Insight

Handbook
2019
Follow the shopper
where the growth is
 A Message from Managing Director

Technology continues to evolve at

a fast rate and digital disruption
is more and more common and
impacting our lives in ways we
didn’t expect.

4 Insight Handbook 2019

The way we make decisions, like what
to buy, has changed and the way we
interact with brands is being constantly
redefined by the changes in technology
and the rise of social media which has
impacted greatly on the consumer
journey.
We have to continue to understand how
people live, get exposed and influenced,
interact with each other, and how they
shop between offline and online. As
a brand, it is vital to think about your
entire customer experience, everything
from your logo, your website, your social
media experiences as well as the product
quality. Brands need to build emotional
connection with their audience and
media owners need to provide content
that people choose to watch.
Knowing this, finding out the real
factors which influence consumer’s
attitude and purchase behavior are our
Fabrice Carrasco
Managing Director of Kantar Worldpanel Vietnam | Philippines
Asia Strategic Projects Director
INTRODUCTION
priorities more than ever and successful
brands and retailers will be the ones
who dig deeper and truly understand
how their consumers and shoppers are
changing.
But it certainly won’t be easy.
In recent years the data that consumers
have allowed to be collected so easily
have given brands an edge in terms
of marketing but with more and more
issues over misused data and even data
breaches, will 2019 be the year that we
will see a backlash? It is noticeable that
many have joined in exodus of some
websites and platforms that have lost the
trust.
Welcome to our 2019 edition of the
Kantar Worldpanel Vietnam Insight
Handbook, we wish to continue giving
you the must-know foundation to
contribute to your success.
5
 The Kantar Worldpanel Vietnam
Insight Handbook is our initiative
providing you with a deeper
understanding of Vietnamese
families and a comprehensive,
up-to-date picture of the most
important consumer and shopper
trends in Vietnam.

6 Insight Handbook 2019

Dear Friends and Partners,
Now in its fourth edition, we are proud
to keep you updated on changes in
consumers’ thoughts, perceptions and
shopping behaviours and bring you our
insights and forethoughts moving for-
ward to 2019 and beyond, in order to help
you stay one step ahead of the market.
Above all, you will need to pull out all the
stops to win as many shoppers as pos-
sible to drive growth. Since all markets
are composed of different segments of
consumers, based on their needs, desires
and behaviours; segmentation is essen-
tial for any business to find new shoppers,
to grow broadly and sustainably. Notice-
ably, in the next 5 years, Millennials still
matter to many brands and retailers, but
furthermore, the growing senior popula-
tion and the rising wave of centennials
hold a huge potential to capture incre-
mental growth.
On one hand, Vietnamese consumers
have a tendency to go out more and
enjoy different leisure activities such
as eating and drinking and travel. This
David Anjoubault
General Manager of Kantar Worldpanel Vietnam
INTRODUCTION
provides many more touchpoints that
marketers could utilize to reach their
target consumers, especially the younger
generations. In addition, this rising trend
will also drive further the explosion of
out-of-home market.
On the other hand, consumers seek
greater convenience, which leads to the
exponential development of E-commerce
today. However, online shopping will
not completely replace physical retail
presence. Instead, with technological
advancements, the boundaries between
online and offline will be more blurred,
offering enhanced shopping experienc-
es. The big question that brands and
retailers should think about is how to take
advantage of technological innovations
to build a deeper level of engagement
with personalized experiences and em-
bed them into their current omnichannel
strategy to ensure a seamless path to
purchase for consumers.
Enjoy your reading, get inspired, and we
wish you a successful year 2019!
7
 Table of Contents

01 K-FACTS
9 The new pace of FMCG growth

10 Macroeconomic stability

13 Shifts in consumer spending

14 FMCG slowdown & growth opportunities

02 K-FORETHOUGHTS
17 The macro forces to unlock the future growth

18 01 The many faces of future consumers

MORE GROUPS WITH MORE OPPORTUNITIES

26 02 Polarization
ONE SIZE DOESN’T FIT ALL

32 03 Innovation
UNLOCKING NEW VALUE

38 04 Living well. Playing well

ELEVATING CONSUMERS’ LIVES

50 05 Beyond Digital
THE FUSION OF ONLINE AND OFFLINE

58 06 Enhanced Shopping Experience

THE BLEND OF DIFFERENT SHOPPING CHANNELS

68 03 K-TEAM
Meet, Greet & Get Inspired

8 Insight Handbook 2019

01 K-FACTS
The new pace of FMCG growth
 Macroeconomic stability

24.5
24.2

18.7

16.0

12.4
12.6
12.0
10.6
10.2
9.2 9.1 9.5

6.6 6.8 7.1

6.7
6.2
4.1 3.5 3.5
2.7
6.8 5.9 5.3 5.4 6.0
0.6

2010 2011 2012 2013 2014 2015 2016 2017 2018

GDP Growth (%) Inflation (%) Sales of Goods & Service (%)

Expectation for 2019 - 2022

6-7% 3-4%
GDP CPI

10 Source: GSO Vietnam Insight Handbook 2019

Beside major driving forces for Vietnam’s
economic growth, both challenges and
opportunities are lying ahead…

12% GROWTH 9% GROWTH

Total retail sales of services FDI (implemented)
& consumer goods

14% GROWTH 20% GROWTH

Total export turnover Tourism: International
Visitors

OPPORTUNITIES CHALLENGES
Trade agreement: EVFTA, CPTPP,… Business environment
• Opportunities for export • Legal reforms
• More foreign investment • Competitiveness and attractiveness of
• Technology transfer & development local companies
• Wider range of imported products with Rising global price of oil threatens
good quality and competitive price inflation
ASEAN Smart Cities Network: smart Public debt burden
solutions in transport systems, urban Exchange rate pressure amidst US-
management, flood monitoring systems China trade war
and e-government services.
Environmental issues (climate
Privatization of State-Owned-Enterprises
changes, air pollution, plastic
(SOE): attract foreign investment,
pollution,…)
increase Government budget
Growing urban middle class: strong
domestic demand & consumption

