2021 – THE YEAR OF THE OX

Consumer TET Behavior Report

Chúc Mừng Năm Mới!

1
INTRODUCTION

▪ Every year, Infocus Mekong Research conducts a Tet Behavior and Consumer Confidence Index, which predicts the year ahead in terms
of Tet Purchase behaviors and Consumer Confidence and spend for 2021.
▪ The next few slides are a short overview of The TET Consumption Behavior for 2021.
▪ 2021 Consumer confidence Report shall be available after January 14, 2021

RESEARCH METHODOLOGY
METHODOLOGY ▪ Quantitative – Self-completion by end consumers
▪ Using IFM Mobile Panel via smartphones
▪ Sample Size: N=1,026 (sampling error 2.7%)
Gender N= 1,026
Male 41% Monthly Household income N=1,020
Female 59% Below 10,000,000 VND 8%
Age N=1,026 10,000,001 -15,000,000 VND 12%
18-24 18% 15,000,001 - 20,000,000 VND 23%
25-30 37% 20,000,001 - 25,000,000 VND 11%
31-40 33% 25,000,001 - 30,000,000 VND 15%
40+ 12% 30,000,001 - 40,000,000 VND 11%
Regions N= 1,026 Above 40,000,000 VND 20%
North 46% Areas N=1,026
Central 9% Urban 69%
South 45% Rural 31%

2
Consumer Confidence

3
2020 - 2021 CONSUMER CONFIDENCE
Consumer confidence is coming back, but not anywhere near 2020 pre-COVID-19 levels. Either way, signs are positive for
a better 2021.
A majority see the economy being better 2021 than 2020, but many still have concerns for 2021.
2021 Consumer confidence Full Report shall be available after January 14, 2021

IFM CONSUMER CONFIDENCE INDEX 2021 2020 vs 2021 VIEW OF THE ECONOMY

Before COVID-19 Outbreak Post COVID

Better Same Worse
2020
70% 22% 8%
January
92 92
84
68
60
51 2020 July 5% 19% 76%
27
2021
58% 27% 15%
2012 2014 2016 2018 2020 2020 2021 January
Jan July January
Index out of 110 Base: 5,009
Base:10,100
4
4
 TOP FEARS - PERSONAL & ALTRUISTIC
Main fears still revolve around COVID’s impact on self and Business. More positively, concerns about the environment is a
positive sign that consumers are thinking more long term and communal and less about only immediate self preservation.

BIGGEST FEARS FOR 2021 SHIFTING CONSUMER FEARS

Negative impact of Environmental pollution Negative COVID impact on my business

Virus on my business 26% 25%
59%
COVID Infection 22%
17%
COVID Infection 55% Increased Inflation 16%
15%
13%
Environmental Unemployment 1… 11%
10%
pollution 45% 8% 8%

Vietnam economic
slow down 44% 3%

Jan-20 Jul-20 Jan-21

Base: 5,009 Q.4 what is your single largest fear/ reservation for 2020? (select the top 1 only) Base: n=3,987
5
 2021
Strengths
Strong, Stable, Dependable,
Sensible
THE YEAR OF THE OX
can be defined by:
Weaknesses
Jealous, Possessive
Inflexible, Blunt, Tactless

6
SUMMARY OF TET 2021

▪ 2021 Tet spend will be down – potentially as much as 15% - 20% - a lag effect of COVID-19

▪ 65% of consumers will spend less than 50% of their salaries on TET this year, compared to 50% in 2018

▪ Average mean spend per adult will be 5.9 Million VND

▪ Alcohol, specifically beer, will be the big winner for TET, as more Folks stay at home and “Beer it” for Tet

▪ Beer with make up 11% of all spend, followed by Fresh Fruit and Confectionary

▪ 38% will remain at home with another 37% travelling back to their home towns.

▪ Only 25% will travel domestically and no one will fly overseas.

7
2021 VS 2020 TET SPEND – LESS – SAME – MORE

2021 Tet spend will be down significantly from previous years. This is partially due to the negative impact of
COVID-19, but also due to a general trend of Tet spend declining over time, even though salaries are higher .

