Vietnam Grocery Report Annual UpdateAnnual Updates3.amazonaws.com/zanran_storage/... · Vietnam...
Transcript of Vietnam Grocery Report Annual UpdateAnnual Updates3.amazonaws.com/zanran_storage/... · Vietnam...
Executive Summary• Vietnam to continue displaying great promise over the next
10 years
– Young population (56% under 30) will join the workforceg p p ( ) j– High confidence towards country, economy & social life– Modern Trade continues to emerge while Traditional Trade is still
dominant– Majority of population comes from rural (>70%) where it has shown
strong growth in recent yearsg g y– Consumers become more sophisticated & demanding through their
wider product choice, concerns on health & beauty and smarter shopping way
– People are getting more connected through technology
However these opportunities come with challenges for• However, these opportunities come with challenges for businesses and investors alike
– Health concerns caused by air/water population and pesticides that could be an area for PR executionAbilit t th d i d di i i t Vi t
2
– Ability to cover the dynamic and discriminate Vietnamese consumer needs
– Rural would be a mystery land to explore the potential expansion
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Agenda
• Vietnam Heating UpA young country with positive economic indicatorsy g y
• Retail LandscapeHigh sales & store growthg gFMCG Snapshot
• Vietnamese Consumer InsightsVietnamese Consumer InsightsCapturing different consumer shopping behaviors
• New Trends
3
New TrendsAs the competitive market is always changing, new trends emerging
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Vietnam Heating Up
•56% of total population is under 30 years old
•GDP grows in both urban & rural
•Vietnam re-gains confidence index in Q2.2010 and ranked # 2 top confident countries in Q2.2010
•Business leaders show high expectation to their business conditions
4
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Vietnam country facts
Vietnam NotesVietnam Notes
Population 2009 86 millions
Male 2009Female 2009
42.6 millions (49.5%)43 4 millions (50 5%)
Hanoi
Female 2009 43.4 millions (50.5%)
Urban 2009Rural 2009
29.6%70.4%
Haiphong
Population growth rate 2009 1,06%
GDP growth rate 2008GDP growth rate 2009
6.3%5.3%
Inflation rate 2009 6.8%
Danang
Nhatrang
Key cities: •Ho Chi Minh (Economic capital)•Hanoi (Political capital)•Haiphong
CanthoHo Chi Minh
Nhatrang
5Source: Statistical Handbook of Vietnam 2009
Haiphong •Danang (the “bridge”)•Nhatrang •Cantho
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Statistical Handbook of Vietnam 2009
In Vietnam, growth is seen across measurable factsGDP Growth Inflation Wage GrowthUnemployment
+6.2%2008
+ 8.5%2007 +8.5%2007
+23%2008
+11.22007
+42008
5.1%2007
4.3 %2008
+5.3%2009 +6.9%2009 +1020092.9 %2009
+5.5%2010E +10%2010E <5 %2010E +12.32010E
Consumer ConfidenceFMCG Volume Growth
13%15%
+ +
118 106 97 85109 101
11910%
13%
++
6
2007 1st Half'08
2nd Half'08
1st Half'09
2nd Half'09
1st Half'10
2nd Half'10
▼12 t
▼9 t
▼12 t
▼8 t
▲24 t
4%
2007 2008 2009 MAT Jun10
+
▲18 t
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
12pt 9pt 12pt 8pt24pt•Sources: Wage growth, 2007 Economic Intelligence Unit , 2008-9 HRBS Asia-Pacific Pay Increase Guide 2009 (Survey Period: Jan 6 to Feb 6, 2009); 2010E by Vietnam government ; Consumer Confidence, Nielsen Global Online Survey 2007-10; GDP Growth ; Inflation, 2006-2007 data from IMF; And CIEC: 2008-2010 IMA Asia Brief December 2010; Asia Development Bank Outlook 2010 , 2010E by Vietnam government; ; FMCG Growth, Nielsen; Vietnam Retail Audit.