K-FACTS Source: GSO Vietnam | 2018 versus 2017 11

 Along with a brighter outlook, Vietnamese
consumers are more optimistic

Most key decisions makers for FMCG

BELIEVE IN A POSITIVE SITUATION in the coming months

% Housewives agree

86% 96%

Vietnam economic growth Household’s purchasing power

Better or same as today Better or same as today

Top 3
Household’s Concerns

1st 2nd 3rd

Food safety Health & Environmental
Wealthness issues / Diseases

12 Source: Kantar Worldpanel | LinkQ project | Vietnam Urban 4 key cities Insight Handbook 2019
Fresh Food & FMCG dominate households’
share of wallet, however, consumers have a
tendency towards new aspirations
% Spending per month
2.9
Investment

4.4
Housing
URBAN
(4 cities) 5.4 Others

11.8 Savings

15.6 Basic Needs*

16.0 Education & Healthcare

17.2 New Aspirations*

26.8 Fresh food & FMCG

6.4 New Aspirations*

7.3 Housing
RURAL
9.7 Others

9.8 Education & Healthcare

11.2 Basic Needs*

12.6 Savings

16.8 Investment (incl. farming cost)

25.9 Fresh food & FMCG

K-FACTS Source: Kantar Worldpanel | Expenditure Survey 2017 | Urban 4 cities & Rural Vietnam 13
*Basic needs: Transportation, Communication, Household utilities
*New aspirations: Eating/Drinking out, Travel/holiday, Entertainment
 FMCG slowdown & growth opportunities

% Value growth

14.8 12.3 9.8 12.0 3.8 10.4 2.7 8.5 4.8 2.7 5.3 4.4 2.3 6.4

2012 2013 2014 2015 2016 2017 2018

Urban (4 cities) Rural

Forecasted for Urban

CAGR (2012-2018) Rural
2019 - 2022: (4 cities)
Value 6% 7%
FMCG market
value growth Volume 4% 8%

5-6% Avg. paid price 2% -1%

14 Source: Kantar Worldpanel | Households Panel | Urban 4 Key Cities & Rural Vietnam | Insight Handbook 2019
FMCG excluding Gift | Value growth % | 12 months ending September 2018
Beverages and Personal Care are gaining
more share, partly thanks to the push of
innovation
% Value Share in total FMCG

9.4%
9.6% 22.6%
29.8%
11.5% Da
16.0%
Dairy
Be
Beverages
URBAN Packaged foods RURAL Pa
(4 cities) 29.5%
22.1%
Personal care 27.0%
Pe
22.5% Home care Ho

% No. categories reach <50% households

71 79 71 76 74 76 78 86 58 58

Dairy Beverages Packaged Personal Care Home Care

Foods

Urban (4 cities) Rural

There is room for many categories to develop

further across all sectors

K-FACTS Source: Kantar Worldpanel | Households Panel | Urban 4 Key Cities & Rural Vietnam | 15
FMCG excluding Gift | 12 months ending September 2018
 Key take-aways

Macro • Vietnam macro-economy

Economy stabilized
• Vietnamese consumers’
confidence stays high
• Both opportunities and
challenges are lying ahead

Consumer • New aspirations are arising

Spending • FMCG is growing, but slowing
• Room for growth across many
categories

16 Insight Handbook 2019

02 K-FORETHOUGHTS
The macro forces to unlock the
future growth
 01 The many
faces of future
consumers
MORE GROUPS WITH
MORE OPPORTUNITIES

All markets are

composed of different
consumer segments,
based on their needs,
desires and behaviors.
Hence your market
strategy must take
segmentation into
account in order
to find new growth
opportunities.

18 Insight Handbook 2019

What’s changing?

The growing Senior population

Vietnam is now considered as one of the world’s fastest aging population by
the World Health Organization. Getting older ultimately impacts consumer
choices, attitude and behaviors. This will force businesses to adjust their
growth strategies in the years to come to meet the needs of this growing
consumer group. With well-being as their top priority, this consumer group
will be focusing on products that help preserve their health, thus providing
numerous opportunities for businesses to uncover.

Millennials still matter

Brands and retailers still need to keep their eyes on millennials as they are
the most valuable consumer group in Vietnam today (contributing 36%
of value to in-home FMCG market) and will remain the core workforce for
the country in the next 5 years. Millennials value innovations (those that
bring truly new benefits, new formats) and seek for greater convenience to
help them ease their lives. They also have influence on other generations’
decisions, so it’s crucial to convince them.

Centennials: The next wave of influencers and

consumers
Talks around Centennials, known as GenZ or post-Millennials, are
happening more and more these days. Born after 1997, they have grown up
surrounded by smartphones and tablets, forming digital natives who are
mostly connected. They love going out and gathering with friends - making
the greatest contribution to the development of milk tea market today! As
their spending will increase , this group offers great opportunities for the
out-of-home F&B market.

K-FORETHOUGHTS Source: Kantar Worldpanel | Brand Footprint 2018 19

1 The growing Senior population

The aging population offers more

opportunities for manufacturers and
retailers

95 Million 105 Million

2018 2038
1,922 80+ 2,206

1,141 75-79 3,464

1,3901 70-74 4,505

20 Million 36 Million
2,077 65-69 5,319
~22% pop. ~34% pop.
3,558 60-64 5,856

4,790 55-59 6,887

5,555 50-54 7,676

6,103 45-49 8,477

6,730 40-44 7,130

7,269 35-39 6,451

8,084 30-34 6,703

8,766 25-29 7,255

8,525 20-24 7,676

6,740 15-19 7,320

6,683 10-14 6,460

7,360 5-9 5,136

7,752 0-4 6,359

Seniors are in high need for nutrition

and health, save or invest more for
the future, and are price conscious.

