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Vietnam Handbook Konsus Digital - Version v05 PDF
Vietnam Handbook Konsus Digital - Version v05 PDF
Handbook
2019
Follow the shopper
where the growth is
A Message from Managing Director
We have to continue to understand how In recent years the data that consumers
people live, get exposed and influenced, have allowed to be collected so easily
interact with each other, and how they have given brands an edge in terms
shop between offline and online. As of marketing but with more and more
a brand, it is vital to think about your issues over misused data and even data
entire customer experience, everything breaches, will 2019 be the year that we
from your logo, your website, your social will see a backlash? It is noticeable that
media experiences as well as the product many have joined in exodus of some
quality. Brands need to build emotional websites and platforms that have lost the
connection with their audience and trust.
media owners need to provide content
that people choose to watch. Welcome to our 2019 edition of the
Kantar Worldpanel Vietnam Insight
Knowing this, finding out the real Handbook, we wish to continue giving
factors which influence consumer’s you the must-know foundation to
attitude and purchase behavior are our contribute to your success.
Fabrice Carrasco
Managing Director of Kantar Worldpanel Vietnam | Philippines
Asia Strategic Projects Director
INTRODUCTION 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.
Now in its fourth edition, we are proud provides many more touchpoints that
to keep you updated on changes in marketers could utilize to reach their
consumers’ thoughts, perceptions and target consumers, especially the younger
shopping behaviours and bring you our generations. In addition, this rising trend
insights and forethoughts moving for- will also drive further the explosion of
ward to 2019 and beyond, in order to help out-of-home market.
you stay one step ahead of the market.
On the other hand, consumers seek
Above all, you will need to pull out all the greater convenience, which leads to the
stops to win as many shoppers as pos- exponential development of E-commerce
sible to drive growth. Since all markets today. However, online shopping will
are composed of different segments of not completely replace physical retail
consumers, based on their needs, desires presence. Instead, with technological
and behaviours; segmentation is essen- advancements, the boundaries between
tial for any business to find new shoppers, online and offline will be more blurred,
to grow broadly and sustainably. Notice- offering enhanced shopping experienc-
ably, in the next 5 years, Millennials still es. The big question that brands and
matter to many brands and retailers, but retailers should think about is how to take
furthermore, the growing senior popula- advantage of technological innovations
tion and the rising wave of centennials to build a deeper level of engagement
hold a huge potential to capture incre- with personalized experiences and em-
mental growth. bed them into their current omnichannel
strategy to ensure a seamless path to
On one hand, Vietnamese consumers purchase for consumers.
have a tendency to go out more and
enjoy different leisure activities such Enjoy your reading, get inspired, and we
as eating and drinking and travel. This wish you a successful year 2019!
David Anjoubault
General Manager of Kantar Worldpanel Vietnam
INTRODUCTION 7
Table of Contents
01 K-FACTS
9 The new pace of FMCG growth
10 Macroeconomic stability
02 K-FORETHOUGHTS
17 The macro forces to unlock the future growth
26 02 Polarization
ONE SIZE DOESN’T FIT ALL
32 03 Innovation
UNLOCKING NEW VALUE
50 05 Beyond Digital
THE FUSION OF ONLINE AND OFFLINE
68 03 K-TEAM
Meet, Greet & Get Inspired
24.5
24.2
18.7
16.0
12.4
12.6
12.0
10.6
10.2
9.2 9.1 9.5
GDP Growth (%) Inflation (%) Sales of Goods & Service (%)
6-7% 3-4%
GDP CPI
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
% Housewives agree
86% 96%
Top 3
Household’s Concerns
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
7.3 Housing
RURAL
9.7 Others
12.6 Savings
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
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
71 79 71 76 74 76 78 86 58 58
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
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
-2.7% 11.1%
K-FORETHOUGHTS Source: Household panel | Urban 4 cities | % Value among FMCG excluding Gift | 21
12 months ending September
2 Millennials still matter
Vietnamese Millennials
~35% of Vietnam
population
~33 millions
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
Biscuits –
Seaweed
flavor
5.9 11.3
Snack –
Cheese
flavor
18.6 22.7
30% of Vietnam
>29 millions
population
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
7%
40%
URBAN
53% (4 cities)
10%
44%
46% RURAL
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%
% Categories RURAL
8% 13% 5%
19%
29%
50%
58% 47%
52%
67%
50%
33% 40%
29%
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
20% 26%
Cross categories
49% 44%
* 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
1. 2.
Affordable Pack Size Advanced Benefits
3. 4.
Pure Ingredient International Image
K-FORETHOUGHTS 31
03 Innovation
UNLOCKING NEW
VALUE
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.
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
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)
31% 33%
26%
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%
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 %)
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
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
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
Urban Rural
(4 cities)
2pts
76% 72% 1pts
87% 42%
URBAN (4 cities) RURAL
2016 2018
42 Source: Kantar Worldpanel | Family Form | Urban 4 Key Cities & Rural Vietnam | Insight Handbook 2019
12 months ending September 2018
My Kitchen 2
64
Urban Rural
(4 cities)
45%
49%
2013 2017
Opportunity for
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
% Households agree
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”
9.3
15.3
8.1
7.0
73 75 21 25
Nowadays you have to take care I often go for skin care services
of your skin more
397
355
338
318
249
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
10,000 Gel
ADDITIONAL BUYERS VS YA
Mask
Mask category is gaining
fast, esp sheet mask due to
convenience.
90,000
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
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
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%
2% 1%
37% 33%
50% 48%
63%
66%
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.
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.
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
95% 69%
10pts 23pts
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%
URBAN
100% 98% 62% 81%
(2 cities) 3.4 2.9 1.5 3.0
DO YOU KNOW
The millennials spend up to
30% of their waking lives
online with 4.8hrs online/
day*
79% 179
70% 36
Social
38% 34
Network
61% 32
Chat
25% Online 28
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
5.8% 7.3%
24.0%
76.0%
0.1%
1.9%
5.6%
9.9% 8.8%
88.2% 85.6%
[i] Modern trade includes: hypermarket and supermarket, convenience stores and discounters.
[ii] Other include: door to door, drugstore, and pharmacy.
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
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.
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
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%
Convenience
Supermarket Click & Stores
75 STORES Delivery 812 STORES
PENETRATION: 15%
K-FORETHOUGHTS Source: Kantar Worldpanel | Households panel | Urban 4 key cities | FMCG | 12 61
months ending September 2018
2 Modern Proximity
74%
% Penetration of Minimarts & CVS
Urban Rural 36 42 53
(4 cities)
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
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
Consumers make
orders through Internet
merchandising sites,
including E-retailers like
Lazada, Shopee and
Social Commerce Online
149% 19%
GROWTH PENETRATION
56% 8%
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
HAIR SALON
Delegation
Service
LAUNDRY SERVICE
K-FORETHOUGHTS 65
4 Tech Embedded Life
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.”
K-FORETHOUGHTS 67
03 K-TEAM
Meet, Greet & Get Inspired
Our Commitment
Local, Regional, Global
Household samples:
270,000 Largest panel sizes and largest
number of panels worldwide
K-TEAM 69
Our Methodology
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
K-TEAM 73
Contributors
Fabrice Carrasco
Managing Director of Kantar Worldpanel
Vietnam & Philippines
Asia Strategic Projects Director
K-TEAM 75
www.kantarworldpanel.com.vn