2023 Vietnamese

Consumer Outlook
Explore the evolving Vietnamese consumers

2023 Thought Leadership

NielsenIQ Vietnam – Retail Measurement Service

Source: Data ending by Dec’22

© 2023 Nielsen Consumer LLC. All Rights Reserv ed. © 2023 Nielsen Consumer LLC. All Rights Reserv ed.
Vietnam FMCG records +17.5% growth in 2022, with highest uplift in Q3/4
…thanks to organic consumption. TET’23 (Jan-Feb) also delivers good growth, yet majorly add-up by price increase

VN – GDP yearly growth vs. YA

37.6

31.8 21.4
17.5
14.3
11.7 11.4 10.7
7.4 8.3 4.4
6.3
5.2 4.7 4.3 4.6 4.3
5.8 4.9 6.9 5.0 5.8 7.1 6.4
2.4 2.3 2.4 2.4 2.5 0.6 2.5
-7.7 -4.1
-4.0 -7.6 -8.7 -3.7 -3.3
-7.1 -13.5 -7.2
-8.3
-12.2
-13.7
-16.3
Q1'19

Q3'19

Q2'20

Q4'20

Q1'22

Q3'22
Q2'19

Q4'19

Q1'20

Q3'20

Q1'21

Q2'21

Q3'21

Q4'21

Q2'22

Q4'22

Jan-Feb'23
2019

2020

2021

2022

Ave. Price Change Volume Change Nominal Value Growth

© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 2

 1
Prevailing “consciously
optimistic” lifestyle
Understand 2023 consumer profiles and how they
set their spending tone for 2023

Speaker: Thien Nguyen

© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 3

“Conscious lifestyle” choices is expected in 2023
Understand the uniqueness of each consumers group to develop adaptive business strategy

APAC vs. VN – Consumer groups upon household financial

Q. How events of the last few years have impacted your overall household financial situation?

9%
14%

10%
Strugglers: Have Rebounders: Cautious: Not Unchanged: Not Thrivers: Saved
14% suffered financial Experienced income impacted financially impacted & continued money and feel more
insecurity & continue or job loss but now but cautious with to spend the same. financially secure.
to do so today. they are back on track. spending.

36%
34% 39% 40% 36% 23%
31%
Less personal/beauty Minimize the OOH Less alcoholic Regularly look after Buy in bulk/
care if prices rise (*) eating/entertainment beverages if prices rise health & wellness larger sizes

43% 37% 35% 28% 26%

15%
Prioritize access
33%
to basic (e.g., shelter,
food, and health care)
Shop at discount/ value/ Monitor the cost of Shop at discount/ value/ Use digital
lower-priced stores my overall basket lower-priced stores technologies
to find better deals

25% 38% 51% 50% 48% 51%

13%
Focus on relationships Ensure financial/ Focus on planning Prioritize physical Save for unforeseen
& emotional support job security & wellness for the future wellness circumstances
APAC (Dec'22) Vietnam (Mar'22)

Source: NielsenIQ 2022 Consumer Outlook Survey (APAC – Dec’22/Jan’23 , Vietnam - Mar’22) | Asia Pacific data includes 7 countries – Australia, China, India, Indonesia, Singapore, Thailand, South Korea

© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 4

Consumers are expected to shift their budgets from wants to needs
Foods & Dairy is central to 2023 spending intentions while discretionary under less consumer scrutiny if price increase

VN – FMCG by Super-categories APAC – Consumers’ states of saving

Value % Share & Value % Chg in 2022 vs YA % respondents – “Doing this more often”

Groceries & household items to SPEND MORE this year

FMCG (17.5%)

19.8 17.7
22.1 20.9
Beer (38.7%)

NA Beverage (22.5%)
17.9
19.7
18.3 18.7 45% 42% 40% 40%
Cigarette (16.6%) Fruits & Veg. Health & Wellness Fresh meat Dairy

13.9
14.0 13.8 Baby Care (-6.6%)
14.7 2.2
2.3 1.7 Milk Bases (3.7%)
1.0
15.3
11.8
14.5 13.5
Staple Food (5.4%)
39% 33%
Home essentials Personal/ Beauty Care
10.7 11.8 10.5
10.3 Impulse Foods (17.6%)
Items to SPEND LESS/ STOP BUYING if prices rise in the next 3 months
7.4 7.4 8.0 8.1
Home Care (16.2%)
6.4 6.3 6.6 6.5 36% 34%
6.6 6.6 6.6 6.2 Personal Care (11.2%) Snacks and Alcoholic
Confectionery items beverages
2019 2020 2021 2022

