2012 vietnam pocket book final (small size)

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2012 vietnam pocket book final (small size)

  1. 1. an uncommonsense of theconsumer.Understand what peoplewatch, what they buy – andhow they see you online.We measure over half of allglobal advertising. ProvideTV ratings for 30 countriesaround the world. Track 80percent of all internet usage.Scan billions of purchasesevery year.
  2. 2. Vietnam Pocket Reference Guide 2012 Nielsen
  3. 3. Industries We Serve Nielsen helps more than 20,000 clients worldwide see viewers as consumers of brands and products, and shoppers as viewers of media and promotions We understand the relationship between exposure to advertising and purchase decisions at the point of sale. Our integrated solutions solve a range of business issues and are fueled by our innovative research and measurement tools.Nielsen Vietnam Tracked Categories
  4. 4. TABLE OF CONTENTS 01 08 14 19 29 37 41 54 55 60 67 72 81 Vietnam Pocket Reference Guide 2012 Nielsen
  5. 5. Thank you all for your support of Nielsen Vietnam. As you have surely recognized, the Vietnam business landscape is changing more quickly than ever. Over the past few years, we have gone from an environment of very strong growth driven by a growing middle class and substantial inflows of FDI, to one of moderated and uneven growth, a more cautious and discerning consumer, and more competition regardless of the industry. In addition, we are now also facing much macro economicuncertainty around inflation expectations, the financial system, andinvestment from overseas, which makes decision making even more difficult.As a way to help navigate this uncertainty and to gain a better understanding thofthe markets in which you operate, we are pleased to offer the 7 edition ofthe Nielsen Vietnam Pocket Reference Book. This year the Pocketbook will beread by more business people and academics than ever as they attempt tobetter understand the Vietnam business climate and consumer behavior,which is changing very quickly as consumers adapt their purchase decisionsin a much more uncertain environment.This pocketbook is a compilation of Nielsen findings over the past year, andour hope is that it helps you identify trends in Vietnam and also serves as afirst-stop reference when you have questions about the market and yourspecific area of interest. To create a comprehensive view, we have includedour own proprietary research as well as figures from the Vietnam Govern-ment Statistics Office. I trust you will find the Nielsen Pocket Reference Bookuseful for your business.Sincerely,Darin WilliamsManaging Director
  6. 6. know whenyou’re goodto go.We know that refreshing yourproduct portfolio is vital toattracting new and existingcustomers. Whether it’s anew idea or a new twist on acurrent favorite, our ProductInnovation and Renovationpractice can help you preparefor a perfect launch.
  7. 7. NIELSEN INSIGHTS – AT A GLANCE 01Vietnam Pocket Reference Guide 2012 Nielsen
  8. 8. 02 NIELSEN INSIGHTS – AT A GLANCE 2007 – 2011 Consumer Confidence Index: Vietnam Global Country Consumer Confidence Rankings Global confidence upped 1 point to 89 for Q4 2011 to wrap up 2011 Q4’11 vs.Q3’11 Decrease160140 Increase 122 117 117120 113 112 108 105 104 103 101 99 99 98 96 95100 95 94 92 92 90 80 60 40 20 0 Base : All respondents n=31228
  9. 9. NIELSEN INSIGHTS – AT A GLANCE 03 Perceptions of local job prospects over the NEXT 12 Months 2 5 4 1 6 1 12 12 10 8 6 5 4 4 11 20 14 12 38 33 37 41 53 47 52 45 54 54 60 60 54 58 64 49 45 50 38 50 30 32 30 37 39 26 24 19 25 18 7 9 11 2 1 1 4 2 3 1 5 5 IN ID PH CN MY TH VN AU HK SG NZ TW KO JP AP Base : All respondents n=10179 Bad Not so good Good Excellent Perceptions of local job prospects in Vietnam | 2011 6 3 5 5 54 54 53 52 34 35 38 37 3 1 1 1 VN Q111 VN Q211 VN Q311 VN Q411Base : All respondents n=506 Bad Not so good Good Excellent Vietnam Pocket Reference Guide 2012 Nielsen
  10. 10. 04 NIELSEN INSIGHTS – AT A GLANCE Perceptions of state of personal finances over the NEXT 12 Months 4 4 6 4 5 2 10 6 8 3 9 17 18 13 1 20 11 29 47 45 55 53 48 55 53 49 59 48 58 51 65 63 52 39 43 34 36 41 30 31 32 36 25 20 27 13 15 12 8 2 4 4 4 5 3 2 6 4 1 1 ID PH IN CN MY TH AU HK VN NZ SG TW KO JP AP Base : All respondents n=10179 Bad Not so good Good Excellent Perceptions of state of personal finances in Vietnam | 2011 4 4 2 6 52 52 51 48 38 39 41 41 3 3 2 2 VN Q111 VN Q211 VN Q311 VN Q411 Base : All respondents n=506 Bad Not so good Good Excellent
