Tns consumer confident tet spending 2015

Vietnam Consumer Trends 2015
© TNS February 2015

Above VND 20mil
VND 13.5mil – VND 20mil
VND 8.5mil – VND 13.5mil
VND 3mil – VND 5.5mil
Below VND 3mil
2011 2014
Income: Increasing income levels
Source: TNS VietCycle report
Monthly Household
income
4

GDP: From Slowdown to Stability
3
GDP Growth rate and GDP Per Capita (US $)
Source: GSO Vietnam and World Bank
7.8
8.4 8.2
8.5
6.2
5.3
6.8
5.9
5.3 5.4
5.98
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
1,9111,2321,165 1,334 1,543 1,755607 699 797 919 2,028

59
35
45 41
30 26
17
35
24
29
32 38
38
30
37
46
16
36
22 21
32
44 46
18
2008 2009 2010 2011 2012 2013 2014 2015
Positive Neutral Negative
89
64
78 79
68
56
51
82
Consumer Confidence: Rebound
5
Ave. Petrol
VND/ liter
Negative sentiment going down – things can’t get worse
Source: TNS Consumer Confidence – HCMC + HN
15,125 14,004 16,364 19,450 22,333 23,678 23,264 17,040

Employment: Reduced uncertainty
68
63
56
65
20
32
24
23
12
5
20
12
2012
2013
2014
2015
Present job is safe Chance of unemployment Don't knowNot sure

Saving: Optimism fuelling consumer spend
55
32
19
16
18
26
14
29
14
23
20
37
13
18
45
18
2011
Mid 2012
2014
2015
Up to 5% 5% - 10% 10% - 20% More than 20%

3
4
4
4
4
20
6
10
2
2
8
41
53
58
59
63
49
64
71
79
79
74
56
42
38
37
33
30
29
20
19
18
17
Education
Health care products / services
Food & beverages products
Household utilities
Communications
Entertainment & dining out
Transportation
Personal devices
Household care products
Personal care products
Home appliances
%
Less The Same More
Education, health care and household necessities show a growth
in spending. Entertainment and dining out top of consumers’ cut-
off list
7
Consumer planned spending in 2015:
+/- ‘more’ trend
vs. 2014
+8
+7
+7
+13
+4
+18
+8
-
-11
-3
-

New brands New experiences
8
0
50
100
150
200
250
300
2Y 1Y 6M 3M 1M Now
Retail & Service Turnover
(VND, tril)

Consumers are Shopping
Average monthly shopping frequency
11
SOURCE: TNS VietCycle 2014 – Urban only
21
times
14
times
1.9
times
Wet markets Street Shops
Hyper/super
market
Convenient
stores
Minimarkets Shopping
centers
1.9
times
1.5
times
0.3
times
Department
stores
0.3
times

Vietnam Digital Trends

eCommerce – Vietnam ahead of India, Indonesia and Thailand
Incidence of eCommerce (%), including COD
Access
Trust
Experience
Price / choice
91
SOURCE: TNS Connected Life 2014
22
45
59
78
Kenya
Ghana
India
Egypt
Nigeria
Indonesia
Turkey
Thailand
Argentina
Vietnam
Brazil
SouthAfrica
Colombia
Portugal
Hungary
Greece
Philippines
Mexico
Malaysia
HongKong
China
Canada
France
Taiwan
USA
UAE
SaudiArabia
Spain
Italy
Japan
NewZealand
Belgium
Sweden
Singapore
Russia
Austria
CzechRepublic
Finland
Denmark
Slovakia
Israel
Germany
Australia
Poland
SouthKorea
UK
Switzerland
Netherlands
Norway

Online Purchase: Clothing and fashion accessories on top of online
items purchased in P3M
12
81
19
No Yes
Past 3 months online
purchase (including CoD):
85%
Clothing
27% 9% 9%
Fashion
accessories
Home
appliances
Personal
grooming/ cosmetics
products
6%
Food /
online delivery
4% 2% 2%
Voucher at
restaurant / cafe
Personal
devices
Others
Online items purchased

We have smartphones – do you have an app for me ?
71
76
85
80
76 74
62
56
Global Emerging
Asia
Singapore Thailand Malaysia Indonesia Vietnam Philippines