Source: NielsenIQ 2023 Consumer Outlook Survey, Dec 2022 | Change in spending calculated by subtracting % of respondents w ho are spending less from % of respondents who are spending more

Basket preference Packsize choice Value hunting © 2023 Nielsen Consumer LLC. All Rights Reserv ed. 5
Consumers prefer a larger size to deal with rising prices
But for consumers who are not willing to spend, they sought out price promotions

FMCG – Volume & Unit growth 2022 vs. YA APAC – Upsizing & Promotion
By super categories (Vol % Growth | Unit % Growth) % respondents

Unit %

28%
Downsizing Growth
Beer (+25 | +25)

N/A Beverage Prefer that manufacturers offer them

(+21 | +19)
a bigger value pack/ economy size
Cigarette
(+10 | +9)

Milk Bases
(+0 | -1)
Impulse Foods
(+12 | +8)
37%
Home Care Total APAC value sales was a result
(+10 | +6)
of price promotion in FY21
Volume %
Staple Foods Growth
(-2 | -5) Personal Care
(+8 | +2)

Bab y Care
(-7 | -13)
Upsizing

Source: NIQ Advanced Analytics – Everyday Pricing Analytics & Consumer Outlook Survey – APAC (Australia, Singapore, South Korea, Thailand, & India) , June 2022 .

Basket preference Packsize choice Value hunting © 2023 Nielsen Consumer LLC. All Rights Reserv ed. 6
Consumer polarizes between value offerings & price
As their financial & economic literacy is heightened amidst inflationary pressure

VN – FMCG by Price-tiers VN – Search interest in 2022 vs YA

Value/ Volume % Share Source: Think with Google: Year in Search 2022

Value % Share Volume % Share

4.7 5.9
+260%
4.5 5.8 Search interest in
32.7
37.0 “what is the price of goods”
24.7 20.9

+30%
7.0
8.5

24.6
20.2
Search interest in products with
66.1 67.4 “affordable price”

35.6 34.2

2019 2022 2019 2022

Economy (API <80) Mainstream (API: 80-120)

Premium (API:120-200) Super Premium (API >200)

Basket preference Packsize choice Value hunting © 2023 Nielsen Consumer LLC. All Rights Reserv ed. 7
 2
Resources reallocation for
growth engines
Optimize portfolio and tailor marketing activities to serve
new consumers needs

Speaker: Huong Nguyen

© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 8

More attention to serve The Elders in Urban with more targeted needs
Consumers sought after specifications when making a purchase to satisfy their distinctive needs

VN – % Elders population (age 60+) VN – % Elders in Urban

Trend of population (‘Million) In terms of population & category consumption

% Elders Value % SOT - Urban

Female Male
2029 % Chg vs 2021
Life
Expectancy 77 (2019)
vs 75.6 (2009)
71.2
vs 70.2 (2009)
(2019) 2019 +3% +1%
2009
45.4% 27.5%
2039
22,8 mil. (20.6%) 63
54
2029
17,3 mil. (16.5%)

2019 Adult Liquid Milk Powder Adult Milk Powder

11,4 mil. (11.9%)
VN – Search interest in 2022 vs YA
Source: Think with Google: Year in Search 2022

+20% +20%
Search interest for Search interest in
2018

2021

2025

2028

2032

2035

2039
2016
2017

2019
2020

2022
2023
2024

2026
2027

2029
2030
2031

2033
2034

2036
2037
2038

2040

“for diabetes” terms “for senior”

Source: GSO. Market Outlook for Elderly Care Service in Vietnam, VCCI.

The Elders Women Gen Z © 2023 Nielsen Consumer LLC. All Rights Reserv ed. 9
 Vietnamese women are more empowered to work
With more financial self-reliance, beauty & skincare products benefit

% Female Labor - 2021 Urban – Beauty & Personal Care categories

Based on total labor force Contribution to Value % Growth 2022 vs 2019

+0.5%
VN 48.2 -1.6%
+1.7%
-0.3%
Thailand 45.9

Singapore 41.2
+3.0%

+3.3%
Indonesia 39.6

Philippines 38.9

Malaysia 38.7 Beauty & PC - Hygiene (Body/ Personal Care Skin Care Hair Care Fragrances Beauty & PC -
2019 Oral) 2022
(34.1%) (16.8%) (17.6%) (27.3%) (4.2%) Share Contrib ution

