FMCG

MONITOR
 EXECUTIVE SUMMARY
1 2 3 4 5
KEY FMCG HOT RETAIL SPOTLIGHT
INDICATORS GROWTH CATEGORY LANDSCAPE

Vietnam retains a While Rural market is the Plant-based drinks is Modern trade continues to Out-of-home channel
macroeconomic stability growth engine of FMCG, now a new trend, achieve a robust growth. strategy: Segmentation
with a growth of 7.1% in the picture in Urban 4 cities enjoying a fast growth matters
2018, the highest recorded is opposite with a negative rate.
since 2011. growth in volume.
KEY INDICATORS
CPI decreases in December and achieves the target of under 4% for the full year. The domestic demand of
consumer goods keeps up its momentum, posting a double-digit growth. Overall, Vietnam retains a macroeconomic
stability with a growth of 7.1% in 2018 which is higher than the expected and hits the highest growth rate since 2011.

Retail Sales of
CPI GDP Consumer
+ 3.54% + 7.08% Goods + 12.4%
2018 vs. YA 2018 vs. YA 2018 vs. YA

+3.53% +6.81% +10.9%

2017 vs. YA 2017 vs. YA
2017 vs. YA
Q1 2017 vs. YA
2.98
6.68 7.46 7.65 7.38 6.79 6.88 7.31
6.17
5.15

Source: GSO Vietnam

3
 FMCG GROWTH 10
FMCG – 12 WEEKLY YEAR-ON-YEAR CHANGE (%)

While Rural market is the growth engine of FMCG,

showing positive movements, the picture in Urban 5
4 cities is opposite with the negative growth in
2.2
volume consumption (units). 1.1
0
Urban -0.8

Q2'18
Q1'15

Q2'15

Q3'15

Q4'15

Q1'16

Q2'16

Q3'16

Q4'16

Q1'17

Q2'17

Q3'17

Q4'17

Q1'18

Q3'18

12 w/e P10'18

12 w/e P11'18
4 Cities
-5

Value Growth% Volume Growth%

5.4 % change Avg. Price paid* Value Volume**
4.3
2.4 2.3 2.3
10
-0.1
6.5
One year
5
ending P11’18 2016 vs YA 2017 vs YA 2018 vs YA
Rural 4.0

2.9
3.1 4.8 5.5 3.2 0
1.7 1.7

Q1'15

Q2'15

Q3'15

Q4'15

Q1'16

Q2'16

Q3'16

Q4'16

Q1'17

Q2'17

Q3'17

Q4'17

Q1'18

Q2'18

Q3'18

12 w/e P10'18

12 w/e P11'18
-5

*: To calculate FMCG price paid change, we calculate how much price contributes to the value change for each category, sum up
these contributions and relate to value YA Source: Kantar Worldpanel | Households Panel | Urban 4 Key Cities & Rural Vietnam |
**: To calculate FMCG volume change, we calculate how much volume contributes to the value change for each category, sum up
these contributions and relate to value YA (this results in an average category change in volume)
Total FMCG excluding Gift | 12 weeks period ending 4 November 2018

4
 FMCG GROWTH BY SECTOR
Dairy and Packaged Foods post a healthy growth in Rural, mainly driven by convenient categories which are
expanding consumer base and uplifting volume consumption. Meanwhile, in Urban 4 cities, the volume consumption
(units) of total food sector are under performing.

4.5% 4.6%
2.4% 1.9% 0.7%
URBAN 4 CITIES
-0.1% -1.8% -0.5% -0.8%
-2.6%

12 w/e P11'18 versus year ago

Value change%
Volume* change%
DAIRY BEVERAGES PACKAGED FOODS PERSONAL CARE HOME CARE

9.8% 8.5% 7.5%

RURAL 5.5% 4.9% 4.2%
2.3% 3.7% 2.4%

-3.6%

*: To calculate FMCG volume change, we calculate how much volume contributes to the value change for each category, sum up these contributions and relate to value YA (this results in an average category change in volume)
Source: Kantar Worldpanel | Households Panel | Urban 4 Key Cities & Rural Vietnam | Total FMCG excluding Gift | 12 weeks period ending 4 November 2018

5
 HOT CATEGORY
Plant-based drinks* is now a new trend. Despite the decline of Dairy sector in Urban 4 key cities, this segment enjoys
a fast growth rate. Thanks to new product launches which are performing very well compared to the category average,
plant-based drinks are penetrating much further and are promising to accelerate further with more players jump in.

Launched in March 2018

Plant-based drinks* are on the rise

Penetration Volume growth

8% Trial rate %
(vs category average 5%)
3%
(premium segment)

19% +41% 31% Repurchase rate % 30%

(vs category average 28%)

of Urban households versus YA

And more players jump into the game

*Including milk and soy milk with rice, nut, grain, seed added
Source Kantar Worldpanel | Household panel | Urban 4 Key Cities Vietnam | 11 months to November 2018

6
 RETAIL LANDSCAPE
While the Urban market experiences a flat growth, modern trade achieves a robust growth of 22%. Its growth is
continuously driven by the fast development of minimarket & convenience stores and the unstoppable expansion of
online channel. In Rural, upgraded street shops with a larger space and a wider range of products continue recruiting
more new shoppers.
6 5
2 11
5 2 2

4
7 32 VALUE SHARE % 22 4 10
16
14 13 33 16
Urban 12 w/e P11’17
4 cities 8 Rural
9 10
26 66

10
12 w/e P11'18
23 64

MEDIUM-SIZED SMALL WET SPECIALTY HYPERMARKET & MINIMARKET/ ONLINE OTHERS

STREET SHOPS STREET SHOPS MARKET STORES SUPERMARKET CVS

VALUE CHANGE % (12 w/e P11'18 versus year ago)

MEDIUM-SIZED SMALL WET SPECIALTY HYPERMARKET & MINIMARKET/ ONLINE MEDIUM-SIZED SMALL WET HYPERMARKET &
STREET SHOPS STREET SHOPS MARKET STORES SUPERMARKET CVS STREET SHOPS STREET SHOPS MARKET SUPERMARKET

4% 9% 1% 11% 9%
= 45% 127% 25% 4% 1% 10%
Source: Kantar Worldpanel | Households Panel | Urban 4 Key Cities & Rural Vietnam | Total FMCG excluding Gift | 12 weeks period ending 4 November 2018

7
 SPOTLIGHT OF THE MONTH OUT-OF-HOME PURCHASES
Out-of-home channel strategy: Segmentation matters
Different age groups have different channel choices for out-of-home purchases. While convenience stores become an
emerging place for GenZ to go out, Millennials favor coffee & tea shops which offer them a greater diversity of drinks.
Furthermore, delivery (via phone or online order) is also a new way for working-age group to order drinks to consume
away from home.
Shopping channel for Out-of-home consumption
Total Beverages excl. Beer (Value %)

Delivery

Impulse

Hyper/Supermarket

Traditional Trade

Minimarket

Restaurant/ Food Place

Work/ Education

Coffee & Tea Shops

Convenience Stores

Source: Kantar Worldpanel | Out-of-home Panel | Individuals 15-49YO | HCMC | Food & Drinks | 3 months ending November 2018

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 About Kantar Worldpanel

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turns purchase behavior into competitive advantage in markets as
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