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Vietnam consumer trends 2017
1
2
High income households doubled whilst economy tripled
O5 16
1.61 m
280 m
US$532
44 billion
82 m
27%
3.41 m
2.0 billion
US$2,019
186 billon
91 m
34%
Urban HH >US$500/mth
Ad spend
GDP/person
Economy
Pop
Urban pop
111%
648%
279%
323%
12%
40%
Since 2005
rural
population
only grown
by 747,000!
3
Life stages are maturing, as do purchase priorities
O5 16
Young single
Young married - no kids
Young married - a child < 10
Married youngest child >9 & <20
Empty nester
Old single
37.1 m
9.1 m
18.3 m
7.5 m
4.6 m
5.8 m
36.8 m
8.9 m
17.5 m
10.3 m
7.5 m
10.2 m
-1%
-2%
-4%
36%
64%
75%
2025
34.2 m
7.1 m
13.2m
13.2 m
13.9 m
16.6 m
www.globaldemographics.com
Silver and urban will be where to mine for gold
5
O5 35
30%
34%
40%
46%
28%
35%
38%
51%
0%
10%
20%
30%
40%
50%
60%
2005 2010 2015 2016 2020 2025 2035
Urban % % aged 40+
www.globaldemographics.com
6
New retail chasing share before profits
O5 16
15% modern trade share of grocery sales
E-commerce is scratch cards at internet
cafes and very profitable
47 supermarkets
135 modern self service, mostly
independent
18% modern trade share of grocery sales
E-commerce is COD and mostly unprofitable
(recall Lazarda)
1035 supermarkets
2,100 modern self service stores,
mostly chains
10
Health consciousness translates into spend
O5 16
Spend US$2.1 billion on overseas healthcare
140+ stores from 6 pharmacy chains
My Chau, Pharmacity , IC, Eco, V-Phano, Y Duc.
More under development
120+ branded chain gyms
100+ branded health & beauty care stores;
Medicare, Guardian, GNC
Health #3 concern
Food safety
Superficial claims of de-tox
Claimed regular exercise
11
Conspicuous consumption has always been mobile
O5 16
What I drive
The Gioi Di Dong opened the 4th
store.
What drives me
Over 1,495 stores from The
Gioi Di Dong, FPT, Vietel and Viet
Thong A.
12
Keeping up with the Nguyen’s with consumer finance
O5 16
6,000new apartments sold
25,000new passenger car sales
437,000 new motorbike sales
US$1.6 billon in consumer loans
3.6% of GDP
59,000 new apartments sold
179,000new passenger car sales
3,121,000new motorbike sales
USD16 billion in consumer loans
9% of GDP (2015)
Home & improvements 40%
Home appliances / electronics 30%
Motorbikes / cars 15%
Every day in 2016:
8,551 new
motorbikes
and 489 cars
15
Mobile drives internet penetration and habits
O5 16
Internet national penetration
Any mobile 15+ user
Smartphone 15+ user
Urban frequent online access
Urban time spent
Online mobile page views
View video on mobile
13%
37%
NA
20%
120 min
NA
NA
54%
74%
48%
82%
188 min
34%
32%
17
Experiences becoming key to fulfilment
O5 16
Focus on what I have
16,100,000 domestic travellers
227,134 Vietnamese head to Thailand
150,626 Vietnamese head to Singapore
New brands, new durables
Focus on what I have done
57,000,000 domestic travellers (2015)
830,394 Vietnamese head to Thailand
469,000 Vietnamese head to Singapore
New experiences, places and adventure
Personal fulfillment and
social validation matter
48%
52%
Inbound up 26% to 10
million in 2016
Change in origin:
China now accounts for
27% and S Korea 15%.
19
10 trends impacting purchase prioritiesO5 16
1. High income households doubled, economy tripled.
2. Life stages are maturing. Household structures change, with less kids setting priorities.
3. New retail chasing share before profits.
4. Coffee, beer and fast service chains grow.
5. Health consciousness translates into action and spend.
6. Conspicuous consumption has always been mobile.
7. Keeping up with the Nguyen’s with consumer finance. Getting ahead with education.
8. Self expression is far easier and immediate.
9. Mobile drives internet penetration and habits. Fragmented opportunities as mobile,
video and IP TV converge.
