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Copyright © 2017 The Nielsen Company. Confidential and proprietary.
ENABLE YOUR
SUCCESS IN
VIETNAM
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
VIETNAM –A MARKET OF
OPPORTUNITIES
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VIETNAM REMAINS ONE OF THE FASTEST GROWING IN SOUTHEAST ASIA
GDP Q2’19 growth vs. YA 6.8
4.26.0
1.9
5.13.3
Vietnam Malaysia Philippine Singapore Indonesia Thailand
8.6
0.5
8.1
0.12.8
5.8
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
Vietnam Malaysia Philippine Singapore Indonesia Thailand
FMCG MAT Q2’19 growth vs. YA
Vietnam Malaysia Indonesia ThailandSingapore
123 110130
92126
105
0
20
40
60
80
100
120
140
Vietnam Malaysia Singapore Indonesia Thailand
Consumer Confidence Index
• Source: GSO Vietnam. Economist Intelligence Unit. Nielsen Quarter by number report Q2’19
Philippine
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POSITIVE GDP GROWTH IN 1ST HALF OF 2019 DESPITE SLIGHT
SLOW-DOWN
Q2’19 GDP GROWTH LOWER THAN Q2’18, YET
HIGHER THAN Q2 FROM 2011 TILL 2017
Service
Industrial & Construction
Agriculture, Forestry & Fishery
ALL 3 SECTORS PLAY THEIR ROLES
2.2
9.1
6.9
0 5 10
GDP’s Growth YA
Source: GSO Vietnam
KEY HIGHLIGHTS IN 1ST HALF OF 2019
Wholesale & Retail ▲8.1%highest contribution to total GDP incremental
Accommodation & Catering
Service
flourishes with 287Mn. in value,
▲9.8% vs H1’18
Service
5.1
6.2
7.5 7.6 7.4 6.8 6.9 7.3
6.8 6.7
GDP % Growth
Processing ▲11.2%
Most growing provinces: Tra
Vinh (Solar & Wind electricity
production), Thanh Hoa (Nghi
Son Oil Refinery),
Ha Tinh (Formosa)
Industrial & Construction
Fishery reaches 6.45%
growth - Highest growth
in the past 9 years
Agriculture
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VERY GOOD GROWTH MOMENTUM OF FMCG WITH NEW
PEAK IN Q2’19
Source: Nielsen RA data
1.1%1.6%
1.0%2.0%
1.1% 1.0% 0.9% 1.0% 1.0% 1.1%1.8% 2.2%
2.5%
4.7%
2.4%
5.3%
4.9%
0.8%2.0%
2.8%
4.4%4.1%
4.2%
6.4%
3.6%
6.3%
3.3%
7.3%
6.0%
1.8%
3.0%
3.8%
5.4% 5.2%
6.1%
8.6%
MAT YA MAT TY YTD YA YTD TY Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Unit Value Growth Volume Change (Weighted Value) Nominal Value Growth
FCMG Growth – Total Urban (TT Urban + MT Urban)
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% Respondents say they will spend on this item after necessities
CONSUMER CONFIDENCE INDEX*
112 120114129
117 122117129
117 123
Asia Pacific Vietnam
2018-Q2
2018-Q3
2018-Q4
2019-Q1
2019-Q2
6366
72 7370
72
7875
69
36
44
4951
46
53 5355
46
38
44 4446
49 4850
53
48
31
44
40
46 46 47
4347
39
29
3841
43 4346
4846
40
30
37
42 42
38
48
39
47
39
Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Savings
New clothes
Holidays/vacations
New technology products
OOH entertainment
Home improvements
VIETNAMESE TOP SPENDING AFTER NECESSITY
TOP VIETNAMESE INCREASING CONCERNS
