Professional Documents
Culture Documents
Annual Update
August 2010
• Vietnam Heating Up
Ay
young
g country
y with positive economic indicators
• Retail Landscape
High
g sales & store g
growth
FMCG Snapshot
• New Trends
As the competitive market is always changing, new trends emerging
3
Vietnam Notes
+4%
2007 1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half
'08 '08 '09 '09 '10 '10
2007 2008 2009 MAT Jun10 ▼ ▼ ▼ ▲ ▼ ▲
6
12 t
12pt 9 t
9pt 12 t
12pt 24 t
24pt 8 t
8pt 18 t
18pt
•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. Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Vietnam shows sharp consumer confidence re-gains and is ranked #2
top confident country in Q2.2010
2H 2010 Nielsen Consumer Confidence Index
Vietnam, 2nd most confident
160 Changes 2H10 vs.1H10
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
▲▲ ▲ ▲ ▼ ▲ ▲ ▼ ▼ ▲ ▲ ▲ ▼▲ ▲ ▲▲▲ ▲ ▲ ▲ ▼ ▲ ▲ ▲ ▲ ▲ ▲ ▼ ▼ ▼ ▲ ▲ ▼ ▼ ▼ ▲ ▼ ▼ ▲▲ ▼ ▼ ▲ ▲ ▲
140
129
119119
120 113113112109 107 Global
108 102 101
105 average
101 99
98 98 98 97 97 97
100 94 93 92 92
88 87 8785 84
88 88 84 81
79 78 78
93
80 73 73
71 69 68
65 63 61
59
60 56 55 52
40
20
KO
HK
AU
RU
GB
VN
CN
JP
LV
HU
PK
EG
CA
UA
AR
AT
TR
DK
PH
BE
EE
NO
CO
IE
NZ
CZ
IN
CH
TH
AE
DE
MY
PL
FI
TW
IL
ID
SG
MX
ES
NL
ZA
BR
FR
LT
SE
IT
US
80+
75 - 79 Population under 30 years old: 56%
70 - 74
65 - 69
60 - 64
55 - 59
50 - 54
45 - 49
40 - 44
35 - 39
30 - 34
25 - 29
20 - 24
15 - 19
10 - 14
5-9
0-4
5000 4000 3000 2000 1000 0 0 1,000 2,000 3,000 4,000 5,000
General Economy: Population 8
Source: U.S.
U S Central Bureau
Bureau, International Database
60,000 1,200
1,074
50,000 1,024
40,000 835
725
30,000
552
440
402
20,000
,
10,000
0
00
02
04
06
08
10
12
14
16
18
200
200
200
200
201
201
201
201
201
2010
9
Source: Government
Government’s
s General Office of Statistics (www
(www.gso.gov.vn)
gso gov vn)
What do you think GDP growth rate will be for the next 12 What do you think your company growth rate
months? will be for the next 12 months?
What do you think your industry growth rate will be for the
100%
next 12 months?
14 13.6
21
25%+
2009 1st half 2009 2nd half 31
12 11.3 80%
2 17 14 Less than 5%
4 5
0%
0
Est. Next 12 months GDP All industry est growth rate 2009 2nd half 2010 1st half
growth rate
10
Source: Nielsen Business Barometer
40%
53 Reduce 40%
(1) Reduce
significantly
11 12 11
2
2
0% 1 0% 2
2009 1st Half 2010 1st Half 2009 1st half 2010 1st half 11
S
Source: Nielsen Business Barometer
•Modern Trade continues emerging from both sales & store growth
while 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
12
13
0
Population 2007 Store 2009 FMCG ACV 2009 Retail Sales
Estim ated
Source: Six City, 30 cities and Rural store numbers and ACV (store
turnover) from census results, 53 Cities estimated. Population, Retail Sales 14
(FMCG sales + Other retail sales such as Durable goods) from
