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COVID-19 Crisis: Impact and Recovery (2020)

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Adsota officially released the report “COVID-19 Crisis: Impact and Recovery”, providing latest data that has been carefully synthesized and analyzed to help businesses quickly recover after COVID-19 pandemic.
We are very pleased to share this report with you, believing that the above information will help marketers and businesses have an overview of the Vietnamese market during the time of the COVID-19. In order that businesses can cope promptly with the new normal in Vietnam.

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COVID-19 Crisis: Impact and Recovery (2020)

  1. 1. Published on May 2020 11 COVID-19 CRISIS: IMPACT AND RECOVERY Changes in key businesses, customer behaviors & strategies to adapt to the new normal in Vietnam
  2. 2. 2 Table of Contents Introduction SECTION 3 Trends and solutions for brands SECTION 1 Vietnam key business sectors and consumer market overview under the impact of COVID-19 Expected changes in revenues after the COVID-19 outbreak among Vietnamese businesses in 2020 Business sectors that suffer the most The most highly demanded products during the COVID-19 outbreak SECTION 2 How consumer behaviors have changed under the impact of COVID-19 3 254 15 Changes in consumer spending during the outbreak Preferred activities of Vietnamese people The rise of gaming and livestream New trends in customer behaviors that can be continued in post-outbreak period Checklist for brands in post-out- break period Key media opportunities in the post-outbreak period
  3. 3. 3 Introduction For the last few months, COVID-19 pandemic has severely affected all industries around the world , including Vietnam. Under the impact of COVID-19, "uncertainty" and "unpredictability" are what busi- nesses across sectors and geographies have been facing. Brands are forced to adapt to a new reality in which changes in customer behaviours become the new normal. In the post-pandemic era in Vietnam, timely and appropriate adaptation strategy is the main driving force for businesses in order to overcome those challenges and to get back on their feet. With an aim to support businesses and brands in finding applicable solutions at current situation, Adsota, through this report, outlines a number of the lastest insights tracing the evident changes in market overview, consumption pattern, and conceivable future implications for brands to consider during this unprece- dented time of change. While the pandemic situation is temporarily under control in Vietnam, soon the world will begin to recover from the impact of COVID-19. Our routines will return to normal, however, the world that we’re returning to is expected to change forever. We hope this report will provide you with useful insights and practical solutions for your business to thrive despite the circumstances. Adsota team.
  5. 5. Increase Of 1% - 5% No Impact Decrease Of 1% - 5% Decrease Of 6% - 10% Decrease Of 11% - 15% Decrease Of 16% - 20% Decrease Of 20% or more 7% 4% 6% 19% 14% 25% 25% Increase of 1% - 5% No impact Decrease of 1% - 5% Decrease of 6% - 10% Decrease of 11% - 15% Decrease of 16% - 20% Decrease of 20% or more 5 Statista (2020), "Expected change in revenues after coronavirus COVID-19 outbreak among businesses in Vietnam in 2020", Available at: tics/1102848/vietnam-business-revenues-after-covid-19-outbreak/ 1. 89% of Vietnamese businesses are facing financial problems After the outbreak of COVID-19, half of the surveyed businesses in Vietnam expects the revenue to be decreased by 16 percent or more. Even a quarter of them believes that their income has decreased by over 20 percent. Many businesses have to deal with difficulties in maintaining their cash flow and operational ability during the time of the outbreak. Since the government enforced strict regulations regarding transportation and crowd restrictions, we are facing a significant drop in customer’s demand and stagnation in freight flow, which leads to a domino effect in which severe damage is expected to occur across almost all industries. Expected changes in revenues after the COVID-19 outbreak among businesses in Vietnam in 2020 1
