EXECUTIVE SUMMARY

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

The economy looks The FMCG market is Soya Milk wins back Shopping places that offer The importance of
brighter and is expected showing an early signal consumers’ choice. a diverse range of Fresh Foods!
to improve further in the of rebound after low product choices are
remaining months. season. leading the market growth.
KEY INDICATORS
CPI in August 2017 is higher than last month due to the rising price of oil and health services. However, the average
CPI in the first 8 months continues to be controlled under +4%. The Vietnam’s economy looks brighter despite
challenges and is expected to improve further in the remaining months.

+3.84% +6.17% +10.3%

YTD August’17 vs. YA
Q2’17 vs. YA YTD August’17 vs. YA

CPI GDP Retail Sales of

5.22
3.35
6.17 Consumer Goods

Jan Feb Mar Apr May Jun Jul Aug Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17

+1.91% +5.55% +9.7%

YTD August’16 vs. YA Q2’16 vs. YA YTD August’16 vs. YA
Source: GSO Vietnam

3
 In short term, volume consumption picks up slightly in
FMCG GROWTH Urban 4 cities market and has been improved in Rural
after falling into the 2017’s lowest growth. The market is
FMCG – 12 WEEKLY YEAR-ON-YEAR CHANGE (%) showing an early signal of rebound after low season.
10

5 3.8

3.0
1.0
0 Value Growth% Volume Growth%
Urban

12 w/e P7'17

12 w/e P8'17
Q1'15

Q2'15

Q3'15

Q4'15

Q1'16

Q2'16

Q3'16

Q4'16

Q1'17

Q2'17
4 Cities
4.3 4.9
-5 2.3 2.4
1.1 2.1

% change Avg. Price paid* Value Volume**

One year ending P8’17
10 2015 vs YA 2016 vs YA 2017 vs YA

5 3.3

3.9
8.9 7.5
0
12 w/e P7'17 (0.3) Rural 4.1 4.7 3.0 1.7

12 w/e P8'17
Q1'15

Q2'15

Q3'15

Q4'15

Q1'16

Q2'16

Q3'16

Q4'16

Q1'17

Q2'17

-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 | Total FMCG excluding Gift | **: To calculate FMCG volume change, we calculate how much volume contributes to the value change for each category, sum up
12 weeks period ending 13 August 2017 these contributions and relate to value YA (this results in an average category change in volume)

4
 FMCG GROWTH BY SECTOR
Volume consumption plays a driving role in sector performance. While Beverage is getting its momentum back, non Food
sectors continue to shine bright, Dairy and Packaged Foods still post negative growth in this period. Consumers have recently
reduced consumption in cooking aids, are they changing their cooking habit? Or spending more on eating out?

Value change% Volume* change% 12 w/e P8’17 versus year ago

DAIRY BEVERAGES PACKAGED FOODS PERSONAL CARE HOME CARE

Urban -4 11 5 10 7
4 cities -6 7 1 6 6

-3 12 -4 9 16
Rural
-2 5 -6 2 10

*: 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 13 August 2017

5
 HOT CATEGORY
After a downturn in 2016, Soya Milk has recovered in both Urban 4 cities and Rural since the beginning of this year
thanks to winning back consumers’ choice. Some key players aggressively pour cash into promotion heating up the
market again, does it drive the category healing? And how far Soya Milk can grow amidst the tendency towards adopting
more nutrition products?

URBAN 4 CITIES 12 w/e P8’17 versus year ago RURAL

+7.9%
Volume growth Volume growth
+21% vs YA +18% vs YA

% Buyers
23% of Urban households 35% of Rural households % Buyers
(+ 4.2 pts vs YA) (+ 4.6 pts vs YA)

Volume Volume
per buyer 466ml / week Soya Milk 539ml/ week per buyer

Source: Kantar Worldpanel | Households Panel | Urban 4 Key Cities & Rural Vietnam | Total FMCG excluding Gift | 12 weeks period ending 13 August 2017

6
 RETAIL LANDSCAPE
In Urban 4 key cities, modern formats keep outgrowing traditional channels. Interestingly, Specialty Stores especially
selling drinks and personal care items now lead the growth of traditional trade. It seems to meet individual needs
consumers are heading more toward shopping places that offer a diverse range of product choices.

7 4
4 22 10

13 3
7
34 VALUE SHARE % 16 12 4 8

13 34 17
Urban 12 w/e P8’17
4 cities 7
7
Rural
10
67
10 28
12 w/e P8’16
67
26

MEDIUM-SIZED SMALL WET SPECIALTY HYPERMARKET & MINIMARKET/ OTHERS

STREET SHOPS STREET SHOPS MARKET STORES SUPERMARKET CVS

VALUE CHANGE % (12 w/e P8’17 versus year ago)

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

5% 3% 0% 15% = 7% 21% 18% 3% 1%

Source: Kantar Worldpanel | Households Panel | Urban 4 Key Cities & Rural Vietnam | Total FMCG excluding Gift | 12 weeks period ending 13 August 2017

7
 SPOTLIGHT OF THE MONTH
The importance of Fresh Foods!
Fresh Foods still represent the biggest spending in consumers’ wallet, however we are seeing changes in Fresh Food basket.
Consumers now allocate more to fruits, vegetables and white meat (sea foods, fishes). Health concern may influence their
shopping behavior not only in FMCG but also in Fresh Foods. Hence, prioritizing consumers’ wellbeing should be considered in
order to drive further growth.

Fresh Food Basket Share – Top 5

On average, 19% (+48%)

urban household spends
14% (+11%)
~1,100,000 vnd
Fish
a week on Fresh Food, 12% (+33%)

triple 12% (+38%)

FMCG spending Spending growth +17%

11% (+21%)
Source: Kantar Worldpanel | Fresh Food Panel | Urban 4 key cities (500 households) | Updated to Q2’17 vs Q2’16 * Number in bracket () is spending growth per buyer versus year ago

8
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