Similar to the Gold Rush in the 19th century, Vietnam has become popular among many international investors. According to the statistics of the ministry of planning and investment, foreign investment projects were estimated at USD 380.19 billion. The annual growth rate is 7.2 percent, making Vietnam the dream market for startups to enter. Nevertheless, many investors failed within three years due to the language barriers, cultural differences, and government policies. Thus, knowing the latest marketing trends in Vietnam will greatly assist you with planning out effective marketing strategies and reach your target customers.
1. Influencer Gains Trust
As of 2020, there were over 45 million active Facebook users in Vietnam, ranking seventh in the world. Similar to Taiwan, social media has become a big hit in Vietnam. More and more people combine social media in their daily life. If you want to bring your brand to Vietnam, influencer marketing is a good persuasive technique for the younger generation.
Currently, more than 57 percent of beauty and fashion companies use influencers as part of their marketing strategies. On average, businesses generate $6.50 for every $1 invested in influencer marketing. Many companies saw the opportunity and launched influencer marketing abroad, such as Big A Vietnam Cross Border E-Commerce Incubator Center, Daione, etc. They combine Taiwanese brands with Vietnamese influencers to take root in the market. Both companies entered the market with omnipresent social media to enhance brand value and awareness in a normal way. This led to fast brand expansion and gained the trust of Vietnamese people.
2. Young Generation Seeks Brand Value
If you traveled to Vietnam on the tenth of any month, you will see a chock-full of people on the streets, especially in front of ATMs. Vietnamese practice the philosophy of carpe diem, which is why they would splurge a fortune on payday, shopping for high-end products.
The younger generation is running the market. According to Wage Indicator, the average monthly salary of a worker in Vietnam is about ten thousand NTD per month. Despite having a low income, saving is not the priority for the younger generation. They focus on the quality of life–carpe diem, and having high consuming power. As a result, having a strong presence of brand value becomes a crucial thing. The Vietnamese media indicated that revenues in the beauty and fashion industry will double in the next ten years. As a young, well-education, and exponentially growing middle-class country in Asia, brand management and marketing will become more and more important.
3. Korean Wave in Vietnam
While the Korean wave has become a global phenomenon, it took over and influenced the young generation in Vietnam, even more so than American fashion. The sales of K-beauty tripled within a short span of six years, making the equivalent of half of the American sales.
Before entering the Vietnamese market, Taiwanese brands must conduct in-depth market research on the features and qualities that Korean products have on Vietnamese people. For example, Korean hand-shake-beverages could sell for triple the price because of the fancy decoration, dreamy beverage colors for posting on social media, free WiFi, and air-conditioned spaces with no time limit. The marketing approach is much different when compared to Taiwanese drinks that give more bang to your buck in terms of the drink quality itself.
Regardless of what marketing approach you end up using, conducting a thorough market survey with the locals helps with word of mouth and establishes a strong foundation for scaling your business in Vietnam.
To wrap up, you must do your homework before entering the Vietnamese or any new market. By keeping the three marketing trends in mind, Vietnam is ready for you!
Written by Sophie Lee, Eden Hong
Edited by Vivi Liu