Government Statistics 2006
Page 14
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Both urban and rural are on a strong growth trend, yet there is still a
great room to develop rural area further
157%
151%
145%
136% 137%
Urban
Rural 127% 127%
123%
119% 120%
117%
114% 113%
109% 109%
104% 106%
100%
100% 102%
15
S
Source: G
Government Statistics
S Offices
Off
80%
Increase somewhat
60% 51
58 53
Neither increase nor decrease
40%
Decrease somewhat
20% 32
26
25 Decrease significantly
g y
4 2
0%
2009 1st half 2009 2nd half 2010 1st half
16
S
Source: Nielsen Business Barometer
+2%
47% +12% 46% -1%
1%
447 458
267 264
5% +15% 4% +3%
11% +14% 9% +5%
29 29
30 30
48 51
52 53
38% +19% 41% +8%
133 138 151 161
18
Source: Nielsen Retail Census 2009
1 store 54 46
2 stores 32 36
3 stores 9 13
4 stores
t 3 4
5 stores 1 1
Average Frequency of Visits per month Trade Sectors Where Shoppers Spend the Most Money
1.2 2
Hypermarkets Hypermarkets
1.4 5
2008 2009
3.3 21
Supermarkets Supermarkets
3.3 43
28.1 77
Wet Markets Wet Markets
25.2 51
20
Source: Nielsen Shopper Trend 2010
54 Wet market
60 78 60
81 81 53
63 60 Liquor Stores
40 56
Traditional Grocery
32
20 24 29
19
17 17
13 15 16 Supermarkets
4 8 7 4
0 2 2
Fruit & Meat or Fish or Snack CSD Dairy Alcoholic Personal Household
vegetables poultry seafood products Products care cleaning Hypermarket
products products
21
S
Source: Nielsen Shopper
S Trend 2010
13
15 27
23
21 46
29
25
30
12
15
26 22
20 17
89 90 91
48 51 51 46 4848 43 45 46
35 36 37
11
9 10 10
23
Source: Nielsen Retail Audit - all FMCG,
FMCG Vietnam – Yearly census
24
Feminine
Protection 25
Value % Volume %
Chg YA Chg YA
T t l FMCG
Total 15 15
Personal care 10 3
Household care 13 5
Milk Based Product 6 8
Food 11 11
Beverage (excluding Beer) 29 22
Cigarette 16 8
26
S
Source: Vietnam Retail Audit Tracking, ended period Jun2010
27
S
Source: Nielsen VN Retail Audit Tracking, ended period Jun2010
•Most of consumers (64%) are aware of price changes and are looking
for more promotions while rarely looking for new things. s
28
3 154
3,154 3,243
,
66%
67% 63%
2,587
2,411 67%
2,098 2,180
1,549
29
S
Source: Sh
Shopper T
Trends
d 2010
Dr. Thanh Vinamilk Fresh Milk Diana Sieu Tham Vinh Hao
(Ready to Drink Tea) (Liquid Milk) (Napkin) (Carbonate Soft drink)
31
S
Source: Ni l
Nielsen VN Retail
R t il A
Audit
dit –latest
l t t period
i d JJun10
10
Shopping Dynamics
PROMOTION PRICE
ADOPTION
SENSITIVITY AWARENESS
11% Changes stores based on best 64% Vietnamese consumer are 20% seldom tryy new things
g
promotion offered aware off price
i changes
h
65% try new brands/things but
usually stick to my favorite
55% Seldom change stores but when
shopping, actively searching for
promotions
32
S
Source: Nielsen Shopper
S Trend 2010
HCMC Hanoi
Promotion • Saigonese consumer favor multiple • The role of advertising is more critical.
