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[Vietnam] Samsung's breakthrough in the air conditioner field

Changes in consumer electronics ownership among Vietnamese

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The Vietnam Department of Statistics has recalculated the gross domestic product (GDP) statistics for the period 2010-2017, and the GDP per capita is now about USD 3,000, which is the same size as that of the Philippines.It is said that when the GDP per capita exceeds USD 3,000, the willingness to purchase cars, home appliances, and furniture increases rapidly.

According to Intage Vietnam's independent surveys in 2015 and 2019, the growth rate of home appliance ownership per household in Vietnam is remarkable.

The growth rate of smart TV ownership is up about 20% (2015: 21.9%, 2019: 39.3%). This is due to the fact that Vietnamese people want to watch YouTube, which has become a popular source of information, on their TVs, and the demand for smartphones to be linked to TVs has increased.

Similarly, the ownership rate of air conditioners has also increased by about 20% (59.3% in 2015, 81.0% in 2019). In terms of brands purchased, DAIKIN and Panasonic were both No. 1 and No. 2 in 2015 and 2019 (DAIKIN: 14.2% in 2015, 31% in 2019/Panasonic: 16.3% in 2015, 30% in 2019).

However, the leader in terms of growth rate is Samsung: from 2.9% in 2015 to 21.3% in 2019, a growth rate of more than seven times. The reason for this is the success of its B-to-B business, as developers from Singapore and Taiwan are actively using Korean products, which are popular among Vietnamese people and have good cost performance, to build luxury condominiums in Vietnam, where demand for condominiums has increased.

Korean manufacturers have been steadily strengthening their presence in Vietnam, but due to the slowdown of the domestic economy in South Korea as well as the effects of the new coronavirus, Vietnamese factories have begun to shut down or scale back operations. It will be important to see how quickly they can recover after the new coronavirus is under control.

Source: Monthly magazine ACCESS (June 2020 issue)

  • Intage Inc

    Author profile
    Mr.Paul Ryu

    Marketing Manager of INTAGE Vietnam. after working for INTAGE Japan as an overseas researcher, he moved to Vietnam with his Japanese wife. He holds a Master's degree in Branding from Kyushu University in Japan Click here for other columns by Vietnam resident

  • Intage Inc

    Editor profile
    Mr. Yusuke Tatsuda

    In charge of creating the Global Market Surfer website. He is an electronics enthusiast who worked part-time at an electronics retail store during her college years.

  • Jun 01, 2020
  • 3464 Views

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