  11. 11. NIELSEN INSIGHTS – AT A GLANCE 05 Perceptions of Good / Bad time for people to buy the things they want and need over the NEXT 12 Months 4 3 3 2 2 2 3 2 6 3 3 112 9 4 28 25 2 20 33 33 31 31 38 30 19 47 46 40 3943 59 56 45 46 53 63 56 55 50 50 39 4638 44 50 16 20 16 9 12 13 126 4 6 7 7 8 8IN AU HK PH ID NZ TH CN SG MY VN JP TW KO AP Base : All respondents n=10179 Good Not so good Bad Excellent Perceptions of Good / Bad time for people to buy the things they want and need in Vietnam 2 2 1 2 24 21 27 25 62 64 61 63 10 10 10 8 VN Q111 VN Q211 VN Q311 VN Q411Base : All respondents n=506 Bad Not so good Good Excellent Vietnam Pocket Reference Guide 2012 Nielsen
  12. 12. 06 NIELSEN INSIGHTS – AT A GLANCE Do you think your country is in an economic recession at the moment? 14 17 21 27 30 34 41 45 49 47 52 55 59 70 71 86 83 79 73 70 66 59 55 51 53 48 45 41 30 29 KO JP TW TH NZ VN PH ID IN HK MY CN AU SG AP Base : All respondents n=7044 Yes No Do you think your country will be out of an economic recession in the next 12 months? 25 24 30 25 24 28 31 29 32 35 33 36 39 43 42 25 27 35 35 45 43 47 37 44 52 58 61 66 32 42 50 49 34 29 26 26 25 25 24 22 16 16 13 13 10 TH IN VN PH CN MY ID HK SG NZ TW AU KO JP AP Base: n=4131 Yes No Dont Know
  13. 13. NIELSEN INSIGHTS – AT A GLANCE 07 Compared to this time last year, have you changed your spending to save on household expenses?15 15 15 16 23 24 29 30 30 31 32 39 42 42 4685 85 85 84 77 76 71 70 70 69 68 61 58 58 54MY PH TH VN ID IN JP KO NZ TW CN AU SG HK AP Base : All respondents n=7044 Yes No Vietnam Pocket Reference Guide 2012 Nielsen
  14. 14. 08 NIELSEN INSIGHTS - AT A GLANCE Nielsen Business Barometer Survey – Wave 6The Nielsen Business Barometer is an online survey designed to gauge Vietnam’sbusiness leaders’ sentiment. Topics include advertising spend, growth forecasts andamong other current hot topics. The online survey is conducted twice-yearly andcovers companies from various industries throughout Vietnam. The first wave isconducted April/May and the second wave is conducted September/October. Executive Insights Keep a close eye on • Control costs of production inflation & plan ahead • Choose low cost materials and supplies for any price increase • Understand price elasticity of your categories to to be passed on to minimize risks of price increases. Well-planned consumers moves increase your chance of winning • Drive growth through mergers and Discover new acquisitions, entering new Categories and also platforms of growth from exports to overseas market • Rural market remains a promising territory to be explored • Understand and respond to consumers’ search for value for money Continue engaging • Explore new communication platforms such as with consumers Online and Mobile advertising. • Engage with shoppers at point-of-sale is important
  15. 15. NIELSEN INSIGHTS - AT A GLANCE 09 Inflation and VND devaluation are top concerns of business leaders 2011 1st half 2011 2nd half 1) Inflation (68%) 1) Inflation (59%) 2) VND devaluation (68%) 2) Competitive pressure/ activity/ growth (41%) 3) Ability to pass on 3) VND devaluation (41%) price increase (50%) 4) Competitive pressure/ 4) Global Economic activity/ growth (32%) Crisis (24%) 5) Low GDP growth (14%) 5) Wages growth (24%) 6) Ability to pass on 6) Logistical challenges (10%) price increase (18%) 7) Labor force 7) Petrol Prices (9%) skill shortage (18%) 8) Wage growth (9%) 8) Low GDP growth (18%) Industry leaders expect consumers to reduce purchase of non-essentials and buy more on promotion. 2011 1st half 2011 2nd half Not buy some non- Purchase more on promotion 64 71 essentials Purchase more on 53 Not buy some non-essentials 50 promotion Trade down to cheaper products 41Trade down to cheaper products 41 Buy bigger packs to save 35 moneyBuy bigger packs to save money 41 Change channel to save 29 money Purchase more local/ 32 Purchase more local/ Vietnamese brands 24 Vietnamese brands Buy less / smaller packs of the 32 Buy less / smaller packs of same products 18 the same productsChange channel to save money 27 Trade up to more 12 premium/indulgent products Base: Respondents in Auto, FMCG, Telco, Travel, Pharma Vietnam Pocket Reference Guide 2012 Nielsen
  16. 16. 10 NIELSEN INSIGHTS - AT A GLANCE Business performance compared to overall target100% 6 14 Significantly better 23 28 18 80% 17 Somewhat better 23 17 60% 31 On par with target 58 40% 32 40 Somewhat worse than target 20% 38 17 Significantly worse 12 18 than target 7 0% 2 2010 1st half 2010 2nd half 2011 1st half 2011 2nd half Base: n= 58 Business Conditions in Vietnam (Now vs. Year Ago)100% 2 5 8 6 Improved significantly 14 80% 30 19 Improved somewhat 40 54 60% Remained the same 40% 57 Deteriorated 38 61 somewhat 30 20% Deteriorated significantly 9 12 9 0% 2 2 3 2010 1st half 2010 2nd half 2011 1st half 2011 2nd half Base: n= 58