  6. 6. Increase 1.8% Decrease Of less than 20% Decrease Of 20% - 50% Decrease Of more than 50% 60.2% 28.8% 9.2% 1.8% Increase of 1.8% Decrease of less than 20% Decrease of 20% - 50% Decrease of more than 50% 6 Vietnam Board Of Private Economic Development, "Effects Of COVID-19 On Operation And Business Activities Of Vietnam- ese Enterprises Report", 2020, survey-based 2. The situation seems to deteriorate if COVID-19 lasts longer than 6 months If the COVID-19 pandemic lasts for 6 months, the difficul- ties that Vietnam’s businesses have to face will grow even further. The proportion of enterprises with over 50 percent drop in revenue is over 60 percent, while only 1.8 percent of businesses show positive signs. According to surveys, the companies with increased reve- nue are materials and supplies manufacturers for domes- tic market. Also, nearly 27 percent of enterprises admitted that they were on the edge of bankruptcy due to the insufficiency of turnover to cover operation costs, employee salaries, payment interest on bank loans, and rents. Expected changes in revenues among business in Vietnam in 2020 (If the COVID-19 outbreak lasts longer than 6 months) Risk of bankruptcy for businesses in Vietnam if the COVID-19 epidemic lasts for 6 months 73.8% Not At Risk Of Bankruptcy 26.2% At Risk Of Bankruptcy 2
  7. 7. 7 Vietnam Board Of Private Economic Development, "Effects Of COVID-19 On Operation And Business Activities Of Vietnamese Enterprises Report", 2020, survey-based 3. Proactive measures from businesses to deal with the COVID-19 outbreak Businesses have been actively seeking for possible solutions An immediate solution that many businesses have implemented recently is reducing labour. This method can help companies to partly cope with the difficult situation, helping them reduce labour costs. This immediate solution may be beneficial at the moment, however, it can trigger unhealthy economi- cal consequences, including unemployment rates and social instability. A striking number of businesses stated that they currently did not have any specific solution to deal with the damaging effects of the outbreak. The passivity reflects the lack of operational capacity and crisis management of small and medium-sized com- panies. This should be seen as an early sign of a likely upcoming crisis in the post-pademic period. 38.7% 20.8% 7.2% 5.9% 5.2% 3.9% 3.8% 3.1% 2.4% 1.7% 19.0% No solution Employee training Improve service quality Shift to ecommerce Apply unpaid leave for employee Temporarily closed Do proactive prevention according to the recommendations of the Ministry of Health Implement promotion and discount Seek for new market Cut down on production cost Cut down on personnel 3
  8. 8. 8 Vietnam Board Of Private Economic Development, "Effects Of COVID-19 On Operation And Business Activities Of Vietnamese Enterprises Report", 2020, survey-based Support and regulation from the Government are needed Business's recommendations to the Government Local enterprises have urged the Government to activate support policies to help them overcome immense difficulties in production and business operation due to the COVID-19 pandemic. Three short-term solutions that businesses propose the most and expect the Government to prioritize are to reduce and delay tax payment date for business (42.9 percent), to provide preferential loan support (41.2 percent) and to reduce interest rate (29.2 percent). 42.9% 41.2% 29.2% 5.4% 3.7% 2.8% 1.6% Reduce and delay tax payment date for business Provide preferential loan support Reduce interest rate Implement stimulus package Allow customs clearance for importing raw materials Update information, maintain positive spirit for people Reduce water and electricity costs 4. 4
  9. 9. The impact of COVID-19 on businesses in SEA and East Asia countries How the outbreak affected those businesses' yearly growth expectations in 2020 61.18% 46.43% 35.12% 18.45% 21.18% 14.71%2.94% Strongly negative Somewhat negative No impact Positive Their outlook expectation is unchanged They are likely to downgrade their growth outlook They will certainly downgrade their growth outlook 9 The Economist Intelligence Unit, "Coronavirus outbreak – economic & business implications", 2020, survey-based 5-6. “Depression” is the common situation across SEA and East Asia market The current pandemic also puts pressure on many companies all over Asia. More than half of surveyed companies responded that they had to reduce their business outlook this year. Businesses in South East Asia and developed economies in East Asia (Japan, China and Korea) are all forced to bear the hardship. Nearly 75 percent of companies around the interconnected areas of SEA and East Asia informed that the COVID-19 outbreak had either slightly or strongly caused negative effects on their businesses. 65