18pt
Vietnam shows sharp consumer confidence re-gains and is ranked #2 top confident country in Q2.2010
160 Changes 2H10 vs.1H10
2H 2010 Nielsen Consumer Confidence Index
2 3 18 2 -2 5 1 -3 -1 5 2 2 -2 1 0 5 1 4 3 5 2 2 -3 5 4 3 2 3 2 -2 -1 -1 7 2 -2 -17 -1 3 -4 -10 1 4 -5 -1 6 0 1 6▲ ▲ ▲ ▲ ▼ ▲ ▲ ▼ ▼ ▲ ▲ ▲ ▼ ▲ ▲▲▲▲ ▲ ▲ ▲ ▼ ▲ ▲ ▲▲▲ ▲ ▼ ▼ ▼ ▲▲ ▼ ▼ ▼ ▲ ▼ ▼ ▲▲ ▼ ▼ ▲ ▲ ▲
Vietnam, 2nd most confident
113108 105
101 99 98 98 98 97 97 97 94 93 92 92
119119113 112109 107
102 101
129
88100
120
140
Global average
▲ ▲ ▲ ▲ ▼ ▲ ▲ ▼ ▼ ▲ ▲ ▲ ▼ ▲ ▲▲▲▲ ▲ ▲ ▲ ▼ ▲ ▲ ▲▲▲ ▲ ▼ ▼ ▼ ▲▲ ▼ ▼ ▼ ▲ ▼ ▼ ▲▲ ▼ ▼ ▲ ▲ ▲
94 93 92 9288 88
79 78 7873 73
69 6863 6165
595556 52
88 87 8785 84 84 81
71
60
80
100
93
20
40
7
0
IN ID VN PH NO SG CN AU BR CO CA HK AE MY NZ DK IL SE NL CH PK AR TH MX ZA PL RU FI US AT BE TW DE UA GB EG CZ TR IT ES IE HU FR EE LV KO JP LT
Base : All respondents n=26995
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
A ‘young’ population means an increase in purchasing power as it joins and progresses in the workforce
80+
FemaleMale Vietnam 2009Total Vietnam Population
55 - 5960 - 6465 - 6970 - 7475 - 79 Population under 30 years old: 56%
30 3435 - 3940 - 4445 - 4950 - 54
5 910 - 1415 - 1920 - 2425 - 2930 - 34
8General Economy: PopulationSource: U S Central Bureau International Database
0 1,000 2,000 3,000 4,000 5,000
0 - 4 5 - 9
010002000300040005000
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: U.S. Central Bureau, International Database
This workforce will further fuel the GDP Per Capita in the coming years
GDP Per Capita (in USD)Labor force (‘000 individuals)
50,000
60,000
1,0241,074
1,200
20,000
30,000
40,000
402 440552
725835
0
10,000
,
00 02 04 06 08 10 12 14 16 18 2000 2002 2004 2006 2007 2008 2009 Expected
9
200
200
200
200
200
201
201
201
201
201
Labor force ('000 individuals)
Source: Government’s General Office of Statistics (www gso gov vn)
2000 2002 2004 2006 2007 2008 2009 Expected2010
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Government s General Office of Statistics (www.gso.gov.vn)
Leaders show high growth expectations towards the Vietnam economy and their own business condition
What do you think GDP growth rate will be for the next 12 months?What do you think your industry growth rate will be for the next 12 months? 100%
What do you think your company growth rate will be for the next 12 months?
next 12 months?
10.2
11.3
13.6
12
14
2010 1st half
2009 1st half 2009 2nd half
17
2131
80%
25%+
21% - 25%
5.76
8
10
% 20
17
23
11
40%
60%16% - 20%
11% - 15%5.0
5.74.9
2
4
6
17 14
1712
20%
40%
6% - 10%
Less than 5%
10
0
2
Est. Next 12 months GDPgrowth rate
All industry est growth rate
4 50%
2009 2nd half 2010 1st half
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Nielsen Business Barometer
The workforce numbers and advertising spending are expected to increase to a good degree
4100%
Over the next 6 to 12 months, how do you anticipate your company's work
force numbers to change?
7 2100%
Over the next 6 to 12 months, how do you anticipate your company's spending on
advertising to change?