20 Source: United States Census Bureau | GSO Vietnam Insight Handbook 2019
Mature families – those without kids and
teens – are dedicating more spending to
dairy consumption

Dairy value growth (%)

All Families Mature Families

-2.7% 11.1%

Dairy value share (%) in their FMCG wallet

All Families Mature Families

31.5 29.8 20.7 21.0

2017 2018 2017 2018

K-FORETHOUGHTS Source: Household panel | Urban 4 cities | % Value among FMCG excluding Gift | 21
12 months ending September
2 Millennials still matter

Millennials are still the most sizeable

consumer base

Vietnamese Millennials

~35% of Vietnam
population
~33 millions

32% of Global population

Millennials are well educated,

tech-savvy, open minded and early
adopters of healthy lifestyle.

* Millennials who were born between 1980 and 1996

22 Source: United States Census Bureau | GSO Vietnam | 2018 Insight Handbook 2019
Millennials are more responsive to
innovative products and concepts,
which opens opportunities for brands to
experiment and create new things that
fulfill their aspirations
Number of Variants
Biscuits Snacks & Nuts

4.7 5.0 3.6 4.4

Older Gen Millennials Older Gen Millennials

New flavors - % buyers

Older Gen Millennials

Biscuits –
Seaweed
flavor
5.9 11.3

Snack –
Cheese
flavor

18.6 22.7

K-FORETHOUGHTS Source: Kantar Worldpanel | Households Panel | Vietnam Urban 4 Cities | 23

FMCG excluding Gift | 12 months ending June 2017 | Millennial under 40 y/o
 Centennials: The next wave of
3
influencers and consumers
Centennials, consumers born after
1997, account for one third of Vietnam
population and are increasing their
influence in society
Vietnamese Centennials 2018

30% of Vietnam
>29 millions
population

Who are Centennials?

Born in a digital world with full access

to information

Inseparable from mobile phones and

most active on social media platforms

Seek out new news, new experiences

Influenced by Korean culture and

concerned about social issues

Early self-conscious about appearance

*Known as GenZ who born from 1997 to present

24 Source: United States Census Bureau | GSO Vietnam Insight Handbook 2019
They love being out of home with the
hottest food and drink trends, especially
bubble tea craze

Ready-to-drink and ready-to-serve Bubble Tea* for Out of

home consumption
% Reach

47% 38%
Centennials (15-22yo) Average shoppers

*Bubble tea includes milk tea, tea with milk foam, milk with brown sugar bubble

K-FORETHOUGHTS Source: Kantar Worldpanel | Out-of-home Panel | Individuals 15-49YO | HCMC | Food & Drinks | 3 25
months ending November 2018
 02 Polarization
ONE SIZE DOESN’T FIT
ALL

All price tiers are making

efforts to justify their
position, hence getting
closer to each other
in terms of offers and
sharing consumer base

26 Insight Handbook 2019

What’s changing?

Premium Brands go reasonable

Consumers are paying higher price on 40% of their FMCG products, especially
for personal care items.
High-priced products in mass categories have paved their way into more
families thanks to affordable cash outlay of small size or saving packs.
Meanwhile, some others justify their price by special ingredients or serving
niche needs of consumers. The rest rely on their international image or
imported origin to capture the growing desire of Vietnamese consumers for
foreign products.

Lower tier won’t die easily

Given approx. 60% of Vietnamese households still live in Rural with lower
income than Urban, a majority of them use low tier brands. Premiumisation
does happen there, yet largely up to mainstream tier, while premium tier
remains at trial stage.
Even in Urban cities, those who use mostly premium items also spare a part
of their wallet to buy lower tier products, possibly for different usage purpose
or simply being satisfied with their adequate quality.
In high usage frequency categories, manufacturers are pushing jumbo
packs to leverage saving price and secure usage loyalty. Others thrive by
premiumizing their image with added nutrients or special format.

K-FORETHOUGHTS Source: Kantar Worldpanel | Brand Footprint 2018 27

1 Multi & Omni Channel

The hot keyword is ‘uptrading’, as >40% of

FMCG categories can grow their average
price higher than the CPI rate
% Categories

7%

40%

URBAN
53% (4 cities)

Uptrading (price increase > CPI)

Stable
Downgrading (price decrease < -3%)

10%

44%

46% RURAL

CPI YTD Sep 2018: 3.57%

Urban 4 key cities: counting 108 significant categories, Rural: counting 81 significant categories.

28 Source: Kantar Worldpanel | Households Panel | Urban 4 cities & Rural Vietnam | Insight Handbook 2019
FMCG excluding Gift | 12 months ending September 2018
That happens across sectors, majorly seen
in Personal Care

URBAN
% Categories (4 cities)

13% 7% 7%
17% 20%

56% 20%
71% 50%
73%

60%

33% 37%
21%
13%

Dairy Home Care Beverages Packaged Personal Care

Foods

Uptrading (price increase > CPI)

Stable
Downgrading (price decrease < -3%)

% Categories RURAL

8% 13% 5%
19%
29%
50%
58% 47%
52%

67%
50%
33% 40%
29%

Packaged Dairy Beverages Home Care Personal Care

Foods

K-FORETHOUGHTS Source: Kantar Worldpanel | Households Panel | Urban 4 cities & Rural Vietnam | 29
FMCG excluding Gift | 12 months ending September 2018
 Nevertheless, Economy-Mainstream tier
still has room to survive. Even households
who buy a lot of Premium items still buy
lower-priced items of that category or
other categories

Within that category

20% 26%

Heavy buyers of Super Premium Heavy buyers of Super Premium

Noodle* still spend 20% wallet for Shampoo (*) still spend 26% wallet for
Economy-Mainstream Noodle Lower tier Shampoo

Cross categories

49% 44%

Heavy buyers of Super Premium Heavy buyers of Super Premium Noodle

Noodle* still spend 49% wallet for (*) still spend 44% wallet for Economy
Economy-Mainstream Fish sauce** Shower Gel**

* Super Premium Noodle: >=10k VND/ bag; Super Premium Shampoo: price index >120.
** Economy-Mainstream Fish sauce: <60k VND/ liter; Economy Shower Gel: price index <90.

