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Vietnam Snapshot 2013 by Dentsu Vietnam

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  • 1. VIETNAM
 THE SNAPSHOT DENTSU VIETNAM, OCT 2013 1
  • 2. Welcome to VIETNAM WHERE WILL WE CHECK YOU IN TODAY? 5. SUMMARY 1. VIETNAM THE BIG PICTURE 3. CONSUMERS & BRANDING 2. CONSUMERS THE KEY INDICATORS 4. ADVERTISING INDUSTRY THE KEY HIGHLIGHTS 2
  • 3. 1. VIETNAM THE BIG PICTURE 3
  • 4. SOCIALIST REPUBLIC OF VIETNAM AREA: 330,991 SQUARE KILOMETERS POPULATION: 89 MILLIONS CAPITAL: HANOI LANGUAGE: VIETNAMESE OR KINH (80%) ERE E H AR WE ETHNIC: 54 GROUPS (THE VIET 88%) CURRENCY: VIETNAMDONG (VND) TOTAL PROVINCE: 63 GEOGRAPHY: 5 KEY AREA SOUTH, NORTH, CENTRAL, HIGHLAND, MEKONG DELTA 4 Source: Vietnam Statistic
  • 5. SOCIALIST REPUBLIC OF VIETNAM LONGEST SPELL OF SLOW GROWTH SINCE THE ONSET OF ECONOMIC REFORMS IN THE LATE 1980S REAL GDP GREW BY 5.25 PERCENT (NEW SERIES) IN 2012, THE LOWEST LEVEL SINCE 1998 DURING 2010-13 PERIOD VIETNAM WILL GROW AT A SLOWER PACE THAN INDONESIA AND PHILIPPINE FIRST TIME IN TWO DECADES 5 Source: worldbank.org, updated Jul 2013
  • 6. SOCIALIST REPUBLIC OF VIETNAM ACROSS THE BOARD DECLINE IN INVESTMENT RATES TOTAL INVESTMENT HAS FALLEN FROM 29.6% IN THE FIRST QUARTER OF 2013 FROM 38.5% IN 2010 6 Source: worldbank.org, updated Jul 2013
  • 7. SOCIALIST REPUBLIC OF VIETNAM GROWTH IN RETAIL SALES AND SERVICES (IN NOMINAL TERMS) HAS FALLING FROM 24% IN 2011 TO 16% IN 2012 AND TO 11.9% IN THE FIRST HALF 2013 IMPORTS BY DOMESTIC SECTOR FELL BY 7% IN 2012 INDICATING A LOW DEMAND FOR CAPITAL INVESTMENT AND INTERMEDIATE GOODS, AS WELL AS WEAKER PRIVATE CONSUMPTION 7 Source: worldbank.org, updated Jul 2013
  • 8. SOCIALIST REPUBLIC OF VIETNAM MODERATE INFLATION: 6.7% IN JUNE 2013 STABLE EXCHANGE RATE—DONG DEPRECIATED BY 1.6% PERCENT IN THE PAST 12 MONTHS SOLID EXPORT GROWTH THANKS TO STRONG PERFORMANCE OF FOREIGN-INVESTED SECTOR 8 Source: worldbank.org, updated Jul 2013
  • 9. SOCIALIST REPUBLIC OF VIETNAM LARGEST CURRENT ACCOUNT SURPLUS IN COUNTRY’S HISTORY CHANGED FROM A CURRENT ACCOUNT DEFICIT OF 11% OF GDP IN 2009 TO A SURPLUS OF 5.9% IN 2012 IT IS PROJECTED TO REMAIN IN SURPLUS IN 2013, THOUGH WILL BE A LOWER AMOUNT THAN PREVIOUS YEAR 9 Source: worldbank.org, updated Jul 2013
  • 10. SOCIALIST REPUBLIC OF VIETNAM THE NUMBER OF EMPLOYED PERSONS IN VIETNAM INCREASED TO 51.71 MILLION PERSONS IN 2012 FROM 50.40 MILLION PERSONS IN 2011 THE NUMBER OF UNEMPLOYED PERSONS IN VIETNAM DECREASED TO 0.90 MILLION PERSONS IN 2012 FROM 1 MILLION PERSONS IN 2011 10 Source: Tradingeconomics.com