31
411
80%
Increasesignificantly(5)
Increaseh t (4)
32
7
4380%
Increasesignificantly
Increase
4660%
somewhat (4)
Remain thesame (3)
29
60%
somewhat
Remain thesame
53
3020%
40% Reducesomewhat (2)
Reducesignificantly(1)
21
43
20%
40%
Reducesomewhat
Reduce
11
1 211 2
0%
2009 1st Half 2010 1st Half
(1)
122
110%
2009 1st half 2010 1st half
Reducesignificantly
S
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Nielsen Business Barometer
Retail Landscape
•Modern Trade continues emerging from both sales & store growth while Traditional Trade is still dominantwhile Traditional Trade is still dominant
•The majority of Vietnam population lies in rural areas (74%) which also contributes biggest to FMCG sales (46%)
•The main purchasing power still comes from the 6 urban cities (only 14% population generates 39% FMCG sales) and continues to develop at the fastest rate
•Beverage & Food products are growing the fastest
12
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
The leading 6 cities account for 37% of Vietnam FMCG sales. Rural areas provide greater FMCG contribution to total Vietnam’s sales as this i h j it f th l ti li
National FMCG Retail Market Structure
is where a majority of the population lie
100
57
9
1425
39 3780
100
6 CITIES
7461
5
4
14
11 22
40
60 30 CITIES
53 CITIES61
46
27
0
20RURAL
14
0Population 2007 Store 2009 FMCG ACV 2009 Retail Sales
Estimated
Source: Six City, 30 cities and Rural store numbers and ACV (store turnover) from census results, 53 Cities estimated. Population, Retail Sales
(FMCG sales + Other retail sales such as Durable goods) from
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Page 14Page 14
(FMCG sales + Other retail sales such as Durable goods) from Government Statistics 2006
Both urban and rural are on a strong growth trend, yet there is still a great room to develop rural area further
Urban and Rural Growth GDP Per Capita
136%
145%151%
157%
137%Urban
104%109%
114%119%
127%
106% 109%113%
117% 120% 123%127%
UrbanRural
100%104%
100% 102%106%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009E
15
2
S G S Off
Growth rate is calculated based on constant prices 1994 excluding inflation.
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Government Statistics Offices
Business leaders also plan to expand their business to rural areas
131817
100%
In the next 12 – 18 months, to what extent will you look to rural Vietnam areas to drive your company growth?
1817
80%
Increase significantly
Increase somewhat
51
5358
40%
60%
Neither increase nor decrease
32
2526
20%
Decrease somewhat
Decrease significantly
16
4 20%2009 1st half 2009 2nd half 2010 1st half
g y
S
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Nielsen Business Barometer
Within channel types, Off-Premise continues increasing both in store numbers and sales especially in urban cities, which indicates an opportunity for in home consumption products
Off Premise On Premise
Store number (000s) by tier
+3%
FMCG Value % Contribution by tier
opportunity for in-home consumption products
+3%
+2%47% 46%
+14% +3%
+12% 1%447 458
267 264
11% 9%5% 4%
47% 46%
+14%+15%
+12%
+5%+3%
-1%
133 138 151 161
52 53 48 5130 30 29 29
38% 41%+19% +8%
17
2008 2009 2008 2009
S C
Off Premise On Premise
6 Cities 30 Cities 53 Cities Rural VN% Growth vs. YA
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Nielsen Retail Census 2009
Modern Trade grows fast through store numbers and overall sales per store, while Traditional Trade is still dominating. On-Premise is more skewed towards Café and Eatery
2009 St% Store
th% ACV
th 2009 St% Store
th% ACV
th
Store number and ACV growth by channels in Off and On channel in Vietnam
skewed towards Café and Eatery.
2009OFF PREMISE
Store Number
growth vs. YA
growth vs. YA
Modern Trade 752 45 63
Trad. Grocery 501,135 6 16
2009ON PREMISE
Store Number
growth vs. YA
growth vs. YA
Café 241,478 4 3
Eatery 171,673 4 8
SStreet Vendor 10,717 -23 -19
Personal Store 19,055 3 4
Market Stall 83,700 -4 0
Cosmetic Store 893 -9 -4
Sidewalk Eatery 10,068 -3 -1
Res. Vietnamese 9,826 -2 0
Billiard Centre 11,659 -27 -22
Karaoke 6,537 -15 -4
Beverage Store 19,327 6 0
MBS 1,566 -36 -24
Cigarette Kiosk 20,602 -14 -29
Ph 15 518 0 9
Others 52,802 -4 -1
Note: ACV = All Commodity Value (Store turnover)
18
Pharmacy 15,518 0 9
Other 6,130 1 3
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Nielsen Retail Census 2009
In 2009 shoppers only slightly increased their store repertoire
2008 2009
Number of Supermarket/ Hypermarket Used – Stores Used in Past 4 Weeks
32
54
2 stores
1 store
36
46
3
9
4 t
3 stores
4
13
1
3
5 stores
4 stores
1
4
19
1.66Average/(shops) 1.80
Base: All Supermarket/Hypermarket shoppers (2008 n=1494, 2009 n=1466)
S S
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Nielsen Shopper Trend 2010
There has been no increase in the number of supermarket visits yet consumers have increased spend per visit in the MT channel.