Myanmar 38
Source: w orldbank.org | Classification: Hair Care (Hair Colorants, Hair Conditioner, Shampoo), Hygiene (Mouth Wash, Personal Wash, Toothbrush, Toothpaste),
Personal Care (Adult Diaper, Feminine Protection, Insecticide Control), Skin Care (Body Cream Lotion, Eye Care, Facial Care Product, Facial Tissue, Sun Care),
Fragrances (Body Spray, Deodorants),

The Elders Women Gen Z © 2023 Nielsen Consumer LLC. All Rights Reserv ed. 10
The emerging Gen Z thinks of the consumed products as their value reflection
Successful brands are those tapping into the new social trends or issues (e.g., environmental sustainability, domestic abuse)

APAC – Generation highlights & movement VN – Recent launches targeting Gen Z

50% “Satisfy the

APAC consumers existing diverse
will be Gen Y/Z
by 2025
demand”
LOF MALTO - from Sep22 ChocoPie Molle - from Apr’22
Having slogan “Love Energy Leads the Future” Innovating the ChocoPie with the new soft cream
with Malto Gang characters aiming to Gen Z layer and “catchy” packaging

42% 80%
Likely to support brands that Pay more for a product if the
are environmentally brand supports an issue
sustainable they care about

58%
Cocoon in Personal Care TH True Nut, TH True Juice Milk Orange, TH
Not only claiming as a vegan brand but also True Yoghurt Orange
See brands as extension of
themselves and reflect their collaborating with Animal Asia to protect Launching the campaign "Orange with TH” to end
endangered animals violence against women and children
values
Source: https://www.adb.org/what-we-do/themes/social-development/overview/aging
https://foodinsight.org/spotlight-generation-z/
https://www.brandinginasia.com/study-looks-at-how-brands-should-navigate-purpose-with-gen-z-in-southeast-asia/

The Elders Women Gen Z © 2023 Nielsen Consumer LLC. All Rights Reserv ed. 11
 3
The pulse of omni-channels
shoppers
Understand the shifted omni opportunities and
implications for FMCG manufacturers

Speaker: Huong Nguyen

© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 12

In APAC, omni-shoppers leads to stabilization of E-commerce
In Vietnam, MT & TT Rural remain importance to secure, along with the gradual OOH recovery benefits F&B

APAC – FMCG – Channel landscape VN – FMCG – Channel landscape

Value % Contribution Value % Contribution & Growth 2022 vs. YA

Value % Chg
(2022 vs 2021)

Other
7.5 7.3 6.9
64% of APAC 6.9 6.2 5.7 6.2

consumers claimed to
20.3 21.1 be omni-shoppers
21.1 TT On Rural 28
36.3 37.3 39.9 38.2
Online

TT Off Rural 13
Growth mainly in: China,
31.1 32.8 33.6 Hongkong, Indonesia,
Traditional Trade
Philippines, Vietnam 14.1 11.6 8.8 12.2 TT On Urban 63

CVS/Minimarket 17.3 29.3 TT Off Urban 12

17.0 17.1 Growth in SEA 29.6 27.9
29.5
markets: Malaysia,
Philippines, Singapore,
Thailand MT Vietnam 11
Hyper/Super 23.8 21.8 21.4
13.2 15.2 16.3 15.5

2020 2021 2022 2019 2020 2021 2022

Source: Retail Measurement Service 2022, CPS 2022

© 2023 Nielsen Consumer LLC. All Rights Reserv ed. 13

Symbiotic balancing approach is essential under stabilization of e-commerce in APAC
For Ecommerce, focus on weekdays shopping routines and double-days promotion to boost sales

APAC – E-commerce – Value % Chg E-commerce – Sales index vs. average normal day
Q2 & Q3’22 vs YA During Apr-Sep’22

SG ID VN MY TW TH PH
21.1% 140%
Ecommerce to total APAC sales
120%

Growth in 2022 vs YA: -2.8% 100%

80%
Q2 2022
60%
Q3 2022
40%
28%
20%

0%
Monday Tuesday Wednesday Thursday Friday Saturday Sunday
12%

-3% -4% Besides, Online Double-Day events are season to drive sales, especially for:
-5%

-14%

-22%
Baby Diaper Infant Milk Powder Facial Moisturizer
ID MY PH SG TH TW VN
*Top 3 categories in Double-Day event in VN (value sales)

Source: (Chart 1): NielsenIQ RMS and CPS data, Latest 52 w eeks ended Sept. 2022 vs. year-ago | Quarter by Numbers Q4’22
(Chart 2): NielsenIQ E-commerce Accelerator – April to September 2022 | Note: Excluding promotional days, average normal day sales value used as index

