Consumer Pulse

© TNS

Vietnam Consumer TrendsMid Year 2015

Ashish KanchanManaging Director

Consumer Pulse

© TNS

Macro Data

TNS VietCycle

© TNS

Macro Economic Indicators

Measure Vs Same period 2014

GDP +6.4%

FDI +8.4%

Retail Sales +9.8%

Export +9.6%

Imports +15.9%

CPI +0.74

Tourists -5.9%

Credit Growth +5.6%

TNS VietCycle

© TNS

90

69

56

15 6

Vietnam Thailand Myanmar Cambodia Laos

Vietnam – a huge opportunity

http://www.census.gov

Population in millions:

TNS VietCycle

© TNS

Vietnam is ageing

Source: Ministry of Planning and Investment General Statistic Office based on Vietnam census

(*) number of people aged 65 over per 100 youths under age 15

0%

20%

40%

60%

80%

100%

1979 1989 1999 2009

0-14 years 15-59 years 60+ years

52%

66%

TNS VietCycle

© TNS

Vietnam 60+ age progression

Source: Ministry of Planning and Investment General Statistic Office based on Vietnam census

(*) number of people aged 65 over per 100 youths under age 15

0

5

10

15

20

25

30

1979 1989 1999 2009 2019 2029 2039 2049

TNS VietCycle

© TNS

GDP: 2015 Highest GDP expected since 2010

7

Source: GSO Vietnam and World Bank

7.88.4 8.2 8.5

6.2

5.3

6.8

5.95.3 5.4

6.0 6.3

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 6M 2015

Consumer Pulse

© TNS

59

35

4541

3026

17

3530

24

29

32 38

3830

37

46 55

16

3622 21

3244 46

18 15

2008 2009 2010 2011 2012 2013 2014 Early

2015

Mid

2015

Positive Neutral Negative

Source: TNS Consumer Pulse

89

6478 79

6856 51

82 85

Increase in Consumer Confidence

Consumer Pulse

© TNS

Aspirational Purchases Trends

TNS VietCycle

© TNS

Automotive Sales: Accelerating ahead

10

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

2013 2014 1H 2014 1H 2015

43%

73%

TNS VietCycle

© TNS

(un)Real Estate: Condominiums Sold

11

0

5000

10000

15000

20000

25000

30000

35000

2011 2012 2013 2014 6M 2015

93%

Consumer Pulse

© TNS

Consumer Attitudes

© TNS

Vietnam’s image & infrastructure getting better

13

5

54

28

32

67

14

9

7

18

19

44

56

58

68

47

37

24

13

10

13

56

21

39

31

69

48

14

Government & Social

Economy & standard of living

Infrastructure & the environment

Consumer outlook for Mid 2015:

Source: Q5. In the next 12 months would you think that the following will be better, the same or worse than they are now?

Worse

Same

Better

Vietnam's International Image

Crime and social security

Vietnam's economy

My personal standard of living

The cost of living

Value of the Vietnamese dong

Roads and transportation infrastructure

Flood prevention and drainage

Environmental pollution

© TNS

1

2

11

6

7

24

11

27

22

50

52

51

69

53

33

37

36

34

33

7

25

29

36

2

6

10

9

9

3

1

1

1

2

Strongly Agree Strongly Disagree

Job Satisfaction & Security

14

Attitude toward Work & Money (%):

T2B

28

24

61

59

57

93

64

WORK

I am concerned about losing my job

I don’t like having additional responsibilities at work even for a

higher pay

I want to get to the very top of my career

It is more important to have a secure job than a highly paid job

Job satisfaction is more important than salary

MONEY

Saving is important to meet future needs

Money is the best measure of success

Source: TNS Consumer Pulse

© TNS

Strongly Agree Strongly Disagree

Vietnamese brands & nationalistic pride

15

16

1

11

15

7

56

33

56

63

52

25

35

28

20

32

3

22

4

2

6

5

1

2

I’m proud to use Vietnamese brands

I show my status by using international brands

Vietnamese brands are as trustworthy as international brands

I choose to use local brands to support Vietnamese businesses

Vietnamese brands can compete equally with international brands in terms of quality

Attitude towards Brands (%):

T2B

86

72

34

67

78

59

Source: Q13. I would like to read out some statements about consumer’s point of view and would like you to tell me how much you agree or disagree with each statement on the following scale?