  17. 17. NIELSEN INSIGHTS - AT A GLANCE 11 More than half of business leaders claimed to face a double digit growth in input prices, with one out of five showing 20% or greater increases. Change in input prices100% 3 30% and higher than 5 12 16 25 - less than 30%80% 6 20 - less than 25% 12 12 15 - less than 20%60% 24 10 - less than 15% 30 5 - less than 10%40% 16 Less than 0% (negative) 24 3 1 - less than 5% (2.50) 520% 10 No change 3 6 9 0% 3 Dont know/ No answer 2011 1st half 2011 2nd half Base: Respondents in Auto, FMCG, Telco, Travel,Pharma More companies are looking at alternatives to raising prices due the input cost inflation, e.g. looking at using low cost material Solutions for input price increases 2011 1st half 2011 2nd half Increase product price to a reasonable amount 87 68 Improve productivity to 53 52 lower production costs Accept lower profits 33 36 Choose lower cost 13 22 materials and supplies Reduce production 10 2 Others 7 4 Base: Respondents in Auto, FMCG, Telco, Travel, Pharma Vietnam Pocket Reference Guide 2012 Nielsen
  18. 18. 12 NIELSEN INSIGHTS - AT A GLANCE Out look is still optimistic for 2012 overall, but more companies think their situation will deteriorate than in previous years. Expectations on business conditions100% 5 2 7 Improve significantly 30 29 80% 38 58 Improve somewhat 60% 36 48 Remain the same 40% 43 25 Deteriorate somewhat 20% 28 9 21 10 Deteriorate significantly 0% 4 2 5 2010 1st half 2010 2nd half 2011 1st half 2011 2nd half Base: ALL RESPONDENTS Around two-thirds of leaders expect a double-digit growth in next 12 months. Compared to last wave, more companies expect single-digit growth Expected company growth rate100% 4 2 2 Dont know 24 26 30 80% 31 25%+ 18 14 20% - less than 25% 60% 11 20 10 15% - less than 20% 23 24 40% 17 28 10% - less than 15% 12 16 20% 21 5% - less than 10% 12 14 7 3 16 Less than 5% 5 2 6 0% 2010 1st half 2010 2nd half 2011 1st half 2011 2nd half Base: ALL RESPONDENTS
  19. 19. NIELSEN INSIGHTS - AT A GLANCE 13 While increasing consumption and expansion still remain source for growth, business leaders now talk about M&A and Exports too Expected 3 key factors of company growth 2011 1st half 2011 2nd half Increased consumer demand in Increased consumer demand inyour existing categories/ industry 76 79 your existing categories/ industry Expansion to secondary cities/ Expansion to secondary cities/ rural areas 72 52 rural areas Expansion to modern trade Expansion to new categories/ 45 50 channel industries Expansion to new categories/ 43 Increase marketing expenses 36 industries 31 Mergers and acquisitions 23 Increase marketing expensesImproved business conditions in Expansion to modern trade 14 channel 21 Vietnam overallImproved business conditions in 12 Increase exports to 21 your industry overall overseas markets Base: ALL RESPONDENTS Vietnam Pocket Reference Guide 2012 Nielsen
  20. 20. 14 NIELSEN INSIGHTS - AT A GLANCE Personal Finance MonitorThis syndicated study looks at consumer behavior towards personal finance, such ascurrent satisfaction with banks, attitudes towards credit card and lending internetbanking usage and more. The study is conducted monthly (n=600) in HCMC and Hanoi.This study utilizes random sampling and face to face surveying. Results from this wavewere conducted in June 2011 Security and child’s future are the top priorities. Flexibility and immediate access helps to push people towards home saving. Monthly Average Saving Amount – Mean score Why do I save? Total 1,276,675 VND HCM 1,373,180 VND Benefits of home saving Hanoi 992,834 VND Why do I choose to save at banks? Save for security 1st 31% Save for childs More flexible 2nd 1st education 25% access 23% - Earn interest Save for future Money always - Convenient for 3rd 2nd 1st doing business 8% available 14% Sources: Nielsen Vietnam PFM
  21. 21. NIELSEN INSIGHTS - AT A GLANCE 15 Banking Products – Awareness, Usage & IntentionStrong intention is not currently being converted into actual usage, with usage levels seemingly affected by therecent confidence levels. Currently Aware using Future intention Transactional account 100 32 32 ATM/ debit card 100 31 38 Deposit/ saving account 100 12 36 Bank loan services 100 2 7 Foreign exchange service 87 1 11Domestic money transfer/payment 88 4 21 International money transfer 58 0 7 Credit card 42 1 13Transaction account (without card) 33 1 9 Custody service 25 0 2 Other banking services 14 0 6 Base: All Respondents (7200). Credit Cards - Current barriersOver half the market does not fully understand what a credit card is and for those who do there are barriersaround their lack of knowledge about benefits Lack of demand 36% Inconvenience Lack of / Complicated knowledge procedure 19% 18% High fee is applied 7% Base: who aware of credit card but do not currently use (n=1221) Vietnam Pocket Reference Guide 2012 Nielsen
