Infocus Research : Mobile trends on M2 Esomar Vietnam

www.ifmresearch.com 1
THE GOAT IN REVIEW / THE MONKEY PREVIEW
VIETNAM CONSUMER TRENDS 2015 – 2016
M2 – ESOMAR – VMRC Consumer Trends Summit - April 6, 2016
Ralf Matthaes
Managing Director
Infocus Mekong Research
:www.ifmresearch.com
Ralf.matthaes@infocusmekong.com

79
68
56
51
82
86
0
10
20
30
40
50
60
70
80
90
100
2011 2012 2013 2014 2015 2016
A massive increase in Consumer and Business confidence over last 18 months indicates
that Consumer spend and business expansion should be on the rise.
Consumer Confidence Index (%): TNS 2011-2015 & Infocus CCI 2016 | Urban onlyx
2011 - 2016 Confidence Indices
79
48
56
78
59
X Business Confidence Index (%): Euro Cham Vietnam

25%
48%
47%
18%
15%
11%
9%
35%
36%
36%
37%
29%
38%
32%
41%
17%
17%
45%
56%
51%
60%
Average %
Value of the Vietnamese dong
The cost of living
Employment
Vietnam's economy
My personal standard of living
Foreign investment
worse same better
Average
Perception of 2016 in terms of key economic indices
Key concerns for 2016 revolve around the value of the VND and the increase in the cost of living,
while FDI, personal standard of living and Vietnam’s economic prosperity are big positives….
source: Infocus CCI Base: n = 512

Will you spend More - The Same - Less in 2016 vs 2015?
45%
34%
38%
38%
40%
44%
44%
47%
48%
50%
55%
56%
47%
55%
55%
56%
49%
52%
38%
47%
44%
44%
41%
38%
Average %
Home appliances
Household utilities
Transportation
Personal quip. (phones/laptops, etc)
communications (tele.email)
Entertainment & dining out
Food & beverages products
Personal care products
House hold care products
Health care products/services
Education
more same less
2016 should see continued growth in consumer spend. Education, Healthcare and Household
products should see the positive upswings in spend.
Average

41
54
60
81
84
86
4
11
42
37
58
31
0 10 20 30 40 50 60 70 80 90 100
Smart TV
iPad /Tablet
Desktop
Laptop
Home Wifi Internet
Smart Phone
Urban Digital Ownership 2013
2015
Explosion of Digital & Smartphones
source: Infocus Base: n = 2,800
In a short two years, all that is smart / communications driven, has exploded.
Consumers are craving connectivity / info / entertainment via personalized gadgets…

Growth of high end / high cost items
111,000
157,000
215,000
290,000
0
50,000
100,000
150,000
200,000
250,000
300,000
2013 2014 2015 2016*
Automobile sales
Auto sales are indicative of Vietnamese
joining the developed world & upscaling
their lives
source: V.A.M.A
2
8 5
40
70
13
32
48
59
91
0
10
20
30
40
50
60
70
80
90
100
Vehicles Life
insurance
Credit |
Debit card
Air-con ATM Card
Urban ownership growth (%)
2013 2015
source: Infocus Base: n = 2,800
Huge growth in creature features and
security products, highlighting desire for
global integration
*estimate

Percent of consumer who took out loans in 2015 & why?
36
25
20
5
5
5
0 10 20 30 40
Lower income
Total
Higher income
Yes Yes More than 1
An astonishing 30% of those surveyed took out bank loans in 2015 & 41% of lower income
earners, mostly for real estate (35%) & business investments (25%).
5%
35%
24%
13%
9%
14%
Purpose of Loan
Automobile
Real Estate
Business
Education
Personal
Others
Take out Loan
Source: Infocus CCI Base: n = 512

The disconnect between media spend and media consumption
5
85
3
4
29
16
57 6
1
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
2016
2015
TV Print (all) Digital Smartphone Other
Media spend % of total
Time spent when not a work
Overall Media spend grew by 10% in 2015. TV makes up 85% of all measured advertising spend.
However 57% of consumer note they send most time on their smartphone….
Base: 6,015

Daily activity you do most, when not working?
29%
5% 9%
Using Smart Phone
Using Laptop / PC
Watching TV
Others
2%
26%
25%
18%
29%
0% 10% 20% 30%
1 hour or less / day
1-2 hours / day
2-3 hours / day
3-4 hours / day
4 plus hours / day
Most popular daily activity (%)
Major shift in consumers activities to mobile and on-line. Over half of urban consumers
note mobile usage as #1 activity, of which half spend 4 plus hours a day on their mobile.
57%
Time spent on your favorite medium(%)

