The document provides an overview of retail market trends in Vietnam for Q3 2013, including FMCG growth rates, category performances, and retailer activities. Some key points: - FMCG experienced negative growth due to a decline in volume, though beverages drove overall growth. Cigarettes and personal care saw large drops in volume. - Convenience stores and minimarts maintained strong growth while supermarkets and hypermarkets slowed. New store openings averaged 8 per month in Q3. - Retailers held numerous promotions during the quarter related to holidays, brand campaigns, and anniversary celebrations, offering discounts up to 50% on thousands of products.

1. QUATERLY RETAIL
UPDATES
Q3-2013
Prepared by Retailer Service Team

2. MARKET OUTLOOK
FMCG OVERVIEW
RETAIL HIGHLIGHTS
RETAILER INSIDE

3. Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Even though, HCM’s domestic consumption of goods in the first 9 months is quite
slower than the total nation’s trend, It increases much higher than total nation in
short term.
Source: gso.gov.vn
VND 1.932 (‘000 BIL) VND 657 (‘000 BIL)
12.5%
2.5%
VND 441 (‘000 BIL) VND 152 (‘000 BIL)
12.2%
2.9%
3

4. 5.54
5.44
5.05
+4.90%
4.80
4.64
5.00
4.76
Vs. 1H 2012
Q1/2012Q2/2012Q3/2012Q4/2012Q1/2013Q2/2013Q3/2013
20
10
18
9
Monthly CPI
8
16
14
7
Yearly CPI
6
12
5
10
6.61
6
3
2
1
Source: gso.gov.vn
Sep-13
Aug-13
Jul-13
Jun-13
May-13
Mar-13
Feb-13
Jan-13
Dec-12
Nov-12
Oct-12
Sep-12
Aug-12
Jul-12
Jun-12
May-12
Apr-12
Mar-12
0
Feb-12
0
6.3
0.05
0.02
2
Vs. 1H 2012
4
7.5
6.69
6.36
4
Apr-13
+6.73%
6.9
8
Jan-12
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Noted that GDP and CPI experience positive movement in Q3, 2013
-1
4

5. Copyright ©2012 The Nielsen Company. Confidential and proprietary.
The degree of Vietnamese Consumer ‘s optimism on their activities of savings
and spending is growing compared with the last quarter.
Vietnam Consumer Confidence Index
98
99
97
96
94
96
95
87
Q2/11
Q4/11
Q2/12
95
97
RAW
MATERIALS
88
Q4/12
Q3/13
Average price change Q3.2013 vs. Q3.2012
Source: Nielsen Retail Audit - 6 cities (TT + MT)
5

6. Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Increase utility bills, the economy and job security driven factors keep
driving people’s worries.
Increase Utility bills…
14
14
The economy
17
10
Job security
16
10
Health
13
12
Increasing food prices
8
12
Work/life balance
9
8
Increasing fuel prices
4
8
Parents' welfare and… 3 4
Childrens' education… 2 5
Debt
%
Biggest concern
Second biggest concern
33
Crime 2 2
War 2 2
Base : All respondents n=500
Source: Nielsen Global CCI Report Q3-2013
6

7. Copyright ©2012 The Nielsen Company. Confidential and proprietary.
People tend to cut down on spending less than the last 3 months.
63
62
60
Try to save on gas and electricity
Spend less on new clothes
Cut down on out-of-home entertainment
45
44
44
41
37
Delay the replacement of major household…
Delay upgrading technology, eg. PC, Mobile etc
Cut out annual vacation
Cut down on telephone expenses
Cut down on take-away meals
28
Cut down on holidays/short breaks
22
20
19
19
Use my car less often
Cut down on smoking
Switch to cheaper grocery brands
Cut down on or buy cheaper brands of alcohol
14
Cut down on at-home entertainment
8
Look for better deals on home loans,…
I have taken other actions not listed above
Base : All respondents n=500
%
2
Source: Nielsen Global CCI Report Q3-2013
7

