Update on Brands

19th Feb 2020

Phil Worthington

Brand Equity comes from how Meaningfully Different the brand is in the

mind (and making that Salient)

MeaningfulConsumers feel the brand meets their

needs and they connect with it emotionally

DifferentFeels different from other brands

or sets the trends for the category

SalientComes to mind quickly and

readily when activated by ideas

relating to category purchase

Buy more

(Power)

Pay more

(Premium)

2

124

135

117

123

Meaningful Difference Salient

Top 50

Next 50

The world’s most valuable brands are very meaningfully different and

salient to consumers

+12

+7

3

123

127

119

129

Meaningful difference Salient

Growing

Stable/Declining

However, strong salience is not enough to prevent brand value decline –

brands must attain and retain meaningful difference to fuel growth

potential

-2

+4

Factors driving value growth vs. decline

4

Brands Covered in this analysis

15

15

15

15

1414

14

13

13

12

87

Airlines

Banking

Consumer

Electronics

Soft Drinks

BeersFast Food

Electrical

Retailers

Mobile

Phones

Instant

Food

Insurance

General

Retailers

Comms

Providers

155 brands in total 2019

5

98

100

MeaningfulDifference

Salience

Average brand

At present brands generally lack Meaningful Difference to Vietnamese

consumers, though local brands tend to come to mind more easily than foreign

ones. Local brands are currently trading on their salience advantage – Watch

out!

Vietnamese brands

96

90

MeaningfulDifference

Salience

Average brand

Foreign brands

Opportunity

6

Equity building blocks – Comparison across markets – Top 30s (other markets vs Vietnam (all brands)

90

95

100

105

110

115

120

125

130

135

90 100 110 120 130 140

Spain

Average T30

brand

Average T30

brand

Meaningful

Diffe

rent

Salience

= size of bubble

Average across all market

T30s

Meaningful – 121

Different – 116

Salient - 139

Italy

France

AustraliaUK

Neths

South

Africa

USA

IndiaChina IndonesiaGermany

Canada

When compared to some of BrandZ’s most valuable global brands,

Vietnamese brands have clear scope to improve their brand equity

7

Vietnam Airlines

VietJet Air

Samsung

Samsung

Coca-Cola

Heineken

Shopee

Pepsi

KFC

Lotteria

Tiger

7 Up

Tiger Crystal (Silver)

ACB

Agribank

BIDV

Dong AEximbankHD Bank

Maritime Bank

Sacombank

SeABank

SHBank

Techcombank

Vietcombank

VietinBankPizza Hut

Heineken Silver

333Hanoi Beer

Saigon Export (Red)

Saigon Special (Short)

Sony

Singapore Airlines

Panasonic

Shopee

OPPO

Toshiba

Lazada

Sprite

Emirates

Dell

CMC

FPT

Mobifone

Vietnamobile

Viettel

Vinaphone

R² = 0.805

40

60

80

100

120

140

160

180

80 85 90 95 100 105 110 115 120

Premium vs Difference – All Brands

Diffe

rent

Average brand

Average

Different – 97

Premium - 100

Premium

A perceived point of difference justifies a price premium in Vietnam for

brands of Vietnamese and foreign origin

Vietnam 2020 Spotlight, All brands (155) data normalised within category

8

107

105

103102 102 101 101 101

100 99 99

97

Communication providers generally have stronger brand equity…

whilst the banking sector has the poorest

Category Comparisons

AVERAGE

(2014-19)

(100)

7 local

Brands

3

41 2 0 11 5 0 2 14

13

No relationship between # of local

brands and vQ score

9

Comms providers in Vietnam also have strong brand health in comparison with

other markets

108

107

106

104

103

101

100

99

98

98

96

Chinese mainland

Vietnam

India

Argentina

UK

Mexico

South Africa

Australia

USA

Germany

Indonesia

Category vQ average score

Better

Worse

Comms Providers

10

Viettel leads the field by combining corporate responsibility with innovation and