30 Source: Kantar Worldpanel | Households Panel | Urban 4 cities | FMCG excluding Gift | 12 weeks Insight Handbook 2019
ending June / September 2018
What are the survival tips for Low tier
brands?

1. 2. 3.
Big Pack Size Added Value Premium Concept

What are the growth accelerators for

Premium brands?

1. 2.
Affordable Pack Size Advanced Benefits

3. 4.
Pure Ingredient International Image

K-FORETHOUGHTS 31
 03 Innovation
UNLOCKING NEW
VALUE

32 Insight Handbook 2019

What’s changing?

Innovation in a nutshell
• Brands and manufacturers invest enormous amount of resources on
introducing new products to consumers.
• Innovators now are moving to launch a whole new product (pioneering
product) rather than simply offering a new choice of size, packaging
design under the same products or existing brands.

It’s never easy to make new launch succeed

• It becomes more challenging to grab consumers’ attention among
numerous new products as they are more skeptical of the influencing
factors around them.
• High quality innovation is needed as trial rate after 1 year of launching is
getting lower over time.

A successful innovation translates consumer needs

into an attractive story
• New products hitting the market must meet the consumers’ needs and
expectations.
• A successful innovation always comes with a long-term and sustainable
launching plan: Who should my brand talk to? Which channel to focus?
Does Promotion work?

K-FORETHOUGHTS
Source: Kantar Worldpanel | Brand Footprint 2018 33
 The FMCG market is much more innovative
over time

URBAN (4 cities)

New launches/day

21.8 22.0
16.2

2014 2017 YTD Nov 2018

In 2018, new launches appear

almost every hour!

New SKUs is counted based on new brand, variant, pack size, pack type

34 Source: Kantar Worldpanel | Household Panel | Urban 4 key cities | FMCG Insight Handbook 2019
More focus on stretching brand’s variant
portfolio

URBAN (4 cities)

Types of innovation
(% of new SKUs)

37% 31% 32%

31% 33%
26%

37% 39% 35%

2014 2017 YTD Nov 2018

New Brands New Variants Changes to existing

products

New SKUs is counted based on new brand, variant, pack size, pack type

K-FORETHOUGHTS Source: Kantar Worldpanel | Household Panel | Urban 4 key cities | FMCG 2018 35
 Which sectors are the most innovative?
Personal Care & Packaged Foods!

Share of innovation
(% of new SKUs)

15% 11%
5%
38% 7%
40% 8%
2014 10% 2017

30% 35%

11%
7%
36%
10%
YTD 2018

37%

Beverages Dairy Home Care Packaged Personal Care

Foods

New SKUs is counted based on new brand, variant, pack size, pack type

36 Source: Kantar Worldpanel | Household Panel | FMCG | 12 months ending November 2018 Insight Handbook 2019
New launches are facing more challenges
to grap consumers’ attention and retain
their loyalty
% Households a new launch reached after 1 year
(Trial Rate %)

5.4% 5.2% 5.1% 4.6%

2014 2017 2014 2017

Urban (4 cities) Rural

% Households repeat purchase in the 1st year

(Repurchase Rate %)

26.9% 25.7% 27.8% 26.4%

2014 2017 2014 2017

Urban (4 cities) Rural

New SKUs is counted based on new brand, variant, pack size, pack type

K-FORETHOUGHTS Source: Kantar Worldpanel Vietnam | Household panel | Urban 4 key cities & Rural Vietnam 37
 04 Living well
Playing well
ELEVATING
CONSUMERS’ LIVES

Simplifying household
chores, relying more on
convenience products/
services and investing
more on advanced values
and new experience

38 Insight Handbook 2019

What’s changing?

1 My Home:
Modernizing & Smart Living leads
to Advanced Home Care needs

2 My Kitchen:
Less Cooking, Simpler Preparation,
relying more on Convenient Foods

3 My Health:
Active Lifestyle, Less Sugar, More
Natural Ingredients & Vitamin
Supplements

4 My Beauty:
Self-Appearance is of Higher
Importance, Endorsing Expert
Solutions & Regime Beauty Care

5 My Budget:
Spending more on Out-of-Home
Experience

K-FORETHOUGHTS 39
 Vietnamese consumers are moving up
the Maslow’s hierarchy of needs thus
expecting more from products & services
to ease their lives and indulge themselves

Beyond the basics

Together with the upgrading lifestyles, consumers are expecting more from
the products/ services they use.
Basic and functional benefits are now taken for granted, thus at risk of
becoming commoditized. Consumers spend less on routine items and are
willing to spend a lot more on things that offer added values/ advanced
features that differentiate from others and those that help reduce the tiring
in-home daily tasks so that they have more “me” time.

Less cooking & more convenient foods

Increasingly, consumers are expecting to have more products/ solutions which
make cooking simple and quick. Products offering ease of use in the cooking
process such as Meal Maker and ready-to-cook, ready-to-eat are picking up
strongly while necessity items struggle to find growth. Light meals and snacking
items are increasingly adopted for in-home consumption. Modern retailers and
E-commerce players are also offering more solutions to home meals.

40 Source: Kantar Worldpanel | Brand Footprint 2018 Insight

Insight Handbook
Handbook 2019
2019
 Healthy, natural ingredients & self-apperance focus
Consumers become more selective on the products that they consume.
Natural ingredients, fortified values, plant based Foods & Beverages are on
the rise inside consumer baskets. They also exercise more and take more
vitamin supplements.
Self-appearance is also getting higher attention. Skin Care and Make-up
items in new formats which promise higher efficacy and better results are
being adopted more. Regime usage also starts to build up.