HEALTHCHILDREN
EDUCATIONINCREASING
BILLS
44%(+2pts vs. Q2’18)
13%(+1pts vs. Q2’18)
9%(+2pts vs. Q2’18)
ELECTRICITY PRICE INCREASEElectricity price uplifted 8.36%
in Mar’19 after 2 years of stability
% Respondents say these are there top 2 biggest concerns
Consumer Confidence Index: Perceptions of local job prospects, Perceptions of state of personal finances over the next 12 months, Perceptions of good/bad time for people to buy the things they want and need over the next 12 months. Source: Nielsen Global Survey Consumer Confidence Section
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2015
7%
7%
GEN Z
(15-19 y.o)
MILLENNIALS
(20-49 y.o)
SHARE OF POPULATION
48%
43%
14%
18%
2025
BABY BOOMER
(50-64 y.o)
VIETNAM HAS A YOUNG POPULATION WITH MILLENNIALS DOMINANT &
GEN Z ARE CONSUMERS OF FUTURE
• Seek for greater convenience
• More going out
• Open to new things
• Go premium but value for money
• Super connected with synergy
between Online & Offline activities
• Care about society issues (social
responsibility, gender equality, LGBTQ)
• Strong POV & KOL influence
• Seek for delivery services
• Willing to try Health supplement
products
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Source: Statista, Vietnam 2012 - 2022
98.2 MilPopulation in 2022 with
yearly growth of 1%
+6.2%GDP growth year on year
till 2022
USD $3,329GDP per capita in 2022
(~60% growth vs. 2015)
+4%CPI growth year on year
till 2022
WITH A POSITIVE ECONOMIC OUTLOOK TILL 2022
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
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Source: Nielsen Retail Measurement, Nielsen Universe Update, * including independent stores, ** including Health & Beauty store
MAT : Moving Annual Total, FMCG includes 37 categories without Cigarette
~ 1.5 MIL STORES (+0.2% vs. YA)
Market Stall 65,248
ON Premise 675,469
OFF Premise 811,032
MODERN TRADETRADITIONAL TRADE
5% 19%
Value % contribution – Total
Vietnam OFF+ON Premises in
MAT Jul’19
Growth % vs. YA
MODERN TRADE IS BOOMING RAPIDLY ACROSS STORE TYPES &
DRIVING THE GROWTH OF FMCG
Updated: Universe Update H1’18
Hyper/ Supermarket* 717
Minimart & Food Store* 5,301
Convenience Store 889
Modern Drug Store** 434
Mom & Kid Store 627
7,968 STORES (+14% vs Oct’18)
Updated: Jul’19
87% 13%
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Wet Markets Traditional Grocery
Supermarkets Department Store
Health & Beauty
Drugstore
Convenience Stores
Minimarts
PENETRATION 86 81 97 14 32 46 51
FREQUENCY 18.7 7.0 2.3 0.7 1.2 4.2 3.7
36 7 45 0 1 3 2
Base: 2018 (n=1500), 2019 (n=1702)Ref: Q7a Which of these types of stores have you visited in the past 7 days? Ref: Q8 On average, how often would you shop at the following type of store? Ref: Q7d Which of these types of stores would be the one where you normally buy most of your food and grocery items?