10. Experiences key to fulfilment.
Part
ask@cimigo.com
22

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Consumer Trends Vietnam 2017

  • 2. 2 High income households doubled whilst economy tripled O5 16 1.61 m 280 m US$532 44 billion 82 m 27% 3.41 m 2.0 billion US$2,019 186 billon 91 m 34% Urban HH >US$500/mth Ad spend GDP/person Economy Pop Urban pop 111% 648% 279% 323% 12% 40% Since 2005 rural population only grown by 747,000!
  • 3. 3 Life stages are maturing, as do purchase priorities O5 16 Young single Young married - no kids Young married - a child < 10 Married youngest child >9 & <20 Empty nester Old single 37.1 m 9.1 m 18.3 m 7.5 m 4.6 m 5.8 m 36.8 m 8.9 m 17.5 m 10.3 m 7.5 m 10.2 m -1% -2% -4% 36% 64% 75% 2025 34.2 m 7.1 m 13.2m 13.2 m 13.9 m 16.6 m www.globaldemographics.com
  • 4. Silver and urban will be where to mine for gold 5 O5 35 30% 34% 40% 46% 28% 35% 38% 51% 0% 10% 20% 30% 40% 50% 60% 2005 2010 2015 2016 2020 2025 2035 Urban % % aged 40+ www.globaldemographics.com
  • 5. 6 New retail chasing share before profits O5 16 15% modern trade share of grocery sales E-commerce is scratch cards at internet cafes and very profitable 47 supermarkets 135 modern self service, mostly independent 18% modern trade share of grocery sales E-commerce is COD and mostly unprofitable (recall Lazarda) 1035 supermarkets 2,100 modern self service stores, mostly chains
  • 6. 10 Health consciousness translates into spend O5 16 Spend US$2.1 billion on overseas healthcare 140+ stores from 6 pharmacy chains My Chau, Pharmacity , IC, Eco, V-Phano, Y Duc. More under development 120+ branded chain gyms 100+ branded health & beauty care stores; Medicare, Guardian, GNC Health #3 concern Food safety Superficial claims of de-tox Claimed regular exercise
  • 7. 11 Conspicuous consumption has always been mobile O5 16 What I drive The Gioi Di Dong opened the 4th store. What drives me Over 1,495 stores from The Gioi Di Dong, FPT, Vietel and Viet Thong A.
  • 8. 12 Keeping up with the Nguyen’s with consumer finance O5 16 6,000new apartments sold 25,000new passenger car sales 437,000 new motorbike sales US$1.6 billon in consumer loans 3.6% of GDP 59,000 new apartments sold 179,000new passenger car sales 3,121,000new motorbike sales USD16 billion in consumer loans 9% of GDP (2015) Home & improvements 40% Home appliances / electronics 30% Motorbikes / cars 15% Every day in 2016: 8,551 new motorbikes and 489 cars
  • 9. 15 Mobile drives internet penetration and habits O5 16 Internet national penetration Any mobile 15+ user Smartphone 15+ user Urban frequent online access Urban time spent Online mobile page views View video on mobile 13% 37% NA 20% 120 min NA NA 54% 74% 48% 82% 188 min 34% 32%
  • 10. 17 Experiences becoming key to fulfilment O5 16 Focus on what I have 16,100,000 domestic travellers 227,134 Vietnamese head to Thailand 150,626 Vietnamese head to Singapore New brands, new durables Focus on what I have done 57,000,000 domestic travellers (2015) 830,394 Vietnamese head to Thailand 469,000 Vietnamese head to Singapore New experiences, places and adventure Personal fulfillment and social validation matter 48% 52% Inbound up 26% to 10 million in 2016 Change in origin: China now accounts for 27% and S Korea 15%.
  • 11. 19 10 trends impacting purchase prioritiesO5 16 1. High income households doubled, economy tripled. 2. Life stages are maturing. Household structures change, with less kids setting priorities. 3. New retail chasing share before profits. 4. Coffee, beer and fast service chains grow. 5. Health consciousness translates into action and spend. 6. Conspicuous consumption has always been mobile. 7. Keeping up with the Nguyen’s with consumer finance. Getting ahead with education. 8. Self expression is far easier and immediate. 9. Mobile drives internet penetration and habits. Fragmented opportunities as mobile, video and IP TV converge. 10. Experiences key to fulfilment.