SUSTAINABILITY INFLUENCES PURCHASE INTENT OF VIETNAMESE CONSUMERS.
VIETNAM, APRIL 25, 2015 – According to the Corporate Sustainability Report by Nielsen – a global performance management company, Vietnamese consumers are the most sociallyconscious in Asia Pacific. Up to 86 percent of consumers in Vietnam are willing to pay higher for products and services that come from companies who are committed to positive social and environmental impacts, compared to 76% of consumers in Asia Pacific. Among the consumers in Asia Pacific and beside Vietnamese, Filipino, Indonesian and Chinese consumers are the top most socially-conscious, with 85%, 83% and 80% of respondents respectively stating their willingness to pay extra for products and services that come from companies who demonstrate their commitment to creating positive impacts to society and environment. (See Chart 1). Nielsen polled 30,000 consumers in 60 countries across the globe to gain better insight into the factors related to corporate social responsibilities that influence consumer sentiment and purchase behaviour. Consumers were asked how much influence factors such as the environment, packaging, price, marketing, and organic or health and wellness claims had on their consumer-goods purchase decisions. “In last couple of years, we have already witnessed some of the negative impacts from adverse weather conditions and pollution to our living and business in this country. Therefore, you will be hard-pressed to find consumers who do not show concern for environmental and societal issues nowadays. In small and big ways, consumers are trying to be responsible citizens, and they expect the same from all corporations. Organizations who are able to commit to sustainability might just pay off for consumer brands.” says Rakesh Dayal – Director – Head of Consumer Insight - Nielsen Vietnam. “Integrating sustainability into their business models and objectives helps society and at the same time, raises goodwill toward their brands. Companies with strong reputations can outperform others when it comes to attracting top talent, investors, community partners, and importantly, consumers.” SUSTANABILITY FACTORS THAT INFLUENCE CONSUMER PURCHASE INTENT HEALTH/WELLNESS, QUALITY AND SAFETY The survey indicates that the top sustainability factors influencing the purchase intent of Vietnamese consumers are high-quality products (79%), products known for its health and wellness benefits (77%) and products made with fresh, natural and/or organic ingredients (77%). Moreover, products known for its high standards of safety carry quite similar weight with consumers Vietnam (76%). (See chart 2) “Finding opportunities to bridge health benefits and the ingredients that support the claim is a powerful and impactful way to connect with consumers,” advises Rakesh. BRAND TRUST Equally important among consumers in Vietnam is brand trust. 75% of Vietnamese consumers indicate that they will buy products made by a brand/company that they trust. “Consumer-goods brands that have already built a high level of trust with consumers would do well by evaluating where best to introduce sustainable products into the market to drive growth,” says Rakesh. “Bigger global consumer-goods brands that overlook sustainability increase reputational and business risk. It leaves them vulnerable to competitors of all sizes who will seize the opportunity to build trust with the predominantly young, socially- conscious consumers looking for products that align with their values.” THE ENVIRONMENT When it comes to purchase intent, commitment to the environment has the power to sway product purchase for 62% of consumers in Vietnam. Commitment to either social value or the consumer’s community are also important (each influencing 61% and 62% of respondents, respectively). “We are seeing a change in the hierarchy among drivers of consumer loyalty and brand performance,” observes Rakesh. “Commitment to social and environmental responsibility is surpassing some of the more traditional influences for many consumers. Consumer-goods brands that fail to consider this run the risk of falling behind.” Chart 1: Willingness of consumers to pay extra for products and services that come from companies who are committed to positive social and environmental impact
Chart 2: Factors that influence the purchase decision
ABOUT THE GLOBAL SURVEY The Nielsen Global Survey of Corporate Social Responsibility and Sustainability was polled more than 30,000 consumers in 60 countries throughout Asia-Pacific, Europe, Latin America, the Middle East, Africa, and North America. The sample has quotas based on age and sex for each country based on its Internet users, and is weighted to be representative of Internet consumers. It has a margin of error of ±0.6 percent. This Nielsen survey is based only on the behavior of respondents with online access. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60 percent Internet penetration or an online population of 10 million for survey inclusion. The Nielsen Global Survey, which includes the Global Consumer Confidence Index, was established in 2005.