  22. 22. 16 NIELSEN INSIGHTS - AT A GLANCE How to attract new users? Non-bank users Both operational and marketing changes need to be made to address the concerns of the non-banking market. Marketing Issues % Operational Issues 60% 58% 47% Simple and quick No financial/ income Interest rates 33% evidence required procedures prestigious Issued by bank Potential triggers (n=4136) Base on non bank users Key barriers to overcome Lengthy procedures 64% Valued pledged assets required 52% Key Barriers (n=4136) Financial/ income Information required 51% High interest rates 46% (loan) Not qualified for using loan services 21%
  23. 23. NIELSEN INSIGHTS - AT A GLANCE 17 Payroll accounts make over a third of the market, however, only a small fraction of these customers consider this to be their main bank. Does company open Which account do Is this your primary bank account? you use? account? Yes, and I have to use I use it as my bank account opened by main bank my company I choose the bank in which my 12% 35% 58 company opened account for 19% 6% me 59% 68% I choose I use it for Yes, and I have choice to 42 use either my own bank another receiving salary account or account bank and some other I use it for receiving transactions salary only opened by my company Base: Bank users (n=1501) Base: Those who had a Base: Users of bank accounts opened by choice (n=85) companies (n=603) Transactional Channels – New ChannelsWhile awareness still remains a barrier to usage, amongst those who are aware of the channel usage has increasedrapidly in just the past quarter. Q4 2010 Q1 2011 Total HCMC (A) Hanoi (B) Total HCMC (A) Hanoi (B) n=672 n=243 n=429 n=672 n=243 n=429 Awareness Mobile banking 31% 20% 50% 38% 22% 66% Online banking 24% 16% 39% 30% 22% 43% Total HCMC (A) Hanoi (B) Total HCMC (A) Hanoi (B) Usage n=289 n=243 n=429 n=352 n=67 n=285 Mobile banking 2% 0% 4% 17% 23% 13% Online banking 2% 1% 2% 8% 11% 6% Base: Bank users Base: Bank users & aware of channel Vietnam Pocket Reference Guide 2012 Nielsen
  24. 24. 18 NIELSEN INSIGHTS - AT A GLANCE Remote Channel Users – Improvements wantedImproved security measures (or education around these) would greatly ease customer concerns and driveintention into actual usage. Mobile banking Online banking (n=76) (n=61) SAFETY (81%) SAFETY (86%) • I feel secure and safe (51%) • I feel secure and safe (60%) • Popular/ widely used (14%) • High level of security (20%) • Stable system, no technical errors (13%) • Trust-worthy (9%) • High level of security (6%) • Popular/ widely used (6%) • No mistakes occur during transaction (6%) STAFF (26%) • Supported/ recommended by others (5%) • Clear communication by staff (8%) STAFF (17%) • Staff are agile and efficient (5%) • Clear communication by staff (10%) CONVENIENCE (5%) Base: Bank users Rural Market – Is there any money?75% of rural families claim to save every month. Although the actual amounts are around half of that in urbanareas 87% is still kept in the home.How Many Households Save? How Much Per Month? Where Does it go? North: Keep at home: 87% Ha Noi 462,000 VND Buy gold: 7% Central: Savings Account: 6% 377,000 VND Foreign currency: 2% Monthly Average Saving Amount – Mean score South: Buy insurance: 2% HCM 1,373,180 VND 571,000 VND Hanoi 992,834 VND
  25. 25. NIELSEN INSIGHTS - AT A GLANCE 19 Vietnam Grocery ReportNielsen Vietnam introduces the annual update of the Grocery Report which gives anoverview and food for thought on the FMCG industry and covers consumer insights andnew trends on the horizon for Vietnam Consumers are more open to change their shopping behavior in categories with higher prices Do shopping behavior change due to price increase? Carbonated Soft Drink 36 64 Dairy Food Beverages Ready-To-Drink Tea 46 54 Energy Drink 43 57 Instant Coffee 55 45 Instant Noodle 60 40 Cooking Oil 50 50 Liquid Milk (UHT) 74 26 Product Infant Formula 83 17 Unchanged Adult Milk 43 57 Changed Shampoo 68 32 Bar Soap Personal 75 25 Care Facial Cleanser 74 26 Toothpaste 78 22 Toothbrush 85 15 Laundry Product 55 45 Care HH Household Cleaner 60 40 Base: 300 (all respondent) Vietnam Pocket Reference Guide 2012 Nielsen