  • 11. SOCIALIST REPUBLIC OF VIETNAM CONSUMER PRICE INDEX (CPI) IN VIETNAM INCREASED TO 153.63 INDEX POINTS IN SEPTEMBER OF 2013 FROM 152.02 INDEX POINTS IN AUGUST OF 2013 11 Source: Tradingeconomics.com
  • 12. SOCIALIST REPUBLIC OF VIETNAM RETAIL SALES IN VIETNAM INCREASED 14.04 PERCENT IN SEPTEMBER OF 2013 OVER THE SAME MONTH IN THE PREVIOUS YEAR 12 Source: Tradingeconomics.com
  • 13. FMCG MARKET DYNAMICS GROWS FASTEST IN THE REGION 13 Source: Nielsen Pocket Book 2013
  • 14. SOCIALIST REPUBLIC OF VIETNAM FOREIGN INVESTORS STILL RANK VIETNAM AS AN ATTRACTIVE DESTINATION FOR FUTURE INVESTMENTS VIETNAM REMAINS ONE OF THE MOST POPULAR DESTINATIONS FOR EXPANSION WITHIN THE ASEAN REGION 14 Source: worldbank.org, updated Jul 2013
  • 15. 2. CONSUMERS THE KEY INDICATORS 15
  • 16. HOUSEHOLD INCOME CLASSIFICATION This classification system is based on gross monthly income B,C (MIDDLE CLASS) STILL TAKE THE BIGGEST PART OF TOTAL POPULATION Source: TNS Source: Nielsen Pocket16 Book 2013
  • 17. AND ALSO CONTRIBUTE THE BIGGEST CONSUMPTION VIETNAM Source: Nielsen Pocket Book 2013 17
  • 18. CONSUMERS ARE LOSING THEIR CONFIDENCE IN VIETNAM ECONOMY 18 Source: FTA, VietTrack 2012
  • 19. CONSUMERS ARE CUTTING DOWN THEIR SPENDING ON ENTERTAINMENT, BEAUTY, CLOTHES, LUXURY GOODS & TRAVEL 19 Source: FTA, VietTrack 2012
  • 20. ITS SAVING SHOW DIFFERENT BEHAVIOR ACROSS CATEGORIES 20 Source: Nielsen Pocket Book 2013
  • 21. ESPECIALLY ON BOUILLON (SEASONING), CONSUMERS TEND TO SAVE COST BY PURCHASING THE SAME AMOUNT, BIG PACK AND CHEAPER BRAND 21 Source: Nielsen Pocket Book 2013
  • 22. BESIDE SAVING COST CONCERN, IN URBAN, HEALTH, CONVENIENCE AND SOPHISTICATED ARE THE KEY TREND HEALTH 89% 95% WORRY ABOUT MY HEALTH MORE THAN EVER BEFORE WORRY MORE TODAY ABOUT FOOD SAFETY CONVENIENCE 72% 63% PREFER TO BEVERAGES I CAN DRINK FROM THE CONTAINER PREPARE FOOD THE REQUIRE LITTLE PREPARATION SOPHISTICATED 90% 55% BUY PRODUCTS OF GOOD QUALITY, EVEN IF MORE EXPENSIVE THINK HIGHER PRICE PRODUCTS MEANS HIGHER QUALITY 22 Source: TNS Crystal Ball Consumer Forecast 2012
  • 23. IT LEADS TO THE NEW FACT, TODAY VIETNAMESE CONSUMERS, NOT ONLY IN URBAN, NATIONWIDE, CONSUMERS ARE MOVING FROM WET MARKET TO SUPERMARKET TO MEET THE NEEDS OF HEALTH, CONVENIENCE & SOPHISTICATED Source: Nielsen Pocket Book 2012 Source: Kantar 2012 23