Digital
14
66%
Urban
62%
12%
Internet penetration
Device ownership
52%
43%37%
Feature
Phone
(National)
Smartphone Tablet
LaptopDesktop

Relatively high online Video viewership: catching up on what we
have missed all these years
46
Traditional TV and Online video usage
A1. Frequency of media consumption | C1. Frequency of activities | D2. Total time spent on media
Base: Global- typical day(40,157) | Vietnam- typical day(645)
Note: Classification of TV and online video consumption determined by frequency and volume of TV watching, and frequency of online videos.
TV hours and video frequency on axis represent the lowest and highest points for each metric. See definitions page for details.
Heavy online videos, Heavy TVHeavy online videos, Light TVLight online videos, Heavy TVLight online videos, Light TV
Online video consumption
TV consumption
Argentina
AustraliaAustria
Brazil
Canada
China
Colombia
Denmark
Egypt
France
Germany
Ghana
Greece
Hong Kong
India
Indonesia
Israel
Italy
Kenya Malaysia
Mexico
Netherlands
New
Zealand
Nigeria
Norway
Philippines
Poland
Portugal Russia
Saudi Arabia
Singapore
South Africa
South Korea
Spain
Sweden
Switzerland Taiwan
Thailand
Turkey
UAE
UK
USA
Vietnam
TV consumption
Heavy online videos
Max. 8.8 times a week
Light online videos
Min. 2.6 times a week
Heavy TV
Max. 3.0 hrs daily
Light TV
Min. 0.8 hrs daily

While we love our TV, our online habits are similar to the rest of
the world
Overall media consumption
A1. Frequency of media consumption| C1. Frequency of digital activities
Base: Global (54,775) | Vietnam (980)
38
7
10
75
15
15
35
46
22
16
34
21
9
11
87
13
14
23
60
12
11
12
6
Global Vietnam
Video/TV
Paid online video/TV
Free online video/TV
Watch TV programmes on a TV
Watch online live broadcast video
Watch online non-live broadcast video
Newspaper
Read printed newspaper
Read online news, sport or weather
Magazines
Read printed magazine
Read online blogs or forums
Radio
Listen to radio programmes on a radio
Listen to online radio/music streaming

We love online News, Social Networks & Gaming
52
28
6
13
14
10
9
24
21
15
15
9
7
60
4
1
46
8
6
42
16
12
6
Global Vietnam
%
C1. Frequency of activities
Base: Global (54,775) | Vietnam (980)
55
11
9
3
Information seeking
Reading news, sports or weather
Visit e-learning or education site
Access info from local government
Entertainment
Play games via a mobile/tablet
Stream music/radio online
Watch live video online
Watch recorded/on-demand video online
Play games on website/console
Watch paid TV/movie online
Social
Accessing social networks
Visit blogs/forums
Upload photos, video or music online
Write my own blog

TV compliments Lunch/ Dinner, online Videos all other time
45
0
25
50
75
100
In bed
when I
wake up
Early
morning
Late
morning
During
lunch
Early
afternoon
Late
afternoon
Early
evening
During
dinner
Late
evening
In bed
before I go
to sleep
Watch TV programme on a TV Watch videos/TV shows or movies on a device
How traditional TV and online videos are consumed throughout the day
D3. Device/media usage by daypart | D4. Activities by daypart
Base: Vietnam- typical day (648)
Reach %

Affinity for TV advertising decreasing continuously
19
SOURCE: TNS Vietcycle Report 2014
45
40
33
32
24
The products advertised the most on TV are always the best product
to buy
2001 2004 2008 2011 2014
Top-2-box agreement (%):

What catches the consumer attention

Authenticity matters
Yes!
“I need to know the
companies where the
products or services are
from so I have confidence to
use them”
GUARANTEE
QUALITY / SAFETY
Authenticity will become paramount for brands as they look to regain credibility
and trust. Consumers have lost a great deal of faith in brands; they are
searching for truths and clamouring for transparency.