  10. 10. BUSINESS SECTORS THAT SUFFER THE MOST 10 The Economist Intelligence Unit, "Coronavirus outbreak – economic & business implications", 2020, survey-based 7-8-9. Logistics This industry has been witnessing distribution process interrupted with current quarantine measure. Delivery staff shortage is also a problem during the COVID-19 outbreak. Tourism and Travel This sector suffered the hardest hit due to the quarantine restriction among major cities in Vietnam and other countries. Decline in travel and consumer spending also contributed to the current crisis. 7 Luxury Goods The outbreak has been preventing con- sumers from spending on item that they don’t use immediately. Spending for luxury items is dropping as consumers start to tighten their belts. Manufacturing The COVID-19 pandemic forced lockdowns across Asia on February and March, paralyzing economic activities across the continent as factories were shut down. This brought manufacturing sector to a halt. 8 9
  11. 11. BUSINESS SECTORS THAT HAVE POSITIVE SIGNS 11 The Economist Intelligence Unit, "Coronavirus outbreak – economic & business implications", 2020 10-11-12. Online Entertainment Being stuck indoors for days or weeks even, consumer spending on internet services has spiked. Game livestream, multiplayer mobile games or video-on-demand streaming services are indispensable entertainment contents to Gen Z and Millennials these days. Pharmaceuticals Undoubtedly, whenever a disease is to breakout, demand for vaccines and antibiotics is expected to increase higher than ever. E-commerce During the outbreak, consumers are less likely to visit retail outlets due to fear of infection. Therefore, e-commerce are the way to go when they need to purchase any kinds of essential products. Many businesses have expanded their products to online platforms to adapt with the current crisis. 10 11 12
  12. 12. Products that show a positive growth rate during the COVID-19 outbreak Hand Washes +794% Liquid Washes +121% Mouthwash +78% Facial Cleanser +74% Paper Towel +35% Bar Soap +35% Household Cleaner +24% Instant Noodles +65% Package Bread +59% Sugar +35% Canned Food +121% Processed Food +74% Cooking Oil +35% Drinking Yogurt +36% Adult Milk Powder +33% Infant Milk Powder +14% Beer -24% Soft Drink -19% 12 Nielsen, "Impact of COVID-19 on Vietnam Consumer Behaviour Report", 202014. Kantar Worldpanel Division Vietnam, "COVID-19 Initial Impacts on Vietnam FMCG In-home Purchases 2020 Report", 2020 13. The majority of consumer goods were negatively affected by the pandemic, especially beverages. On the other hand, many "urgent" categories for storage and disease prevention recorded an impressive growth. As a consequence of the outbreak, personal care products such as hand sanitizers witnessed a record rise of nearly 800 percent. Liquid washes products also experienced a triple-digit growth rate during the peak of the COVID-19 outbreak. For the last few months, retailers have been promoting the distribution of these items to meet consumer demands. Never before have consumers been more concerned about hygiene and food storage 13, 14
  13. 13. Categories of products that show a positive growth rate during the COVID-19 outbreak Urban Dairy Product+10.0% +16.6% +4.6% +18.9% +15.1% +26.2% +29% +11.4% Packaged Food Personal Care Household Product Rural 13 Kantar Worldpanel Division Vietnam, "COVID-19 Initial Impacts on Vietnam FMCG In-home Purchases 2020 (Rural Vietnam) Report", 2020 15. With the fear of lockdown and quarantine during the outbreak, demands for specific types of consumer goods soared. In addition to personal care products, customers tended to make more purchases of dairy products, packaged food and household products to stock-up for quarantine time. Demand for these types of goods on major e-commerce platforms therefore showed a significant rise as consumers went out shopping less than usual. Digital ads of these products hence, received more impression and had higher conversion rate in comparison with other products. Daily products and personal care items witnessed a significantly higher demand 15
  14. 14. 14 In the time of economic uncertainty, unpredictable social changes and emotional unrest, it’s important that brands keep on communicating with their customers, as well as contributing positive values to the community. Almost all business sectors and types of commodities in Vietnam have been negatively affected by the COVID-19 outbreak. Among that, there are only a few business sectors that might show positive signs.