2016 Predictions
“The trouble with our
times is that the future is
not what it used to be.”
Paul Valery

Vietnam is out of recession, but…
2015 KEY GROWTH TRENDS 2016 PREDICTIONS
Positives = Confidence, Growth & Spend
1
Business & Consumer confidence have
increased substantially, driving growth
Increase investment and consumer spend should make
2016 best year ever, in terms of overall growth
2
Over 25% growth of Digital & Mobile
connectivity
Much more opportunity for digital content, messaging
and overall connectivity…
3
Gradual increase in FMCG spend in Modern
Trade
Continued growth in modern trade with potential uplift
for overall FMCG spend
4
Growth of Banking, Education, Healthcare
spend, etc.
Accelerations of all, so long at CPI stays in check
Negatives = debt culture aligning with China / US Sub-prime?
1
VN becoming debt reliant / credit culture,
borrowing to catch up with the “Nguyens”
Any major global crisis / currency destabilization, could
be devastating for Vietnam due to bad debt
2
New laws on investment, enterprise, real
estate, etc., yet to see impact - Danger!
Fear of mass speculation and skyrocketing inflation as in
2008…

M2 Survey Results
Conducted live &presented within 20
minutes
Base: N = 55

57
33
4 4
2
The growth of Mobile advertising
The growth of Online advertising
The decline of traditional free to
Air TV
The decline of Print (newspapers /
magazines) readership
New formats of Advertising not yet
in Vietnam
Biggest change in media consumption
33
25 25
8 8
The increase in Online
shopping
The increase in smartphone
shopping
The increase in convenience
store usage
The increase in competition
(new players)
The increase in Super /
Hypermarket usage
Biggest opportunity for growth in Retail
Base: N = 55
Growth of Mobile / on-line adverting as seen as key
changes in media consumption
On-line / mobile shopping and convenience store
growth dominate retail future trends
@
@

47
25
14
10
4
Smartphone research
Online research
Big data
Syndicated Research
Client sophistication
What do you think the biggest evolution will be in Market Research
in Vietnam the near future?
@
Base: N = 55
Smartphone research will dominate future research trends

Credentials
Smartphone based
Panel Driven Research
M2 – ESOMAR – VMRC Consumer Trends Summit - April 6, 2016

Six key advantages to panel based mobile research
AFFORDABLE
30% to 60%
cheaper
FAST
Results in days
not weeks
DEMOGRAPHIC DATABASE
190 consumer data points
HIGH QUALITY
Negates interviewer
bias, built in security
filters
NATIONAL REACH
Urban / Rural,
any day, anytime
REAL TIME MEASUREMENT
Measures behaviour, not perceptions

Why Mobile Research - Focused - Faster - Efficient
Smart phones are becoming ubiquitous in Vietnam, exceeding 50% penetration (80%
urban)
Consumers are more difficult to reach, especially the affluent, who are busy or not at
home, limiting traditional data collection.
We provide clients with insights that are much more focussed, faster and more cost
efficient, with high quality results.

The growth of smartphone opportunity in Vietnam
68
57
49
39
32 43 51 61
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015 2016 est.
Smart vs Feature phone share growth (%)
Feature Phone Smartphones
Smartphone is the single largest consumer growth opportunity in Vietnam, with an average
growth rate of over 30% annually.
With urban Vietnam already over
80% penetration, the last conquest
is rural Vietnam, changing the face
of communication forever…
Are you READY!
source:

We don’t believe in ‘device agnostic’
We believe that the approach to research must be reviewed and customised to suit
mobile in a way that makes sense to consumers: shorter surveys that hold relevance &
allow for in-the-moment feedback - We are mobile research
 Mobile specific – fits all phone screens and operating
systems
 Simple – key is to have clear and easy to follow
instructions (limit to 10 attributes max)
 National Reach – speak to thousands of consumers
nation-wide, in days not weeks
 Short survey’s – ideal is 7-12 minutes
 Bunching – can send longer survey’s in increments of 2 to
3 mini surveys
 Insightful – Encouraging top of mind open-ended
responses – extremely diagnostic.
Mobile Research Benefits

The Mobile offer

Mobile offer
MYSTERY SHOPPING
Understand in-store performance
and service levels using mobile.
Ideal for audits and PoS
measurement.
TACTICAL & IMMEDIATE
RESPONSE (TAIR)
Sometimes you need to know
things quicker. Gain the answers
in less then 72 hours.
we focus on 7 core offers
RAPITEST: ADVERTISING &
CAMPAIGN EVALUATION
Test & validate TVC’s, viral
campaigns and other marketing
materials. Know the results within
48 hours.
CUSTOMER SATISFACTION
Real –time customer satisfaction
scores utilizing mobile research
U&A / TRACKING
Unique alternative to traditional
U&A and tracking work with
Mobile data capture. You can
receive your core brand health
measures within days
SPONSORSHIP EVALUATION
SponsorMap™ assesses influence
of sponsorship on consumers’
attitudes & behavior changes.
Ideal for immediate event
measurement
PRODUCT WET SAMPLING
Ideal for gaining immediate feedback on wet sampling and door to door qualiy control of sample promotions
impact / activities