SPEND MOST AT
SMALL FORMAT CONTINUES GAINING IN “PENETRATION”, “FREQUENCY”
AND “MOST SPENDING”
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APAC 51%
Japan 94%
APAC 86%
Hong Kong 95%
APAC 7H 34M
Thailand 9H 38M
Myanmar 29% Phillippines 58 % South Korea 5H 04MHighest in APAC
Vietnam 58% Vietnam 94 % Vietnam 6H 52M
INTERNET
PENETRATION
4,021 BILLION
CONNECTED PEOPLE
53%
FREQUENCY OF
INTERNET USE
85%
DAILYTIME SPENT
6H 33M DAILY TIME
SPENT ONLINE
DAILY
6.5H
3,418 BILLION
CONNECTED PEOPLE
HIGH INTERNET PENETRATION FUEL THE GROWTH OF
ONLINE PURCHASE IN VIETNAM
Source: Internet Penetration: Demand Institute | Mobile Internet Penetration, Frequency and Daily Time Spent: We Are Social & Hootsuite, Digital in 2018
Lowest in APAC
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INFRASTRUCTURE & DEVELOPMENT RATE OF
E-COMMERCE IN VIETNAM TO 2020 REACHING $10 BILLION
MARKET VALUE
2018 2020
8.1 billionUSD
10 billionUSD
$250/
person
30%/
year$350/
person
20%/
year
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WHAT PEOPLE BUY ONLINE THESE DAYS - VN & APAC
Source: Nielsen Global Commerce Study 2018
% of consumers who have purchased the following categories online (penetration)
69%
51%53%
55%
47%
40%44%
70%
26%
49%
61% 45% 40% 38% 36% 34% 31% 29% 24% 23%
Fashion Beauty &Personal care
Books & Music IT & Mobile ConsumerElectronics
Household care Packagedgrocery food
Travel Children &baby products
Event Tickets
APAC VIETNAM
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VIETNAMESE CONSUMERS ARE HEALTH CONSCIOUS & TAKING
ACTIONS TO STAY HEALTHY, YET TRUST ISSUE HAVE TO BE SOLVED
FIRST
Source: Nielsen Consumer Confidence Report. *APAC figures. Nielsen Global Health Survey. Nielsen The dirt on cleaning report
Source: Nielsen Global Ingredient and Dining-out Trends Report. Nielsen Global Survey We are what we eat
% Consumers stating Health as top 2 biggest concerns – Q4’18
I trust health claims on food packages
Health claims are just a way for
manufacturers to charge more
Vietnam Global
43% 22%
Most important health attributes when purchasing one product
54% Added Vitamin/
Minerals/ Nutrients
52% Low/ No
cholesterol
51% Made from
vegetables/ fruits
49% All natural
46% All natural/ organic
ingredients
40% No harsh
chemicals
3.2%Share achieved after
6 months launch
Dishwashing Liquid
Unilever
Sunlight Nature
100% natural
ingredients extracted
with white tea, mineral
salt and aloe vera
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VIETNAMESE OPTIMISTIC FINANCIAL SENTIMENT & SPENDING ABILITY
FUEL THE GROWTH OF PREMIUM PRODUCTS
Source: Nielsen Global Premiumization Study 2018. Retail Audit data Source: Nielsen Global Premiumization Study 2018
86%I’m financially better
compared to 5 years ago
Consumers’ financial sentiment & perceptions towards premium products
#1 Globally
35% I’m able to spend freelyAPAC
18%vs.
72%Buying premium products
makes me feel confident
Global
51%vs.
Key attributes of premium products from consumers’ perspective
65%
58%
55%
52%
50%
49%
46%
38%
41%
21%
2.1%Share achieved after
6 months launch
Feminine Protection
Diana Unicharm
Sensi Cool Fresh
Advanced “Menthol”
technology from Japan
for refreshing & cooling
feeling
Premium segment – MAT Mar’19
Contribution 38.0%
Growth +6.8% vs 4.6% of FMCG
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FAST CHANGING PACE OF MODERN “CASH-RICH TIME-POOR”
LIFESTYLE LEADING TO THE BOOMING OF CONVENIENCE SOLUTIONS
Vietnam average household size & wage
4.594.13
3.78 3.60 3.50
0
50
100
150
200
250
300
0.00
1.00
2.00
3.00
4.00
5.00
20
00
20
05
20
10
20
15
Est
. 2
02
0
Household
size ('person)
Wage per
month ('USD)
Source: EIU. CEICDATA.com. International Labor Organization est. for 2025
Longer working hours with more pressure
5.1 hours/week ~ 9 hours/day
79.6% - Female labor force participation
rate. Highest in APAC (average of 50.1%)
Source: Nielsen shopper trend 2017-2018
56%“Anything that saves me time
is worth paying extra for”
5,397 | +34% vs YA
MT
Top 2 important attributes for shopping
in Supermarket/ CVS/ Mini-mart
# of stores – Mar’19
Convenient to get to
Easy to find what I need
Convenient to get to
Always available in stock
2.0%Share achieved after
6 months launch
Instant Nood
Hao Hao
Handy Hao Hao
All-time-favorite flavors
available in Cup format
for every time & every
day use
