Over the review period, consumers, especially in urban areas, showed a strong preference for dishwashing products that are less harmful to their hands and include natural ingredients. Easier access to information relating to health issues caused by chemicals in home care products, particularly on the skin, is one of the main reasons for this trend.
Even though Vietnamese consumers are typically sensitive to price, particularly in rural areas, consumers in urban areas are generally more inclined to purchase natural, with clear origin, dishwashing products as they are used daily, which could affect their skin health and condition. This trend has created both threats and opportunities.
The internet is increasingly available in most parts of the country, and the habit of shopping online has increased among Vietnamese consumers. However, some home care products, especially small items such as dishwashing, have not typically been sold through internet retailers due to the low profit margins and shipping fees.
International brands are expected to record positive value growth while domestic players and private label value growth will remain stagnant. 2018 continued to witness marketing activities by Unilever Vietnam International Co for its already well-known dishwashing products.
Vietnamese consumers, especially those among the large segment of low-income consumers, remain price-sensitive, forcing manufacturers to keep prices low to attract demand. This consumer segment tends to purchase unnamed, inexpensive dishwashing liquid as a way to minimise daily costs, regardless of the potential for exposure to harmful ingredients.
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This industry report originates from Passport, our Home Care market research database.