Average Frequency of Visits per month Trade Sectors Where Shoppers Spend the Most Money
1.2
1.4Hypermarkets
2
5 Hypermarkets
3.3
3.3Supermarkets
2008 2009
21
43 Supermarkets
28.1
25.2Wet Markets
77
51 Wet Markets
20Source: Nielsen Shopper Trend 2010
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Nielsen Shopper Trend 2010
The increased spend probably comes from a higher % of fresh foods being purchased from Modern Trade versus last year
Supermarket Cont. % (2008 report)
Place of Most Often Purchased by Category
7% 9% 7%
277
4 4 1 4 1 61
1819
5 2 2 11 2 2
80
100 Others
Confectionery Shops
% (2008 report) 7% 9% 7%
5663 60
78 81 8154
5360
40
60Wet market
Liquor Stores
13 15 1619 17 17
24 32
56
2920
40
Traditional Grocery
Supermarkets
21
4 2 2 8 7 134
15 16
0Fruit &
vegetablesMeat orpoultry
Fish orseafood
Snack CSD Dairyproducts
AlcoholicProducts
Personalcare
products
Householdcleaningproducts
Supermarkets
Hypermarket
S S
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Nielsen Shopper Trend 2010
This can explain why 2010 seems to be the year when manufacturers look for more contribution from Modern Trade
Modern Trade Contribution to Sales Revenue
2010 1st h lf
Question: How important is the modern trade to your business today (as a % of your business’s revenue)? What do you expect MT (as a % of your revenue) to be worth by the end of the year?
13
13 15
15
2009 2nd half15
210
27
2010 1st half
23 21
15
46
29
27
2620
2530
22 17
1215
22
Now End of '09 Now End of '10
Less than 5% Less than 10% Less than 20%Less than 30% 30% or greater
S
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Nielsen Business Barometer
Even more so as the Modern Trade sector in Vietnam still has much opportunity compared to other countries within the region
89 9190
Share of trade for modern self-service outlets
48 4335
9
5145
36
10
51 48 4637
1011
46 48
9 10 10
Singapore M alaysia Thailand Phil ipp ines Indonesia V iet nam
23Source: Nielsen Retail Audit all FMCG Vietnam Yearly census
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Nielsen Retail Audit - all FMCG, Vietnam – Yearly census
Nielsen Vietnam Tracked Categories
PERSONAL BEVERAGE HOUSEHOLD FOOD MILK BASED CIGCARE
Hair Conditioner
BEVERAGE
Ready ToDrink Tea
CARE
Laundry Product
FOOD
Biscuits
PRODUCTS
SweetenedCondensed Milk
CIG
Cigarette
Personal Wash
Toothbrush
Soft Drink
Packaged
Household Insec. Aerosol
Household
Gums
Instant Noodles
Cooking Oil
Milk Powder
Ready ToDrink Milk
Shampoo
Body Cream Lotion
Energy Drink
PackagedWater
Fabric Softener
Insec. Coil
MSG-Bouillon
g
Sauces
Deodorants
Toothpaste
Facial Care Products
Tonic FoodDrink
Fruit Juice
Dishwashing Liquid
Household Cleaners Snack
25
Products
Repellent
Feminine Protection
Tea Bag Tissue
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Value consumption increases across super groups with a positive picture from Beverage products
FMCG VALUE CONTRIBUTION - 6 CITIES TT
MAT JUN09 MAT JUN10
MATLY MATTY
MAT JUN09 MAT JUN10
Value % Chg YA
Volume % Chg YA
T t l FMCG 15 15Total FMCG 15 15
Personal care 10 3
Household care 13 5
Milk Based Product 6 8
26S
Food 11 11
Beverage (excluding Beer) 29 22
Cigarette 16 8
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Vietnam Retail Audit Tracking, ended period Jun2010
Beverage and Food categories are dominating both importance and growth
TOP FASTEST GROWING CATEGORIESTop 10 biggest categories – Value % Share Top 10 fastest growing category - value % Chg vs. YA
MATTY
TOP FASTEST GROWING CATEGORIES
27S
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Nielsen VN Retail Audit Tracking, ended period Jun2010
Vietnamese Consumer Insights
•67% of total consumers expenditure is on Fresh Food
•Most of consumers (64%) are aware of price changes and are looking for more promotions while rarely looking for new things. s
•“Vietnamese people use Vietnamese products” campaign might have created an advantage for local products to firm up better share position
28
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Fresh food still represents the major spend bucket, consistent across income levels
Average Monthly Spending on Food, Grocery & Personal Care vs. Fresh Food by social class
3 154 3,243
3,839Total Expenditure ('000 Dong) Fresh Food ('000 Dong)
66%3,154
2,411
,
2,098 2,180
2,58767%
67%
63%66%
1,549
29S Sh T d 2010
Total Low Medium High
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Shopper Trends 2010
Dynamic changes in Vietnam are afoot. After ‘premium trade-up’ & ‘promotional-junkies’, a ‘purchase Vietnamese’ trend is expected.
