An integrated update of Vietnam FMCG

market
12 weeks period ending 14 June 2015 (12 w/e P6’15)
Urban 4 Key Cities & Rural Vietnam

Previous Start

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KEY INDICATORS
CPI increases slightly,
which has signaled a return
of inflation due to the
impact of rising price in
crude oil and electricity.
FMCG TRENDS
In line with the regional
downtrend, both Urban &
Rural Vietnam are also
suffering from the
slowdown in growth yet
modest recovery came
back in short term.

HOT CATEGORIES RETAIL LANDSCAPE SPOTLIGHT ON VN

Carbonated Soft Drinks in
Urban and Instant Coffee in
Rural
Specialty & Mini-stores
come up as two fastest-
growing channels in Urban.
Meanwhile, Street Shops
keeps growing its
dominance in Rural.
Brand Footprint is back in
2015, which reveals that
focusing on penetration is a
key to build big brands and
every brand has plenty of
headroom for growth.

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KEY INDICATORS FMCG TRENDS HOT CATEGORIES RETAIL LANDSCAPE SPOTLIGHT ON VIETNAM

FMCG GROWTH
+6.4% URBAN 4 CITIES Despite the recent stronger
performance of the Vietnam
Q2’15 vs. YA economy, there is still a
+5.3% 11.8
7.7
warning of more inflation risk,
coupled with macro-economic
Q2’14 vs. YA 1.8 4.7 4.1
0.3 uncertainties which may

GDP Value Growth % Volume Growth %

creep back. This is partly
attributed to the increasing
price of crude oil and
MAT P6'13 vs YA MAT P6'14 vs YA MAT P6'15 vs YA

+1.0%
electricity.

June’15 vs. YA RURAL In line with the regional

downtrend, both Urban 4 key
+5.0% 9.9 12.6
8.7 5.9
10.0 7.2
cities and Rural Vietnam
June’14 vs. YA have continuously suffered
from the deceleration in
CPI Value Growth % Volume Growth % grocery growth since early
2014.
Source: GSO
Kantar Worldpanel – Households Panel – Urban 4 Key Cities & Rural Vietnam – Total FMCG excluding Gift

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KEY INDICATORS FMCG TRENDS HOT CATEGORIES RETAIL LANDSCAPE SPOTLIGHT ON VIETNAM

FMCG – 12 WEEKLY YEAR-ON-YEAR CHANGE (%)

Urban 4 Cities Rural

20 20 In short term, the urban

market has stopped going
down in quarter 2, now the
10 10 +7.2% growth trend has witnessed
1.9% slight improvements in both
value and volume. The value
0 0 growth rate posts a 1.9%
increase in Urban and a
7.2% increase in Rural.
-10 -10

Q1'13

Q2'13

Q3'13

Q4'13

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15
Q1'13

Q2'13

Q3'13

Q4'13

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

% change Avg. Price paid* Value Volume**

*: 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
**: 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

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KEY INDICATORS FMCG TRENDS HOT CATEGORIES RETAIL LANDSCAPE SPOTLIGHT ON VIETNAM

URBAN 4 CITIES VALUE CHANGE (%) VOLUME* CHANGE (%)

Total FMCG 2 1
Dairy -2 -1
Beverages 13 10
The urban market quite stagnant
Packaged Foods -5 -5 due to a dip in value and volume
Personal care 7 2 for Dairy and Packaged Foods.
Home care 3 2
In Rural, sales growth increased
in each sector except Packaged
RURAL Foods. Dairy and Beverages
Total FMCG 7 post the strongest growth rates,
6
Dairy
mainly thanks to the progression
14 13 of Liquid Milk, Drinking Yogurt…
Beverages 13 12
Packaged Foods -1 -2
Personal care 3 2
Home care 12 8

*: 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) 12 w/e P6/15 vs. YA
Source: Kantar Worldpanel – Households Panel – Urban 4 Key Cities & Rural Vietnam – Total FMCG excluding Gift

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KEY INDICATORS FMCG TRENDS HOT CATEGORIES RETAIL LANDSCAPE SPOTLIGHT ON VIETNAM

URBAN 4 CITIES RURAL

Zoom in on categories,
Carbonated Soft Drinks in
Urban and Instant Coffee in
Rural are the fastest -
growing beverage
categories. They are both
doing well at expanding
VOL CHANGE % VOL CHANGE % their shopper base.

+16% CARBONATED SOFT INSTANT COFFEE +30% While Carbonated Soft

Drinks attracted 78,000
DRINKS incremental shoppers in
urban, Instant Coffee gained
Penetration +3.1pt +2.7pt
Penetration ground by recruiting
Incremental of 78,000 households Incremental of 450,000 households 450,000 additional shoppers
in rural.
Average volume per buyer +8% +16%
Average volume per buyer
Increase volume purchase by 8% Increase volume purchase by 16%

Source: Kantar Worldpanel – Households Panel – Urban 4 Key Cities & Rural Vietnam – Total FMCG excluding Gift 12 w/e P6/15 vs. YA

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KEY INDICATORS FMCG TRENDS HOT CATEGORIES RETAIL LANDSCAPE SPOTLIGHT ON VIETNAM

Urban 4 Key Cities

% Value Share
3
7 2 Street shops
5 23 In terms of retail landscape,
5 22 17 Wet market
17 17 in Urban, we see Street
61 Specialty Stores Shops lag behind the market
62 10 but Modern Trade still
11 63 11
Modern trade struggling to pick up
additional share, not helped
12 w/e P6’13 12 w/e P6’14 12 w/e P6’15 > Hyper/Supermarket
by the decrease of
> Ministores Hyper/Supermarkets.
Street Shops Wet Market Modern Trade Specialty Direct Sales Others
However, specialty and mini-
12 w/e P6’14 12 w/e P6’15 stores come up with the most
vs. YA vs. YA
Rural outstanding performances.
3
2
Street shops
24 18
In Rural, Street Shops keep
24 20 Wet market
21 growing their dominance of
Modern trade the market.
73 74 77
Growth ≤ -0.5% -0.5% < Growth < 5%
12 w/e P6’13 12 w/e P6’14 12 w/e P6’15 5% ≤ Growth ≤ 15% Growth >15%

Source: Kantar Worldpanel – Households Panel – Urban 4 Key Cities & Rural Vietnam – Total FMCG excluding Gift

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KEY INDICATORS FMCG TRENDS HOT CATEGORIES RETAIL LANDSCAPE SPOTLIGHT ON VIETNAM

BRAND
FOOTPRINT 2015
TOP URBAN 4 KEY CITIES RURAL

A Global Ranking of The Most MOST CHOSEN

Chosen Consumer Brands BRAND OWNERS

TOP MOST CHOSEN

BRANDS BY SECTOR

SECTORS URBAN 4 RURAL SECTORS URBAN 4 KEY RURAL

KEY CITIES CITIES

IN VIETNAM
P/S P/S Vinamilk Nam ngu (Chin su)

HEALTH & PACKAGED

Kotex Clear Nam ngu (Chin su) Gau do
BEAUTY FOOD

Diana Sunsilk Hao Hao Hao Hao

Sunlight Omo Vinamilk Vinamilk

BEVERAGES
(incl. Liquid
Omo Sunlight Dutch Lady Fami
HOME CARE Dairy)

Comfort Comfort Coca-Cola Dutch Lady

Source: Kantar Worldpanel – Brand Footprint 2015 – Urban 4 Key Cities & Rural Vietnam
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About Kantar Worldpanel
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Contact us

Nguyen Thi Nhu Ngoc

Senior Marketing Executive
Email: nhungoc.nguyenthi@kantarworldpanel.com
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