This report looks at consumer healthcare trends in Vietnam, Asia. It explores drivers behind the growth in the pharmaceutical industry, changing attitudes to healthcare, prevalence of diseases and treatments. The report considers the relative influence of consumers, pharmacies and healthcare practitioners for marketing budgets.

1. 1
Consumer healthcare trends 2015
1

2.  Changing consumer landscape 3
 What will drive growth for healthcare? 9
 Attitudes towards healthcare 18
 Prevalence, treatments and influence 24
 The marketing budget dilemma 31
 Key opportunities 33
2
Contents

3. Part
Changing consumer landscape
3

4. 4
US$175 billion economy
91 million people
7.5 million
households =>US$400
52% urban adults banked
US$1.9 billion advertising
spend
US$1,923 GDP per person
37 million motorbikes
45% internet penetration
145,000 new cars in 2014
69% urban adult mobile
penetration (4 in 10 smart)
24 million households
16 million rural households

5. 2000 rapid accession to 2010 then a struggle to 2015
US$27.5 billion economy
0.54m ABC households
in 6 cites =>US$300
3.5m ABC consumers in 6
cities
US$108m advertising spend
US$351 GDP per person
2.6m ABC consumers in 6
cities
0.78m ABC households
in 6 cites =>US$500
US$740m advertising spend
US$79 billion economy
US$902 GDP per person
87 million people78 million people 91 million people
US$175 billion economy
US$1,923 GDP per person
US$1.9bn advertising spend
3.7m ABC consumers in 6
cities
0.88m ABC households
in 6 cites =>US$700
5

6. 2000 rapid accession to 2010 then a struggle to 2015
0.54m ABC households
in 6 cites =>US$300
0.78m ABC households
in 6 cites =>US$500
0.88m ABC households
in 6 cites =>US$700
Expectations not met
6

7. The family Nguyen - how this shapes who we are
Youth translate
the consumer
world for their
parents
Progressive
and
entrepreneurial
Happiness is
money
Confused and
frustrated
Desperate to
express myself
Thirst for
edutainment
Success is
imbued in pride
Success
through the
eyes of my
child
7
Afflunenza

8. Fast shifting social trends
“Nowadays freedom is an excuse for doing whatever
one wants without thinking about others; women
want careers rather than families, men spend more
time out of home, drinking and enjoying with their
friends, more than contributing to their families,
women are freer with their favours and couples find
it easier to divorce without thinking of what they
are doing to their families and children…”
Phuong 30 years old, from HCMC
8

9. 9
What will drive strong growth for
healthcare?
9

10. 10
Traditional remedies vs. modern medicine expenditure
40% to
modern
medicine
60% to
traditional
remedies

11. 62 million people
47% <30 years
16 million households
3.5 million =>US$400/household
2025
60 million people
38% <30 years
18 million households
29 million people
45% <30 years
8 million households
4 million =>US$400/household
2025
36 million people
36% <30 years
13 million households
11
Urbanisation and smaller households

12. 12
Aware of what could be….
Increasing opportunities (commercial,
education and travel)
Community to individual gratification.
Always out of home. Thirst for edutainment.
Happiness defined as money.
Conflicted and frustrated
Emerging gender equality & changing roles
in society.
Change in parenting .
From extended to nuclear families.
Modern day working ethos.
Divorce acceptable.
Urban lifestyles

13. 13
Sources of health awareness
1 TVC
2 Internet (online newspaper, forum, search engine, etc…)
3 Public health center (Ward health station, District PMC, etc)
4 HCP recommendation
5 Other media; newspaper, radio, etc.

14. I search information on
the internet, or go to
webtretho.com to ask
other moms, whether
they have same issues
as me.
Mum in HCMC
Patients have heard
about this medicine
in the media, then
they ask me about
the efficacy, price
and even dosage.
Pediatrician in HCMC
Patients today
proactively ask about
treatment choices,
advantages of
different medicines
and tests available.
Oncologist in Hanoi
Consumer health awareness evolves rapidly

15. From personal care to food growing tide for;
1. Balance
2. Natural
3. Authentic (origin)
15
Healthy marketing propositions explode

16.  Wellness marketing behind many growth
brands.
 Korean soaps and K Pop defining beauty
for men and women alike.
16
Healthy marketing propositions explode

17. In 2014 there were 321 different pharma TVC executions.
87% were from local pharma companies.
Pharma TVCs comprised of 16% from all TVC executions.
17
Local pharma explosion in TVCs

18. Part
Attitudes toward healthcare
18

19. 19
Top 3 concerns in life
Job
Economy
Health
Cimigo Healthcare March 2015 – 18-50 years in urban. N=350

20. Why health matters?
Energy to work
Achieve personal goals Not become burden for family
Balance body and mind
Wish to KNOW more and DO more to enhance health
20

21. 21
Top health concerns in 2015
Versus 2010
Cimigo Healthcare March 2015 – 18-50 years in urban. N=370
Cancer
Poor eyesight
Respiratory health (lungs, throat, nose)
Dental health (teeth and gums)
Digestive and gut health
Blood pressure
Stress
Fertility health
Contaminated food
Skin problems (dry, dark, pimples)
Being over weight
Diabetes
Joint health and flexibility
Bone strength
Liver/ gall
Heart disease
Male/ Female hormone

