Fast Moving Consumer Goods (FMCG) companies in Malaysia have always known that people living in rural and urban areas consume differently. Knowing this difference is important for FMCG brands to create marketing strategies that cater to specific needs and preferences of their target customers in each area.
The fast-moving consumer goods (FMCG) market in rural Vietnam is growing fast and it’s a huge opportunity to tap into, considering the fact that 56% of the total population lives there. As rural areas develop and modernise, consumers are becoming more sophisticated and discerning, with higher expectations for product quality and functionality.
The FMCG industry in Southeast Asia has been growing rapidly, especially in rural areas of Malaysia and Vietnam. But it’s not a one-size-fits-all market out there – rural communities have unique socio-economic factors that can impact FMCG consumption.
When it comes to the FMCG market in rural areas of Vietnam and Malaysia, there are some things to keep in mind. People in these areas have different cultural, social, and economic factors at play, which makes it hard for FMCG companies to figure out how to market to them.
A study by Nielsen found that the demand for FMCG products in rural Vietnam has been on the rise, growing at a rate of 5% in 2020. Meanwhile, Euromonitor International revealed that the rural FMCG market in Malaysia is expected to have an annual growth rate of 6.8% from 2020 to 2025, compared to 5.5% in urban areas.
Rural areas are an important part of the global economy since they are home to a large population. Did you know that in Malaysia, 22% of people live in rural areas, while in Vietnam, the number jumps to 62%?