  26. 26. 20 NIELSEN INSIGHTS - AT A GLANCE Consumers are likely to stay with their brand in several categories, either consuming less or trading off the amount by buying bigger pack sizes Beverages Food Dairy Personal Care HH Care 8 8 7 5 Substitute to other products 8 18 15 12 30 22 26 17 27 Consume less - less expensive 61 brands 40 50 29% 72 59 84 29 Consume less - same brands 38 37 81 72 79 86 78 54 7 Consume less - more expensive 8 16 19 30 31 brands 39 11 28 17 14 10 Same amount - smaller pack size 12 6 Toothpaste Shampoo Toothbrush Facial Cleanser Ready-To-Drink Tea Household Cleaner Instant Coffee Laundry Product Bar Soap Carbonated Soft Drink Infant Formula (*) Energy Drink Instant Noodle Same amount - larger pack size Cooking Oil Liquid Milk (UHT) Adult Milk (*) Same amount - more expensive brands Same amount - cheaper brands Consume more Small base-read with cautions for Infant Formula & Adult Mik Private labels are gaining ground, especially for Food, Paper Products, Household and Personal Care Key Private Label Categories PRICE % Bought P4W % Ever bought (excluding P4W) % Would Consider Frozen and chilled foods 14 Price of private label is 15 – 30% 13 Any paper products lower compared to brands Staple foods 9Private Label Awareness Personal Care 9 Wow (Big C) 29 Household products 11 Coop Mart 21 Canned and package… 9 eBon (Big C) (food… 6 Carbonated Soft Drinks 4 Comi (Metro SPM, milk) 6 Snack & confectionery 4 Casino (Big C) 3 % Awareness Dairy Products 2
  27. 27. NIELSEN INSIGHTS - AT A GLANCE 21 Modern Trade: increasing in number of stores and importance Modern Trade (exclude Metro – Cash & Carry) Store Numbers ACV Contribution500 50% National : 752 → 826 National : 11% → 13%400 40% 2009300 30% 2010200 20%100 10% FMCG of Trade 0 0% Value % Shr Of Trade | Period Ending MAY11 | Share of PSC Shampoo Hanoi HCMC 4 Cities 30 Cities Hanoi HCMC 4 Cities 30 Cities Higher contribution to monthly grocery purchase categories like Food, Household and Personal Care Total Ho Chi Minh + Hanoi; Data ending Apr 2011; MT exclude Saigon Coop Vietnam Pocket Reference Guide 2012 NielsenSource: ACNielsen | Retail Index (<< Viet Nam >> ), data to MAY11
  28. 28. 22 NIELSEN INSIGHTS - AT A GLANCE Store number of Key players updated until March 2012 There is still scope to develop the Modern Trade in Vietnam when benchmarked to other Asian countries 88% 70% 63% 66% 64% HCMC 53% 46% 43% Jakarta Greater Hanoi Vietnam Kuala Lumpur 37% Indonesia Shanghai Malaysia Bangkok Thailand 16% 13% China China Malaysia Thailand Indonesia Vietnam
  29. 29. see your nextmove, clearly.Our Growth and DemandStrategy practice deploysinnovative insights thatenable businesses to focuson where to grow. Helping toidentify vital developmentslike the next wave of demandand the most profitableconsumer.
  30. 30. have themcheck you out.Working with the billionsof annual transactions wemeasure, our Retail andShopper Marketing practiceintegrates all the intelligenceyou need to make consumersnot only stop, but shop.
  31. 31. VIETNAM RETAIL OVERVIEW 25 VIETNAM SHOPPER TRENDS AND RETAIL HIGHLIGHTS Wet markets still important for shoppers; supermarket increases its importance significantly vs. last year.Where do people shop? Supermarkets Wet Markets 2011 2011 Used Past 7Use Past 7 days 62 94 daysUse Past 4 Weeks Used Past 4 90 96 weeksOccasionally Use 97 Occasionally 99 Use Base: All Respondents 2010 (n=1500), 2011 (n=1500) Vietnam Pocket Reference Guide 2012 Nielsen
  32. 32. 26 VIETNAM RETAIL OVERVIEW Consumers are moving from Wet Markets to Supermarkets Average Frequency of Visit per Month 3.2 Supermarkets 2.3 24.2 Wet Markets 25.6 10.9 Traditional Grocery 2011 11.5 2010 Convenience Stores (not 1.8 associated with petrol/gas stations) 2.3 Base: All Respondents (2010 n=1500, 2011 n=1500 ) Supermarket scontinue to attract consumer’s grocery budgets.Where do people spend the majority of their grocery budget? 2009 2011 Supermarkets 43% 51% Hypermarkets 5% 2% Base: All Respondents (2009 n=1500, 2010 n=1500, 2011 n=1500 )
  33. 33. VIETNAM RETAIL OVERVIEW 27 Promotions are the strong influencers for shoppers to change stores and brands.Promotional Sensitivity 4% 6% Say promotions do not influence 9% 15% them on brand choice 21% Only buy promotions if they already 27% like the brand 80% Regularly buy different brands looking at because they are on promotion 56% 38% promotions Very seldom changes stores, but look actively for promotions 10% 14% Changes stores based on best 2010 2011 promotions Base: All Supermarket shoppers (n = ) 1494 Shoppers are becoming more price conscious and they know how to save during their shopping trip.Price Awareness 63% are very price conscious (*): 17% knows all the prices of the grocery items I buy regularly 46% knows the prices of most items and always notice when the price changes 31% doesn’t know all the prices but generally notice when the prices change 6% doesn’t know or notice the prices of items bought regularly *56% really price conscious in 2010 Base: All Supermarket shoppers (n = 1494) Vietnam Pocket Reference Guide 2012 Nielsen
