WHAT DO VIETNAMESE
GROCERY SHOPPERS
WANT?
2013 AND BEYOND


Copyright ©2012 The Nielsen Company. Confidential and proprietary.

STATE OF
THE
MARKET

WHO

WHAT

HOW

VIETNAM

CONSUMERS

CONCERNS

TOUCH POINTS

• Macro outlook
• Consumer
Confidence Index
• FMCG Overview

• Affordable to
aspirational
• Aging population
• On her mind to in
her cart

• Health and
nutrition
• In-home
enjoyment
• Upgrading for
value continues

• Television
• Online
• Mobile


Copyright ©2012 The Nielsen Company. Confidential and proprietary.

STATE OF
THE
MARKET

VIETNAM AT A GLANCE


MACROECONOMIC CONDITIONS ARE IMPROVING
MODERATE INFLATION


GROWING EXPORTS

INCREASED RESERVES
International reserves
(in months of import)

17,3%
Monthly Inflation
YOY Inflation

6,5%

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

1,0%

2,2%

2,7 2,8

in 1H’13 vs. YA

2,2 2,3 2,3
1,9 1,8

6,7%

1,5

1,6


HIGH TECH
0,1%

products increase
Q1-11

Q3-11

Q1-12

Q3-12

Q1-13

CURRENT ACCOUNT SURPLUS 5.9% of GDP
Source: GSO, GSO 2012, Worldbank

4


BUT CHALLENGES EXIST…..
SLUGGISH GDP GROWTH

STRESS ON FISCAL DEFICIT

RISE OF BANKKRUPTCY

Source: IMF – Apr’13


Source: Worldbank

Source: Agency of Business Registration

Vietnam GDP growth (%)

Debt to GDP ratio (%)

6,8

6,3
5,3

5,9

5,0 5,2 5,2

45

43

47

52

48

Number of new
registered enterprise
reduced


6.8%
52

Enterprises registered
capital reduced

16%

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

Q1’13 vs. Q1’12
2007 2008 2009 2010 2011 2012

Source: GSO

1.96
%

RATE IS ON INCREASE

1H’12

UNEMPLOYMENT

26%

Number of enterprises
stop business


2.28
%
1H’13

5


GROWTH OUTLOOK IS MODEST FOR VIETNAM

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

Asia pacific is expected to be fast growing region, yet Vietnam is at lower pace.

Source: IMF – Apr’13
Note: Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period of6
time.


THE ECONOMY AND JOB SECURITY ARE KEEPING
CONSUMERS AWAKE AT NIGHT
Vietnamese are less confident in the region
Consumer Confidence Index
Q2'2013

19

Job security

19


14

51

KO

75
78

TW
JP

93
95
95
98
103
107
110
114
118
121
124

NZ
SG
VN
AU
MY
Copyright ©2012 The Nielsen Company. Confidential and proprietary.


The economy

HK
CN
TH
IN
PH
ID
0

50

Base : All respondents n=10024
Consumer Confidence Survey – Q2 – 2013

100

150

7

Increasing utility bills (electricity, gas,
heating, etc)

11

12

Health


11

12

Increasing food prices

8

11

9

8

Work/life balance
Increasing fuel prices

5

%

9

Parents' welfare and happiness 2 6
Debt

Biggest concern

33


Q. What is your major concern
over the next 6 months
Base : All respondents n=501

Second biggest concern
Field Dates: May 13 to May 31, 2013

7


CONSUMERS SHOW SPENDING RESTRAINT
“Putting spare cash into savings” means consumers are spending less
Consumer Spending & Saving strategies – Q2’13

SPENDING STRATEGIES
Putting into savings

66

68

Holidays / vacations
New clothes
New technology…

32
28

%


36

33

Q2 2012
Q2 2013

29

32

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

Q: How to utilize spare cash after covering essential living expenses

SAVING STRATEGIES
Cut down on out-of-home
entertainment
Spend less on new clothes
Try to save on gas and
electricity
Base : All respondents who answered Yes to Q10 (Code 1) n=440
Source: Nielsen Consumer Confidence Index – Q2’13

67
65

%


63

Q: Compared to this time last year, which of the following actions have you taken in order to save on
household expenses?

8


FMCG IS SLOWING DOWN
Fast Moving Consumer Goods market dynamics – Total Vietnam
30%

27,6%
26,8%
25,0%

27,2%

20%
5,5%
15,8%

15%

22,9%

22,3%
21,1%

20,1%


19,4%

24,4%

24,2%

23,8%

25%

15,6%

11,3%

21,2%
20,5%19,9%
18,7%
18,3%
16,0%
12,2%16,8%
16,2%
9,5%
5,8% 4,4% 6,5%
20,4%
14,0%
5,9%
11,2%
15,5%
18,6%

13,9%
15,6%
14,0%
10,2%
20,5%

20,3%

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

10%
12,8%

12,8%

5%

8,1%
8,0%

11,0%

14,6% 15,5% 14,7%

14,6%
8,7%

12,9%

11,2%


9,9%
6,1%

5,4%

10,0%

6,6% 7,4%
4,7%

8,4%

7,2%

5,8%

4,3%

3,0%

3,0%

0%

Unit value change
Source: Retail Audit Data

Volume change


Nominal growth
9


Copyright ©2012 The Nielsen Company. Confidential and proprietary.