Out-of-home pleasures
Consumers are increasingly seeking new experience and enhancing their life
quality. As majority of the population today are millennials, socializing needs
including travelling and drinking/eating out are also more important.
People tend to behave differently when being out-of-home. Also, the
product choice, price range and channel selection vary by gender, age and
consumption occasions with lower brand loyalty, and stronger impulsiveness.

K-FORETHOUGHTS
K-FORETHOUGHTS 41
1 My Home

Modernizing & smart living lead to

upgrading needs for products/ services
to be quicker, more effective and more
customized to meet their lifestyle
% Households agree

Urban Rural
(4 cities)
2pts
76% 72% 1pts

“I would like to have more products/services which

can make cleaning tasks simple and quick”

Washing Machine Cleaning Robot

% households with ownership (2017 vs 2012) Google search trend
614
13pts 30pts million
results

87% 42%
URBAN (4 cities) RURAL
2016 2018

1 Home cleaning services

Opportunity for 2 Multi-purpose cleaners

3 Quick effect products

42 Source: Kantar Worldpanel | Family Form | Urban 4 Key Cities & Rural Vietnam | Insight Handbook 2019
12 months ending September 2018
 My Kitchen 2

Modernizing living, less cooking and more

reliance on convenient products

% Working Housewives I rely heavily on convenience

foods to make cooking
simple and quick
69 % Households agree

64
Urban Rural
(4 cities)
45%
49%
2013 2017

Opportunity for

Instant packaged foods Frozen/ chilled/ ready-to-eat

& ready-to-drink F&B

Ready-to-cook, ready-to- Home delivery

serve foods

K-FORETHOUGHTS Source: Kantar Worldpanel | Households Panel | Urban 4 Key Cities and Rural Vietnam | 43
Packaged foods including Gifting | 12 months ending September 2018 vs. YA
3 My Health

Prevention is better than cure

With increasing health concerns and issues, people need to have

a better prevention for health conditions.

% Households agree

I worry about my health more 89%

than before 91%

I exercise regularly for better 79%

health 82%

I often take vitamin or 59%

supplements 59%

Urban (4 cities) Rural

% Households with members having

Back pain 72%

Joint/muscle pain 64%

High blood pressure 42%

High cholesterol 33%

Osteoporosis 21%

Diabetes 16%

44 Source: Kantar Worldpanel | Lifestyle 2017 & Heath Survey 2018 | Urban 4 cities & Rural Vietnam Insight Handbook 2019
Higher demand for sugar reduction

% Households agree

75 76 70 74 86 87
“Nowadays, I am more “I prefer to buy low/ free “I read the product
concerned about my and sugar drinks” label to avoid buying
my family’s weight” unhealthy foods”

Total urban (4 cities) Housewife 40+ YO

Liquid Milk – % Volume

17.1
16.9

9.3
15.3
8.1

7.0

H1’17 H2’17 H1’18

No sugar Less sugar

Natural ingredient need: plant based

products are on the rise
Penetration Volume growth
YTD P9’18 vs YA
RNGS* 14.4% 61%
Soy Drink 44.5% 4%
*RNGS: Rice, Nut, Grain, Seed
K-FORETHOUGHTS Source: Kantar Worldpanel | Household panel | Lifestyle Survey 2017 | Urban 4 cities & Rural 45
Vietnam | Total RNGS
4 My Beauty

As self-appearance becomes more

important, consumers spend much more
on beauty products and also expert
services (spa, skin clinics…) to make them
look good
% Households agree

73 75 21 25

2013 2017 2013 2017

Nowadays you have to take care I often go for skin care services
of your skin more

Average spend per buyer

(000 vnd)
523
476

397
355
338
318

249

198 207 187 2015

169 181
2016
2017
2018

Facial moisturizer Facial cleanser Sun protection

46 Source: Kantar Worldpanel | Lifestyle Survey 2017 | Household panel | Urban Viet- Insight Handbook 2019
nam 4 key cities | 12 months ending September 2018
Advanced Skin Care & Make Up items are
growing the fastest on consumers’ shopping
list as people adopt more new formats which
promise faster /more effective results

ADDITIONAL BUYERS
Make up remover +
oil cleanser
Become more relevant in 82,500 Make up remover
the Vietnamese beauty
care regimen
MAT P3’18 vs 2YA
20,000 Oil Cleanser

ADDITIONAL BUYERS VS 2YA

Treatment
Along with the rise of
sophistication trend, new 20,000 Serum
formats of Moisturizer are
adopted
12,500 Lotion

10,000 Gel

ADDITIONAL BUYERS VS YA

Mask
Mask category is gaining
fast, esp sheet mask due to
convenience.
90,000

ADDITIONAL BUYERS VS 2YA

Make up
MAT P3’18 vs 2YA
122,000 Lipstick
11,000 Concealer

K-FORETHOUGHTS Source: Kantar Worldpanel | Lifestyle Survey 2017 | Household panel | Urban 4 key 47
cities & Rural Vietnam | 12 months ending March 2018
5 My Budget

What’s more important to me?

Vietnamese invest much more on the future (education,

investment, savings); yet don’t neglect the presence: travelling &
eating/ drinking out more often
My budget
(% monthly spending)

Fresh food & FMCG

20.1% Housing
26.8% Household Utilities
Transportation
7.3% Communications

4.4% Healthcare
9.9% Education
6.6%
Eating/drinking out
12.9% 5.2%
3.8% Entertainment + travel/holiday
3.9%
Savings + investment

With deeper pocket, what do My family eats out regularly

consumers spend more on? % Households agree
Expenditure 2017 vs. 2012

Education 2.1 PTS

17

Savings &
Investment 1.8 PTS 12

Travel/
Holiday 0.6 PTS
2015 2017
Drinking/
Eating Out 0.4 PTS

48 Source: Kantar Worldpanel | Expenditure & Lifestyle Survey 2017 | Urban Vietnam 4 key cities Insight Handbook 2019
Consumers spend a lot more for convenient
foods & drinks out-of-home (OOH)
Out-of-home versus take-home spend 52-weeks ending June
2017

Global HCMC

3%

56% 41% 44% 56%

China Indonesia Thailand

2% 1%

37% 33%
50% 48%
63%
66%

Out-of-home In home E-commerce in-home

*HCMC: 12 weeks ending November 2018

K-FORETHOUGHTS Source: Kantar Worldpanel Take-Home & Out-of-home purchase panels 49

 05 Beyond Digital
THE FUSION OF
ONLINE AND OFFLINE

Everything goes online

50 Insight Handbook 2019

What’s changing?

