Vietnamese consumers are the most socially-conscious in Asia-Pacific according to the Corporate Sustainability Report from Nielsen released on April 26.
The report indicates that up to 86 per cent of consumers in Vietnam are willing to pay higher prices for products and services that come from companies that are committed to positive social and environmental impacts, compared to 76 per cent of consumers in Asia-Pacific.
After Vietnamese, Filipino, Indonesian and Chinese consumers are the most socially-conscious in Asia-Pacific, with 85 per cent, 83 per cent, and 80 per cent of respondents, respectively, stating a willingness to pay extra for products and services that come from companies who demonstrate their commitment to having a positive impact on society and the environment.
According to Mr. Rakesh Dayal, Head of Consumer Insight at Nielsen Vietnam, in the last couple of years, people have witnessed some of the negative impacts of adverse weather conditions and pollution on Vietnam’s living and business environments.
Therefore, it would be difficult to find consumers who do not show concern for environmental and societal issues nowadays. In small and big ways, consumers are trying to be responsible citizens, and they expect the same from corporations.
“Committing to sustainability might just pay off for consumer brands,” he said. “Integrating sustainability into their business models and objectives helps society and, at the same time, raises goodwill toward their brands.”
He added that companies with strong reputations can outperform others when it comes to attracting top talent, investors, community partners, and, importantly, consumers.
The survey indicates that the top sustainability factors influencing the purchasing intentions of Vietnamese consumers are high-quality products (79 per cent), products known for their health and wellness benefits (77 per cent), and products made with fresh, natural and/or organic ingredients (77 per cent).
Moreover, products known for their high standards of safety carry quite similar weight with consumers in Vietnam (76 per cent).
“Finding opportunities to bridge health benefits and the ingredients that support the claim is a powerful and impactful way to connect with consumers,” Mr. Dayal advised.
Equally important among consumers in Vietnam is brand trust. Seventy-five per cent of Vietnamese consumers indicate they would buy products from a brand or company that they trust.
When it comes to purchasing intentions, a commitment to the environment has the power to sway product purchases for 62 per cent of consumers in Vietnam.
Commitments to either social values or the consumer’s community are also important, influencing 61 per cent and 62 per cent of respondents, respectively.
“We are seeing a change in the hierarchy among drivers of consumer loyalty and brand performance,” Mr. Dayal observed. “Commitments to social and environmental responsibility are surpassing some of the more traditional influences for many consumers. Consumer-goods brands that fail to consider this run the risk of falling behind.”