A mobile-based survey tool that delivers high-quality
compressed video or digital images & surveys
Rapitest works on all mobile devices, but focusing on smartphone
Surveys can be shared via SMS to
respondents or embedded in an
app, branded or unbranded or
emailed if required
 Ad Pre / Post-Testing
 All Viral materials
 Talent Evaluation
 Communications Concept
Tests
 Product / Concept Tests
 Sponsorship Evaluation
 Positioning Evaluation
 Brand Activation Evaluation
We are able to control which device our panellists use
and also control the size of screen for testing

Active & Managed Mobile Panel
Robust - Representative
High net worth

20% 36% 23% 15% 6%
18-24 25-29 30-34 35-44 45+
53 47
Gender
overview: n = 30,252
Updated: March 25, 2016
Single Married
46 53
Marital status
Other 1
6% 15% 73% - University / Post Graduate
EducationGrade
1-12
Vocational
College
7%
12% 11% 10% 9% 8% 7%
4% 4% 3%
7%
12%
7%
7% 8%
7%
5%
4%
4% 4%
1%
9%
Education IT Sales Retail Finance Construction Hospitality Healthcare HR Marketing Other
Urban Rural
Age
Profession

Location by Sample
48%
34%
18%
31%
39%
30%
29%
41%
30%
AB
CD
EF
Metro 2nd cities Rural
locations
IFM Panel segments Vietnam using the official GSO
statistics for urban metro Vietnam, Secondary cities and
rural Vietnam. Rural are all areas which do not fall into
either Metro or Secondary cities.
Metro Urban Cities
# City name Population Region
1 Can Tho 1,238,300 Mekong
2 Da Nang 1,007,700 Central
3 Hai Phong 1,946,000 North
4 Ha Noi 7,379,300 Red River Delta
5 Ho Chi Minh City 8,244,400 South Central
Total 19,815,700
Secondary Cities
City name Population Region
1 Hạ Long 203,731 North
2 Nam Định 191,900 Red River Delta
3 Thanh Hóa 197,551 North
4 Thái Nguyên 330,000 North
5 Việt Trì 277,539 North
6 Vinh 282,981 North
7 Huế 333,715 Central
8 Nha Trang 392,279 Central
9 Quy Nhơn 311,000 Central
10 Buôn Ma Thuột 340,000 Highlands
11 Đà Lạt 256,393 Highlands
12 Biên Hòa 1,104,495 South Central
13 Vũng Tàu 450,000 Mekong
Total 4,671,584
Source: Hanoi GSO
Base: n = 30,252
72%
10%
18%
Metro 21,600
2nd Cities 3,222
Rural 5,430
Location by income

income & representation
0.5 0.5
5
10 10
23
50
1
7
10
24 24 24
10
14 13
16 17
19
13
8
0
5
10
15
20
25
30
35
40
45
50
A Class B Class C Class D Class E Class F Class Below Min
wage
IFM PANEL SEC vs F2F vs On-line (%)
On-line panels Face 2 Face IFM Mobilepanel
43% IFM Panel SEC: ABC
Consumers are now wealthier and harder to reach. Face-to-face sampling does not pick up representation of
high net worth respondents, while on-line is student driven. IFM Mobile panel naturally reaches higher net
worth individuals with smartphones.
Source: ESOMAR
Total
A1
A
B
C
D
E
F F1
14%
13%
16%
17%
19%
13%
2 6%
A1 40 Mil above D 15-20 Mil
A 30-40 Mil E 10-15 Mil
B 25-30 Mil F 5-10 Mil
C 20-25 Mil F1 5 Mil below

IFM Panels Connecting you to your target consumers
IT Specialists
N = 3,090
CEO / Business Owners
N = 2,850
Financial Services
N = 2,436
Credit / Debit Card
Panel N = 17,040
HR Specialists
N = 1,080
Insurance Owners
N = 26,244
Income 30 Mil VND Plus
N = 8,958
Education Pros
N = 2,401
Home owners
N = 3,546
Retailers
N = 2,646
Mothers
N = 9,264
Healthcare Pros
N = 1,200
FMCG Panel
N = 30,020
Automotive
N = 5,034
Mobile Phone
N = 32,472
Rural Panel
N = 5,521

Ralf Matthaes | Managing Director
Tel: +84-8 2262-7627
Mobile: +84-903-949-531
Website: www.ifmresearch.com
ifmpanel website: www.ifmpanel.com
Email: Ralf.matthaes@infocusmekong.com
1 Dang Huu Pho Street, Thao Dien, An Phu,
HCMC, Vietnam

Infocus Research : Mobile trends on M2 Esomar Vietnam

Recommended

Recommended

More Related Content

What's hot

What's hot (19)

Viewers also liked

Viewers also liked (20)

Similar to Infocus Research : Mobile trends on M2 Esomar Vietnam

Similar to Infocus Research : Mobile trends on M2 Esomar Vietnam (20)

Recently uploaded

Recently uploaded (20)

Infocus Research : Mobile trends on M2 Esomar Vietnam