Mobile device as the everything hub
Absolutely!
DEVELOP YOUTH
APPLICATIONS FOR
YOUR BUSINESS
As the availability of
wireless broadband
expands & the cost of
advanced mobile
phones drop, the
mobile device will
become the preferred
hub for digital activity

Distraction is clutter breaking
YES, IT’S THE NEW TREND
ESPECIALLY FOR YOUTH!
JUMP ON BOARD!
DEVELOP
ENTERTAINMENT
WEBSITE / LINKS
Understanding people do more than one thing at a time, content creators are
turning what could be a negative (distraction) into a positive (immersive)
experience. By layering a multitude of media into entertainment, they are
creating content designed for simultaneous consumption and engagement

Tet Spending 2015

2015: Relatively higher willingness to spend
25
13 46 41 12015
17 38 37 82014
Less The same More Don't know
Consumer’s overall intention to spend more or less in 2015:

Households across HCMC and Hanoi intending to spend around
VND10mn over the Tet period
26
VND 9,661,623
VND 11,286,087
VND 13,934,133 VND 14,159,465
HCM City Hanoi
Intended Tet spending
Average monthly household income
Intended spend
for Tet
Intended amount to be spent during Tet per urban household:
VND 9,918,276

3
24
37
17
12
55
13
20
30
21
11
Above VND 20mil
VND 13.5mil – VND 20mil
VND 3mil – VND 5.5mil
Below VND 3mil
Monthly Household
Income 2014
Household
Tet spending
Approximately 1 month of income is spent on Tet
Income / Spend Range
4

The majority of the household Tet spend will go to the household,
however a significant portion of Tet spending – around USD300 –
will go to gifts for others
28
31
Percentage of overall Tet
spending that households
will use for gifting others,
including food, drink and
lucky money
69
Percentage of overall Tet
spending that households
will use to buy things for
their for their own
personal and household
consumption
Intended amount to be spent during Tet per urban household:

Food & beverage will account largely for household spending,
followed by clothing & accessories, during Tet. Food & beverage
are also the biggest contributor in gifts spending. Lucky money to
contribute around 10% - ~VND1mn - of total household Tet
spending
29
29
10
9
7
3
18
9
6
3
15
7
6
2
5
4
1
2
Food & Beverage
Food
Beer
Non-alcoholic beverages
Spirits/ liquor
Clothing & accessories
Clothing
Fashion accessories
Personal grooming
Home
Home improvement
Home appliances
Transport
Transportation to hometown
Travelling for pleasure
Other
15
4
3
2
6
10
6
Food & Beverage
Food
Spirits/ liquor
Beer
Lucky money
Support family for
celebrations
Breakdown of household Tet spending %: Breakdown of Tet gifting spending:
69%
Household
spend
31%
Tet Gifting
VND 9.9 million

Overall, households will spend the same or more across all
categories
30
Spending comparison with last year’s Tet by each category %:
8
8
7
12
10
21
13
19
14
11
11
13
58
69
76
75
53
55
62
50
58
45
40
66
33
22
17
13
37
24
25
31
28
44
49
21
Food
Spirits/ liquor
Beer
Clothing
Fashion accessories
Personal grooming
Home improvement
Home appliances
Transportation fare to hometown
Travelling for pleasure
Lower The Same Higher

The majority of consumers planning to spend the duration of their
Tet holiday at home with family
31
How consumers plan on spending their Tet holiday %:
85
7
7 0
I'll stay in my hometown and stay there with
family for the duration of the Tet holiday.
I'll stay in my hometown for a couple of days then
go travelling somewhere in Vietnam for pleasure.
Due to economic difficulties, this year I will not go
back to my hometown.
I'll stay in my hometown for a couple of days then
go travelling somewhere overseas for pleasure.

Summary
32
1. Consumer Confidence - New level of optimism owing to stability, less uncertainty, lower fuel prices.
2. FMCG – last year has been challenging, with lots of brands competing for stagnant category volume.
2015 will be about winning the battle at the last mile and winning shoppers at the point of sale.
Strong local brands should consider ASEAN potential.
3. Consumer Spending – with growing incomes and consumer confidence, savings are coming down
and discretionary spending on Food & Entertainment, OTC, Education growing up
4. Digitally savvy – high acceptance of e-commerce and COD, fast emerging as an emerging channel in
HCMC & Hanoi for Fashion, Technology and value deals.
5. Tet spending is likely to be flat for most categories. Increased spending on Clothes, Food &
Beverages, Home appliances and Travel.

Thank you
Questions?
Ashish.Kanchan@tnsglobal.com
33
Ashish Kanchan
Managing Director
TNS Vietnam

Tns consumer confident tet spending 2015

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Tns consumer confident tet spending 2015