  • 24. DESPITE HEALTH CONCERN, VIETNAMESE CONSUMERS TODAY ARE MORE BUSY, FOOD SERVICES ARE GROWING QUICKLY, ESPECIALLY IN KEY CITIES Source: Euromonitor, Food Service in Vietnam 2012 24
  • 25. BESIDE BOOMING OF MODERNTRADE, LOCAL BRANDS, FOOD SERVICES, IT’S ALSO ROARING OF INTERNET & TECHNOLOGY 25 Source: We Are Social Report, 2012
  • 26. 3. CONSUMERS & BRANDING 26
  • 27. CONSUMERS CHOOSE LOCAL BRANDS DUE TO THEIR AFFORDABLE PRICE & ACCEPTABLE QUALITY LOCAL BRAND CHOSEN WHILE INTERNATIONAL BRANDS ARE PERCEIVED AS HIGH QUALITY, VALUE FOR MONEY & PREMIUM IMAGE INTERNATIONAL BRAND CHOSEN 27 Source: FTA, VietTrack 2012
  • 28. 70% FOCUS ON ORIGIN & BRAND WHEN CONSUMERS CONSIDER PRODUCT QUALITY WOM & TV ADS ARE THE MOST RELIABLE SOURCE TO IDENTIFY HIGH QUALITY BRAND SUPERMARKET IS THE PERCEIVED AS SELLING HIGH QUALITY BRAND THAN WET MARKET & STREET VENDOR FACTOR SIGNALING HIGH QUALITY BRAND HOW TO DEFINE A BRAND HAS HIGH QUALITY SOURCE TO IDENTIFY HIGH QUALITY BRAND 28 Source: FTA, VietTrack 2012
  • 29. 80% CONSUMERS CARE ABOUT SAFETY MORE THAN PRICING & BRAND CREDIBILITY 29 Source: FTA, VietTrack 2012
  • 30. 36% CONSUMERS WOULD BOYCOTT THE BRAND AND CHANGE TO OTHER BRAND IMMEDIATELY WHEN THEY SEE OR FEEL THE UNSAFE FACTOR ON CURRENT BRAND 30 Source: FTA, VietTrack 2012
  • 31. TELEVISION IS THE MAIN CHANNEL THAT CONSUMERS SEEK FOR WHEN CRISIS OCCUR 31 Source: FTA, VietTrack 2012
  • 32. 80% CONSIDER BUYING AFTER EXPOSING EXPERT ENDORSEMENT 32 Source: FTA, VietTrack 2012
  • 33. 35% CONSUMERS WOULD STOP AND CHANGE THE BRANDS IF THEY FIND ITS BRAND CAUSE HARMFUL TO ENVIRONMENT 33 Source: FTA, VietTrack 2012
  • 34. BUT IT’S DIFFERENT BETWEEN MALE & FEMALE BASIC IS THE KEY VALUE THAT MALE LOOKING FOR WHILE WOMEN IS MORE DEMANDING, AND TEND TO BE MORE SOPHISTICATED MALE & FEMALE 34 Source: Nielsen Pocket Book 2012
  • 35. MALE IS MORE ABOUT NEEDS FULFILLMENT WHO IS QUALITY SEEKER, GRAB & GO WHILE FEMALE IS MORE LIKE A JOURNEY AND PRETTY EASY TO INFLUENCE MALE & FEMALE 35 Source: Nielsen Pocket Book 2012
  • 36. 4. ADVERTISING INDUSTRY THE KEY HIGHLIGHTS 36
  • 37. ADVERTISING IMPACTS STRONGLY ON CONSUMER’S BEHAVIOR 37 Source: FTA, VietTrack 2012
  • 38. Millions USD TOTAL MEDIA SPENDING (TV & PRINT) KEEP INCREASING 20% BY 2011 1,200 1,008 1,000 835 800 600 682 704 2009 2010 549 400 200 - 2008 2011 2012 38 Source: Dentsu Media, Media Report 2013