The way we communicate

People no longer wait until they get home to get online via computers.
Instead, they use their mobile devices to stay online everywhere, all the
time.

Internet, especially Social Media and Chat applications are rapidly changing
the way we interact with businesses and the way brands interact with
consumers. This allows businesses to expand visibility to a larger population
and connect with potential audience.

The way we shop

Gone are the days when a customer would simply walk into a store and
purchase the items they were looking for.

With just a few clicks, they now can check the price of the item in stores
around the world and read reviews from other people that have purchased
the item before they make their decision.

They even use multi channels before making a purchase.

K-FORETHOUGHTS 51
 Asian consumers are now more and more
connected. Mobile technology, including
smartphones and mobile data plans
contribute to a greater reach of the
Internet
Internet Penetration by Countries (%)
(2017)
Internet Penetration
(2017)
95 93 Penetration change
90 (2017 vs 2012)
88 87
84
79
67
58
56
53
50

36
28
19
13 13 11
8 8 6 9

United Germany United France South Thailand Malaysia Vietnam Philippines China Indonesia
Kingdom States Korea

% Household with Smartphone in VN

95% 69%
10pts 23pts

Urban (4 cities) Rural

52 Source: Internet World Stats and United Nations Insight Handbook 2019
Kantar Worldpanel I Household Panel I Urban 4 Key cities & Rural Vietnam I Lifestyle Survey
More and more people move deeply into
connected life

I surf Internet to get updates about the I am spending more and more time on
world rather than traditional media internet during my free time

56%

48% 46%

36%
34% 31%
29%

20%

2015 2017 % Agree 2015 2017

Urban (4 cities) Rural

K-FORETHOUGHTS Source: Kantar Worldpanel | Lifestyle Survey 2017 vs 2015 53

 Online is speeding up, reaching up to 8 out
of 10 shoppers in Urban 2 cities and even
having a higher usage time than TV. The
growth rate in Rural is also very impressive
Reach (%) Frequency (hours/day)

URBAN
100% 98% 62% 81%
(2 cities) 3.4 2.9 1.5 3.0

Television Internet Television Internet

2014 2018

RURAL 2.8 2.4 1.3 2.1

99% 95% 15% 45%

Television Internet Television Internet

2015 2018

DO YOU KNOW
The millennials spend up to
30% of their waking lives
online with 4.8hrs online/
day*

(*) Internet usage time of Housewives < 30YO

54 Source: Kantar Worldpanel | Media 2018 | Urban 2 cities & Rural | Among key decision makers Insight Handbook 2019
for FMCG
Social network and instant messaging
apps heavily dominate online activity

Reach (% households/day) Frequency (mins/day)

79% 179

45% Internet 126

70% 36

Social
38% 34
Network

61% 32

Chat
25% Online 28

Urban (4 cities) Rural

A lot of purchases take place

here, and thus make them
important e-commerce
touch-points

K-FORETHOUGHTS Source: Kantar Worldpanel I Media 2018 I Urban 4 cities & Rural | Among key decision makers 55
for FMCG
 As a result, e-commerce is growing,
especially in Asia

Globally e-commerce as a channel now accounts for 5.8% of

FMCG sales & this number rises to 7.3% for Asia

FMCG value share by channel (2017)

5.8% 7.3%
24.0%

31.8% Africa &

Global Asia
61.8% Middle East 40.9%
51.8%

76.0%

Modern Trade (i) Traditional and others (ii) E-commerce

0.1%
1.9%
5.6%
9.9% 8.8%

44.9% Latin Western

USA
America 55.0% Europe

88.2% 85.6%

[i] Modern trade includes: hypermarket and supermarket, convenience stores and discounters.
[ii] Other include: door to door, drugstore, and pharmacy.

56 Source: Kantar Worldpane | Europanel Insight Handbook 2019

Keeping up with the global trend, online
shopping in Vietnam continues to rise and
recruit more and more shoppers
URBAN RURAL
(4 cities) E-commerce

19.4% 4.6%
+7.7 pts (2018 vs YA) +3 pts (2018 vs YA)
% Penetration

3.7 2.4
Last year: 2.6 Frequency/year

346K 259K
Last year: 327K
Spend per Trip
(VND)

K-FORETHOUGHTS Source: Kantar Worldpanel | Households Panel | Urban 4 key cities & Rural Vietnam | FMCG 57
excluding Gift | 12 months ending September 2018 versus year ago
 06 Enhanced
shopping
experience
THE BLEND OF
DIFFERENT SHOPPING
CHANNELS

Shifting dynamics in
retail landscape and
shopper trends that
businesses and brands
must understand

58 Insight Handbook 2019

What’s changing?

Multi and Omni-Channel

Shoppers now go to more channels to serve different shopping missions, with
online playing a growing important role.
Yet, there is strong evidence that online formats – in isolation – are no longer the
best option for winning share. It´s about how online and offline work together
to create a better shopper experience.
It’s now the critical time for current retail giants and manufacturers to
develop an effective omni-channels strategy.

From Mass to Specialized

We will see more and more new formats of modern retailers in everyday life,
across all industries. Some examples of growing specialized formats are Mom &
Baby stores, Health & Beauty stores, Lifestyle stores…
It is expected that Modern trade will develop towards more specialty and smaller
scale format, and increase the presence with the expansion in number of stores.