promotion types Hanoians also claim to respond better to
in store promotions and after sales
service
Price • Price promotions alone won’t appeal to • Hanoian strongly prefer one type of
Saigonese promotion: PRICE
Adoption • Saigonese are early adopters (1 in 5 • Hard to build initial trial (1 in 10 people
people from HCMC are early adopters from HN are early adopters)
33
S
Source: Nielsen HCMC
C C & HN consumer differences
ff Jun09
34
Getting Getting
sophisticated Connected
Convenience
(4)
Private
Label
(3)
Health &
Refill Beauty
(2)
Big Pack
(1)
35
Purchase more
local/ Vietnamese 49
brands Fabclean
Buy bigger packs >2Kg
to save money 44 Granules
>300gm
Purchase more on
promotion
41 +3% pts
Change channel to
+2.1% pts
37
save money
Trade down to
+7.4%
7 4% pts
22
cheaper products
36
Source: Business Barometer Wave 3 (Q2(Q2.2010),
2010) Nielsen VN Retail
Audit – latest period Jun10
Total 6 cities_TT
+/- Volume % Share vs. YA - MATTY
Fabric Softener
+0 4% pts
+0.4%
Floor Cleaner
+4.2% pts
37
Source: Nielsen VN Retail Audit, latest period Jun10
% Awareness
C
Coop M
Martt 28
Wow (Big C) 25
Metro Quality 8
Casino ((Big
g C)) 6
Aro (Metro) 3
Choice of Choice of
place
p product
p
Convenient
0.52
to get to
Wide range
of fresh meat 0.40
& fish
High
Hi h quality
li
0.38
fresh food
39
Source: Nielsen Shopper Trend 2010
2010, Nielsen VN Retail Audit –
latest period Jun10
40
Source: Nielsen VN Retail Audit, latest period Jun10
41
Source: Nielsen VN Retail Audit
Audit, latest period Jun10
Product 78
quality 70
59
Life Insurance Durability
Lipcare 48
p p
Laptop/PC Body 40
Credit cards cream/ Functions
25
Anti-shadow
lotion
Cigarettes TVs Toothpaste eyes cream
Vietnamese 9
Beer
Mobile phones Bar brand 19
Moisturizer
Wine Shampoo Soap
After sale 6
Sun block
Males
Razors Deodorants Hygiene
Beer
services 15
Females
Shower gel Facial wash Discounted 6
Hair Cleanse price 31
Conditioner r
Milk
2
Promotions
17
42
Source: Nielsen Study on Gender Difference Jun10
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
% 47
41
37 36 35 33
28 28 27
24
19 18
15 13
8
VN CN ID IN PH SG TH HK MY TW AU NZ JP KO AP
g
Average
43
Source: Nielsen Global Omnibus study
% Access Internet
64
41
44
Source: Nielsen Omnibus April09
April09, Nielsen Gen V Study Oct 2009
29 20
27 30
80%
34 34 25 Increase Somewhat
36
60% 32 2 2
2 Remain the same
30
43 39 Reduce somewhat
30
40% 9
11 36 2
Reduce significantly
2 59 2 59
2
20% 5
18
7 34 No spending on this
27 25 channel
4 20 2
7 9
0%
TVC Point-of-Sale- Outdoor posters In-store Print Radio Internet Mobile Phone
Materials banners/posters Publications
45
Source: Nielsen Barometer Wave 3
1) Health
Biggest concern Second biggest concern
VN CN CZ HK PL RU IL HU UA BR
5) Increasing fuel / petrol prices
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...
46
Source: Nielsen Business Barometer,
Barometer Nielsen Consumer Confidence
100 100
21 22 15
24 27
80 34 28 31 30 80
39 37 39 32
45 44 23
43 31
43
60 60 43 46 40
46 51
40 77 76 81 40
73 70 68
64 65 66 59 62
58 60 57 51
51 52 47
20 20 44 40 41
36 35 30
0 0
ID PH GR HK MY CO VE VN CL VN SG TH RO MX GR FR TH VN VE PH LT MX AT ES
47
Source: Nielsen 2H 2009 Global Omnibus Study
Toilet
o et CCleaner:
ea e Fabcon:
abco Bar
a soap
soap: Green Tea Ingredients
Vim killing germs Comfort Antibac Lifebuoy killing
bacteria
L'occitane
Natural Products 48
Does your company currently have any Which social responsibilities initiatives does your company
initiatives relating to social responsibilities such prioritize?
as: the environment,, local charities,,
education...?
67
63
11%
53
45
39
29
49
51
Page 51
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Food for thought…
Targeted
T t d trade
t d strategies
t t i are needed d d in
i Vi
Vietnam
t
• Modern trade and specific convenience management
systems will need fast development
• 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
Vietnam
Consumers’ needs constantly evolve and one strategy does not fit
all. Marketing strategies will need to stand out as consumers are
bombarded with new messages
• Understand package trends and meet demands of quality and
price conscious consumers
• Invest in NDP to ppropose
p sophistication
p and convenience in
products benefits
• Know the segments in your consumer base (geographies, age…)
52
Page 52
Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Thank you
53
54