© TNS

Recommendations for Vietnamese brands

16

80

69

44

41

40

38

38

33

32

30

Reasonable price

Provides high quality products

Catch worldwide latest trends

Attractive promotion

Eye catching packaging

Easy to find products/ always available in stores

Appealing brand imageries

Can see the brand everywhere

Recognizable brands/ logos

Popular brand/ widely used

© TNS

Brand Origin Preference

17

87

82

82

71

68

61

57

38

32

15

9

1

3

1

1

1

0

1

2

3

1

2

1

2

8

10

6

17

11

16

15

28

26

38

39

54

58

79

74

Vietnamese brands

Chinese brands

Other SEA brands (Thailand/ Malaysia/ Indonesia etc)

International brands

Foods

Non-alcoholic beverages

Household care products

Beer

Clothing

Spirits/ liquor

Fashion accessories

Automotive

Personal grooming/ cosmetics products

Personal devices

Home appliances

Source: TNS Consumer Pulse

Consumer Pulse

© TNS

Income, Expenditure &Savings

TNS VietCycle

© TNS

Vietnam’s growing income

49

45

36

43

36

45

48

19

44

27

2

6

2

1

USD Monthly

A+ 1,501 +

A 1,001 – 1,500

B 701 – 1,000

C 526 – 700

D 326 – 525

E 176 – 325

F Below 175 8

29

31

14

14

3

1

Urban 2008 Urban 2014Urban 2011

2

19

14

14

29

10

5

Source: TNS VietCycle 2014 Q34. Approximately what is your monthly household income from all sources on following scale? Base: n= 1886 (Urban 2014), 2000 (Urban 2011), 1000 (Urban 2008)

Per Capita$ 1,165 $ 1,543 $ 2,028

TNS VietCycle

© TNS

Savings picking up

20

83 8674 78 83 86

79

17 1426 22 17 14

21

1999 2001 2004 2008 2011 2014 2015

Expenditure Savings

Monthly expenditure versus monthly saving (%):

Source: TNS Consumer Pulse & TNS Vietcycle 2014

Consumer Pulse

© TNS

Expenditure on Education & Food and Beverages will continue to grow

21

6

8

6

6

6

4

6

3

19

13

20

26

24

82

74

76

81

56

90

89

70

78

80

69

65

71

12

18

18

13

38

6

5

26

4

7

11

9

5

Less The Same More

Consumer planned spending in Mid 2015:

Transportation

Health care products / services

Household utilities

Telephone / internet

Education

Household care products

Beauty/ Personal care products or services

Food & beverages products

Home appliances

Personal equipment (mobile phone, laptop

Fashion

Holidays/ Travelling for leisure

Investment

© TNS 22

© Kantar Worldpanel

FMCG is moving slowly

Consumer Pulse

© TNS

Retailing & E-Commerce

TNS VietCycle

© TNS

Continued interest in Retail

24

0

50

100

150

200

250

300

350

2011 2012 2013 2014 6M 2015

Retail & Service Turnover (VND, tril)

TNS VietCycle

© TNS

Traditional Trade & Supermarkets are the shopping hubs

25

Key Channels for Purchases (%)

11

1

51

1

73

15

27

2

3

6

12

47

15

12

10

21

5

37

7

86

87

72

Everyday Few Times/ Weekly Few Times/Monthly Less Often

General Trade

Supermarkets

Wet markets

Shopping malls

Department stores

Convenient stores

Source: TNS Consumer Pulse

TNS VietCycle

© TNS

1. Reasonable price 2. Near my home/ work 3. Better quality

30 21 16

Price is the key driver for channel

Reasons affecting shopping places selection (%)

