increases the chances of regular and frequent orders. Delivery fees, convenience charges or any other surcharges reduces the chances of regular orders. It has been noticed that customer prefers their orders to be delivered within the promised time slot, preferably between 6 – 9PM.
Aside from lost sales, stock-outs also lead to reduced customer satisfaction and lowered loyalty levels. In case of stock-outs, companies must provide alternatives. Optimum product portfolio maintained by companies ranges between 8,000-20,000 products across multiple categories. Hassle free payment, return & refund experience is also an important factor in a purchasing decision. A clear return policy gives consumers a feeling of security. About 60% of online grocery shoppers prefers cash as mode of payment.
3. Online Grocery Market expected to be around USD 2,700+ Mn by 2026F (CAGR 20.4%)
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Online grocery penetration is expected to increase from 1.85% in 2021P to 3.35% by 2026F owing shift in customer preference from offline to online grocery shopping. Sudden peak in 2021P was noticed due to the emergence of Covid-19 Pandemic. As people went into quarantine, online grocery shopping became increasingly popular as a result of which masses became habitual of the convenience arising out of the same. Increasing percentage growth GMV is expected to decline post 2021, owing to certain percentage of customer shifting back to grocery shopping from Traditional Market, hypermarkets and supermarkets.