  16. 16. 16 Statista (2020), "Change in consumption expenditure due to coronavirus COVID-19 outbreak among Vietnamese in 2020 compared to 2019, by sector", available at: tics/1102839/vietnam-consumer-spending-after-covid-19-by-sector/ 16. After the outbreak of COVID-19, consumer expenditure was put under different levels of influences, most of which were negative. While the communication sector lost 21 percent in consumer spending and online shopping, delivery services noticed an increase of 20 percent. Despite having a positive growth rate in sales, consumer spending for packaged food and beverage, health care, and personal care products decreased in comparison with this time last year. However, the decline in spending for these sectors still pales in comparison to many other ones in the Vietnam market, which are severely damaged by the pandemic. Changes in consumption expenditure due to the COVID-19 outbreak among Vietnamese in 2020 compared to 2019, by sector30% 20% 12% 11% -4% -5% -9% -10% -13% -16% -19% -21% 20% 10% -10% -20% -30% 0% Online shopping Packaged food and beverage Household care products Education Home appliances Health care products and services Personal care products Entertainment and dining out Communication Delivery services Household utilities The COVID-19 outbreak has made a substantial change in consumption expenditure. Online shopping and delivery services have showed optimistic signals 16
  17. 17. 17 Kantar Worldpanel Division Vietnam, "Vietnam COVID-19 Impacts: From Consumers' Thinking to Behaving", 2020 17. Surveyed data on how consumers will change their amount of spending on following products during the COVID-19 outbreak Health & Nutrition Personal Hygiene Home Cleaning Dairy Product Meat & Seafood Hair Care Dishwashing Makeup & Beauty Luxury Alcohol Laundry Skin Care Reduced spending 52% 50% Unchanged spending 58% 53% 50% 50% 44% Increased spending 73% 68% 63% 47% 44% More necessities, less luxuries Apart from personal hygiene and home cleaning products, nutritional products/fresh food become the most important commodities that customers are willing to spend more on during the pandemic. Meanwhile, expected spending on several specific items of personal care/ home care products remains unchanged. Around 50 percent of surveyed customers claimed that their spend on these products would be the same even with the impact of COVID-19. Luxury goods and alcohol are the least spend during this time. 17
  18. 18. Shopping at e-commerce website 19% 24% 57% 16% 16% 15% 10% 21% 48% 36% 36% 69% 25% 59% 49% Ordering food delivery Internet browsing Gaming At home streaming content Do moreStay the sameDo less 18 Q&Me, "Corona Virus Impact on Vietnamese Behaviours Report", 2020, survey-based19. Kantar Worldpanel Division Vietnam, "Vietnam COVID-19 Impacts: From Consumers' Thinking to Behaving", 2020, survey-based 18. At home streaming content, ordering goods and food online are the way to go As outdoor activities are limited by the government during the COVID-19 outbreak, online shopping and entertainment at home are much more preferred. Streaming content (movies, game livestreams, and music) is the most popular activity of consumers during quarantine (69 percent). Other activities that gain a significant rise are shopping, ordering food online, using Internet and playing games (especially mobile games). As customers spend more time at home and media consumption goes up, brands should adjust their distri- bution of media investment accordingly. A popular suggestion is reducing OOH budget to switch to online platforms, keeping consumers engaged through emerging touchpoints such as digital and streaming channels, mobile apps, social media. Surveyed data on how consumers change their daily habits during the COVID-19 outbreak - Do-more habit 18, 19
  19. 19. How consumers change their daily habits during the COVID-19 outbreak - Do-less habit Outdoor entertainment 14% 86% 17% 19% 52% 28% 72% 48% 83% 81% Eating out Non-daily good shopping Fitness Shopping at physical outlet Do lessStay the same/Do more 19 Q&Me, "Corona Virus Impact on Vietnamese Behaviours Report", 2020, survey-based21. Kantar Worldpanel Division Vietnam, "Vietnam COVID-19 Impacts: From Consumers' Thinking to Behaving", 2020, survey-based 20. Frequency of outdoor activities significantly dropped off On the contrary, more than 80 percent of surveyed consumers minimize the frequency of their eating out, outdoor entertainment and purchasing for non-daily goods. They also do less fitness activities and find alternative ways to do physical trainings while staying inside. In contrast with the growth in online shopping, shop- ping at physical outlets witnesses a slight decrease. However people who are not accustomed to e-com- merce sites and online channels still prefer retail outlets. 20, 21