superior experience, resulting in a trustworthy brand

133

125

134129

123

Purpose

Innovation

Communication

BrandExperience

Love

Vietnam: Comms Providers 2019

Social responsibility 133

Environmentally Responsible 133

Best at what they do 131

Fit well with everyday life 131

In Control 120

Trustworthy 115

145165 165

124

Average brand

11

However Vietnamese banks struggle in comparison with other markets

– even allowing for the fact that banks generally also struggle in other

markets

102

101

101

100

100

100

98

98

97

97

97

96

UK

Canada

Spain

South Africa

India

Brazil

USA

France

Italy

Vietnam

Australia

Indonesia

Category vQ average score

Better

Worse

Banking

12

Banking

Meaningful Difference Salience Power Index

ANZ

71

101

59

2.1

Eximbank

79

79

714

HD Bank

77

79

693.7

Maritime

Bank

71

88

62

3

Sacombank

106

103

108

8.4

SeABank

63

72

68

2.5

SHBank

70

86

60

2.5

Techcombank

128

115

858.5

Vietcombank

149

135

19016

ACB

110

106

98

7.6

Dong A

95

88

956.5

HSBC

85

118

684.6

Agribank

99

93

144

10

BIDV

128

112

126

10.8

VietinBank

119

105

1279.9

Sample size N=400, Sample definition: 50% Male, 50% Female, 18-65 years old

Category introduction: organizations that offer current or savings accounts, i.e. accounts that allow you to make deposits and withdrawals, and conduct other financial transactions.

A great opportunity for banks to enhance their consumer experience

13

Omachi has a strong emotional connection with consumers and a

unique positioning, supported by its relevant innovations

117

118

116117

124

Purpose

Innovation

Communication

BrandExperience

Love

Vietnam: Instant Food 2017

Unique 121

Trust 120

Proud to own/use 123

Attractive design 117

Communications116

Creative 128

Different 124

Sexy 116

Trustworthy 117156

177142 150

Average brand

14

Leading Electrical retailer, Dien May Xanh is a well known and respected

specialist retailer, supported by strong communications

115

112

121113

115

Purpose

Innovation

Communication

BrandExperience

Love

Vietnam: Electrical Retailers 2019

Wise 123

Treats employees well 118

Environmental responsibility 118

Treat with respect 118

Specialise 118

Distinctive 118

Unique 117

Attractive design 117

137 137169

118

Average brand

15

E-commerce brands are growing strongly

Total FMCG value spend year-on-year change

91.0%

36.3%

14.3% 11.2% 6.5% 5.0% 3.2%

-1.1% -4.1%

Online Mini Stores SpecialtyStores

HyperSuper

Direct Sale AllChannels

WetMarket

StreetShops

GT Others

Source: Worldpanel Division | Households Panel | Urban 4 Key Cities | Total FMCG excluding Gift | 12 months ending June 2019

FMCG growth:

5.0%

16

And there is huge potential for growth, for ecommerce

Ticket in k VND

per shopper per tripPenetration %

99.1

78.4

56.1

61

25.4

Street Shops

Hyper-Super

Specialty…

Mini Stores

Online

Number of trips

per year per shopper

95.7

14.5

9.8

13.8

4

92

195

256

97

356

Source: Worldpanel Division | Households Panel | Urban 4 Key Cities | Total FMCG excluding Gift | 12 months ending June 2019

17

Not surprisingly E-Commerce Is Extremely Competitive

Meaningful Difference Salience Power Index

Lazada

111

104

140

18.7

Sendo

105

89

10013.5

Shopee

150

127

16224.3

Tiki

133

138

12721

Sample size: N=400, Sample definition: 50% Male, 50% Female, 18-65 years old

Category introduction: shopping sites or apps that offer a range of goods such as clothing, homewares, electricals or health and beauty products

18

Ecommerce as a channel will inevitably continue its spectacular

growth

-

10

20

30

40

50

60

70

Rolli

ng

Onlin

e p

ene

tra

tion

China Key & Acity

Online shopping penetration in China was at

almost the same level as we have in Urban

Vietnam today, 7 years ago…

% online FMCG buyers

# of online FMCG trips

2018 MAT P6 2019 2025F

22.4%

3.6

25.2%

4.0

60.0%

6.1

“

”

Vietnam level today

Source: Worldpanel Division | Households Panel | Urban 4 Key Cities | Total FMCG excluding Gift

19

Sustainability

20

Sustainability is now a real concern for consumers

Top 3Household’s Concerns

Food safety

Health & Wellness

Environmental

issues / Diseases

1st

3rd

2nd

21