Con Cung's revenue grew strongly in the first quarter of 2023

Despite market fluctuations, Con Cung continued to grow its revenue, capturing 62.3% of the diaper and formula market share in the mother and baby channel in Q1 2023, according to NielsenIQ.

The research, conducted by Nielsen from the beginning of the year to the end of March, focuses solely on the nationwide mother and baby store sales channel (excluding online channels). The report shows that, broken down by product category, the company accounted for 78.8% of total revenue from ready-to-drink formula, 71.4% from diapers, and 56.8% from powdered milk. "The market saw a decline in both diapers and powdered milk in Q1 2023, but we still experienced positive growth," a representative from Con Cung stated.

The unit's average revenue from diaper and formula products increased by 18.6% year-on-year. Another highlight came from the functional food group, with a growth rate of 63% compared to the first quarter of 2022.

Growth figures by industry sector at Con Cung and other traditional retail stores (according to NielsenIQ data).

According to data from NielsenIQ, as of the end of Q1/2023, the infant formula sector saw a 22.1% decrease, and the diaper sector a 7.9% decrease compared to the same period last year.

Furthermore, according to forecasts from Oceane Nguyen, Senior Analyst at Euromonitor, most dairy categories may experience slower growth this year due to the challenging economic situation. Infant formula production will be adjusted downwards according to supply and demand, but prices could 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 striving to 'brace the waves' and achieve growth," a representative from Con Cung emphasized.

The growth confidence of the leaders stems from their understanding of the market. First, with approximately 1.5 million babies born each year, Vietnam's market size is large. Second, despite tight family budgets, diapers and formula remain essential items that must be on the shelves. "Despite inflation and tight budgets, parents still manage to allocate funds for childcare," a Euromonitor expert noted.

Thirdly, Con Cung understands customer needs and has the resources to find the right "touchpoint" for each user, personalize needs, and provide an all-in-one solution.

The all-in-one model is one of the factors that helps the store attract customers. Photo: Con Cung

Accordingly, the brand has expanded its network to cover all provinces and cities. With over 200 new stores opened in 2022, Con Cưng now has 700 sales points nationwide offering a wide range of goods, from affordable to high-end, both domestic and imported. The company also collaborates with many partners to provide services related to insurance, education , and genetic testing to ensure appropriate nutrition for children. "This modern model meets the increasingly high demands of customers, especially young customers (Gen Z)," a representative of the chain commented.

Going to a store isn't just about buying something and leaving; for many, it's also a place to stop by and let their children play on weekends. That's why last year, the company opened its first Super Center store in Ho Chi Minh City with an area of ​​1,000 m2. The multi-story space features attractive colors, a wide variety of goods, and a combination of play areas and a cafe, making it enjoyable for both mothers and children to visit. This model is now being replicated in many major provinces and cities such as Da Nang, Vinh Long, Can Tho, Da Lat, Tra Vinh , etc.

The Super Store offers a spacious shopping environment and a wide variety of products. Photo: Con Cưng

For 12 years, our sales team has been continuously trained in product knowledge to provide the most accurate and comprehensive advice to parents. All products are guaranteed to be authentic and officially distributed, building trust with consumers, especially in the milk, food, and vitamin categories.

Anticipating and capitalizing on consumer demand, the functional food sector has been heavily promoted recently to meet the trend of health care and immune system enhancement. As a result, this product group has grown by 70% compared to the first quarter of 2022.

Essential product categories – such as diapers and formula – consistently experience high demand. Euromonitor data indicates that in 2022, the diaper industry grew by 9.1%, while the retail value of infant formula increased by 5.8% – 6.4 times faster than the Asian market. Con Cung leverages this as a business advantage, offering a diverse range of products in terms of features, brands, and price points. As a result, the chain increased its diaper sales by 34% and infant formula sales by 13% in the first quarter of 2023.

Speaking about future plans, a representative from Con Cung stated that the company remains committed to its customer-centric strategy, understanding customer needs and finding the right "touchpoints" with each customer. As parents often say to each other: "When traveling, you don't need to bring anything for your child; just open the app and order; Con Cung staff will be waiting at the hotel door to deliver the goods."

Meadow

As part of a series of activities to support consumers, following the "60 Billion Gift Giveaway" program, the Con Cung nationwide system is now applying the "Diapers and Formula Milk Discounted Up to 30%" program, attracting many shoppers.

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