Executive summary “The Western brands in the minds of Vietnamese consumers”
Article Type: Executive summary and implications for managers and executives From: Journal of Consumer Marketing, Volume 32, Issue 5
This summary has been provided to allow managers and executives a rapid appreciation of the content of this article. Those with a particular interest in the topic covered may then read the article in toto to take advantage of the more comprehensive description of the research undertaken and its results to get the full benefits of the material present.
Emerging market economies are said to be growing at a rate of over six times greater than in more developed nations. Globalization has seen many developing countries openly embrace capitalist practices firmly established in the West. One major outcome is the increased desire among Asian consumers for Western products. Certain consumers have become fascinated with Western brands, not least because they view the attainment of materialist goals as providing them with status and a global identity.
However, the new consumer culture, more evident within emerging market contexts, is not purely based on globalization effects. Analysts regard it more of a blend between global and local forces. The result is purported to be consumer cultures that are specific to particular locations. A key research aim is to consequently better understand the relationship between the global economy and the culture within the locality concerned.
Many scholars have shown that different consumption behaviors within different markets are often explained by culturally determined perceptions and values. For example, the impact of “face” on consumption choices within certain Asian environments is widely documented in the literature. The association of face with such as self-image and prestige prompts consumers to purchase Western brands that they feel will positively enhance their public status. People in East Asia are inclined to act this way and greater importance is attached to what brands symbolize rather than their functional qualities.
Vietnam is recognized as a rapidly growing economy, particularly in the major cities of Hanoi and Ho Chi Minh. Multinational organizations have established a presence in the country, meaning that consumers have access to a greater array of leading brands. Stores representing likes of Louis Vuitton, Mont Blanc and Cartier is testimony to that. The transition into a market economy has facilitated other changes in Vietnam. Greater distinction between classes now exists and established social values have been eroded.
The country’s population is becoming younger and a survey conducted in 2009 showed that 67 per cent of Vietnamese people were below 39 years. Aspiration to consume Western goods is greater among the country’s younger generation. Such individuals view consumption as a means to achieve social mobility and express a global consumer mindset. Enjoying career success at an earlier age than previous generations has equipped young consumers in Vietnam with the economic resources needed to communicate their identities through the products and services they consume. The importance of younger people is captured in earlier remarks that they both adapt to and create new consumption cultures.
In the present work, Pham and Richards explore how younger Vietnamese consumers use consumption to negotiate and reconstruct their identities. Particular attention is afforded to the purchase of international brands and their reconciliation with traditional Asian values driven by collectivist and conservative ideals. Other analysts have previously observed that the choice of Western brands can be adapted to meet local tastes and traditions.
The authors chose a “projective technique” on the basis that it would better enable them to capture beliefs, attitudes, feelings and motivations of respondents. It was decided that storytelling would be the ideal vehicle for this purpose, and subjects were invited to spend 15 to 20 minutes imagining and then writing a story about their consumption of Western brands. Actual or desired experiences could be used.
A total of 600 students from public and private universities completed the task. The aim was to profile consumers living in Hanoi and Ho Chi Minh City, respectively, seen as political and economic centers in the North and South of Vietnam. Subjects were aged between 18 and 35, a range which Vietnam broadly considers youth.
Stories were analyzed to identify both surface meanings and underlying meanings reflecting hidden feelings and attitudes. Researchers examined the data for patterns and listed manifest themes and latent themes which appeared most frequently. These themes were subsequently ordered into major categories.
Findings revealed that:
Vietnamese consumers attach symbolic meanings to Western brands.
Brands from the technology, transport and fashion categories are most commonly used by consumers to help their image and identity creation.
Four themes identified by Pham and Richards are defined as having a global orientation and labeled:
1. Cosmopolitanism: Respondents indicated their desire to consume products from developed nations. They believe this increases their “sense of personal integration” and makes them feel more significant in the world. Young people link consumption with the expression of cosmopolitan values as Vietnam’s culture orientation shifts from “discipline” to “pleasure”. Strong emphasis is also placed on country-of-origin (COO) cues. Younger consumers in Vietnam now purchase high quality foreign products, including clothing, perfume, jewelry and consumer electronics, to enhance their cosmopolitan status. Travelling to developed nations is also connected with self-enhancement.
2. Status: Goods which are consumed publically are regarded as especially important. Such as phones, clothing and transportation create expectation among consumers that others will view them differently. Subjects made reference to such as “attention” and “respect” and confessed that a desire to emulate significant others is a key driver of their consumption choices. The middle classes and young urban consumers share goals of adopting a Western lifestyle using products that afford them symbolic value.
3. Beauty: Western brands are commonly associated with beauty, although in this situation the concept relates more to trendiness and cost rather than conventional aesthetics. Individuals are seen as beautiful when wearing products that are modern, stylish and expensive.
4. Magic: Some respondents voiced a conviction that brands are able to provide relief from daily problems and stresses, and even protect them from potential harm. One example is the notion that use of an international brand of cosmetics can transform the user’s appearance and adorn them with facial features associated with major celebrities. Road traffic fatalities are rising considerably in Vietnam, but a respondent felt that driving an Aston Martin car would protect him in the event of an accident.
The remaining two are classified as Vietnamese and named:
1. Corporate social responsibility (CSR): Subjects attach importance to corporate behavior and feel that foreign brands best meet their expectations. They comment on the quality and eco-friendly nature of such products and the emphasis placed on human care.
2. Safety: The COO effect is central to this issue. It was noted that respondents are aware of positive images associated with Western countries and, thus, believe that products originating from them are safe and of high standard. This is contrasted with how Vietnamese consumers typically use a combination of experience and stereotypes to view Chinese products as cheap and unsafe.
In the authors’ view, this study reveals themes which suggest Vietnam is to some extent mirroring the development of hedonic consumerism within some Western societies in the decades following the Second World War. However, the relevance attached to CSR and safety provides a blend which also reflects more current characteristics. Pham and Richards suggest that foreign operators entering Vietnam should ensure that CSR practices accurately reflect local concerns. A focus on reducing poverty, air pollution, protecting human rights, increasing awareness of HIV and encouraging motorcyclists to wear helmets should be positively received by Vietnamese consumers, as they continue to assimilate the new consumer culture with their country’s traditions.
To read the full article enter 10.1108/JCM-09-2014-1159 into your search engine.
(A précis of the article “The Western brands in the minds of Vietnamese consumers”. Supplied by Marketing Consultants for Emerald.)