  34. 34. 28 VIETNAM RETAIL OVERVIEW As increasing food price puts pressure on shoppers to cut down their spending on unnecessary thingsResponse to rising food prices Buy only the essentials we Whether Food Prices are need/cut down on luxuries 54 Increasing, Stable or Decreasing Actively look for and buy products on special/discounted prices 42 3 34 Buy less in total 34 Switch to cheaper brands 24 63 Buy in bulk to get lower prices 21 Total Does not affect me 7 Increasing Stable Decreasing Base: All Supermarket shoppers highest Base: All Supermarket shoppers (n=1494) in food prices (n=964) Due to price competitiveness, Store Brands have potential to grow further Store brand product purchasing Reasons for buying store brands Whether buying more Store Less expensive than named Brand Products 51 brands Dont More They offer really good value for 44 know, 2% , 14% moneyNever, 29 % Quality just as good as named 44 brands Quality of store brands is improving 37 Same, 39 Word of mouth. Others have Less, 16 % 23 recommended them % Products I want are only available 16 in store brands Base: All store brand buyers (n = 720)
  35. 35. VIETNAM RETAIL OVERVIEW 29 VIETNAM RETAIL HIGHLIGHTSRETAIL STRUCTURE - OFF PREMISE STORES NUMBER (6 CITIES)Channel No. of 2009 No. of 2010 No. of 2011Modern Trade (SM / MM) 537 642 811Traditional Grocery Store 89584 91515 97221Street Vendor 1595 1782 1840Personal Store 4082 3779 3785Market Stall – Mixed Business 3378 3138 3207Market Stall – HPC 3672 3223 2986(Health & Personal Care)Market Stall – Chap Pho 4581 4650 4527Cosmetic Store 577 1045 1230Beverage Store 7097 8728 9338Dairy Shop 807 778 744Milk /Biscuit/Spirits Store 561 608 538Market Stall – MBS 186 201 212Cigarette Kiosk 8524 7400 7951Soft Drinks / Ice Cream Outlets 3196 3603 3668Pharmacy 9010 10114 11119Liquor Shop 244 323 366Biscuit / Confectionery Store 303 358 491Maternity & Baby Shop 1971 1997 2376TOTAL OFF PREMISE 139,905 143,884 152,410Source: Nielsen Vietnam Census 2011 Vietnam Pocket Reference Guide 2012 Nielsen
  36. 36. 30 VIETNAM RETAIL OVERVIEW NATIONAL FMCG RETAIL MARKET STRUCTURE100% 90% 26.09% 80% 41.31% 70% 9% 60% 5% 10% 50% 4% 40% 30% 60% 20% 44% 10% 0% Stores 2011 FMCG ACV Contribution 2011 Rural 53 cities 30 cities 6 cities Source: Nielsen Vietnam Census 2011 STORE NUMBER (‘000 stores) BY TIERS - OFF - PREMISE VS ON - PREMISE 20111,400 1,2361,2001,000 800 713 741 600 522 472 400 322 269 170 200 141 152 32 105 111 38 39 77 64 77 51 54 30 61 57 54 0 Total 4 cities Total Total Rural 6 cities 53 cities 30 cities Vietnam HCM Hanoi Off Premise On Premise TotalSource: Nielsen Vietnam Census 2011(*) 53 Cities 2010 FMCG contribution is estimated based on FMCG Growth rate in 36 Cities.
  37. 37. VIETNAM RETAIL OVERVIEW 31 OFF - PREMISE STORE NUMBER IN TOTAL URBAN VIETNAM BY TIER 300,000 250,000 241,261 223,554 200,000 227,532 152,410 150,000 139,905 143,884 100,000 53,263 57,104 50,000 30,387 31,747 30,544 53,104 - Total Urban Vietnam 6 cities 53 cities 30 cities 2009 2010 2011Source: Nielsen Vietnam Census 2011(*) 53 Cities 2010 FMCG contribution is estimated based on FMCG Growth rate in 36 Cities. FMCG VALUE CONTRIBUTION BY TIER - TOTAL OFF PREMISE50% 45% 44% 41%40% 39%30%20% 11% 11%10% 4% 4% 0% 6 cities 30 cities 53 cities Rural 2010 2011Source: Nielsen Vietnam Census 2011(*) 53 Cities 2010 FMCG contribution is estimated based on FMCG Growth rate in 36 Cities. Vietnam Pocket Reference Guide 2012 Nielsen
  38. 38. 32 VIETNAM RETAIL OVERVIEW OFF PREMISE STORE NUMBER IN TOTAL 36 CITIES VIETNAM BY STORE TYPE140,000 132,735 125,449120,000100,000 80,000 60,000 40,000 16,884 11,132 10,183 14,018 16,805 7,527 20,000 756 2,688 5,222 1,252 12,587 11,935 15,119 943 2,611 5,186 1,584 994906 883 869 8,234 - 2010 2011Source: Nielsen Vietnam Census 2011 OFF PREMISE 36 CITIES VIETNAM FMCG CONTRIBUTION BY STORE TYPE %60 51.450 48.440 30.530 25.820 5.5 4.2 4.310 1.9 0.4 1.4 5.0 0.7 4.0 1.4 4.1 0.6 2.3 0.4 1.3 0.7 1.1 1.7 0.6 2.2 0 2010 2011Source: Nielsen Vietnam Census 2011
  39. 39. VIETNAM RETAIL OVERVIEW 33 NUMER OF MODERN TRADE STORES1,2001,000 956 819 800 751 642 600 400 200 137 109 0 36 CITIES 30 CITIES 6 CITIES 2010 2011Source: Nielsen Vietnam Census 2011 Modern trade contribution by FMCG DepartmentSource: Nielsen Vietnam Retail Tracking 2011, six cities. Vietnam Pocket Reference Guide 2012 Nielsen
  40. 40. 34 VIETNAM RETAIL OVERVIEW ON PREMISE STORE NUMBER IN TOTAL VIETNAM BY STORE TYPE 600,000 511,693 522,394 500,000 400,000 300,000 270,863 268,547 200,000 170,058 159,861 100,000 51,748 54,042 29,221 29,747 - TOTAL Rural 53 cities 30 cities 6 cities VIETNAM 2010 2011Source: Nielsen Vietnam Census 2011(*) 53 Cities 2010 FMCG contribution is estimated based on FMCG Growth rate in 36 Cities. FMCG VALUE CONTRIBUTION BY TIER TOTAL VIETNAM ON PREMISE50.0% 46% 45.2%45.0% 41% 41.5%40.0%35.0%30.0%25.0%20.0%15.0% 9% 9.2%10.0% 4% 4.1% 5.0% 0.0% 6 cities 30 cities 53 cities Rural 2010 2011Source: Nielsen Vietnam Census 2011(*) 53 Cities 2010 FMCG contribution is estimated based on FMCG Growth rate in 36 Cities.
