Vietnam Consumer Landscape 2015

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    15-Jul-2015
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Transcript of Vietnam Consumer Landscape 2015

  • Part

    Vietnam consumer landscape

    1

  • 2

    Years Major Events Shaping Vietnam

    111BC - 939AD Chinese occupation of Vietnam

    1535 European Jesuits and traders

    1802 French given trading concessions

    1858 France invades Vietnam

    1860-1945 French occupation

    1940-45 Japanese occupation

    1945 Ho Chi Minh declares formation of the Democratic Republic of Vietnam

    1945-54 French re-occupation - finally defeated in the battle of Dien Bien Phu

    1954 Geneva convention 17th parallel division of Vietnam

    1959 US military advisors in South

    1965 US Marine Corps lands on China Beach, Da Nang

    1973 Singing of Paris peace accord (US and North Vietnam)

    1975 Fall of Saigon - Reunification of Vietnam

    1977-79 Implementation of unified socialist society

    1979 Vietnam defeats Khmer Rouge and liberates Cambodia

    1979 China invades Vietnam and is quickly repelled

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    Years Major Events Shaping Vietnam GDP Growth %

    1986 Doi Moi (Renovation) Congress - open door policy reforms 2.3

    1987 Foreign investment law liberalises market access 3.6

    1988 Extensive agricultural reform 6.0

    1990 Vietnam world's 3rd largest exporter of rice 5.1

    1991 Ban on TV Advertising lifted 6.0

    1994 US embargo lifted 8.8

    1995 Vietnam joins ASEAN 9.5

    1999 Asian crisis causes foreign investment to be liberalised 4.8

    2000 Private Enterprise Law / HCMC stock market opens 6.8

    2001 US - Vietnam bilateral trade agreement 6.9

    2007 WTO accession - net foreign direct investment US$22.3 billon 7.1

    2010 Vietnam with much of Asia leads the global economic upturn 6.4

    2014 Consumer demand struggles 5.8

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    US$175 billion economy

    91 million people

    7.5 million households =>US$400

    52% urban adults banked

    US$1.9 billion advertising spend

    US$1,923 GDP per person

    37 million motorbikes

    45% internet penetration

    145,000 new cars in 2014

    69% urban adult mobile penetration (4 in 10 smart)

    24 million households

    16 million rural households

  • 62 million people

    47% US$400/household

    2025

    60 million people

    38%

  • Traditional trade still represent 80% of grocery

    sales.

    Since the 1st supermarket in 1994 we now have 975 supermarkets.

    1,800 convenience stores have emerged since 2008.

    No ROI thus far!

    Branded malls: Aeon, Robinson, Central have arrived recently.

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  • Globally modern versus locally explosive

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    Thegioididong 309 stores

    PNJ 165+ stores

  • Globally modern versus locally explosive

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    Conspicuously mobile

    When the new iPhone was released, I just couldnt go out. I couldnt face my friends until I

    had one.

    Purchase priorities

    Versus her home!

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    Edutainment

    I am the New Vietnam I live online, and though I spend more time alone, I am not lonely. I am

    connected 24/7.

    Generational divides

    I don't get it, I don't need to, he does, he tells me which

    products are good.

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    My missed opportunities

    Through the eyes of my child I shall achieve success.

    His success is my success.

    He reflects on me.

    Be the boss!

    Most want to be their own boss, big or small.

    Happiness equates to money.

    Success is defined by my job.

    Money is the most important thing in my life.

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    Aware of what could be.

    Increasing opportunities (commercial, education and travel)

    Community to individual gratification.

    Always out of home. Thirst for edutainment.

    Happiness defined as money.

    Conflicted and frustrated

    Emerging gender equality & changing roles

    in society.

    Change in parenting .

    From extended to nuclear families.

    Modern day working ethos.

    Divorce acceptable.

  • Fast shifting social trends

    Nowadays freedom is an excuse for doing whatever one wants without thinking about others; women

    want careers rather than families, men spend more time out of home, drinking and enjoying with their

    friends, more than contributing to their families, women are freer with their favours and couples find

    it easier to divorce without thinking of what they are doing to their families and children

    Phuong 30 years old, from HCMC

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    Kid is future investment. Ready to pay more & more (repertoire), higher

    & higher (price).

    Growing power of child Liked by my child is spontaneous important

    trigger.

    More choosy & picky (esp. urban) Rapid innovation (taste, packaging, advertising,

    flavor, etc.) is crucial!

    Desire for freedom, happiness, unconventional To rebel the pressure and stress from parents

    expectations on academic performance.

    I want more new experimentation Strong desire to experience product in new ways (customised): packaging, flavor, etc.

    Hi-tech is the new trendy

    Online touch point boom: new channel of information, consumption and awareness.

    I want my brand

    I dont use my mothers or my younger sisters brands.

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    Urban female adults: Recognition and individualism

    Premiumnisation = Me values Charge me more, indulge me more!

    Customisation

    Focus! No longer one size (product) fits all (needs).

    Seeking for performance enhancement

    Help me to maximise my capability & performance at work & life.

    Detoxify me! Purify me!

    Increasing seek to de-stress; mind and body.

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    Intensive pressure to play multi roles Seeks for appreciation & sympathy.

    Growing financial pressure yet dont want to be left behind

    Affordable quality doesnt mean cheap.

    Feeling solitude & confused Seeks for a clear guidance & role model.

    Constant pressure to balance work and family Seeks for fast, simple, convenient efficiency to

    take care of child & family.

    Realise the importance of parenting & her struggle

    Seeks for knowledge & guidance from experts & brands.

    Challenge the mans role in the family

    Seeks for the support & sharing from husband.

  • The family Nguyen - how this shapes who we are

    Youth translate

    the consumer

    world for their

    parents

    Progressive

    and

    entrepreneurial

    Happiness is

    money

    Confused and

    frustrated Desperate to

    express myself

    Thirst for

    edutainment

    Success is

    imbued in pride

    Success

    through the

    eyes of my

    child

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  • Part

    [email protected]

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