Transforming challenges

into growth opportunities

VIETNAM
BRAND FOOTPRINT
Vietnam's Economic Landscape: Key Insights and Indicators
Vietnam’s macroeconomy has stabilized and showed signs of better growth in the second quarter of this year after
a low pace in Quarter 1.

13.7
4.6
3.9
7.7 3.4 3.4
5.0 5.9 2.4
3.3 4.1 2.0

GDP Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 CPI

42.5

19.5 17.1
13.2
8.8
4.8
Retail Sales &
Consumer Goods Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23

Source: GSO
Consumer Sentiment: Shifting Concerns in Uncertain Times
Health and food safety are still top 2 things consumers care the most but income, job security and especially cost
increase are making them more worried in recent months.

Currently what do you consider to be the biggest concerns you and your household is likely to face?
% HH agree

Q2'2022 Q3'2022 Q4'2022 Q1'2023 Q2'2023

71
68 66
63
58
53 51
45 45
40 40 40
37
34
31
28 27 28
23 23 24
18 16 18
16

Disease / Sickness Food Safety HH Income Increasing costs Job security

Source: Kantar Vietnam – Worldpanel Division – Consumer Confidence survey – Urban 4 cities
 Pressure groups
How do you evaluate the current financial situation of your Household?
% contribution of each group
19 20 21 24 28 28 Under the impacts of macro
Struggling economy, there is a significant
(not doing well)
59 53 54 53 52 52
increase of households having
Managing
(comes out correctly)
financial difficulties in the last
22 27 25 23 20 20
3 years.
Comfortable
(no worries)
Q4 2019 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023

Which categories do you intent to reduce your spending?

% respondent

55 55
43 40 48
30 27
11 17 5 20 24 9 9 26 5 4 11

Eating out OOH Household Transportation Daily food Cosmetics

Entertainment appliance

Source: Worldpanel Division | Consumer Confidence Survey | Urban Vietnam 4 key cities
Diverse Consumer Behaviors in FMCG Spending
Different consumer groups exhibit highly distinct behaviors and struggling groups suffer the most.

PRESSURE GROUP Comfortable Families Managing Families Struggling Families

% Families 20 52 28

% Value Contribution 27 45 28

% FMCG spending change

3 months ending May 2023 vs. YA +10 +5 +1

Source: Worldpanel Division | Consumer Confidence Survey & Household Panel | Urban Vietnam 4 key cities
Consumer confidence is slightly coming back
It could be driven by some economic recovery and positive news they are exposed to. It would take some time for
them to spend money more comfortably again.

In the upcoming 12 months, your family financial situation will improve

% HH agree

59 59
53 52 49
45 48 46 45 48

Q4 2019 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023

Source: Kantar Vietnam – Worldpanel Division – Consumer Confidence survey – Urban 4 cities
 Polarization in Consumer Spending
Spending control Willing to pay

Prioritizing the essentials Health & wellness - the key focus

Downtrading In-home indulgence

Bigger trip for more saving The ME needs

Seeking promotions

7
Prioritizing the essentials
40% FMCG categories could not sustain their shopper base and even the large categories could be dropped out.
Product relevancy is more critical than ever!

Any category can be impacted

8 Urban 4
6
% Dropped category
+/- Penetration vs YA

4 Small categories
38 (<30%)
2
Medium categories
0
(30-70%)
42
-2
Large categories
(>70%)
-4
40% categories are dropped 21
-6
0 10 20 30 40 50 60 70 80 90 100
Penetration in MAT 23

Source: Worldpanel Division | Household Panel | Urban Vietnam 4 key cities

 Downtrading: Consumers Shift to Lower Priced Products
Consumers are changing their options to lower priced products and this trend is much more visible among Rural
consumers lately.
Top downtrading categories
% Contribution to FMCG Growth

5
5 7 5 5 5
Urban 4 -4 0 3
-1
-4 -6

Q122 Q222 Q322 Q422 Q1 23 3 months

ending May 23
Inflation Product Mix

8
5 8 6 5
4 5
Rural 1
-2 0 -2
-7

Q122 Q222 Q322 Q422 Q123 3 months

ending May 23

Source: Worldpanel Division | Household Panel | Urban Vietnam 4 key cities and Rural Vietnam
Bigger Trip Size: A Budget Management Strategy
Consumers are buying either bigger packs or multi-packs even after lockdown period

Consumers continue to increase trip size Bigger Pack Size

% category change volume per trip
Liquid Detergent RTD TEA
Pack >3.5KG Multi-serve – Pack 1L

11 +17% buyer base +27% buyer base

MAT 23 vs MAT 21 26

>+3% trip size Multi-pack trip

Sustain
<-3% trip size 21 23 Dairy
%Occasion CSD
32 34 Multipack x4 24 can packs
64
2021 2022
Multipack x48 +22% buyer base

Source: Worldpanel Division | Household Panel | Urban Vietnam 4 key cities

Promotion Seeking: Impact on Shopping Choices
Consumers are actively comparing prices even between stores to find the best deal, which create great momentum
for overall FMCG growth. Yet not all categories gain benefit from promotion push.

100.0
More promotion – More promotion –
category decline category growth

49%
80.0

% Growth volume under promotion

I refer to many different stores
to find attractive promotions. 60.0
+12%
vs 2020
40.0

% Volume FMCG growth 20.0

3 months ending May 23 vs YA
0.0

-20.0
Without
With
Promotion +32% Promotion +1%
-40.0
Less promotion – Less promotion –
-60.0 category decline category growth
-15.0 -10.0 -5.0 0.0
% Growth 5.0
total category 10.0
growth 15.0 20.0 25.0

Source: Worldpanel Division | Household Panel and Lifestyle survey| Urban Vietnam 4 key cities
Health & Wellness – the key consumer focus
Consumers’ concern towards Health remains high & even increases post Covid. Products that are able to address
& stay relevant with their specific concerns will increase the chance of winning.

