In line with Vietnam’s rapid economic growth, the drinking culture has also been on the rise, even in the face of a pandemic. While beer is still the most widely consumed alcoholic beverage in Vietnam, the country’s growing middle classes are beginning to crave more sophisticated wines. Starting at a very low level, the Vietnamese wine market is booming, with many restaurants, hotels, and retailers now offering a wide range of wine from all over the globe.
The two most important factors that Vietnamese consumers consider to buy wine products are product quality and origin. International brands are preferred by buyers who want high-quality products, especially those from France, Italy, Chile, Italia, America, Spain and Australia.
Red Wine Is Beneficial For Health
Red wine is mainly made from crushed dark grapes. Grapes are rich in antioxidants such as Resveratrol, Catechin, Epicatechin, and Proanthocyanidin. These antioxidants contribute to a lower risk of heart disease and fight free radical damage. The alcohol content in red wine usually ranges from 12-15% and contains 125 calories, no cholesterol, low in carbohydrates (3.8 grams). There are also reputable brands on the market such as Chateau Tayac Margaux, Chateau Corbin, Dauzac Margaux, Duhart Milon,… These brands are highly regarded in Vietnam and strongly recommended by sommeliers.
Westernization of Tastes
The obsession of Vietnamese people with foreign brands has grown as their standard of living and spending power increases. Although wine is not something Vietnamese would normally drink on the streets, they do prefer expensive, premium wines from France, Italy, and Australia. France’s historic connection with Vietnam is the main reason that French wines account for 35% of the market, with Bordeaux being the most popular. Besides, wines are displayed on the table during traditional holidays like Tet. It can also be served as a corporate gift for employees and business partners at the end of the year. The New Year holiday is responsible for as much as 80% of all wine sales.
Urban Consumers Prioritize Product Quality over Pricing
Vietnam’s rural and urban consumers have different buying habits. People in major cities like Hanoi, Ho Chi Minh and Da Nang pay more attention to product quality than people living in rural areas. Foreign brands are popular in cities while local brands are more prevalent in rural areas. The pricing strategy for foreign suppliers of wine products should be targeted at urban consumers who are looking for quality, but also affordable items. Red wine, white wine, rosé wine, and sparkling wine range from VND400,000 to VND2,500,000 (US$17.50-110.0). Sparkling wine typically costs a higher.
Marketing – Building Trust an Awareness for Wine Consumers
Marketing strategies that promote awareness via online channels are important in addition to traditional TV advertising. The Vietnamese value foreign products highly and consider them to be premium quality. The brand awareness level in Vietnam is low, so importers will need to build a strong consumer base and brand early on. They will be eager to read online reviews and ratings and share their experiences on wine forums and social networks.
Advertisements for alcohol that contains less than 10% alcohol are allowed in Vietnamese newspapers, radio and television as well as on the Internet. Only retail shops, bars, and restaurants are allowed to advertise alcoholic beverages containing more than 15% alcohol. A license for advertising is required to advertise alcoholic beverages containing more than 30% alcohol.
Partnerships with local distributors and retailers
Wine products are currently distributed in major cities through wine shops. Wine shops that offer a wide selection of wine products are the preferred shopping destinations for customers. They have high expectations for product quality and convenience. Saigon Coopmart, Maximark, Citymart, Vinatex, Fivimart, and Intimex are the most popular wine shops in Vietnam with many supermarket chains. Collaboration with these top retailers is a great way to raise brand awareness for foreign players. Many local customers don’t know that these wine have their own online ordering systems. They instead use online shopping platforms with experienced consulting teams to buy authentic products.
Although choosing a favorite wine brand is a lengthy process, customers who enjoy your wine will likely skip the selection process and buy the wine again. Therefore, the sales and income figures should reflect this level of customer satisfaction. To leverage local distributors’ marketing and network knowledge, foreign suppliers new to Vietnam are advised to collaborate with them.
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