Ecommerce MT TT © 2023 Nielsen Consumer LLC. All Rights Reserv ed. 14

Semi-retailer reinforces its prominence in TT given its selling power and capacity

VN – Semi-Retailer* Capacity VN – Semi-Retailer Contribuiton

Store numbers, pricing, SKUs handled per stores in 2022 Value % SOT to total VN – 2022

More afffordable pricing Beer 24

Tiny-but-mighty channel

28,000 stores ~22% lower FMCG’s avg

price in SR vs Retail stores Milk Bases 24

65
Beverage (W/O Beer) 20

56 58

47 49
Foods 17
38
33

24
Home Care 17
12 16 12 15
7 6

Fabric Laundry Gum & Beverage Shampoo Snack Bispie

Softener Product Candy Personal Care 17
SKUs Handling in SR SKUs Handling in Retailer

Note: Semi-Retailer is defined as having b etween 10% and 90% of Total Sales going direct to the end -consumers (defined at category level)

Ecommerce MT TT © 2023 Nielsen Consumer LLC. All Rights Reserv ed. 15

Rural remains as the fertile ground, yet competition is tougher in terms of small players & price
Recent lay-off signals the possibility of 2 nd back-to-hometown trend, thus triggering Rural consumption

TT Rural – FMCG – Value % SOT & Share by Segments FMCG – Value % Share by Segments
SOT based on total TT Vietnam By Manufacturer Ranking (upon their value sales) & Price-tiers

~62.9% ~47%
FMCG by Rankings FMCG by Price-tiers

5.8 8.2 4.7 5.5

4.8 5.2
Consumers are living in Rural Retail stores are in Rural (650,000+) 9.9
13.5
22.8 17.7

23.2
143,200 ( 19.5% ) 65,000+
Enterprises out of the market Workers are laid- 28.2
off and returns to
630,000+ hometowns due to Rural migration 2nd Rural migration
Workers impacted in Sep/Nov’22 business hardship during Covid Wave 4 given recent laid-off 19.5

19.7
71.7
52 67.7
49 48 48
45 45 46 45 45 44 44
44 41 41 41 43 43
41.6
30.4

Urban TT Rural TT Urban TT Rural TT

Top 1-5 6-10 11-30 Economy Mainstream

Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 L2Ms
(23) 31-100 100+ Premium Super Premium

Source: GSO Vietnam 2022 & NielsenIQ RRES Rural MythBuster

Ecommerce MT TT © 2023 Nielsen Consumer LLC. All Rights Reserv ed. 16

Explore the evolving Vietnamese consumers in 2023
Prevailing “consciously
optimistic” lifestyle
• Understand the spending intentions to build up
the adaptive strategies amongst different
consumer groups.
• Review resource spent among portfolio, with
more priority on Essentials, and drive growth
through bigger pack sales and value-offering
communication to wiser consumers.
• Monitor the OOH landscape, and sought out the
occasional consumption of Non-essentials, yet
be cautious on pricing strategy.
• Build consumer trust is essential given familiar
and popular brands are considered as “safe
choices” with certified quality.
Resource reallocation for
growing consumer groups
• Build relatable brand communication with a
conscience & customized needs.
• Elder: Sought out the growth in Urban, with
Elder-related product specification/ attributes.
• Female: Build portfolio focusing on consumers
skin care routines and gain trust via clear
claim/ descriptions on the recently-preferred
attributes.
• Gen Z: Launch new products with relevant story
to new social trends or burning issues (i.e.,
environmental sustainability).
The 2023 pulse of omni-
channel shoppers
• Go with the symbiotic balancing approach to
win in a hybrid and fast-changing channel.
• Ecommerce: The channel start to stabilize
post-Covid, yet weekdays & Double-day events
are right period to boost sales.
• MT & TT: Equip the recent retail technology to
drive complete transformation & maximize
consumer/ retailer’s omni-channel experience.
• Region: Build our nationwide brands as
regional differentiation is diminishing. With more
focus on SR and Rural deserve stronger focus.
© 2023 Nielsen Consumer LLC. All Rights Reserv ed.
Thank you!
For more insights, please contact:

Jayant Subhash Shenoy – Vietnam RMS Director

Jayant.Shenoy@nielseniq.com

Laura Ihry – Vietnam Customer Success Lead

Laura.Ihry@nielseniq.com

© 2023 Nielsen Consumer LLC. All Rights Reserv ed. © 2023 Nielsen Consumer LLC. All Rights Reserv ed.