% HH concern about Sickness/Disease Health-related products have Always seeking for options that
more advantages to grow are better for health
80 Wave 1 Wave 2 Wave 3 Wave 4
Yakult – % Penetration

30
40
25 26
23
0
2020 2021 2022 2023 2019 2020 2021 2022 Vinamilk Nescafe
“Much less sugar” “No sweet”
Top 10 common health issues in Vietnam
SKIN BODY 2019 2022
• Acne/Blackhead acne • High blood fat level Digestion support Immunity boost
• Dark circle under eyes • Osteoporosis
HAIR ORAL
• Significant Hair Loss • Sensitive Teeth
• Premature gray hair • Yellow Teeth
7 Up Pepsi
• Dry/Frizzy Hair
“Free + Fiber” “Zero calories”
• Dandruff

Source: Worldpanel Division | Household Panel and Lifestyle survey| Urban Vietnam 4 key cities
The rise of home indulgence
Consumers have embraced more in-home experiences due to changes brought about by the Covid-19 pandemic,
creating a huge exciting set of consumption occasions for brands to explore.
In-home consumption for Rewarding drink delivery for
Home edition products
Beverage increase in-home consumption
+2 vs. 2019 % Occasion delivery Milk tea Celano home – Merino home
%
Occasion
Beverage
in 2022
63
In-home
37
OOH 65% to home
+10% vs 2019

TOP GAINING IN-HOME

OCCASIONS which is not only preferred by young
consumers but also Millennials generation Snack - Chilling at home
Break from work/study Gen X

Killing time % Occasion

Gen Z

Millennial
Occasion with family

Source: Worldpanel Division | Drink Usage Survey & Household Panel | Urban Vietnam 4 key cities
The ME needs matter
More steps in beauty routine Sophisticated needs emerge in established categories

On average, each year 1 household purchase

Advanced Care
% Value contribution Top
Sophisticated* HHs adopt more
MAT 2023 34.7 growing
of
brands

MAT 2022 31.6

Make-up
Sunscreen Mask Toner Serum
Remover *Advanced Care includes Sensitive, Whitening, Therapeutic Natural
*Sophisticated refers to households with 5+ steps of beauty care

More drinks per drinker

Leave-on & Super Treatment

Average number of
drinks per week
4.2 4.4
Pomelo spray Hair Serum Hair Mask
2019 2022

Source: Worldpanel Division | Drink Usage Survey & Household Panel | Urban Vietnam 4 key cities
As a result, consumers are less loyal to brands
Big manufacturers across sectors face difficulties to expand their shares and smaller players are emerging fast,
especially Dairy and Personal Care. Meanwhile, in Packaged foods, there is no manufacturer having the dominating
position yet.
Value share (%) of top 5 manufacturers
80

70

60

50

40

30

20
Dairy Home Care Beverage Personal Care Packaged Food
MAT 2021 MAT 2023

Source: Worldpanel Division | Household Panel | Urban Vietnam 4 key cities

Small brands are prevailing across countries

% Proportion of growing brands

12% 12% 9% 10% 9%

Super brands 14% 13% 16% 14% 13% 11% 11%

21% 21%
24% 24% 23%
27% 26% 27% 27%
Large brands 28% 30%
31%

Medium brands

64% 68% 69%

63% 61% 63%
Small brands 55% 58% 53% 58% 58%
50%

2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022
With over 50 years of global experience working with brands to drive growth.
Whatever your situation is – we have experienced it and understand what to do next.

Common Brand Situations Where are Your Brands now? Growth Framework

1) Small Brand, Small Category Drive desire for your brand

BRAND 2) Big Brand, Small Category Develop category

SIZE

Break habits of current

3) Small Brand, Big Category
category shoppers

Premiumise and create

4) Big Brand, Big Category
CATEGORY SIZE new occasions

Source: Worldpanel Division | Drink Usage Survey & Household Panel | Urban Vietnam 4 key cities
With over 50 years of global experience working with brands to drive growth.
Whatever your situation – we have experienced it and understand what to do next.

Where are Your Brands now? Growth Framework Central questions

What unique value does my brand offer

1) Small Brand, Small Category Drive desire for your brand
that sets it apart from competitors?

What are the barriers preventing the

2) Big Brand, Small Category Develop category category from reaching its full potential,
and how can I overcome them?

What pain points or unmet needs do

Break habits of current
3) Small Brand, Big Category current category shoppers have, and
category shoppers
how can my brand address them?

What additional benefits can I offer to justify a

Premiumise and create
4) Big Brand, Big Category premium price? What are the unmet needs of
new occasions consumers within the category?

Source: Worldpanel Division | Drink Usage Survey & Household Panel | Urban Vietnam 4 key cities
19
Kantar is the world’s leading marketing data and analytics business
and an indispensable brand partner to the world’s top companies.
We combine the most meaningful attitudinal and behavioural data
with deep expertise and advanced analytics to uncover how people
think and act. We help clients understand what has happened and
why and how to shape the marketing strategies that shape their
future.

For further information, please visit us at

www.kantarworldpanel.com/vn

Contact us
Jane Ha – Senior Marketing Manager
Worldpanel Division, Vietnam
E: Jane.Ha@kantar.com
58 Vo Van Tan St., Dist. 3,
Ho Chi Minh City, Vietnam