Modern Proximity
Proximity secures itself among top reasons to choose a store because
Vietnamese consumers have high preference towards convenience and ease
of shopping.
Therefore, it is not surprising to see a dramatic development of the modern
and convenient formats in Vietnam (convenience stores and mini markets),
with the expansion in number of stores as well as strong shopper acceptance.

Tech Embedded Life

Technology empowers the creation of new occasion enhancement of experience,
digital/mobile order method, auto replenishment and cashless society.
Technology enables us to witness future retail experience where there is more
seamless shopping experience and online and offline boundaries are blurred.
With Technology development, new retail is crossroads of community, leisure and
shopping.

K-FORETHOUGHTS Source: Kantar Worldpanel | Brand Footprint 2018 59

1 Multi & Omni Channel

Shoppers go to more channels to serve

different shopping missions, driven by
millennials housewives

6% < 3 channels
21% 3-4 channels
24% 5-6 channels
% Visited 24% 7-8 channels
Channels in 15% 9-10 channels
2018 6% 11-12 channels
3% 13-14 channels
1% 15+ channels

<3 channels 3-4 channels 5-6 channels

7-8 channels 9-10 channels 11-12 channels
13-14 channels 15+ channels

Average Number of Visited Channels (By Housewife Age)

<30 6.4 7.1

30-39 6.1 6.6

40-49 5.8 6.3

50+ 6.1 6.4

TOTAL 6.0 6.4

2016 2018

60 Source: Kantar Worldpanel | Households Panel | Vietnam Urban 4 Key Cities | Total FMCG Insight Handbook 2019
excluding Gift | 12 months ending September
In Vietnam, retailers are proactively
stretching their retail portfolio to meet the
needs of Omni-shoppers
Hybrid franchise
format between
medium-sized
Convenience
street shops and Click &
convenience stores store
Delivery
71 STORES 16 STORES website

PENETRATION: 1%

Hypermarket Supermarket Minimart

3 STORES 102 STORES 238 STORES

PENETRATION: 5% PENETRATION: 42% PENETRATION: 13%

Convenience
Supermarket Click & Stores
75 STORES Delivery 812 STORES

PENETRATION: 18% PENETRATION: 1% PENETRATION: 18%

Click & Click &

Hypermarket Delivery Delivery
13 STORES mobile app website

PENETRATION: 15%

*Number of store: Updated to November 2018

K-FORETHOUGHTS Source: Kantar Worldpanel | Households panel | Urban 4 key cities | FMCG | 12 61
months ending September 2018
2 Modern Proximity

Proximity & convenience are among top

reasons to choose store, explaining the rise
of mini stores

% Agree in 2017 Minimarts &

Convenience stores

78% 39% Value

vs YA
growth 2018

74%
% Penetration of Minimarts & CVS

Urban Rural 36 42 53
(4 cities)

“I choose a store because it’s

NEAR my home” 2016 2017 2018

62 Source: Kantar Worldpanel | Households panel | Urban 4 key cities | FMCG | 12 months ending Insight Handbook 2019
September & Lifestyle Report 2017
Ministores 14

Performance in 12
VN
South East Asia 10

8 Penetration: 53%
+/- Penetration Change

4
Penetration: 87%
2
GAIN ONLY SHOPPERS GAIN SHOPPERS & SPEND PER SHOPPER
0 TH
GAIN ONLY SPEND PER SHOPPER
-2
ID Penetration: 77%
-4
PH
-6 Penetration: 18%

-8
-10 -8 -6 -4 -2 0 2 4 6 8 10

*Size of bubble is size of penetration % Spend per Shopper Growth %

K-FORETHOUGHTS Source : Kantar Worldpanel | GCD | 12 months ending September 2018 vs year ago 63
(Except PH: 12 months ending December 2017 vs year ago)
3 From Mass to Specialized

Specialized stores are having better

growth than mass stores

Consumers make
orders through Internet
merchandising sites,
including E-retailers like
Lazada, Shopee and
Social Commerce Online

149% 19%
GROWTH PENETRATION

Mom & Baby Store

Shops sell mainly
baby and pregnant
mother products and
over 80% of space
dedicated for baby
and pregnant mother
140 STORES 384 STORES products display

56% 8%
GROWTH PENETRATION

70 STORES 64 STORES 141 STORES Health &

Beauty Store
79% 5%
GROWTH PENETRATION

64 Source: Kantar Worldpanel | Households Panel | Vietnam Urban 4 Key Cities | Total FMCG Insight Handbook 2019
excluding Gift | 12 months ending September 2018 vs year ago
 Merchandise is delivered to house (door to
Direct Sales door, Multi Level Selling)

15% 25%
GROWTH PENETRATION

Lifestyle Stores

34 STORES 41 STORES 6 STORES

HAIR SALON

Delegation
Service
LAUNDRY SERVICE

K-FORETHOUGHTS 65
4 Tech Embedded Life

In China and Indonesia, Tencent introduced

unmanned stores using facial recognition,
artificial intelligence and RFID tech, with an aim
Unmanned store to provide future shopping experience.
with AI
Alibaba also launched the staff-less and
cashless stores such as Tao Café.

Alibaba’s Tmall “See Now, Buy Now” fashion

show provided a seamless shopping and
entertainment experience. The event was live
Retail as and broadcasted across 7 media platforms incl.
entertainment TV, online video site, socmed and shopping apps.
= Retailtainment Viewers were able to buy what they see, when
they see it, on all those platforms.

COUPANG, the largest online retailer in South

Korea won over fans with personalized service
for e-commerce.
Personalized
GoJek is Indonesia super App with food delivery,
& all-in-one
fintech, logistics, payments, e-com and on
e-commerce demand service all baked into one Super App.
platform

66 Insight
Insight Handbook
Handbook 2019
2019
 Alibaba installed its cloud system in 600K++
independent retailers in China.
Mom&pop store Go-Pay has now ventured towards cashless
going digital payment system in 3000++ offline merchants
such as “food street hawker.”