  20. 20. 20 Iprice (2020), "6 mặt hàng đang bán chạy trong mùa dịch". Available at: 23. Google Trend, "Realtime Search Trends", 202022. Online search for work-at-home and play-at-home tools has been on the rise Under such a complicated situation, the Ministry of Health in Vietnam urges that citizens should stay home and avoid going out when not necessary. At the same time, many businesses have started applying work-from-home policy. As a result, search trends related to "delivery", "online shopping", and "online learning" have reached its peak in a year. In addition, the level of interest in electronic devices for working at home such as printers, computers, laptops, and keyboards has been on the rise. Top topic queries on Google 25 50 75 100 25 50 75 100 April 1 April 1 Online Shopping E-learning Items with growth in search on e-commerce sites during the COVID-19 outbreak Delivery March 22, 2020 25 50 75 100 Tools for studying and working from home Housewares Printer PC Laptop Keyboard Oil-free fryer Grinder Electric cooker Nintendo Switch Game Console +56% Kid Toys +30% - 200% PC Keyboard Webcam +264% +624% Kitchen Appliances +50% - 80% Gymnastics Equipment +116% (Calculated in March) 22 23
  21. 21. 21 Q&Me, "Remote Work Satisfaction By Social Distancing Report", 2020, survey-based24-25. Video tools that gained usage during the COVID-19 outbreak Communication tools that gained usage during the COVID-19 outbreak Video conferencing tools usage increased considerably to aid the new work-from-home policy during the quarantine. Skype is the most used tool with 53 percent of survey respondents agreed that they had used them more frequently in this time period. In terms of messaging platforms, Zalo is the most used, followed by Facebook Messenger and Skype. Zoom and Skype are among the most popular business communication tools during the COVID-19 outbreak +18% +18% +19% +33% +46% +83% +35% +53% 24 25
  22. 22. App Store Call of Duty: Mobile VN Messenger Facebook Zalo Faster Internet Youtube ZOOM Cloud Meetings TikTok Microsoft Teams Save The Girl! Google Play ZOOM Cloud Meetings Câu đố vẽ: 1 điểm về chỗ Garena Free Fire Zalo Brain Out Save The Girl! TikTok Microsoft Teams Sonic Cat Messenger 22 App Annie, App Store Ranking, Apr 20, 2020, Category= Overall, Measure= Free Download26. Top free apps on April (all categories) During the COVID-19 outbreak, the most popular and downloaded app categories are Games, Communication and Social. This can be explained by the fact that a number of new habits have been adopted during the pandemic outbreak. Vietnamese people spend more time on their mobile devices to play games, use video communication tools and social media such as TikTok and Facebook. Smartphone has become a vital entertainment and working tool for consumers, and a noticeable touchpoint to marketers during the pandemic period. Vietnamese people play games and use social media more in quarantine 26
  23. 23. 81.37% Total Views 119.2M 50% Engagement 79.6% Reach 23 Apart from movies streaming platforms (ex: Netflix), live streaming platforms with gaming content such as YouTube and Facebook Gaming have experienced an upsurge since the beginning of April. Noticeably, gaming livestream total views on Facebook has skyrocketed by 81.27 percent in nearly half a month. Engagement and reach rates have also increased dramatically by nearly 50 percent and 79.6 percent, respec- tively. With such promising engagement rate, utilizing in-livestream features, influencer marketing and game-related content will be an efficient strategy for marketers at this time period. Gaming Livestream views on Facebook increased significantly in nearly half a month since quarantine day
  24. 24. 24 Nielsen, "Hậu COVID-19: Sẵn sàng cho một cuộc sống mới", 202027-28-29-30. Thus, brands should innovate themselves and find new methods to deliver services and communication messages in line with the new reality and new behaviours. If not prepared well enough, non-essential businesses will face even more challenges in the post-pandemic period. The prolonged quarantine period due to COVID-19 has significantly changed the habits of consumers. During the outbreak, extremely high-de- mand products are essential ones including foods, healthcare and house- hold maintenance products. In addition, consumption has thrived on online platforms such as online shopping, online delivery, online media streaming and online gaming. These newly shaped behaviours are presum- ably going to last for a long time, even when the pandemic ends. Consumers are going to use online delivery services more frequently after COVID-19 64% Consumers will continue shopping through online platform more frequently after the outbreak 63% Consumers are going to use online banking/ fintech services and apps more often 38% Consumers will prefer eating at home after COVID-19 62% 27 28 29 30
  26. 26. New trends in customer behaviors that can be continued in post outbreak period 26 Move To Online Shopping And Delivery More Exercises At Home As consumers prefer to stay at home and reduce physical shopping, they have increasingly relied on e-commerce, online platforms and delivery services. Along with the thrive of e-commerce, delivery services also flourished during this period, especially food delivery. Supermarket chains and ride-hailing platforms such as Grab, VinID, Be and Now have launched their own “mart assistant" services to take advantage of the current trend. During the COVID-19 outbreak, consumers pay additional attention to staying in shape. Fitness training contents and apps are gaining traction, as they encourage people to do exercise at home. Many trends related to fitness such as “plank challenges” have gone viral on social media. Google Search traffic for "physical training at home" increased by 25 percent in the last 30 days of April.
