Unpacking 2024’s formula for success
The year 2024 was another complex, yet instructive, landscape for FMCG brands in Vietnam. While Vietnamese consumers’ confidence in the broader economy notably improved compared to the challenging conditions of 2023, and the proportion of households that were struggling financially decreased, it is crucial to recognise that the situation has not yet recovered to pre-pandemic levels.
In an uncertain economic climate, consumers are increasingly sensitive to news, and remain cautious and deliberate in their spending. This reset benchmark has profound implications for market dynamics.
The reality is that total value growth for in-home FMCG decelerated in 2024. One indicator of the scale of this challenge is that more than half of brands with penetration rates over 1.5% in the Brand Footprint 2025 ranking for Vietnam’s Urban 4 experienced a decline in CRP, underscoring the severity of market contraction for many players.
Adding to this complexity is intensified competition. The battle for consumer attention spares no one, from manufacturers to retailers: they’re all vying for mindshare, store visits and, ultimately, purchase decisions. With product launches occurring at an unprecedented pace, the fight for consideration is tougher than ever before.
But a timeless truth remains: the majority of all growing brands achieve their growth by successfully gaining new shoppers. This proves that recruitment remains the key driver. Among Vietnam’s growing brands in 2024, we observed success stories spanning all scales and sizes, debunking the notion that only smaller players have significant room for new consumer acquisition.
Many of these winning brands share the same recipe for success. They did not merely react to market shifts; they proactively shaped their trajectories through a multi-faceted approach:
Relentless portfolio extension and expansion. They demonstrated an unwavering commitment to broadening their reach. This involved not only extending their presence into new categories, but also innovating within existing product lines to introduce more variants. The goal was clear: to cater to a wider array of consumer segments and their increasingly specific, evolving needs.
An optimised multi-channel presence. Beyond simply being present across various channels, especially growing ones, winning brands optimised their distribution effectiveness. They meticulously understood the unique role and value that each channel brings to the specific categories and consumer segments within their portfolios. This strategic channel-agnosticism ensured maximum visibility and accessibility where and when targeted consumers were most receptive.
In an increasingly competitive environment, brands which persistently prioritise agility, adapt to evolving consumer behaviours, and strategically expand their reach will ultimately win the race for market leadership.