26

Source: TNS Consumer Pulse

© TNS 39

E-Commerce in Vietnam

Deal Sites (eg Nhom Mua)

Food delivery – (eg Foodpanda)

Travel – (eg Vietjet, Airasia)

Overseas category specific – (eg Asos.com)

‘Local’ general online shopping – (eg Lazada, Zalora)

App Downloads

Music & Game downloads

TNS VietCycle

© TNS

Purchased online in past 3 months

28

Clothing53%

Fashion accessories 18%

Food/ online delivery

15%Personal

grooming/ cosmetics products

15%

Voucher at restaurant / cafe

8%

Home appliances 8%

Personal devices10%

Books7%

Spirits/ liquor1%

Non-alcoholic beverages

4%

Hotel room booking

1%

Source: TNS Consumer Pulse

© TNS

Vietnam eCommerce – Convenience

N.B. The development funnel has factored in internet penetration and is cross-referenced to eCommerce barriers.

91

Home delivery 81%

Free delivery 77%

Product info 76%

Price or value 75%

Efficient process 75%

SOURCE: TNS Connected Life 2014

Consumer Pulse

© TNS

Device Ownership & Online behaviour

© TNS

Device are growing

Device ownership (%):

2.3

2014:

Average number of devices owned

2015:Average number of devices owned

2.152

62

12 4337

63

31

41

72

27 5142

80

63

33

Feature phone

Smart-phone

Tablet Laptop DesktopInternet at

homeWiFi at home

Source: TNS Connected Life 2015

© TNS

Smartphone: growing penetration

SOURCE: TNS Connected Life

7176

8580

76 74

6256

Global EmergingAsia

Singapore Thailand Malaysia Indonesia Vietnam Philippines

72%

© TNS

2015 2014

31

18

28

40

21 20

3 3 2 4 2 3 21

01

iphone continues to grow

33

Source: TNS Connected Life 2015

Mobile handset brand (%):

© TNS

0

25

50

75

100

In bedwhen I

wake up

Earlymorning

Latemorning

Duringlunch

Earlyafternoon

Lateafternoon

Earlyevening

Duringdinner

Lateevening

In bedbefore I go

to sleep

Watch TV programme on a TV Watch videos/TV shows or movies on a device

Online behavior

D3. Device/media usage by daypart | D4. Activities by daypartBase: Vietnam- typical day (648)

Reach %

45

© TNS

Vietnam – high on online video

Traditional TV and Online video usage

A1. Frequency of media consumption | C1. Frequency of activities | D2. Total time spent on mediaBase: Global- typical day(40,157) | Vietnam- typical day(645) Note: Classification of TV and online video consumption determined by frequency and volume of TV watching, and frequency of online videos. TV hours and video frequency on axis represent the lowest and highest points for each metric. See definitions page for details.

Heavy online videos, Heavy TVHeavy online videos, Light TVLight online videos, Heavy TVLight online videos, Light TV

Online video consumption

TV consumption

Argentina

AustraliaAustria

Brazil

Canada

China

Colombia

Denmark

EgyptFrance

GermanyGhana

Greece

Hong Kong

India

Indonesia

Israel

Italy

Kenya Malaysia

Mexico

Netherlands

New

Zealand

Nigeria

Norway

Philippines

PolandPortugal Russia

Saudi Arabia

Singapore

South Africa

South Korea

Spain

Sweden

Switzerland Taiwan

Thailand

Turkey

UAE

UK

USA

Vietnam

TV consumption

Heavy online videosMax. 8.8 times a week

Light online videosMin. 2.6 times a week

Heavy TVMax. 3.0 hrs daily

Light TVMin. 0.8 hrs daily

46

SOURCE: TNS Connected Life 2014

© TNS

TNS | 58 Vo Van Tan, District 3, Ward 6, HCM City, Vietnam | t +84-8 3930 6631 | +84-8 3930 6632 | www.tnsglobal.com

39

Ashish.Kanchan@tnsglobal.com