Despite the volatile market, Con Cung still grew revenue, accounting for 62.3% of the diaper market share in the mother and baby channel in the first quarter of 2023, according to NielsenIQ report.
The study was conducted by Nielsen from the beginning of the year to the end of March, only counting the nationwide mother and baby store sales channel (excluding online channels). In the report, by product category, the unit accounted for 78.8% of total revenue from ready-to-drink milk powder, 71.4% of diapers and 56.8% of milk powder. "The market recorded a decline in the two groups of diapers and milk powder in the first quarter of 2023, but we still had positive growth," said a representative of Con Cung.
The unit's average revenue from diapers and milk products increased by 18.6% over the same period. Another bright spot came from the functional food group with a growth rate of 63% compared to the first quarter of 2022.
Growth by industry group at Con Cung and other traditional stores market (according to data from NielsenIQ).
Also according to data from NielsenIQ, by the end of the first quarter of 2023, the infant formula industry decreased by 22.1%, and the diaper industry decreased by 7.9% compared to the same period last year.
Further, according to the forecast from Oceane Nguyen, Senior Analyst at Euromonitor, this year most of the milk categories may grow slowly due to the difficult economy. The formula milk group is regulated to reduce production according to the supply and demand situation, but milk prices may increase by 5-6% due to pressure from input costs.
"The retail market is facing many difficulties during this period, but Con Cung is still trying to 'turn the tide' to grow," Con Cung's representative emphasized.
The growth confidence of the leaders comes from their understanding of the market. First, with about 1.5 million babies born each year, the market size of Vietnam is large. Second, despite having to tighten family budgets, diapers and milk are still essential products that must be on the shelves. "Despite inflation and tight budgets, parents still ensure their budget for spending and childcare," said experts from Euromonitor.
Third, Con Cung understands customer needs and has enough resources to find the right "touch point" for each user, personalize needs and meet all-in-one needs.
The all-in-one model is one of the factors that helps the store attract customers. Photo: Con Cung
Accordingly, the brand has deployed a network covering all provinces and cities. With more than 200 new stores opening in 2022, Con Cung currently has 700 points of sale nationwide with all types of goods, ranging from popular to high-end prices, domestic and imported. The unit also coordinates with many partners to provide services on insurance, education, and genetic testing to have a suitable nutritional regimen for children. "This modern model meets the increasing demands of customers, especially young customers (gen Z)", the chain representative assessed.
Going to the store is not just to buy an item and then leave, but for many people it is also to stop and let their children have fun on the weekend. That is the reason why last year, the company opened the first Super Center store in Ho Chi Minh City with an area of 1,000 m2. The multi-storey space with beautiful colors, rich items and entertainment complex, coffee, makes both mothers and children happy when visiting. This model is currently being replicated in many large provinces and cities such as Da Nang, Vinh Long, Can Tho, Da Lat, Tra Vinh...
Spacious shopping space, diverse products at Super Store. Photo: Con Cung
During 12 years of accompanying parents, the sales team has always been trained in product knowledge to provide the most accurate and complete advice about the products. All products are guaranteed to have a genuine origin and distribution, creating trust for users, especially in the milk, food and vitamin groups.
Anticipating and meeting consumer demand, the functional food segment has been focused on recently to meet the trend of health care and immune enhancement. Thanks to that, this product group grew by 70% compared to the first quarter of 2022.
Essential products - such as diapers and milk - are always in high demand. Euromonitor data shows that in 2022, the diaper industry will grow by 9.1% while the retail value of formula milk will increase by 5.8% - 6.4 times higher than the Asian market. Con Cung exploits this as a business advantage, providing a diverse supply in terms of features, brands and prices. Thanks to that, the chain of stores increased revenue for diapers by 34% and for formula milk by 13% in the first quarter of 2023.
Talking about future plans, Con Cung representative said that the unit is still steadfast with the customer-centric strategy, understanding the right needs, finding the right "touch point" with each customer. As parents often say to each other: "When traveling, you don't need to bring anything for your children, just open the app to order; when you get to the hotel door, Con Cung staff will be waiting to deliver the goods".
Grassland
As part of a series of activities to accompany users, following the program "60 billion gift sea", Con Cung system nationwide is currently applying the program "Diapers and milk reduced by up to 30%", attracting many shoppers.
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