Consumer healthcare trends 2015

Contents
Changing consumer landscape

What will drive growth for healthcare?

Attitudes towards healthcare

18

Prevalence, treatments and influence

24

The marketing budget dilemma

31

Key opportunities

33

Part
Changing consumer landscape

US$175 billion economy

US$1.9 billion advertising

spend

US$1,923 GDP per person

45% internet penetration

91 million people

69% urban adult mobile

penetration (4 in 10 smart)

24 million households

52% urban adults banked

16 million rural households

37 million motorbikes

7.5 million
households =>US$400

145,000 new cars in 2014

2000 rapid accession to 2010 then a struggle to 2015

78 million people

87 million people

91 million people

US$27.5 billion economy

US$79 billion economy

US$175 billion economy

US$351 GDP per person

US$902 GDP per person

US$1,923 GDP per person

US$108m advertising spend

US$740m advertising spend

US$1.9bn advertising spend

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

2.6m ABC consumers in 6

cities

3.5m ABC consumers in 6

cities

3.7m ABC consumers in 6

cities

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

The family Nguyen - how this shapes who we are

Progressive
and
entrepreneurial

Desperate to
express myself

Happiness is
money
Success is
imbued in pride

Afflunenza
Confused and
frustrated

Thirst for
edutainment

Success
through the
eyes of my
child

Youth translate
the consumer
world for their
parents

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

What will drive strong growth for

healthcare?

Traditional remedies vs. modern medicine expenditure

60% to
traditional
remedies
40% to
modern
medicine

10

Urbanisation and smaller households

62 million people
47% <30 years
16 million households
3.5 million =>US$400/household

29 million people
45% <30 years
8 million households
4 million =>US$400/household

2025
60 million people
38% <30 years
18 million households

2025
36 million people
36% <30 years
13 million households
11

Urban lifestyles

Aware of what could be.

Conflicted and frustrated

Increasing opportunities (commercial,

education and travel)

Emerging gender equality & changing roles

in society.

Community to individual gratification.

Change in parenting .
From extended to nuclear families.

Always out of home. Thirst for edutainment.

Modern day working ethos.
Happiness defined as money.

Divorce acceptable.
12

Sources of health awareness

1

TVC

Internet (online newspaper, forum, search engine, etc)

Public health center (Ward health station, District PMC, etc)

HCP recommendation

Other media; newspaper, radio, etc.

13

Consumer health awareness evolves rapidly

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 today
proactively ask about
treatment choices,
advantages of
different medicines
and tests available.
Oncologist in Hanoi

Patients have heard

about this medicine
in the media, then
they ask me about
the efficacy, price
and even dosage.
Pediatrician in HCMC

Healthy marketing propositions explode

From personal care to food growing tide for;
1. Balance
2. Natural
3. Authentic (origin)

15

Healthy marketing propositions explode

Wellness marketing behind many growth
brands.

Korean soaps and K Pop defining beauty

for men and women alike.

16

Local pharma explosion in TVCs

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

Part
Attitudes toward healthcare

18

Top 3 concerns in life

Job

Economy
Health
Cimigo Healthcare March 2015 18-50 years in urban. N=350

19

Why health matters?

Achieve personal goals

Energy to work

Not become burden for family

Balance body and mind

Wish to KNOW more and DO more to enhance health

20

Top health concerns in 2015

Versus 2010

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

Cimigo Healthcare March 2015 18-50 years in urban. N=370

21

Actions taken to promote health

Avoiding
pollution
(21%)

Do
exercise
more
often
(56%)

Good
work-life
balance
(47%)

Healthy
food and
drink
intake
(52%)

Good
living
conditions
(33%)
Be happy
(42%)

Cimigo Healthcare March 2015 18-50 years in urban. N=370

22

Beliefs toward heath maintenance

1. Eat healthy food

5. Take vitamins

2. Sleep 8 hour/ night

6. Get vaccination

3. Do exercise

4. Annual check up

7. Take traditional remedy 8. Protect hygiene

Cimigo Healthcare March 2015 18-50 years in urban. N=370

23

Prevalence, treatments and influence

24

Modern medicine stronger.

But traditional remedies grow over time.
Diagnosis and therapy in past 6 months
Note: Survey seasons differ so seasonal effects occur
50

Had a health check up at a hospital or clinic

80
45
59

79

Taken modern medicine

Taken traditional remedy

2015

67

Fallen ill and visited a pharmacy

Fallen ill and visited a doctor

2010

61

90
37
60

Cimigo Healthcare March 2015 18-50 years in urban. N=370

Never for traditional

2010 34%
2015 13%
25

Traditional remedies prevalent

Prevalence of remedies used in past 6 months

Both

Traditional remedy only

Cold, cough, flu and fever remedies

Antibiotic remedy
Acne / skin complexion remedy
Vitmin supplements
Antiinflammatory 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

Modern medicine only

29

14

18
7
17
13
16
4 33
5
9
19
33
3 6
19
28
6
9
13
28
6
9
11
26
8
12
6 25
3
15
3 22
7
9
5 21
7
8
5 19
8
8
3 18
4
6
7
18
4
9
5 17
4
7
5 16

Cimigo Healthcare March 2015 18-50 years in urban. N=370

Total
13

56

42

26

Traditional remedies prevalent

Prevalence of remedies used in past 6 months

Both

Traditional remedy only

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

Modern medicine only

10
7

3
2

3
2

4
3

9
7

2
2

4
8

1
2

5
6
4

4
5

3
3
2

Total

4
5
6

2
5
11
4
11
3
11
4
10
1 10
3
10
2
9
2
9

Cimigo Healthcare March 2015 18-50 years in urban. N=370

15
15

14
14

13
13
12

27

Traditional remedies prevalent

Prevalence of remedies used in past 6 months

Both

Traditional remedy only

Modern medicine only

Heart burn remedy

1
5
Obseity remedy
1
5
Stress remedy
1
5
Antiviral remedy 0
3
Cholesterol remedy 0
6
Heart health
1
5
Diabetes remedy
1
5
Insomnia remedy 1
5
Hearing health
1
1
3
Weight control remedy
1
2
1
4
Prostrate health
1
2
0 4
Menpause symptoms
1
2
1 4
Ovarian health
1
1
2
4
Virility remedy
1
3
04
Hormone health 0 0 1
1

Total

4
4

9
9
9

4
5

8
1
2
1

8
8

7
6

Cimigo Healthcare March 2015 18-50 years in urban. N=370

28

Attitudes to treatments

Child protection key

Care more about product origin

Proactive look for information Pay more to get better service

Green power

Seeking for convenience

29

Attitudes to treatments

Trust and follow doctor

Repeat old prescriptions

Sacrifice for kids

Prefer foreign for

modern medicine

Influenced by pharmacist

Know the brand

before go to pharmacy
30

The marketing budget dilemma.?

Trust and follow doctor

Influenced by pharmacist

Know the brand

before go to pharmacy

Weighted influence for not severe/chronic ailments

Initial choice

28%

58%

14%

Repeat choice

10%

72%

18%

31

A side note: Local heath care system remains King in rural

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

Part
Key opportunities

33

So what will drive strong growth in healthcare?

1

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?

4

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

Thank you
www.cimigo.com

36