Hanoians like products with well-known brand names

VietNamNet Bridge – An interesting absurdity has been revealed: Though Hanoians are thought to be thrifty, they are easily attracted to products like mobile phones and cosmetics with famous brand names.

According to a survey conducted by A.C. Nielsen in Hanoi and HCM City in April and May 2009, Hanoians are more influenced by others in making their consumption decisions than Saigonese.

The Personal Finance Monitor survey conducted by A.C. Nielsen in 2008 showed that consumers in HCM City borrow money from banks and financial institutions for their consumption needs, while 57 percent of Hanoians said they will not borrow money from any banks or financial institutions. This proves to coincide with the stereotype of Hanoians: They always care about how they appear in other people’s eyes. Financial reliance on others is looked down upon.

However, though commonly considered thrifty, Hanoians very much like high-grade products. 71 percent of polled people said they like products with well-known brand names. 52 percent of polled people said that they were ready to pay for high-grade products, while 79 percent said that purchasing high-quality products helped them save money.

On the contrary, consumers in HCM City pursue a ‘quick consumption’ tendency. They buy things they need and immediately when they need them. Saigonese still love high-grade products, but 48 percent of polled people said that luxury items are just suitable for those who like to show off and get other people’s attention. The city’s consumers say that they will only spend money on those things they need rather than on things to show off.

The survey by A.C. Nielsen also showed that Vietnamese consumers have good understanding about the economic downturn. Northern consumers, though they are more optimistic than southern consumers, still think that they have been significantly affected by economic crisis.

The omnibus survey by A.C. Nielsen conducted in May 2009 showed that Hanoians are interested more in food price increases, stable jobs, bills they have to pay, petroleum prices and their children’s futures. Meanwhile, in HCM City, people are interested in health, bills they have to pay, stable jobs and a balance between job and life and debts.

Both Hanoians and Saigonese are becoming increasingly concerned about the future. They all said they have cut spending on luxurious items, eating out.

Consumers in Hanoi said they will cut spending, but they will still use products of the same brand names, while consumers in HCM City said they will keep the same level of spending, but will purchase cheaper products with less well-known brand names.

Nielsen has advised Vietnamese enterprises to diversify business strategies and products for consumers in the two cities, because a single strategy will not be enough to attract all Vietnamese consumers.

VietNamNet/VNE