Do you anticipate that Vietnamese consumers will change their purchasingDo you anticipate that Vietnamese consumers will change their purchasing behavior next 6 to 12 months?
2009 2nd half2009 1st half 2010 1st half
57
54Change channel to
save money
Trade up to morepremium/indulgent
products48
31Trade down to
cheaper products
Purchase more onpromotion
49
44Buy bigger packs
to save money
Purchase morelocal/ Vietnamese
brands
39
51
Buy bigger packsto save money
Buy smaller packsof the same
products
y
24
27
Buy bigger packsto save money
Not buy some 'non-essentials'
p p
37
41
Change channel tosave money
Purchase more onpromotion
23
36
Trade down tocheaper products
Purchase more onpromotion
y
16
21
Change channel to
Buy less / smallerpacks of the same
products
to save money
22
22
Trade up to morepremium/indulgent
d t
Not buy some 'non-essentials'
30
5Not buy some 'non-
essentials'
p p
16
16
Trade up to morepremium/indulgent
products
gsave money
22Trade down tocheaper products
products
Source: Nielsen Business Barometer
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Nielsen Business Barometer
As already evidenced by strong share gains amongst some Vietnamese brands
Fastest Volume % Share Gain – 6 cities-TT
(+/- Volume % Share Change YA – MATTY)
Dr. Thanh
(Ready to Drink Tea)
Vinamilk Fresh Milk
(Liquid Milk)
Diana Sieu Tham
(Napkin)
Vinh Hao
(Carbonate Soft drink)
+7.3 pts +6 pts +3 pts +2.4 pts
31S Ni l VN R t il A dit l t t i d J 10
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Nielsen VN Retail Audit –latest period Jun10
Highly aware of price, Vietnamese consumers remain fairly loyal to their favorite brand, but are attracted to in-store promotions & new items.
Shopping Dynamics
PROMOTIONSENSITIVITY
PRICEAWARENESS ADOPTION
11% Changes stores based on best 64% Vietnamese consumer are f i h
20% seldom try new thingspromotion offered
55% Seldom change stores but when shopping, actively searching for promotions
aware of price changesy g
65% try new brands/things but usually stick to my favorite
32
promotions
S S
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Nielsen Shopper Trend 2010
However consumers behave differently in different regions
HanoiHCMC
• The role of advertising is more critical. Hanoians also claim to respond better to in store promotions and after sales service
Promotion • Saigonese consumer favor multiple promotion types
• Hanoian strongly prefer one type of promotion: PRICE
Price • Price promotions alone won’t appeal to Saigonese
33
• Hard to build initial trial (1 in 10 people from HN are early adopters)
Adoption • Saigonese are early adopters (1 in 5 people from HCMC are early adopters
S C C & ff
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Nielsen HCMC & HN consumer differences Jun09
Emerging trends in summary
Getting sophisticated
Getting Connectedsophisticated Connected
Convenience(4)
Health &
PrivateLabel
(3)
Health &Beauty
Big Pack(1)
Refill(2)
35
(1)
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Smart shopping:(1) Consumers are upsizing
Do you anticipate that Vietnamese consumers will change their purchasing behavior in next 6 to 12 months?