  41. 41. VIETNAM RETAIL OVERVIEW 35 Top 10 categories in 6 cities 2011 vs. 2010Source: Nielsen Vietnam Retail Tracking 2011, six cities. Vietnam Pocket Reference Guide 2012 Nielsen
  42. 42. 36 VIETNAM RETAIL OVERVIEWNumber of SKUs14,000 11,83712,000 9,93210,000 7,679 8,000 6,307 6,000 4,000 2,666 2,563 1,793 1,597 1,606 2,000 1,142 194 224 417 484 0 Personal Home Care Foods Milk Based Beverage Cigarette Baby Care Care 2010 2011Source: Nielsen Vietnam Retail Tracking 2011, six cities.
  43. 43. know whatthey reallythink.We know the best ways tomix and measure your productportfolio while evaluatingyour brand equity. To helpgrow your brand, we providethe all-important "look aroundthe corner" by identifyingattitudes and behaviorsthat are not yet mainstream
  44. 44. be moresocial.We’ll help you listen andlearn what they really value,and turn up the volume onyour own social businessstrategy – so your brandexperience shows consumersthey’re being heard. Andstart contributing to theconversation.
  45. 45. HOUSEHOLD INCOME CLASSIFICATION 37 HOUSEHOLD INCOME CLASSIFICATIONHousehold Income Band (HIB) Classification System Overview This classification system is based on gross monthly income HIB Household Income Band (VND) A5 150,000,000 or higher A4 75,000,000 - 149,999,999 A3 45,000,000 - 74,999,999 A2 30,000,000 - 44,999,999 A1 15,000,000 - 29,999,999 A 15,000,000 or higher B 7,500,000 - 14,999,999 C 4,500,000 - 7,499,999 D 3,000,000 - 4,499,999 E 1,500,000 - 2,999,999 F 0 - 1,499,999 Vietnam Pocket Reference Guide 2012 Nielsen
  46. 46. 38 HOUSEHOLD INCOME CLASSIFICATIONHOUSEHOLD INCOME BANDS IN HA NOI AND HCMC HANOI HCMC HCMC & HANOI HIB Urban Rural Total Urban Rural Total Urban Rural TotalA2+ 2% 0% 1% 4% 0% 3% 4% 0% 3%A1 14% 3% 8% 13% 6% 11% 13% 4% 10%A 16% 3% 9% 17% 6% 15% 17% 4% 12%B 38% 22% 29% 36% 25% 34% 37% 23% 32%C 37% 40% 39% 34% 36% 35% 35% 39% 37%D 8% 29% 20% 11% 28% 14% 10% 29% 17%E 1% 4% 3% 1% 5% 2% 1% 4% 2%F 0% 0% 0% 0% 1% 0% 0% 0% 0%TOTAL 100% 100% 100% 100% 100% 100% 100% 100% 100%Source: Nielsen database 2011HOUSEHOLD INCOME BANDS IN 5 MAJOR CITIES HAI 5 KEY HIB HA NOI PHONG DA NANG HCMC CAN THO CITIES Urban Urban Urban Urban Urban Urban A2+ 2% 3% 2% 4% 3% 4% A1 14% 4% 4% 13% 3% 11%A 16% 6% 6% 17% 6% 15%B 38% 29% 27% 36% 23% 34%C 37% 52% 45% 34% 39% 37%D 8% 11% 20% 11% 26% 12%E 1% 1% 1% 1% 6% 2%F 0% 0% 0% 0% 0% 0%TOTAL 100% 100% 99% 100% 99% 101%Source: Nielsen database 2011
  47. 47. HOUSEHOLD INCOME CLASSIFICATION 39HOUSEHOLD INCOME BANDS OF VIETNAM VIETNAM HIB URBAN RURAL TOTAL A2 3% 0% 1% A1 7% 1% 3% A 10% 1% 3% B 26% 8% 14% C 40% 28% 32% D 20% 40% 34% E 4% 19% 14% F 0% 3% 2% TOTAL 101% 100% 100%Source: Nielsen database 2011 Vietnam Pocket Reference Guide 2012 Nielsen
  48. 48. 40 HOUSEHOLD INCOME CLASSIFICATIONHOUSEHOLD EXPENDITURE IN HA NOI AND HCMC HOUSEHOLD HANOI HCMC EXPENDITURE (VND) Urban Rural Total Urban Rural Total 15,000,000 - 29,999,999 2% 0% 1% 3% 1% 2% 15,000,000 or higher 2% 0% 1% 3% 1% 3% 7,500,000 - 14,999,999 29% 9% 17% 24% 15% 22% 4,500,000 - 7,499,999 52% 48% 50% 43% 32% 41% 3,000,000 - 4,499,999 16% 37% 28% 26% 40% 29% 1,500,000 - 2,999,999 2% 6% 4% 4% 10% 5% 0 - 1,499,999 0% 0% 0% 0% 1% 0% TOTAL 100% 100% 100% 100% 100% 100%Source: Nielsen database 2011
  49. 49. find thoseyou should belooking for.We know where they are,what they’re lookingfor and how they choose.Our Market Structure &Segmentation practice hasthe insights and the qualitydata to help you definewhich customers are right(and ready) for you, and thebest ways to reach them.