  • 39. Millions USD TV STILL KEEP INCREASING AS THE KEY MEDIUM FOR ADVERTISING (>80%) PRESS SPEND SEEMS TO KEEP THE SAME YEAR ON YEAR 1,200 1,000 800 600 400 200 - TV 2008 2009 Radio 2010 2011 Press 2012 39 Source: Dentsu Media, Media Report 2013
  • 40. Y2011 FOOD & HYGIENE-BEAUTY MAINTAIN THE TOP LEADING INVESTMENT IN ADVERTISING MARKET DIVERSE PUBLICITY DISTRIBUTION HOUSEHOLD SERVICES TRANSPORTATION Y2012 TRANSPORTATION TELECOMMUNICATIO FINANCE - INSURANCE DISTRIBUTION TELECOMMUNICATION HOUSEHOLD PHARMACY & MEDICINE DRINKS PHARMACY & DRINKS HYGIENE & BEAUTY HOUSEHOLD CLEANING FOOD HYGIENE & BEAUTY 0 200 Millions USD FOOD 0 200 Millions USD 40 Source: Dentsu Media, Media Report 2013
  • 41. Y2011 TO COMPARE WITH 2011 RANKING, TOP 3 ADVERTISERS HAVE NO CHANGE NESTLE OVERCAME MASAN TO GET THE 4TH POSITION IN 2012 FONTERRA BRANDS Y2012 COCA-COLA VIETNAM TRUNG QUOC Med. NHAT NHAT Traditional COCA-COLA VIETNAM FONTERRA BRANDS FRIESLAND CAMPINA FRIESLAND CAMPINA NESTLE VIETNAM Ltd. VINAMILK CORPORATION VINAMILK CORPORATION MASAN Food Corp MASAN Food Corp NESTLE VIETNAM Ltd. TAN HIEP PHAT Beverage TAN HIEP PHAT Beverage P&G VIETNAM CO. LTD. P&G VIETNAM CO. LTD. UNILEVER VIETNAM UNILEVER VIETNAM 0 100 200 Millions USD 0 100 200 Millions USD 41 Source: Dentsu Media, Media Report 2013
  • 42. ALMOST OF BRANDS IN CATEGORY “HYGIENE & BEAUTY” OCCUPIED THE TOP OF BRAND SPENT MOST Y2011 Y2012 NUMBER 1- 0 DO (RTD OMO (Washing Liquid) P/S (Toothpaste) Dr.THANH (RTD Herbal Tea) CLEAR (Shampoo) HEAD & SHOULDERS REJOICE (Hair Care DOVE (Hair Care Lines) Dr.THANH (RTD Herbal Tea) CLEAR (Shampoo) TRUNG QUOC Med. REJOICE (Hair Care HEAD & SHOULDERS P/S (Toothpaste) PANTENE PRO-V (Shampoo PANTENE PRO-V (Shampoo COMFORT (Fabric DOWNY (Fabric DOWNY (Fabric COMFORT (Fabric 0 10 20 Millions USD 0 10 20 Millions USD 42 Source: Dentsu Media, Media Report 2013
  • 43. VTV3 & HTV7 MAINTAIN THE TOP 2, THVL1 & VTC9 GOT THE IMPRESSIVE GROWTH IN 2012 Y2012 Y2011 HTV9 VTC4 - Yeah1 Family VTC7 - Today TV HN1 (Ha Noi) HTV2 VTC7 - Today TV HN1 (Ha Noi) VTV1 VTV1 VTV9 VTC9 - Lets Viet HTV2 THVL1 (Vinh Long) VTC9 - Lets Viet VTV9 THVL1 (Vinh Long) HTV7 HTV7 VTV3 VTV3 0 100 200 Millions USD 0 100 200 43 Millions USD Source: Dentsu Media, Media Report 2013
  • 44. TUOI TRE, THANH NIEN, TIEP THI & GIA DINH ARE THE TOP PRINT HEADERS INVESTMENT IN 2012 Y2011 Y2012 THOI TRANG TRE DOANH NHAN SAI GON LAO DONG HERITAGE FASHION AN NINH THU DO THOI TRANG TRE HA NOI MOI PHONG CACH - HARPER' HERITAGE SAIGON TIEP THI SAIGON TIEP THI HERITAGE THE GIOI PHU NU THE GIOI PHU NU TIEP THI & GIA DINH TIEP THI & GIA DINH THANH NIEN THANH NIEN TUOI TRE TUOI TRE 0 20 Millions USD 0 20 Millions USD 44 Source: Dentsu Media, Media Report 2013