Asia Consumers’ are on the shifting point from

cash to e-money fueled by integrated mobile
online payment driven by online players who
No cash society develop their own financial ecosystem.
via digital In Vietnam, MoMo, ZaloPay, Airpay are some
wallet among many e-wallet companies that offer
consumers with flexible financial platforms.

Voice activated products encourage shoppers to

give up non-experience products in favour of auto-
replenishment for necessities and routine shopping.
It’s expected to see the emergence of new
Auto- hybrid models in Vietnam that offer consumer
replenishment with maximum ease and convenience, such as
subscription model, click and collect, click and
delivery, virtual stores, etc.

K-FORETHOUGHTS 67
 03 K-TEAM
Meet, Greet & Get Inspired

68 Insight Handbook 2019

Worldpanel Geographic Coverage
Poland,
Czech Republic
Russia
Slovakia
Hungary
Denmark Romania
Sweden Ukraine
Norway Kazakhstan
Serbia
UK China
USA Ireland Croatia Japan
Belgium Bulgaria Taiwan
France Greece
The Netherlands Bosnia & Herzegovina India
Mexico Germany Turkey Vietnam
Venezuela Austria Saudi Arabia Thailand
Guatemala Spain Egypt Malaysia
Honduras Portugal Indonesia
El Salvador Italy Philippines
Nicaragua
Ghana South Korea
Costa Rica
Panama Nigeria
Colombia Kenya
Ecuador South Africa Australia
Peru
Bolivia
Chile
Brazil
Argentina

Our Commitment
Local, Regional, Global

Household samples:
270,000 Largest panel sizes and largest
number of panels worldwide

73% 92% 96% 100%

GDP coverage GDP coverage GDP coverage Commitment to

Asia Europe Latin America consumer panels

K-TEAM 69
 Our Methodology

Panel Methodology Continuous Tracking

• Consumer purchase behavior of 5

sectors (~130 FMCG categories):
Weekly data collection
- Dairy
Urban via diary
- Beverages
Household Panel
- Packaged Food
- Home Care
- Personal Care
• Brand performance
• Retailer performance
Bi-weekly data
• Shopper insights
Rural collection via diary
• Demographics and lifestyle
Household Panel
• Household durables ownership

Bi-weekly data • Purchase behavior of ~ 10 baby

collection via diary categories
Baby Panel

• Major convenient F&B purchased

for consumption away from home,
including 6 sectors (~ 24 F&B
categories):
- Milks & Nutritional Drinks
- Tea & Coffee
Smartphone data - Other Non-Alcoholic Drinks
Out of Home Individual
Purchase Panel collection - Sweet and Savoury Snacks
- Light Meal
- Beer
• Shopper KPIs
• Shopping Channels
• Shopper Profiling
• Occasion Moments
• Attitudes and Missions

70 Insight Handbook 2019

Dairy Beverages Packaged
Foods
Milk Powder Bottled Water Sugar
Liquid Milk Energy Drinks Sauces
Yoghurt Tonic Food Drinks Ice-cream
Butter Alcohol Beverages Instant Cereal
Margarine Soft Drinks Cooking Oil
Cheese Soya Milk Taste Enhancers
Condensed Milk Juices Noodles & Soup
Fermented Yoghurt Tea Snack & Nuts
Specialty Milk Coffee Confectionery
Others Non-dairy Milk Canned Food
Others Packaged Bread
Pasta
Others

Personal Home Care

Care
Hair Care Toilet & Bathroom
Oral Care Cleaner
Facial Care Multi-purpose Cleaner
Baby Care Dish Washing Liquid
Make-ups Paper Products
Sun Protection Insect Products
Personal Wash Air Freshener
Shaving Products Detergent
Hand & Body Care Fabric Softener
Sanitary Protection Bleach
Deodorant & Fragrances Floor Cleaner
Others Glass Cleaner

K-TEAM 71
 Key Contacts
Fabrice Carrasco
Managing Director of Kantar Worldpanel
Vietnam & Philippines
Asia Strategic Projects Director
fabrice.carrasco@kantarworldpanel.com

David Anjoubault
General Manager Vietnam
david.anjoubault@kantarworldpanel.com

Peter Christou
Expert Solutions Director
peter.christou@kantarworldpanel.com

Nguyen Phuong Nga

New Business Development Director
phuongnga.nguyen@kantarworldpanel.com

Nguyen Thi Nhu Ngoc

Marketing Manager
nhungoc.nguyenthi@kantarworldpanel.com

72 Insight Handbook 2019

 Nguyen Huy Hoang
Commercial Director
huyhoang.nguyen@kantarworldpanel.com

Pham Quynh Trang

Insight Director
trang.phamquynh@kantarworldpanel.com

Antoine Louat de Bort

Account Director
antoine.louat@kantarworldpanel.com

Le Thi Bach Duong

Account Director
bachduong.lethi@kantarworldpanel.com

K-TEAM 73
 Contributors

Fabrice Carrasco
Managing Director of Kantar Worldpanel
Vietnam & Philippines
Asia Strategic Projects Director

Nguyen Huy Peter Nguyen Phuong

Hoang Christou Nga
Commercial Director Expert Solutions New Business
Director Development Director

Pham Quynh Antoine Louat Le Thi Bach

Trang de Bort Duong
Insight Director Account Director Account Director

74 Insight Handbook 2019

 David Anjoubault
General Manager of Kantar Worldpanel
Vietnam

Vu Thi Thu Nguyen Thi Ho Diem Vo Thi Kim

Dung Nhu Ngoc Phuong Nhu
Senior Account Marketing Manager Expert Solutions Associate Account
Manager Manager Manager

Tay Cam Le Thi Ha Nguyen Ngoc Tran Le

Khanh Linh Nhi Thuy Dung
Senior Account Account Executive Marketing Trainee Account Trainee
Executive

K-TEAM 75
www.kantarworldpanel.com.vn