Purchase more
Total 6 cities_TT
+/- Volume % Share vs. YA - MATTY
49
44Buy bigger packs
to save money
Purchase morelocal/ Vietnamese
brands Fabclean>2Kg Granules
>300gm
37
41
Change channel tosave money
Purchase more onpromotion +3% pts
>300gm
+2.1% pts
22
22
Trade up to morepremium/indulgent
products
Not buy some 'non-essentials'
Skin Cleaning >400ml
7 4%
36
22Trade down tocheaper products
products
Source: Business Barometer Wave 3 (Q2 2010) Nielsen VN Retail
+7.4% pts
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Business Barometer Wave 3 (Q2.2010), Nielsen VN Retail Audit – latest period Jun10
Smart Shopping: (2) Consumers buy more refill for money-saving purposes
Total 6 cities_TT
+/- Volume % Share vs. YA - MATTY
Fabric Softener
+4.8% pts DishwashingLiquid
+0 4% pts+0.4% pts
Floor Cleaner
37
+4.2% pts
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Nielsen VN Retail Audit, latest period Jun10
Smart Shopping:(3) Consumers’ awareness to Private Labels goes up, driven by Coop-mart and Wowmart and Wow
28C M t
% Awareness
Awareness level of Private Labels
13
25
28
eBon (Big C) (Food products)
Wow (Big C)
Coop Mart
6
6
8
Casino (Big C)
Comi (Metro SPM, milk)
Metro Quality
1
3
Metro (Metro SPM rice/dishwashing liquid/laundry
Tarrington House (Metro)
Aro (Metro)
( g )
38
1
1
0 5 10 15 20 25 30
Fivimart (Food products)
Metro (Metro SPM, rice/dishwashing liquid/laundrydetergent,etc.)
Base: Hypers/Supers (n=1466)
S Sh d 2010
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Shopper trend 2010
Smart Shopping:(4) Ease of access and consumption is driving channel and product choiceschoices
Choice of place
Choice of product
Derived Importance Ranking of Supermarket Store Attributes
p p
Package Contribution – Ready to Drink Beverage
0.52 Convenientto get to
Wide range0.40
Wide rangeof fresh meat
& fish
Hi h li
39
0.38 High qualityfresh food
Source: Nielsen Shopper Trend 2010 Nielsen VN Retail Audit –
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Nielsen Shopper Trend 2010, Nielsen VN Retail Audit latest period Jun10
Getting Sophisticated:At the same time, consumers show more interest in personal care by using more advanced productsusing more advanced products
29% (17%)
Value % Growth (Volume % Growth)Total 6 cities_TT - MAT TY
Deodorant 29% (17%)
Lotion 39% (32%)
Hair 18% (17%)
40
Treatment18% (17%)
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Nielsen VN Retail Audit, latest period Jun10
Getting Sophisticated (continued):Consumers also start seeking specific product benefits
Specific
Feminine Protection
Specific products for
maleDeodorant Shampoo
41Source: Nielsen VN Retail Audit latest period Jun10
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Nielsen VN Retail Audit, latest period Jun10
Getting Sophisticated (continued):More products are becoming non-exclusive. No matter what industry you’re in Tickle women with a price discount and assure men ofyou re in…Tickle women with a price discount and assure men of quality Important shopping considerations
78Product
LipcareLipcareBody
Life InsuranceLife InsuranceLaptop/PC
78
59
70
48
Productquality
Durability
BeerWine
CigarettesCigarettes Anti-shadow eyes cream
Moisturizer
Body cream/ lotion
Credit cardsCredit cardsp p
TVsMobile phonesMobile phones Bar
Soap
ToothpasteToothpaste
40
9
25
19
Functions
Vietnamesebrand
RazorsRazorsWine
Hygiene Hygiene washwash
Sun blockShampoo Soap
DeodorantsShower gel Facial Facial
CleanseCleanseHair
Beer
6
6
15
31
After saleservices
Discountedprice
MalesFemales
42
rrMilkConditioner2
17Promotions
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Nielsen Study on Gender Difference Jun10
Getting Connected (continued):Vietnamese consumers are the savviest on technology products
% of respondents who spend on new technology products
4741
37 36 35 33
%
Question: Once you have covered your essential living expenses, which of the following statements best describes what you do with your spare cash: I spend on
36 3528 28 27
2419 18 15 13
8
33
8
VN CN ID IN PH SG TH HK MY TW AU NZ JP KO APAverage
43
g
Base : All respondents n=7014
Source: Nielsen Global Omnibus study
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Nielsen Global Omnibus study
Getting Connected (continued):Internet and social networks are very important for the younger generationgeneration
% Access Internet
64
41
HCM+HN 18-25 yearsold
44Source: Nielsen Omnibus April09 Nielsen Gen V Study Oct 2009
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Nielsen Omnibus April09, Nielsen Gen V Study Oct 2009
Getting Connected (continued):The internet could be the next media platform apart from other traditional media forms media forms
411
211
4 5 2 2 7 2100%
Over the next 6- 12 months, how do you anticipate your company's spending on the following media channels for advertising?