22. 22
Actions taken to promote health
Do
exercise
more
often
(56%)
Healthy
food and
drink
intake
(52%)
Good
work-life
balance
(47%)
Be happy
(42%)
Good
living
conditions
(33%)
Avoiding
pollution
(21%)
Cimigo Healthcare March 2015 – 18-50 years in urban. N=370

23. Beliefs toward heath maintenance
1. Eat healthy food 2. Sleep 8 hour/ night 3. Do exercise 4. Annual check up
5. Take vitamins 6. Get vaccination 7. Take traditional remedy 8. Protect hygiene
23Cimigo Healthcare March 2015 – 18-50 years in urban. N=370

24. 24
Prevalence, treatments and influence
24

25. 50
67
45
79
37
61
80
59
90
60
Had a health check up at a hospital or clinic
Fallen ill and visited a pharmacy
Fallen ill and visited a doctor
Taken modern medicine
Taken traditional remedy
Diagnosis and therapy in past 6 months
Note: Survey seasons differ so seasonal effects occur
2010
2015
Modern medicine stronger.
But traditional remedies grow over time.
25
Never for traditional
2010 34%
2015 13%
Cimigo Healthcare March 2015 – 18-50 years in urban. N=370

26. Traditional remedies prevalent
29
18
13
5
3
6
6
8
3
7
7
8
4
4
4
14
7
16
9
6
9
9
12
15
9
8
8
6
9
7
13
17
4
19
19
13
11
6
3
5
5
3
7
5
5
56
42
33
33
28
28
26
25
22
21
19
18
18
17
16
Cold, cough, flu and fever remedies
Antibiotic remedy
Acne / skin complexion remedy
Vitmin supplements
Anti–inflammatory remedy
Eye health
Nose-mouth-throat health
Digestive health
Anit aging remedy
Antiseptic remedy
Anti acid remedy
Allergy remedy
Liver health
Bone - joint health
Pain remedy
Both Traditional remedy only Modern medicine only Total
26Cimigo Healthcare March 2015 – 18-50 years in urban. N=370
Prevalence of remedies used in past 6 months

27. Traditional remedies prevalent
2
7
3
2
1
2
2
1
2
4
2
5
3
3
2
10
6
9
8
9
7
8
5
6
5
4
4
4
5
6
3
2
2
4
3
4
2
5
4
3
4
1
3
2
2
15
15
14
14
13
13
12
11
11
11
10
10
10
9
9
Libido remedy
Blood pressure health
Respiratory health
Ulcer remedy
Antioxidants / detoxifying remedy
Gall stone remedy
Hair colour / loss remedy
Concentration and memory remedy
Antifungal remedy
Fertility health
Gynaecological health
Dementia remedy
Mineral supplements
Arthritis remedy
Immunity health
Both Traditional remedy only Modern medicine only Total
27Cimigo Healthcare March 2015 – 18-50 years in urban. N=370
Prevalence of remedies used in past 6 months

28. Traditional remedies prevalent
1
1
1
0
0
1
1
1
1
1
1
1
1
1
0
5
5
5
3
6
5
5
5
1
2
2
2
1
3
0
4
4
4
5
1
2
1
1
3
1
0
1
2
0
1
9
9
9
8
8
8
7
6
5
4
4
4
4
4
1
Heart burn remedy
Obseity remedy
Stress remedy
Antiviral remedy
Cholesterol remedy
Heart health
Diabetes remedy
Insomnia remedy
Hearing health
Weight control remedy
Prostrate health
Menpause symptoms
Ovarian health
Virility remedy
Hormone health
Both Traditional remedy only Modern medicine only Total
28Cimigo Healthcare March 2015 – 18-50 years in urban. N=370
Prevalence of remedies used in past 6 months

29. 29
Attitudes to treatments
Care more about product origin
Proactive look for information Pay more to get better service
Green power
Seeking for convenience
Child protection key

30. 30
Influenced by pharmacist
Know the brand
before go to pharmacy
Trust and follow doctor
Repeat old prescriptions Prefer foreign for
modern medicine
Sacrifice for kids
Attitudes to treatments

31. 31
Influenced by pharmacist
Know the brand
before go to pharmacy
Trust and follow doctor
The marketing budget dilemma….?
Weighted influence for not severe/chronic ailments
Initial choice 28% 58% 14%
Repeat choice 10% 72% 18%

32.  Aforementioned only applies to urban Vietnam.
 The local health care system is RURAL remains KING.
 Rural consumers remain reactive unlike proactive urbanites.
 Rural consumers place great import on HCPs and in particular the public
district medical centres.
32
A side note: Local heath care system remains King in rural

33. Part
Key opportunities
33

34. Potential for share of spend gain from traditional remedies to modern
medicine. Traditional remedies dominate spend. Above the line
marketing dominated by local pharma with propositions for traditional
remedies.
Increased health awareness. Better patient awareness, online
information search and even compliance with prescribed treatments.
Key contributors to increased health awareness; 1) healthy marketing
platforms for pharma, food and beverages, 2) an explosion in local
pharma communication on TV and 3) online resources for consumers.
34
So what will drive strong growth in healthcare?
1
2
3

35. Urbanisation and changing urban lifestyles.
Increasing patient power in treatment choice (even ethical). Shifting
influence from doctors to self and pharmacists (non chronic).
Rural awareness and accessibility (affordable and available). Local health
care system is RURAL remains KING. Rural consumers remain reactive,
placing great import on HCPs and in particular the public district medical
centres.
35
So what will drive strong growth in healthcare?
4
5
6

36. 36
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