  • 45. 5. SUMMARY 45
  • 46. 1. VIETNAM THE BIG PICTURE 2. CONSUMERS THE KEY INDICATORS LONGEST SPELL OF SLOW GROWTH TOTAL INVESTMENT HAS FALLEN GROWTH IN RETAIL SALES AND SERVICES HAS FALLING IMPORTS BY DOMESTIC SECTOR FELL MODERATE INFLATION 6.7% STABLE EXCHANGE RATE—DONG SOLID EXPORT GROWTH LARGEST CURRENT ACCOUNT SURPLUS THE NUMBER OF EMPLOYED PERSONS INCREASED CONSUMER PRICE INDEX (CPI) INCREASED RETAIL SALES INCREASED FMCG MARKET GROWS FASTEST IN THE REGION VIETNAM REMAINS ONE OF THE MOST POPULAR DESTINATIONS FOR EXPANSION WITHIN THE ASEAN REGION B,C (MIDDLE CLASS) TAKE BIGGEST PART OF TOTAL POPULATION & CONSUMPTION CONSUMERS ARE LOSING CONFIDENCE IN VIETNAM ECONOMY CUTTING DOWN THEIR SPENDING ON ENTERTAINMENT, BEAUTY, CLOTHES, LUXURY GOODS & TRAVEL, ESPECIALLY ON BOUILLON (SEASONING) IN URBAN, HEALTH, CONVENIENCE AND SOPHISTICATED ARE THE KEY TREND MOVING FROM WET MARKET TO SUPERMARKET PAYING HIGH ATTENTION ON PROMOTION FOOD SERVICES ARE GROWING QUICKLY ROARING OF INTERNET & TECHNOLOGY 3. CONSUMERS & BRANDING LOCAL BRANDS = AFFORDABLE PRICE & ACCEPTABLE QUALITY INTERNATIONAL BRANDS = HIGH QUALITY, VALUE FOR MONEY & PREMIUM IMAGE 70% FOCUS ON ORIGIN & BRAND WOM & TV ADS = MOST RELIABLE SOURCE TO IDENTIFY HIGH QUALITY BRAND SUPERMARKET = SELLING HIGH QUALITY BRAND VS. WET MARKET & STREET VENDOR 80% CONSUMERS CARE ABOUT SAFETY 80% CONSIDER BUYING AFTER EXPOSING EXPERT ENDORSEMENT 35% CONSUMERS WOULD STOP AND CHANGE THE BRANDS IF THEY FIND ITS BRAND CAUSE HARMFUL TO ENVIRONMENT BASIC = MALE SOPHISTICATED = FEMALE 4. ADVERTISING INDUSTRY THE KEY HIGHLIGHTS ADVERTISING IMPACTS STRONGLY ON CONSUMER’S BEHAVIOR TOTAL MEDIA SPENDING KEEP INCREASING 20% BY 2011 TV STILL KEEP INCREASING AS THE KEY MEDIUM FOR ADVERTISING (>80%) PRESS SPEND SEEMS TO KEEP THE SAME YEAR ON YEAR FOOD & HYGIENE-BEAUTY MAINTAIN TOP LEADING INVESTMENT IN AD MARKET NESTLE OVERCAME MASAN TO GET THE 4TH POSITION IN 2012 “HYGIENE & BEAUTY” OCCUPIED TOP OF BRAND SPENT MOST VTV3 & HTV7 MAINTAIN THE TOP 2, THVL1 & VTC9 GOT THE IMPRESSIVE GROWTH IN 2012 TUOI TRE, THANH NIEN, TIEP THI & GIA DINH ARE THE TOP PRINT HEADERS INVESTMENT IN 2012 46
  • 47. THANK YOU 47

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