34 25
29 2027 30
34
1111
36
80%
Increase significantly
Increase Somewhat
2
9
2 230
32
43 3930
40%
60% Remain the same
Reduce somewhat
27 34
59
25
5922
2
11
7
9
5 182
36
20%
40%
Reduce significantly
No spending on thischannel
45
27
720
925
4 2
0%TVC Point-of-Sale-
MaterialsOutdoor posters In-store
banners/postersPrint
PublicationsRadio Internet Mobile Phone
channel
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Nielsen Barometer Wave 3
Health & Beauty:Health continues to be a key concern for Vietnamese consumers
Top 5 consumer concerns
1) Health
Major Concerns over the next 6 monthsHealth - Top 10
1) Health
2) Increasing food prices %
Biggest concern Second biggest concern
3) Increasing utility bills (gas, electricity, water…)
4) J b it
$24
1316 14 15 14 14 10 13 12 15
4) Job security
5) Increasing fuel / petrol prices
2415 15 14 13 16 12 12 913
VN CN CZ HK PL RU IL HU UA BR
46Source: Nielsen Business Barometer Nielsen Consumer Confidence
Which of the following issues concern you in terms of the impact they may have on your business? Rank the top three issues that concern you where 1=most concern, 2=second most concern, etc...
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Nielsen Business Barometer, Nielsen Consumer Confidence
Health & Beauty (continued):Vietnam is ranked as most concerned country when it comes to air pollution and use of pesticidespollution and use of pesticides
% of global consumers concerned about air pollution
100
% of global consumers concerned about use of pesticides
21 2234 39 37
24 2715
2839 45
3144
3080
100
3243 43
23
4331
80
100
77 7664 58 60
73 7081
6857 51
6552
6640
60
59 6251
43 43 46 40 46 51
40
60
57 51 52
0
20
ID PH GR HK MY CO VE VN CL VN SG TH RO MX
47 44 40 3651
41 35 30
0
20
GR FR TH VN VE PH LT MX AT ES
47Source: Nielsen 2H 2009 Global Omnibus Study
Very concerned Quite concerned
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Source: Nielsen 2H 2009 Global Omnibus Study
Health & Beauty (continued):Vietnamese consumers seek natural and safe products
Toilet Cleaner: Fabcon: Bar soap: Green Tea Ingredientso et C ea eVim killing germs
abcoComfort Antibac
a soapLifebuoy killing bacteria
Green Tea Ingredients
L'occitane
Instant noodles: Instant noodles: Cooking Oil:
48Natural Products
Instant noodles:Omachi made by potato
Instant noodles:Tien Vua good for health
Cooking Oil:De Nhat good for health
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Health & Beauty (continued): Most companies’ corporate social responsibility programs are geared towards supporting consumer health
Does your company currently have any initiatives relating to social responsibilities such as: the environment, local charities,
Which social responsibilities initiatives does your company prioritize?
towards supporting consumer health.
3945
5363 67
, ,education...?
