Consumers cutting spending amid global difficulties

Vietnamese consumers are being more cautious about their spending behavior, the global consumer survey 2023 by PwC has found, with 62 per cent having changed their non-essential spending.

This is lower than the global average of 69 per cent.

Around 54 per cent of consumers plan to spend less on luxury products, followed by tourism with 42 per cent and electronic products 38 per cent.

Only 18 per cent of Vietnamese consumers plan to cut spending on groceries and food, which is lower than the global average of 24 per cent.

In particular, “phygital” (physical and digital) shopping has become a new trend among consumers. Consumers said they want the physical shopping experience to be enhanced and facilitated by digital technologies. The survey shows that 64 per cent of consumers tend to shop online more regularly. The majority of consumers want to experience multi-channel shopping but still prefer in-store shopping to check products and enhance the experience.

Mr. Johnathan Ooi, Deputy General Director and Entrepreneurial & Private Business Service Leader at PwC Vietnam, said the global economy is facing many challenges and society is adapting to the “new normal”. Therefore, consumer behavior has also changed. Consumers are tending to cut spending and combine both online and in-store shopping, so businesses need to closely monitor these trends in order to timely adapt and maintain their competitiveness in an ever-changing market.