  27. 27. New trends in customer behaviors that can be continued in post outbreak period 27 More Cooking And Eating At Home Spend More Time Cleaning And Decorating Houses Increasing Interest In Making Sustainable Choices As consumers start to avoid eating out, the leisure time at home is ideal for home cooking and baking . They begin to explore and try out new recipes, overhaul the quality and appearance of their meals. This is becoming a noticeable trend in social media, pioneering by the spread of YÊU BẾP (Esheep Kitchen family) - a public community where the members can share their ideas, experiences, reviews and recipes for cooking. This group has drawn thousands of members after only a few days. People's houses never look cleaner as they use the extra time at home to make sure everything tidy and neat. Similar to "Esheep Kitchen family", "Home addict", a Facebook group where members can share their living space, taste of house design and decoration, is also a social community that gains virality recently with a lot of active members. During the COVID-19 outbreak, we see an evolution in the public's attitudes towards sustainability. They begin to look for more organic products, show increasing concern about pollution and environment protection.
  28. 28. Expected consumer trends which will impact media usage 28 Tara Johnson (2020), "The Rise of TikTok During COVID-19", Available at: 32. Ogilvy-Social.Lab, "Making Communication Choices in COVID-19", 202031. More Time For Social Media Switch To Streaming Services And Content Social networking continues to be netizen's favorite activity while in the confinement of their homes. Consumers have indulged in indoor activi- ties and social media to keep themselves distracted and entertained while under the pandemic pressure. Short-video platform Tik Tok has witnessed the most significant growth recently. On the week of March 16th, the video app was downloaded 2 million times globally (an 18 percent increase in downloads compared with the previous week). Besides, memes and humorous contents are exploited extensively by social media users as a coping mechanism with the outbreak. In recent time, the consumption of online entertainment and streaming content has gone up, including TV, movies, game live stream, and music. Data is showing that streaming services such as Netflix may exceed growth expectation this quarter due to the impact of the COVID-19 outbreak. 32 31 31
  29. 29. Expected consumer trends which will impact media usage 29 Iprice (2020), "6 mặt hàng đang bán chạy trong mùa dịch". Available at: cam-nang-mua-sam/6-mat-hang-dang-ban-chay-trong-mua-dich/ 36. Q&Me, "Corona Virus Impact on Vietnamese Behaviours Report", 2020, survey-based 35. Ogilvy-Social.Lab, "Making Communication Choices in COVID-19", 202034. Streamlabs (2020), "Streamlabs & Stream Hatchet Q1 2020 Live Streaming Industry Report", Available at: labs-stream-hatchet-q1-2020-live-streaming-industry-report-9630bc3e0e1e 33. Watch More Live Streams Online Gaming Sees An Uptick The appetite for live-streaming is bigger than ever, especially game streaming. According to Streamlabs, big game streaming platforms including Facebook Gaming, Youtube Gaming and Twitch are all reaching their all-time height. The average CCV on YouTube Gaming Live was at peak, increasing by 15.5 percent since the previous quar- ter. Facebook Gaming experienced enormous increases; hours watched tripled, hours streamed doubled, and average CCV quadru- pled. Besides, sports events, fundraising music concert, esports tournament and many entertainment contents are organized via live streams. Consumers are flocking to gaming platforms as an added source of entertainment. Game App downloads have increased sharply during the COVID-19 outbreak. Online games such as Survival, Battle Royale and MOBA become more popular, witnessing an upsurge in playing times. Thirty-six percent of Vietnamese people responded that they spent more time playing games during this time period. Nintendo Switch, a well-known gaming device, also experienced a growth of 56 percent in search on e-commerce sites during the outbreak.36 35 34 33