8. MARKET OUTLOOK
FMCG OVERVIEW
RETAIL HIGHLIGHTS
RETAILER INSIDE

9. Copyright ©2012 The Nielsen Company. Confidential and proprietary.
FMCG experiences negative growth rate due to the decline of Volume
change.
Fast Moving Consumer Goods market dynamics – Total 6 cities
(TT+MT2 part) Enh
30%
27.2%
23.8%
25%
22.9%
22.3%
21.1%
20.1%
19.4%
24.4%
24.2%
20.3%
20%
5.5%
15.6%
15.8%
15%
11.3%
16.2%
9.5%
11.2%
5%
8.1%
8.0%
21.2%
20.5%
19.9%
18.7%
18.3%
16.0%
12.2%
16.8%
5.8% 4.4% 6.5%
20.4%
14.0%
5.9%
15.5%
20.5%
18.6%
13.9%
15.6%
10.2%
10%
14.6%
12.8%
8.7%
27.6%
26.8%
25.0%
14.0%
11.2%
9.9%
6.1%
12.8%
14.6% 15.5% 14.7%
8.4%
11.0%
12.9%
5.4%
10.0%
6.6% 7.4%
7.2%
4.7% 5.8%
4.3%
0%
0.3%
3.0% 3.0% 2.9%
-2.6%
-5%
Unit value change
Volume change
Nominal growth
Source: Nielsen Regional Growth Reporter Q3-2013
9

10. Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Cigarette and Personal Care drop a huge share in Volume Growth, which drives
total FMCG volume % growth decrease.
FMCG Department Volume % Growth vs YA (Vietnam Total 6 cities Enh)
10

11. Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Beverage is driving the growth of total FMCG. Note that Household care
enjoyed healthy growth rate while Food experienced the opposite.
CATEGORIES TRACKED BY ACNIELSEN - MAT TY
MAT LY - Value % Share | Period Ending AUG13 | Share of Sum(PROD)
CATEGORIES TRACKED BY NIELSEN
VALUE % CONTRIBUTION - 6 CITIES (TT+MT Partial) Enh
September 2012
September 2013
MAT LY
Value % Volume % Average Price %
Chg YA
Chg YA
Chg YA
FMCG Incl Beer
Personal Care
Household Care
Milk Based Product
Food(Excl Milk Base)
Beverage (Inc. Beer)
Cigarette
24.8
22.0
20.6
24.5
18.8
30.6
19.2
14.1
6.2
4.3
12.7
4.9
17.4
8.5
9.3
14.9
15.6
10.5
13.3
11.3
9.9
MAT TY
FMCG Incl Beer
Personal Care
Household Care
Milk Based Product
Food(Excl Milk Base)
Beverage (Inc. Beer)
Cigarette
Value %
Chg YA
11.0
15.7
14.8
13.9
4.9
12.9
5.9
Volume % Average Price %
Chg YA
Chg YA
8.9
2.0
4.5
10.7
10.9
3.5
12.2
2.9
9.5
2.5
1.5
1.9
3.1
3.4
Source: Nielsen Vietnam FMCG Overview September’13
11