  50. 50. VIETNAM DEMOGRAPHIC 41 DEMOGRAPHICSPOPULATION BY SEX AND BY AGE GROUP IN VIETNAM 2011AGE GROUP TOTAL FEMALE MALETotal 86,927,700 43,937,000 42,990,700 0 1,461,479 696,522 764,957 1-4 5,647,234 2,707,835 2,939,399 5-9 6,777,975 3,282,538 3,495,437 10-14 7,315,865 3,552,836 3,763,029 15-17 5,286,210 2,577,882 2,708,328 18-19 3,771,128 1,852,681 1,918,447 20-24 8,537,934 4,232,079 4,305,855 25-29 7,884,053 3,931,801 3,952,252 30-34 6,945,409 3,442,403 3,503,006 35-39 6,601,838 3,266,617 3,335,221 40-44 6,027,979 3,028,417 2,999,561 45-49 5,505,919 2,835,192 2,670,727 50-54 4,455,920 2,351,780 2,104,141 55-59 3,012,453 1,634,482 1,377,971 60-64 1,955,479 1,085,114 870,365 65-69 1,568,963 909,177 659,786 70-74 1,424,653 851,098 573,554 75-79 1,208,613 724,295 484,318 80-84 731,560 464,325 267,234 85+ 627,145 441,769 185,377Source: Estimate from 2010 Census of population & Statistical Year Book 2010 Vietnam Pocket Reference Guide 2012 Nielsen
  51. 51. 42 VIETNAM DEMOGRAPHICPOPULATION BY PROVINE IN VIETNAM 2000-2010REGION/ PROVINCE 2006 2007 2008 2009 Prel.2010TOTAL VIETNAM 83,311,200 84,218,500 85,118,700 86,025,000 86,927,700Red River Delta 19,108,900 19,228,800 19,473,700 19,618,100 19,770,000Ha Noi 3,184,800 3,228,500 6,381,800 6,472,000 6,561,900Ha Tay 2,742,400 2,773,700Vinh Phuc 1,166,000 1,174,100 993,800 1,000,400 1,008,300Bac Ninh 999,800 1,009,400 1,018,100 1,026,500 1,034,200Quang Ninh 1,109,300 1,122,500 1,135,100 1,146,100 1,159,500Hai Duong 1,689,700 1,694,700 1,700,800 1,706,800 1,712,800Hai Phong 1,789,100 1,806,500 1,824,100 1,840,400 1,857,800Hung Yen 1,116,400 1,121,300 1,126,200 1,128,600 1,132,300Thai Binh 1,787,400 1,783,900 1,782,700 1,783,100 1,786,300Ha Nam 790,000 788,400 786,900 786,200 786,300Nam Dinh 1,839,400 1,829,700 1,826,100 1,828,400 1,830,000Ninh Binh 894,600 896,100 898,100 899,600 900,600Northern Midlands and Mountain 10,904,300 11,004,200 10,997,300 11,073,500 11,169,300Ha Giang 693,400 704,900 716,200 725,100 735,800Cao Bang 506,800 508,600 510,500 511,200 513,100Bac Kan 290,000 291,800 293,600 294,600 296,500Tuyen Quang 715,700 719,400 723,500 725,200 728,900Lao Cai 590,200 598,300 606,500 615,800 626,200Yen Bai 725,400 731,600 737,500 741,700 746,400Thai Nguyen 1,106,500 1,113,000 1,120,300 1,125,400 1,131,300Lang Son 726,300 728,200 730,700 733,200 735,600Bac Giang 1,543,000 1,548,800 1,554,600 1,556,900 1,560,300Phu Tho 1,301,500 1,305,600 1,311,500 1,316,600 1,322,100Dien Bien 452,700 466,000 479,300 490,800 504,500Lai Chau 360,700 364,400 367,900 371,400 382,400Son La 1,033,500 1,050,800 1,067,200 1,079,200 1,092,700Hoa Binh 858,600 872,800 778,000 786,400 793,500North and South Central Coast 18,667,400 18,729,100 18,797,900 18,855,700 18,935,500Thanh Hoa 3,428,000 3,417,300 3,408,800 3,404,300 3,406,800Nghe An 2,900,100 2,905,200 2,912,100 2,914,500 2,917,400Ha Tinh 1,243,600 1,239,000 1,234,000 1,227,800 1,228,000Quang Binh 834,500 838,500 843,500 845,000 849,300Quang Tri 591,900 594,100 596,700 598,600 600,500Thua Thien Hue 1,076,900 1,081,000 1,084,900 1,087,600 1,090,900Da Nang 825,900 847,500 868,800 894,500 926,000

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