  30. 30. 30 Fraser, "What is the best way to brand & sales recovery?", 202038. Sinclair, "Covid-19 Recovery Planning For Brands", 202037. Route to brand recovery Phase Customer Behaviour Brand Communication Focus Monitor situation Prepare and adjust to the reality of people staying home Focus on crisis management Work on scenario planning Deliver bad news, interact with customers and keep them informed Adjust content distribution plan Support the community Constantly keep customers engaged Find alternative channels to interact with customers Launch communication campaigns based on the new innovated product and service offered Full homebound economy. Consumers adapt to social distancing, fully committing to e-commerce and local stores Daily living normalises as the situation improves. Value system has changed Consumer adapts to social distancing and a homebound economy Preparation and optimization Instant adaptation Update the strategy relevant tools set (brand, communication, strategy, personas etc.) based on new customer behaviors Implement communication plan based on “new normal” reality Engage and inspire customers through call-to-action campaigns Market revival Normal Lifestyle Homebound Economy “New Normal” Lifestyle Pre-outbreak Community Outbreak Brand Journey Through COVID-19 Containment Recovery 37, 38
  31. 31. 31 Kantar Worldpanel Division Vietnam, "Vietnam COVID-19 Impacts: From Consumers' Thinking to Behaving", 2020 39-40-41-42-43. Invest on online, delivery/at-home services and shift from offline-reliance to online and delivery-based ecosystems Actions for now and post-outbreak period TOP 8 CHECKLIST FOR BRANDS 1 Ensure product accessibility, visibility and availability 5 Increase digital presence, promote digital transformation and online-to-offline system 2 Re-adapt and prepare for extreme peaks in demand after the outbreak The current situation is only temporary. Demand for all services and products will be booming soon once the pandemic is under control. 6 Keep customer engaged by digital contents Digital channels are essential communication tools for brands during/after the pandemic. Extending brand propositions into services and content is highly recommended to keep audience informed and connected. 3 Avoid cutting back on product quality and customer experience At the time period when all businesses are facing tremendous difficulties, cutting back on unnecessary operational costs is almost imperative. However, this solution should not be applied if it lowers product quality and affects customer experience. Optimization is not about cutting down on the costs as much as possible, but maintaining the values that brands are committed to their customers with minimized resources. 7 Capture / create customer behaviours and needs at in-home occasion and provide corresponding services 4 Temporarily avoid direct sales content and product promotion Focus on how your brand can deliver meaningful values to customers 8 39 42 40 43 41
  32. 32. 32 Canvas8, "Pandemic Culture", 202045. Br J Gen Pract (2012). Making health habitual: the psychology of ‘habit-formation’ and general practice, 62(605), 664–666. doi: 10.3399/bjgp12X659466 44. Adapt to the “new normal” According to a study published in the British Journal of General Practice, a lasting habit takes an average of 66 days to form. Since the social distancing was temporarily ended by the government, imprints from the recent habits of customers are likely to remain, even if the initial driver fades. The vaccine for COVID-19 has not been fully devel- oped yet. Therefore, although the situation has been tem- porarily under control in Vietnam, the infection risk still remains. The duration and intensity of the COVID-19 pan- demic in the coming months will determine which new ways of living will stick – whether people prefer to work remotely, rely on their delivery drivers, keep up the at-home workouts or not. 44 45
  33. 33. 33 The outbreak of COVID-19 is the catalyst that pushes businesses to fasten their digitalization process. The gradual shift on digital platforms may be beneficial for brands as those plat- forms have more convenient features that can enhance customer experience. In difficult times, it is not necessary that brands have to recreate the exact same offline experience for users as usual. Even when the pandemic ends, businesses should work on finding alterna- tive solutions to utilize advanced online platforms and adapt to the new reality. Mr. Nguyen Thanh Nam Founder - FUNiX The reality that we have to face in the 21st century is that global diseases like COVID-19 will continue to challenge our world. Day-to-day social distancing or a complete lockdown might occur again in the future, especially when the vaccine for COVID-19 is not yet to be found. Therefore, businesses and brands have to seriously review their strategies and prepare for any similar external crises in the future. Mr. Nguyen Dinh Thanh Co-founder and Managing Director - Elite PR School