11%
2939
Z
Top 3 Box Priority
Control/reduce carbon-dioxide emission Environmentally- friendly packaging
Energy saving Education
Ch it C h lth b fit
89%
49
Charity Consumer health benefits
Yes No
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Vietnam Topline1st 2nd 1st 2nd1st
Half 2009
2nd
Half 2009
1st
Half 2010
2nd
Half 2010
Nielsen Market Index Volume* Volume growth records high & stable levels
Nielsen Market Index Value**
MFR outlook of the market
Value growth remains high
Manufacturers continue to see Vietnam as a growing market
MFR outlook of own industry
Advertising Spend
Own industry will also experience growth
Advertising levels are expected to pick up
Hiring levels
Modern Trade importance
Ni l Vi t
MT contribution expected to increase in 2010
Most manufacturer’s plan to significantly increase their hiring levels
C fid h b d b k t
50
Nielsen Vietnam Consumer
Confidence^
Very Strong Growth: >= +5% Neutral: between -1 and +1%
Negative: between -1% and -4%
%
Consumer confidence has bounced back to top 3 countries
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
* Nielsen Market Index Volume defined as unit change vs. YAGO** Nielsen Market Index Value defined as dollar change vs. YAGO^ Nielsen Global Consumer Confidence measure is from 10/08 & is benchmarked vs. the Global Confidence avg. of 84
Growth: between +1 and plus 4% Very Negative: <= -4%
Food for thought…
Growth is still on the radar for Vietnam with a number of areas to keep in mind:
• The younger generation will become an increasingly important group: wealthier, more sophisticated and responding to different marketing / promotional strategiesresponding to different marketing / promotional strategies
• FMCG growth is still positive and fueled by rebounding consumer and business leaders confidence
• Both Off & On-Premise increase store numbers & salesBoth Off & On Premise increase store numbers & sales, translating into increasing future in/out home consumption occasions
• The development of modern trade will influence the way
51
p ypeople shop and create new category opportunities
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Page 51
Food for thought…T t d t d t t i d d i Vi tTargeted trade strategies are needed in Vietnam• Modern trade and specific convenience management
systems will need fast development• Maximizing portfolio efficiency in store will be key to• Maximizing portfolio efficiency in store will be key to
succeed in the still dominant traditional trade channel• Rural strategies must be part of long term planning in
VietnamVietnam Consumers’ needs constantly evolve and one strategy does not fit all. Marketing strategies will need to stand out as consumers arebombarded with new messagesbombarded with new messages• Understand package trends and meet demands of quality and
price conscious consumers• Invest in NDP to propose sophistication and convenience in
52
p p pproducts benefits
• Know the segments in your consumer base (geographies, age…)
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Page 52
All Country Index
Australia (AU)
Austria (AT)
Belgium (BE)
Japan (JP)
South Korea (KO)
Malaysia (MY)
Mexico (MX)
UK (GB)
U S (US)
Czech Republic (CZ)
Hungary (HU)Brazil (BR)
Canada (CA)
Chile (CL)
China (CN)
Mexico (MX)
Netherlands (NL)
New Zealand (NZ)
Norway (NO)
Philippines (PH)
Hungary (HU)
UAE (AE)
Argentina (AR)
Vietnam (VN)
Estonia (EE)Denmark (DK)
Finland (FI)
France (FR)
Germany (DE)
Philippines (PH)
Poland (PL)
Portugal (PT)
Russia (RU)
Singapore (SG)
Estonia (EE)
Latvia (LV)
Lithuania (LT)
Romania (RO)
Egypt (EG)Germany (DE)
Greece (GR)
Hong Kong (HK)
India (IN)
Indonesia (ID)
Singapore (SG)
South Africa (ZA)
Spain (ES)
Sweden (SE)
Switzerland (CH)
Egypt (EG)
Pakistan (PK)
Columbia (CO)
Israel (IL)
Venezuela (VE)
55
Indonesia (ID)
Ireland (IE)
Italy (IT)
Switzerland (CH)
Taiwan (TW)
Thailand (TH)
Turkey (TR)
e e ue a ( )
Saudi Arabia (SA)
Ukraine (UA)
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Nielsen’s commitment to deliver you the Bigger Picture in Vietnam
Senior Leaders of manufacturers in Vietnam• Total sample N=57
• Conducted July 2010• Global online study in 55 countries
Understanding consumer differences•Total sample N = 600•Period: May 2nd to 15th 09ABC HIB l & f l 20 t 45
p• Period: July 2010 •ABC HIB, males & females, 20 to 45 yo
Others source of information:
•Macro Economic data
NielsenRetail Audit
•City coverage: HCMC, Hanoi, Danang, Cantho• Target respondent: Males/Females
•Macro Economic data•Nielsen Omnibus April 2009•Nielsen Global Omnibus•Vietnam Govt. Statistics Office•Nielsen Vietnam Census 2009
•City coverage: 6 cities traditional trade (HCMC, Hanoi, CanTho, Nhatrang,
Audit
56
aged 18-65 years• Methodology: face to face interview•Total sample N=1500•Period: 15th Oct to 15th Nov09
Danang, Haiphong)• Ended period: June 2010• Covered 43 FMCG categories
Copyright © 2010 The Nielsen Company. Confidential and proprietary.