ACROSS SUPER-CATEGORIES

Source: Retail Audit Data
10


Copyright ©2012 The Nielsen Company. Confidential and proprietary.

WHO

SHOPPERS MATTER


DO YOU KNOW THE ASIAN CONSUMER?

1

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

WE ARE THE MOST LABELCONSCIOUS REGION IN THE
WORLD.

2
THREE IN FIVE ARE WILLING TO

PAY MORE FOR DESIGNER
PRODUCTS. CHINA, INDIA AND
VIETNAM ARE THE WORLD’S
TOP THREE LOVERS OF ALL
THINGS ‘DESIGNER’.

3
WE ARE A REGION OF IMPULSE
SHOPPERS AND EARLY
ADOPTERS. CHINA, INDIA
AND INDONESIA RANK HIGHEST
GLOBALLY.

4
WE ‘KNOW BEFORE WE GO’ VIA
RESEARCH AND PRICE
COMPARISONS AND ARE
SENSITIVE TO DEALS.

5

6

PHILIPPINES AND VIETNAM ARE
LURED BY PRODUCTS WITH
FREE GIFTS.

WE ARE KEEN TO “GO
GREEN”. THAILAND, INDONESIA,
VIETNAM AND THE PHILIPPINES

ARE THE REGION’S MOST ECOMINDED AND WILLING TO PAY.

7

8

9

10

WE VALUE FAMILY BONDING,
FAMILY PLANNING AND
EDUCATION.

WHEN BUYING MOBILE
PHONES, FUNCTION PREVAILS
OVER PRICE AND BRAND.

FOR CLOTHING AND SHOES,
DESIGN WINS OVER PRICE OR
BRAND, PARTICULARLY
FOR THAIS, TAIWANESE AND
VIETNAMESE.

WHEN BUYING HEALTH AND
BEAUTY PRODUCTS, WE OPT
FOR FUNCTION OVER QUALITY
AND PRICE.

Source: Nielsen Global Report


12


DO YOU KNOW WHERE YOUR “SHOPPORTUNITIES” ARE?
AFFORDABLE TO ASPIRATIONAL
Rising middle class
Rising aspirations

AGING POPULATION

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

Current: 64% under 35 years old
65 years old population estimated to grow
4 times by 2050

ON HER MIND TO HER CART
Women role becomes more important
Quality of living is improved
13


MEET THE EMERGING MIDDLE CLASS
Vietnam is set to see an enormous rise in its middle class consumer segment and
spending => sophisticated demand to improve quality of living
Class A+

2
4

6

Middle class

9

27
32
38

Class C

39
34

Class D
Copyright ©2012 The Nielsen Company. Confidential and proprietary.

8

14
21

Class B

million
in 2012

Class E
8


Class F
2010

95

million in
2020

million in
2030

$310

$940

billion in
2020

billion in
2030

Consumption

25
20
14

44


$46
billion in
2012

3
2
2
2011

2012

Source: HIB – Nielsen database; OECD Development Centre

14


‘PREMIUM’ SHOWING STRONG GROWTH

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

Dominated by middle class need for ‘Affordable Premium’

Source: Nielsen Retail Audit April 2011 – Mar 2012

15


‘PREMIUM’ SHOWING STRONG GROWTH
Dominated by middle class need for ‘Affordable Premium’


MAINSTREAM

24
PREMIUM

VALUE
GROWTH RATE

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

14 FMCG CATEGORIES
10 ASEAN COUNTRIES

21
VALUE

Source: Nielsen Retail Audit April 2011 – Mar 2012

35

SUPER
(PI: >3)

ASIA’S
DECOMPOSITION
OF ‘PREMIUM’ 49.51%
LOW
(PI: 1.2-1.5)

9.17%

HIGH
(PI: 1.8-3)

20.34%
MID
(PI: 1.5-1.8)

20.98%

16


TOP PREMIUM PICKS ARE BISCUITS, FACE
MOISTURIZER, INSTANT MILK FORMULA, DETERGENT

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

Inside Asia’s Premium Basket

Source: Nielsen Retail Audit April 2011 – Mar 2012; Hong Kong, Korea, Singapore, China, Indonesia, India, Malaysia, Philippines, Thailand, Vietnam

17


WHAT DO THE MIDDLE CLASS NEED IN STORE?