12. Copyright ©2012 The Nielsen Company. Confidential and proprietary.
CATEGORIES TRACKED BY ACNIELSEN - MAT TY
Beverage is also driving FMCG growth in short-term
YTD LY - Value % Share | Period Ending AUG13 | Share of Sum(PROD)
CATEGORIES TRACKED BY NIELSEN
VALUE % CONTRIBUTION - 6 CITIES (TT+MT Partial) Enh
YTD September 12
YTD September 13
YTD LY
YTD TY
Value % Chg Volume % Average Price %
Chg YA
YA
Chg YA
FMCG Incl Beer
Personal Care
Household Care
Milk Based Product
Food(Excl Milk
Base)
Beverage (Inc. Beer)
Cigarette
25.9
21.1
22.7
26.3
16.9
33.4
19.3
17.6
6.2
7.3
19.4
7.8
20.7
9.3
7.0
14.0
14.4
5.8
8.5
10.5
9.2
Value % Chg
YA
FMCG Incl Beer
Personal Care
Household Care
Milk Based Product
Food(Excl Milk
Base)
Beverage (Inc.
Beer)
Cigarette
7.5
14.7
12.1
9.2
3.2
8.0
3.8
Source: Nielsen Vietnam FMCG Overview September’13
Volume % Average Price %
Chg YA
Chg YA
5.3
3.7
10.1
6.3
1.5
5.6
0.8
2.0
10.5
1.9
2.7
1.7
2.3
3.0
12

13. MARKET OUTLOOK
FMCG OVERVIEW
RETAIL HIGHLIGHTS
RETAILER INSIDE

14. Copyright ©2012 The Nielsen Company. Confidential and proprietary.
• Convenient stores and mini marts have managed to
maintain their blistering peace while in the current
economic stagnation supermarkets and hypermarkets
are losing steam.
• According to the survey conducted in HCMC, Hanoi,
Danang and Can Tho shows that the growth rate of
convenience stores and mini marts was 80% year-onyear.
• HCMC now has a total of some 500 convenience
stores, including food stores and 24/7 stores. This
figure is projected to rise rapidly in the near future
since existing retailers all are poised for business
expansion.
14

15. Copyright ©2012 The Nielsen Company. Confidential and proprietary.
• Supermarket chain Saigon Co.op has won the
award for excellent in customer service from
the Federation of Asia-Pacific Retailers
Association.
• This award is meant to honor companies,
association, and individuals for outstanding
achievements in the retail industry in five
categories - most innovative retail concept,
green retailer, best marketing campaign,
customer service excellence, and best effort
in retail employee training.
“Exhibition fair honoring Vietnamese goods:
Bring Vietnamese products was organized
by the Departments of Industry and Trade
and Culture, Tourism and Sports at Phu Tho
Indoor Stadium, Ho Chi Minh City from
August 30 to September 3, 2013”.
15

16. Copyright ©2012 The Nielsen Company. Confidential and proprietary.
• Metro has increased sales areas to
8,200m2, bringing the total number
of items to more than 25,000
products. On this occasion, in
conjunction with Metro
Manufactures and suppliers, Metro
organized “ The biggest money
saving shopping month” with huge
discounts from 5-49% which lasted
until 25th September.
• On November 1st, 2013
the 4th Ocean Mart store
will be open at F.B1,
N05, Trung Hoa Nhan
Chinh Appartment. To
welcome the launch of
the 4th Ocean Mart,
“Loyalty Membership” is
offered for Customer as
a special gift.
16

17. Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Coop Mart issued
co-branded card
&
• In 2nd August, Dong A Bank and Coop mart established co-brand DongABank-CoopMart
card with full financial functions of domestic debit card and other utilities.
• DongA Bank provides banking and financial services for the entire Coop Mart
supermarkets, such as payment services, bank accounts, budgeting, collection,
remittance, payment, ...
17

18. Copyright ©2012 The Nielsen Company. Confidential and proprietary.
• 07/2013: Opening 3 Circle K Stores in
District 1, HCMC
• 20/08/2013: Opening
Supermarket and Trade Center
Big C Da Lat
• 28/09/2013: Opening the
26th Satrafoods in District
8, HCMC
Source: Nielsen Store Opening Tracking September 13
18

19. Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Retailers are racing in opening new stores in Q3 2013. Averagely, 8 stores
are opened per month within this quarter
Coopmart Extra Plus
S-Mart
Hiway
Giant
Satramart
Lottemart
Maximart
Intimex
Fivimart
Metro
Citimart
Hapromart
BigC
Vinatemart
Coopmart
1 Supermarket
1
2
1
3
4
5
13
16
19
19
20
25
31
64
Updated to 31/06/2013
Health & Beauty Store
Q3 2013:
8+
12
Medicare
18
Guardian
stores opening
each month.
Minimart
C-Express
New Chợ
Vinatexmart
B&B
Citimart B&B
Select Mart
Satrafoods
Haprofood
Focomart
Co.opFood
Vissan
5
5
6
7
8
Convenience
Store
Family Mart
Ministop
Hapromart
19
23
B's mart
44
57
Circle K
86
Source: Nielsen Store Opening Tracking June 13
Shop&Go
6
17
25
50
56
81
19

20. MARKET OUTLOOK
FMCG OVERVIEW
RETAIL HIGHLIGHTS
RETAILER INSIDE

21. Copyright ©2012 The Nielsen Company. Confidential and proprietary.
PROMOTION ACTIVITIES
02/07 –
15/07
“Happy 3rd Birthday”– Discount from 5% to 50% for
1,000 products and give out many gifts.
07/07 –
22/07
“BigC involves your children’s future”– discount from
5% to 50% on over 1,700 products.
01/08 –
31/01/14
“Incentive installment with 0% interest in 6 months”
– for electronic products cost above 4 million VND
with Visa Card of only ANZ, Sacombank or Vietinbank.
06/09 –
19/09
13/8 – 02/09
08/10– 04/11
14/10 –
16/10
“Happy Moon Festival” – Discount from 5% to 45%
on over 1,000 products.
“National day”- Discount from 5% to 50% on over
1,5000 products and several valuable gifts .
“The Beauty’s photo contest” – win big prizes (VND
50,000,000; 20,000,000; 10,000,000; etc…)
“The surprising beginning of the week”– accumulate
10% in your account for any products (applied for
Monday to Wednesday every week)
21

22. Copyright ©2012 The Nielsen Company. Confidential and proprietary.
PROMOTION ACTIVITIES
18/07 –
04/08
10/08 –
27/08
“Coop Mart offers school year promotion” –
Discount up to 47 percent on more than 800
good items with 800,000 notebooks.
“Best selling brand” – special gifts and Voucher
30,000VND for each receipt with value of
400,000VND: Omo, Comfort, Vim, Sunlight, P/S,
Pond’s, Clear, Knorr and Lipton.
28/08 –
24/09
“Proud of Vietnamese product”– Discount 50% on
more than 2,000 essential products
30/09 –
27/10
“Happy Women’s day“ – Discount 50% on
consumer goods and garments for women and
utensils and a “buy one get one free” deal.
22

23. Copyright ©2012 The Nielsen Company. Confidential and proprietary.
•
•
•
•
•
•
•
•
•
•
•
05/08 – 05/09: “Go fresh, Go green” – Get 1 eco bag for each receipt
with value of 300,000VND and above if payment by Visa.
16/08 – 12/09: “Happy Moon Cake Festival – Get cake with cheap price”
– Buy ABC Moon Cake, get 30% discount.
01/09 – 31/12: Get 1 Gift Voucher with value of 100,000VND for a
receipt with value of 100,000VND and above.
28/07 – 03/08: Get 1 Jambon Choix 100gr free for each receipt with
value of 100,000VND and above.
04/08 – 10/08: Get 2 Vissan products free for each receipt with value of
200,000VND and above.
11/08 – 31/08: Get many Vissan products free for each receipt with
value of 300,000VND and above.
21/08 – 22/09: “Fruits in Gold Time” – discount from 20% - 49% for fruit.
01/09 – 15/09: discount from 10%-50% for 60 products.
01/09 – 31/09: “Get a lucky number” – for every purchase of more than
500,000VND.
18/09: : “Happy Moon festival with children” – gifts for poor children.
27/09: “ Happy Birthday SATRA” - free Satra Bakery per purchase of >=
300,000VND.
23

24. … to be updated next quarter