Value more than just price
Consumers are also looking for good deals regardless of their economic circumstances. Although nearly six out of ten say they enjoy or somewhat enjoy taking time to find bargains, when it comes to store selection there are several important attributes, not just price.
Product availability (62 per cent), high quality (57 per cent), convenient location (54 per cent), store staff (51 per cent) and product assortment (51 per cent) were the Top 5 attributes influencing the decision of Vietnamese consumers to shop at a particular retailer.
“Consumers are willing to pay more if they think the benefits outweigh the price,” the report noted.
One of the most effective ways retailers can avoid pricing wars and unsustainable promotion strategies is to increase the perceived benefits they provide to consumers. As smart brands and retailers have long known, price and value are not the same thing.
“To keep shoppers coming back, however, brands and retailers must exceed their expectations and convincingly demonstrate that value for money, which is a combination of low prices and other attributes, is truly justified,” Mr. Butragueño said.
The report also indicated that convenience is becoming a norm. With life moving at a fast pace and family sizes becoming smaller, Vietnamese consumers crave convenience for everything, especially when choosing the stores where they shop.
Nearly six in ten shoppers said that store selection is highly influenced by convenient location. Furthermore, nearly five in ten mentioned organized store layout making it easier to shop as another factor in their selection.
When it comes to in-store services, nearly five in ten said they use banking services (56 per cent), fast food services (52 per cent), gasoline stations (52 per cent), postal services and coffee services (47 per cent), prepared food services (45 per cent), and pharmacy services.
“Convenience is no longer a store front,” said Mr. Butragueño.
“It’s becoming a way of life. Stores aren’t going to disappear any time soon, but they will undergo a dramatic transformation as e-commerce grows and shopper expectations change. Retailers need to consider what role physical stores will play in their omni-channel strategy and how they can use them to strengthen their offerings and deliver value on each trip.”
The Nielsen Global Retail-Growth Strategies Survey polled more than 30,000 online respondents in 61 countries to understand the pain and the pleasure in the shopping experience and why consumers choose one store over another.
It also reviewed a selection of 19 product categories to determine product attributes that are most important and looked at consumers’ willingness to use additional in-store services and their preferred approach to dealing with price increases, in order to identify areas for development or improvement.
