EXECUTIVE SUMMARY

Context
Lion Corporation is a Japanese company with a wide range of products
in Household & Personal Care

Question
Should Lion enter Vietnam market? If yes,
how?

Market Entry Strategy Briefing

Place MT Urban (South focus + Mini mart & super market

focus) & E-commerce afterwards
Copyright © 2017 The Nielsen Company. Confidential and

Price Affordable Premium

Body Care (Personal Wash, Shampoo) focus on health

Product
(herbal
ingredients) & convenience (2-in1 functionality)
Packaging Travel size, highlights on herbal ingredients
proprietary.

2
 AGENDA
Copyright © 2017 The Nielsen Company. Confidential and

1. VIETNAM 2.CATEGORY 3. VIETNAMESE 4. ENTRY STRATEGY

MARKET OVERVIEW PRIORITY CONSUMER PROFILE
proprietary.

3
 Lion’s Personal & Household care are equally important
Because they contribute same value to Lion Sales as well as Vietnam FMCG Market

Household Care is only 1% higher than Personal & Household Care proportions are neck
Personal Care regarding Lion Global Sales and neck (6.2% vs 6.3%) in Vietnam FMCG
1 2018 2 market

Vietnam – FMCG – Value Contribution

Household care
36% Fabric care, 35% Personal
Dental & care
Oral
Living care, Care, Body Care
Kitchen&Cooking

13% Pharmaceutical
Products: 16% Others:
Health&
Medicated Care Beauty Food
Products
Copyright © 2017 The Nielsen Company. Confidential and

Source: Lion Annual Report

2018

Majority of Lion products (71%) belong

to Personal & Household Care
Source: Nielsen Case Competition 2019, Round
proprietary.

1.

Vietnam Market Overview - Category Priority - Vietnamese consumer profile - Entry Strategy 5
 Lion’s Body Care should be prioritized to be brought into Vietnam
Because it has highest value contribution to Personal Care and Household Care,
as well as a wide variety of products
While Body Care contributes the most to … Fabric Care contributes the most to

Personal Care (77.2%) and 5% to FMCG in VN... Household Care (55.3%) and 3.4% to FMCG in VN
1 2
% Value Contribution of Personal Care Products
in Vietnam % Value Contribution of Household Care Products
In Vietnam
2.3% Body Care Fabric care
(Personal Wash, (Laundry Products,
Shampoo, Hair Fabric Softener)
conditioner, Feminine 21.1% Living care Cleaners)
20.5% (Household
Protection)
Dental&Oral Care 55/3%
16% Kitchen&Cooking
(Toothpaste,Toothbru
(Dishwashing Liquids)
77.2% sh)
Others Others
7.6%

3 7
% Value Growth of Fabric &
Especially, Body Care out-numbers MAT YA MAT TY
Body Care Category in VN
Fabric Care in both product variety and
Copyright © 2017 The Nielsen Company. Confidential and

average growth rates

4 4 4
3 3
2
1 1
Laundry Fabric Personal Shampoo Hair
P- Softener Wash -2 Feminine Conditioner
r2 ducts Protection
Fabric
o Care Category Body Care Category
proprietary.

Source: Nielsen Case Competition 2019, Round -4

1
6
Vietnam Market Overview - Category Priority - Vietnamese consumer profile - Entry Strategy
 Lion’s Body Care should be prioritized to be brought into
VN because it meets consumers characteristics and concerns
Also

Vietnam population matches Lion’s target Lion's vision matches Vietnamese

customer of Personal Care products consumers' biggest concerns
1 2

Vietnam population is heavily skewed towards Health: Lion product derives from natural ingredients
20-44 age group

Herbal Soap
100% plant-derived

Convenience: Lion products is time-saving as

for 2-in-1 functionality

2-in-1 Conditioning Shampoo

Copyright © 2017 The Nielsen Company. Confidential and

Shampoo Travel set

Source: World Source: Lion Annual Report

Bank 2018
proprietary.