  34. 34. 34 Mindshare, "Survey on change of media consumption in the 2020 Novel Coronavirus epidemic", 2020, survey-based 47. Ogilvy, "Making brands matter in turbulent times: HOW TO STEER BRANDS THROUGH A CRISIS", 2020 46. Post-epidemic behaviour forecast - What do people want to do the most after the COVID-19 period? Business sectors that are expected to rebound after the pandemic After the COVID-19 period, affected businesses will rebound shortly and be at times of peak demand. From now on, they have to maintain communication with customers by digital contents Once the COVID-19 is under control, severely damaged industries such as tourism, F&B, out-of-home entertainment, and retails will soon see a surge in customer's demand. Therefore, in order to prepare for the post-epidemic period, it is vital to keep customers constantly engaged and remind them of your brand by captivating digital contents. 0% 10% 20% 30% 40% 50% 60% Out-of-home dining Travel OOH entertainment Food and beverage Apparel Household cleaning Hair salon/manicure Gym Wealth management/stocks Cosmetic 51.2% 46.5% 43.8% 32.4% 23.4% 7.0% 6.7% 5.7% Eat out with friends Travel Movie/Exhibition Sport Go shopping Offline games Stay at home Others Increase Cancel or reduce 46 47
  35. 35. 35 Ogilvy-Social.Lab, "Making Communication Choices in COVID-19", 202048-49. Key media opportunities in the post-outbreak period Digital ad spending has witnessed a slowdown recently. As Facebook and Google ad marketplaces work along with an auction mechanic, a decline in adver- tisers in the platforms will serve to opti- mize the overall media costs, making it more cost-effective to advertise. More and more people are online for longer stretches of time. Since COVID-19 was officially announced as a pandemic by the World Health Organisation, social media became consumers' main source of news updates and information. Face- book, Instagram, and Tik Tok have also seen spikes in usage and engagement rates which brings advertisers more active and engaged audience. Growth in online media Digital video platforms Short video apps Online & mobile gaming Online shopping sites & apps Digital video platforms Transport media Billboards Cinema Decline in offline media More cost-effective opportunities in digital advertising Social media always take the lead 48 49
  36. 36. 36 OTA Network (2020)50-51. Key media opportunities in the post-outbreak period The prolonged quarantine prohibits large group gathering and social interaction, which makes virtu- al meeting the only feasible solution. Compared to other common online platforms, game and lives- tream platforms are built to support communica- tion and interaction on a larger scale. This is the root behind the success of game streaming plat- forms such as Twitch, Youtube and Facebook Gaming, where gamers and viewers can interact, connect with each other at any time, any place. As time spent with streaming and gaming content significantly rises during the COVID-19 period, advertisers can begin to test new formats of con- tent that they have never implemented before. Based on its interactive capability, gaming and livestream contents will be the effective tools for marketers in the future. The pandemic has prompted brands and retailers to have their own ecom- merce website or to join an e-commerce platform for their businesses to survive the challenging time. In fact, influencer marketing, live streaming and social commerce are all ideal options for e-commerce platforms/ retailers to enhance brand awareness and build positive customer experiences. New platforms to explore - Gaming and live streaming E-commerce, social commerce and influencer marketing50 51
  37. 37. 37 Ogilvy-Social.Lab, "Making Communication Choices in COVID-19", 202052. Factors to consider in maximising business performance during the COVID-19 outbreak Analyze to find out which media mix delivers the highest return-on-investment, and optimise your media strategy accordingly. Employ media channels that encourage interactability and adaptability in messaging content. Cooperate with experienced partners who are able to produce cost-effective content and implement comprehensive campaigns at pace. 52
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