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

Checklist


To…

PRICE TAGS

HELP CALCULATE

PACKAGING

CUE DESIRED IMAGE

DIFFERENTIATED ASSORTMENT

OFFER AN OPPORTUNITY TO TRY PREMIUM

TRIAL PROGRAMES

ENCOURAGE USAGE

FRIENDLY SERVICE

TRY OUT NEW CATEGORIES AND BRANDS

AIR-CONDITIONING

ENJOY MODERN RETAIL ENVIRONMENT

Source: Nielsen Bag or Byte Report

18



“GOLDEN POPULATION STRUCTURE”
Capitalise on the window of opportunity
85+
80-84

•

18 MILLION: the young demographic
of 15-24 years old

•

The future potentiality of the country

•

Improve the quality of the country’s
human capital

MALE

75-79

FEMALE

70-74
65-69
60-64
55-59

50-54
45-49
40-44

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

35-39
30-34
25-29
20-24
15-19
10-14
5-9

Million

0-4
Source: Vietnam population 2012

0

1

2

3

4

5


19


AGING CONSUMERS

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

Demanding for new and specialized categories

> 65 YEARS OLD AGING INDEX (*)

POPULATION

MEDIAN AGE

2014

90.6 mil

29.8 y.o

5.6 mil

39.9 %

2024

99.5 mil


33.9 y.o

8.6 mil

61.1 %

2034

105 mil

38 y.o

13.5 mil

96.7 %

2044

108 mil

39.9 y.o

17.5 mil

128.1 %

2049

108.7 mil


40.5 y.o

19.5 mil

140.8 %

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

20


GROWTH IMPACT TO YOUR BRAND AND BUSINESS
NOW

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

TEEN &
YOUNG ADULT

•
•
•
•
•

Soft Drink
Energy Drink
Snack
Toys and Games

Education Services

FUTURE
SENIOR
PEOPLE

PRODUCT FOR
ADULT

•
•
•
•
•
•
•

Adult Milk
Adult Diapers
Sensitive Toothpaste
Nutritional Supplements
Diabetic Foods/ Drinks
Medical Insurance
Leisure Travel
21


HELP AGING CONSUMERS THROUGHOUT THEIR
SHOPPING JOURNEY
Lighter aluminum

shopping carts

Lowered shelves

Slower escalators

Enlarged
price tags

Widened aisles

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

Better lighting
Dedicated
payment lanes
Magnifying
glass on
shelves

Source: Nielsen Bag or Byte Report


WHEN IT COMES TO SPENDING DECISIONS,
WOMEN ARE IN CONTROL
90% of women believe
90 NUMBER OF WORKING WOMEN IS ON THE RISE
85

81,8


82,8
80,3

80

83,3

83,0

83,5

79,5
77,0

75
67,8

70

65,5
63,3

65
60

60,5

58,5


58,3
56,0

Across 95% of countries,
quality is the #1 driver of
brand loyalty.

50
Q2
2011

When it comes to life’s
decisions, women want
to share responsibility.

63,3

55
Copyright ©2012 The Nielsen Company. Confidential and proprietary.

their role is changing for
the better.

Q3
0211

Q4
2011

Q1

2012

MALE

Q2
2012

Q3
2012

Q4
2012

Q1
2013

FEMALE

Social media has
VIETNAM

Source: Personal Finance Monitor Q1 2013, Nielsen Women of Tomorrow Study 2011

become an indispensable
tool.
23


WOMEN ARE THE SAME, YET DIFFERENT
Opportunity to win not just her wallet but mind and heart


DAUGHTERS
AV. AGE = 30

Most impulsive

OPTIMISTIC
MOTHERS

UNCERTAIN
MOTHERS

AV. AGE = 47

AV. AGE = 47

More shopping ahead

Good value conscious

GRANDMOTHERS
AV. AGE = 67

Most habitual shopper

• Store decisions are important • Usually plans her shopping list
• While she checks prices, quality of products drives loyalty

Copyright ©2012 The Nielsen Company. Confidential and proprietary.


Heavier media user

Enjoys ads

Heavy on texting/email

WOM important

She watches TV and listens to the radio on a regular basis

CONNECT

Source: Nielsen Women of Tomorrow Study 2011

• need to stay connected • information seekers • aspirational • optimistic
• holds multiple roles • burdened • empowered

24


FOCUS ON MEETING WOMEN’S NEEDS

Copyright ©2012 The Nielsen Company. Confidential and proprietary.

•
•
•
•

Au Co Accounts/ Deposits

Ladies First Credit Card
Women SME Service Package
8th March Branch – Women Banking

• Designed specifically for modern women
• Calcium volume is 4 times natural milk
• Spa, facial treatment
• Yoga, Pilates, Aerobic, Zumba, Sexy
dance, Boxing, K-POP
• Exclusively for women with 6 branches
nationwide
25