Vietnam Market Overview - Category Priority - Vietnamese consumer profile - Entry Strategy 7
 Lion’s Body Care can ease Vietnamese consumers main concerns
More than half Vietnamese consumers quest
Health is Vietnamese top 2 concern for convenience
1 2
% Consumers stating Health as top 2 % Consumer quest for convenience
biggest concerns - Q4’18
Convenience

43% Others
47%
53%
22% Source: Six Factors Driving
Consumers' Quest for Convenience
2018
Vietnam Global
Lion can take advantages of Vietnamese shoppers’ willingness to pay for better health
Source: Nielsen Case Competition 2019, Round 1
3
% Consumer highly willing to pay for premium
products with following attributes
65
58 55
49 49 50
46 46
Copyright © 2017 The Nielsen Company. Confidential and

As a Japanese brand, 38 37
Lion’s strengths are 30
21
high quality
and specific origin High quality Superior Sustainable Unique feature Social Specific orgin
performance materials responsibility
claim
Vietnam Global
Source: Lion Annual Report
proprietary.

2018
8
Vietnam Market Overview - Category Priority - Vietnamese consumer profile - Entry Strategy
 Lion should focus on MT, especially supermarket and mini-mart
Robust expansion of MT in all formats Shifting consumers behavior from TT to
1 MT 2
.
No. MT stores 2017 vs. 2018 FMCG Value Growth 2018-2019

+14%

+5%

TT MT
Source: Fiin Group Market Report, Source: Nielsen Case Competition 2019, Round
2018 1

Smaller MT formats are drawing more and more shoppers attention

3
% Growth in Shopper Penetration
34
Minimart & Supermarket should
be the key MT formats for Lion
Copyright © 2017 The Nielsen Company. Confidential and

19

5 4
0
Trad. Wet Market Supermarket Mini Mart CVS
Grocery
Store Source: Nielsen Case Competition 2019, Round
proprietary.

1
9
Vietnam Market Overview - Category Priority - Vietnamese consumer profile - Entry Strategy
 In the stages afterwards, Lion should launch E-commerce channel
Blooming E-commerce market in Vietnam
1
B2C e-commerce revenue in Vietnam
Source: FiinGroup market report 7.8
6.2
E-commerce has robust growth with 5
4.1 4.8
5.5
3 4.3
CAGR 2014-2018 of 27.3% 3.1
3.8

2014 2015 2016 2017 2018

B2C e-commerce revenue (US$bn)
Percentage of total retail revenue (RHS)

E-commerce helps Lion expands market as However, currently E-commerce size is

for
2 3 still humble
busy on-the-go lifestyle
E-commerce penetration growth rate in
Vietnam is +30%
Source:Nielsen Global Commerce Study
2018
Contribution
Copyright © 2017 The Nielsen Company. Confidential and

< 1%

Source: Nielsen Case Competition 2019, Round 1.

proprietary.

10
Vietnam Market Overview - Category Priority - Vietnamese consumer profile - Entry Strategy
 South area is Lion’s the most potential market for penetration

South area contributes the largest value Southern people embrace more
to FMCG in Vietnam experimentation of new products
1 2

44% 43% More experimentation

Vietnam contribution to
population FMCG value

Source: Nielsen Case Competition 2019, Round 1 Source: Nielsen Case Competition 2019, Round 1

In South area, MT urban holds the key to distribution channel

3
% Urban/Rural population in Vietnam
Retailer in South area is more importance of MT
channel.

Vietnam is increasing population in Urban with 50

60
Rural
#1 in SEA of urbanization rate 2015 - 2025.
Copyright © 2017 The Nielsen Company. Confidential and

50
Urban

50
34 40

2015 Est. 2025

Est. 2040
Source: Nielsen Case Competition, Round 1
proprietary.

11
Vietnam Market Overview - Category Priority - Vietnamese consumer profile - Entry Strategy
 THANK YOU!

TM

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