Hanoians Interested in Famous Brand Name Goods

Contrary to the habit of practicing thrift, Hanoians are being considered luxurious customers who are in favour of goods by famous brand names. They are easily attracted by such valuable products as mobile phones and cosmetics, etc.

 

According to Nielsen Company’s study, Vietnam is among countries with many different consumers groups, especially in the two largest cities of Hanoi and Saigon.

 

This study of Nielsen was conducted in April and May, 2009 in Hanoi and Ho Chi Minh City. The study result shows that consumers in Hanoi are more influenced by others’ opinions than those in Ho Chi Minh City. Consumers in the south live for the present and care less for the future than those in the north of the country.

 

According to Personal Finance Monitor study of Nielsen which was conducted in 2008, consumers in Ho Chi Minh City are willing to borrow from banks or other financial organizations for their consumption demands while over a half (57 percent) of Hanoians say that they will not borrow from banks or financial organizations. This seems to be suitable with Hanoians’ habit of paying attention to others’ opinions and being influenced by others’ judgments. Besides, it seems that borrowing money or having to rely on some financial organizations gives Hanoians a feeling of “losing face.”

 

However, Hanoians have a habit which is contrary to their thrift practice. They are very fond of high-class products. 71 percent of people asked say that they like products of famous brand names. In other words, Hanoians are easily attracted by high-class products, especially such products as hand phones and cosmetics. 52 percent of those asked are willing to pay high price for high-class products. 79 percent believe that buying a high-class and high quality product will be more economical in the long term.

 

On the contrary, consumers in Ho Chi Minh City are those with a “quick consumption” trend. They will buy what they need at the time of buying. They still favour high-class products but 48 percent believe that such products are for those who want to show off and draw attention, and they will only spend money for what they need more than the showing off purpose. They like to spend money on necessary products.

 

The study of Nielsen also points out that Vietnamese consumers are fully aware of the economic crisis. Though people in the north are more optimistic about the future than those in the south, they still say that they are influenced by the economic crisis to some extent.

 

Nielsen’s Omnibus study on top interests of Ho Chi Minh City people and Hanoians which was conducted in May 2009 shows that Hanoians pay much attention to the increase in food and foodstuff prices, stable job, bills, oil and petrol price, and the future of their children. Meanwhile, those in Ho Chi Minh City pay top attention to their health, bills, stable job, the balance between their job and life, and debts.

 

Consumers in both Ho Chi Minh City and Hanoi are more worried about their future. They, therefore, are more economical. They all say that they are cutting expenditures for high-class products and eating out, and they are also saving money spent on electricity and gas bills.

 

Hanoian consumers say that they will spend less but will stick to old brand names. Meanwhile, Ho Chi Minh City consumers say that they will maintain their old consumption rate, but they will buy products of cheaper brand names or products packed in smaller packets.

 

Mr Aaron Cross, General Director of Nielsen Vietnam, believes that Vietnamese enterprises need to diversify their business strategies and product ideas for the two cities since one strategy for both is not enough to attract all Vietnamese consumers.

 

“This means that even in Ho Chi Minh City market, enterprises also need to get their marketing strategies diversified. One strategy is not enough to attract all consumers in this city,” adds Mr Cross.