In this episode of SEA CONNECT – Leadership Talks, Lars Voedisch interviews Khun Thanyachat Auttanukune, the Vice President of Business Development of CP Group in Vietnam. The discussion focuses on the evolution of consumer behaviour and marketing trends, particularly in the Vietnamese market.

In this in-depth discussion, Khun Than, offers valuable insights into the rapidly changing landscape of consumer behaviour and marketing trends within Vietnam. He begins by highlighting the unique context of the Vietnamese market, which, unlike other Southeast Asian countries, has experienced a rapid opening up, leading to a compressed timeframe for the influx of various technologies and trading trends. This accelerated pace of change has resulted in a consumer base that is markedly distinct.

Khun Than characterises the modern Vietnamese consumer as increasingly “me-focused,” possessing a multitude of identities and choices that were unavailable to previous generations. This abundance of options, coupled with constant exposure to media and global events, has fostered a sense of both boredom with the mundane and anxiety about the fast-paced, interconnected world. In response to these evolving dynamics, Khun Than proposes a framework of “forward-third understanding” for brands aiming to stay relevant.

This framework emphasises the need for a proactive approach to understanding consumer preferences, anticipating future trends, and aligning these insights with the brand’s core offerings and execution strategies. He underscores the growing demand for transparency among consumers, who are increasingly scrutinising the origins and production processes of products. Navigating this demand while remaining true to the brand’s fundamental principles is a critical challenge that businesses must address.

Khun Than also highlights the role of technology as a key enabler in adapting to these shifts. Technology, he argues, offers tools and opportunities to bridge the gap between evolving consumer expectations and the brand’s commitment to quality and ethics. He emphasises the importance of a corporate culture that encourages exploration and experimentation with new technologies and business models. Throughout the discussion, Khun Than draws upon his own experiences within CP Group Vietnam to illustrate these points. He shares examples of successful campaigns, such as the “Love Like a Mom” campaign, which effectively tapped into the strong family values in Vietnamese culture while promoting the brand’s products. He also candidly discusses instances where experimentation led to less successful outcomes, emphasising the importance of learning from both successes and failures.

Khun Than’s insights provide a valuable roadmap for businesses operating in the dynamic Vietnamese market. By understanding the unique characteristics of the Vietnamese consumer, embracing transparency, leveraging technology, and fostering a culture of innovation, brands can successfully navigate the complexities of this evolving landscape and build lasting connections with their customers.

Key Takeaways from the Episode 3 – The Evolution Of Consumer Behaviour And Marketing Trends:

CP Group’s Business and Principles:

• CP Group is a major player in Vietnam’s agro-industry, with a diverse portfolio encompassing animal feed, farming, food production, and related sectors.
• The company’s core business philosophy is guided by the “Three-benefit Principle,” ensuring that their operations benefit the nation, the consumers, and the company itself.

Consumer Trends in Vietnam:

• Vietnam’s relatively recent economic liberalisation has led to a rapid evolution of consumer behaviour.
• Consumers are increasingly self-focused, have greater choices and disposable income, and are more connected to global events and trends.
• This heightened connectivity has resulted in both increased anxiety and a tendency towards boredom due to constant exposure to information and options.

CP Group’s Strategies:

• To maintain relevance in this dynamic market, CP Group emphasises understanding and anticipating future consumer preferences.
• They leverage their core strengths and execute strategies effectively, fostering a corporate culture of innovation and openness to new technologies.

Successful and Unsuccessful Campaigns:

• The “Love Like a Mom” campaign exemplifies CP Group’s successful alignment with Vietnamese cultural values, particularly strong family bonds.
• However, the company has also experienced setbacks, such as unsuccessful restaurant ventures, highlighting the importance of understanding market nuances.

Staying Ahead and Sustainability:

• Navigating a rapidly changing and often confusing landscape requires a combination of discipline and imagination.
• CP Group prioritises transparency and consumer interests, actively involving them in sustainability initiatives like tree-planting campaigns.

Influencer Marketing:

• When collaborating with influencers, CP Group emphasises authenticity and alignment with their brand values, ensuring that partnerships genuinely resonate with their target audience.

Future Trends:

• Khun Than anticipates that future trends will be even more complex and fast-paced.
• Brands will need to be increasingly accountable and prioritise consumer well-being, particularly in areas like sustainability and ESG (Environmental, Social, and Governance) considerations.

Businesses operating in Vietnam’s evolving consumer market must be adaptable, innovative, and consumer-centric while upholding strong ethical principles and a commitment to sustainability.

 

 

Soundbites

Khun Than – “In Vietnam the family value is super strong it’s a fundamental bedrock of a lot of things which is admirable so we build on that” “Nothing is done in isolation even in your company you work with farmers you have many stakeholders how do you navigate this landscape where the consumer wants that and some parts of that chain say why do we have to change” “The part that changes is the final touch when you interact with them. The way you talk, how you present yourself, what colour, what celebrity, what cause you want to fight for, what cause you want to stand for, this is how you change over the time. It’s the same product but how you create new connections”