2021 Tet Spend Vs 2020

More Same Less
2021 vs 2020 32 44 24

2020 vs 2019 68 24 8

2019 vs 2018 65 28 7

2018 vs 2017 53 35 28

2016 vs 2015 66 12 22

Base: 2021 1,026 Nation-wide Let's talk about Tet, compared to Tet 2020, how much will you spend on Tet 2021?
8
AVERAGE SPEND PER ADULT FOR TET

2021 will see an average spend of 5.9 Million VND / adult, versus 6.3 Million VND, a decline of 6%. However,
taking into account Corporate gifting, spend will see a decline of 15% for corporate, so roughly 10% total
reduction , and even lower if compared to 2020.

Average spend / Adult for Tet

Under 1 M 1M to 5 M 5 M to 10 M 10 M - 20 M above 20 M Average spend

2021 6% 50% 26% 15% 4% 5.9 Million VND

2018 11% 47% 26% 10% 5% 6.3 Million VND

Base: n = 2,041 How much are you going to spend on 2021 Tet gifts?
9
PERCENT OF SALARY SPEND FOR TET

Two thirds of consumers will spend less that 50% of their monthly salary for 2021 Tet, versus 50% in
2018, Indicating a somewhat lean TET period in 2021.

% of Monthly salary spent on Tet

Less than 30% 31-50% 51- 80% 81-100% 100% or More

2021 23% 43% 22% 8% 5%

2018 14% 36% 31% 11% 8%

Base: n = 2,041 Of your monthly salary, how much will you spend on Tet?
10
TET CATEGORY PURCHASE

24% of all Tet baskets shall include some form of alcohol, 11% Beers, 13% Wine and spirits.

Percent of spend by Category

27%
24%
2021 2020 21%

15% 15%
12% 13% 13%
11% 12% 11% 11% 10%
7%

Alcohol beverage Confectionery Fresh fruits Regional Jam / dried food Imported food Other
specialties
Base: n = 2,045 How percentage will you spend on each of following category as Tet 2018 gifts?
11
TET CATEGORY PURCHASE URBAN VS RURAL

Tet spending patterns are very similar across Vietnam, indicating Rural Vietnam is catching up to Urban
Vietnam. Save for Imported good, wine and spirits which are driven more by urban consumers
Urban Vs Rural Tet Gifting Spend

21 Urban Rural
19

15
14 14 15
12 11 11 11
10 10 10 10 10 10 10
7 6
5 5 4

Lucky money Fresh Fruit Gifts non confectionary Regional Jam / dried Other F&B Beer Imported Spirits Wine
food speciialties food food

Base: n = 1,026
12
TOTAL PERCENT OF TET SPEND BY CATEGORY

Beer tops all alcohol in terms of spend in 2021, at 10% of total share of wallet nationally. Spirits
represents a healthy 7% of share of wallet, higher than wine Nation-wide

% share of wallet spend Tet 2021 14%

13%
12%
11% 11%
10% 10%

7%
6% 6%

Imported food Wine Spirits Beer Others F&B Jam / dried Regional Confectionery Gifts (Non Fresh fruits
food specialties food /
beverage)
Base: 1,026 Nation-wide For Tet 2021, what % of your total spend will you spend on the below categories
13
2021 TET HOLIDAY TRAVEL PLANS

More Vietnamese plan to stay at home for Tet this year than previous years, further impacting domestic
tourism, with only 25% planning to travel outside of their home town.

Travel plans 2021 vs 2020

2021 2020
40%
38% 37%
32%

24% 25%

4%
0%

Stay at home Go to my Home Town Travel domestically Travel overseas

2021 Base: 1,026 Nation-wide

What are you doing for 2021 Tet holiday?
Base: n = 2,041 14
 2021 Chúc Mừng Năm Mới!

Ralf Matthaes | Managing Director

Website: www.ifmresearch.com
Email: Ralf.matthaes@infocusmekong.com

15