Vietnam Consumer Landscape 2015 Source: Cimigo 2015

1. Part
Vietnam consumer landscape
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2. 2
Years Major Events Shaping Vietnam
111BC - 939AD Chinese occupation of Vietnam
1535 European Jesuits and traders
1802 French given trading concessions
1858 France invades Vietnam
1860-1945 French occupation
1940-45 Japanese occupation
1945 Ho Chi Minh declares formation of the Democratic Republic of Vietnam
1945-54 French re-occupation - finally defeated in the battle of Dien Bien Phu
1954 Geneva convention 17th parallel division of Vietnam
1959 US military advisors in South
1965 US Marine Corps lands on China Beach, Da Nang
1973 Singing of Paris peace accord (US and North Vietnam)
1975 Fall of Saigon - Reunification of Vietnam
1977-79 Implementation of unified socialist society
1979 Vietnam defeats Khmer Rouge and liberates Cambodia
1979 China invades Vietnam and is quickly repelled

3. 3
Years Major Events Shaping Vietnam GDP Growth %
1986 Doi Moi (Renovation) Congress - open door policy reforms 2.3
1987 Foreign investment law liberalises market access 3.6
1988 Extensive agricultural reform 6.0
1990 Vietnam world's 3rd largest exporter of rice 5.1
1991 Ban on TV Advertising lifted 6.0
1994 US embargo lifted 8.8
1995 Vietnam joins ASEAN 9.5
1999 Asian crisis causes foreign investment to be liberalised 4.8
2000 Private Enterprise Law / HCMC stock market opens 6.8
2001 US - Vietnam bilateral trade agreement 6.9
2007 WTO accession - net foreign direct investment US$22.3 billon 7.1
2010 Vietnam with much of Asia leads the global economic upturn 6.4
2014 Consumer demand struggles 5.8

4. 4
US$175 billion economy
91 million people
7.5 million
households =>US$400
52% urban adults banked
US$1.9 billion advertising
spend
US$1,923 GDP per person
37 million motorbikes
45% internet penetration
145,000 new cars in 2014
69% urban adult mobile
penetration (4 in 10 smart)
24 million households
16 million rural households

5. 62 million people
47% <30 years
16 million households
3.5 million =>US$400/household
2025
60 million people
38% <30 years
18 million households
29 million people
45% <30 years
8 million households
4 million =>US$400/household
2025
36 million people
36% <30 years
13 million households
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6. Traditional trade still
represent 80% of grocery
sales.
Since the 1st supermarket in 1994
we now have 975 supermarkets.
1,800 convenience stores have
emerged since 2008.
No ROI thus far!
Branded malls: Aeon, Robinson,
Central have arrived recently.
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7. Globally modern versus locally explosive
7
Thegioididong 309 stores
PNJ 165+ stores

8. Globally modern versus locally explosive
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9. 9

10. 10
Conspicuously mobile
When the new iPhone was
released, I just couldn’t go out.
I couldn’t face my friends until I
had one.
Purchase priorities
Versus her home!

11. 11
Edutainment
I am the “New Vietnam” – I live
online, and though I spend more
time alone, I am not lonely. I am
connected 24/7.
Generational divides
I don't get it, I don't need to, he
does, he tells me which
products are good.

12. 12
My missed opportunities
Through the eyes of my child I shall
achieve success.
His success is my success.
He reflects on me.
Be the boss!
Most want to be their own boss, big or
small.
Happiness equates to money.
Success is defined by my job.
Money is the most important thing in my
life.

13. 13
Aware of what could be….
Increasing opportunities (commercial,
education and travel)
Community to individual gratification.
Always out of home. Thirst for edutainment.
Happiness defined as money.
Conflicted and frustrated
Emerging gender equality & changing roles
in society.
Change in parenting .
From extended to nuclear families.
Modern day working ethos.
Divorce acceptable.

14. Fast shifting social trends
“Nowadays freedom is an excuse for doing whatever
one wants without thinking about others; women
want careers rather than families, men spend more
time out of home, drinking and enjoying with their
friends, more than contributing to their families,
women are freer with their favours and couples find
it easier to divorce without thinking of what they
are doing to their families and children…”
Phuong 30 years old, from HCMC
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15. 15
Kid is future investment.
Ready to pay more & more (repertoire), higher
& higher (price).
Growing power of child
‘Liked by my child’ is spontaneous important
trigger.
More choosy & picky (esp. urban)
Rapid innovation (taste, packaging, advertising,
flavor, etc.) is crucial!
Desire for freedom, happiness, unconventional
To rebel the pressure and stress from parent’s
expectations on academic performance.
I want more new experimentation
Strong desire to experience product in new
ways (customised): packaging, flavor, etc.
Hi-tech is the new ‘trendy’
Online touch point boom: new channel of information,
consumption and awareness.
I want my brand
I don’t use my mother’s or my younger sister’s brands.

16. 16
Urban female adults: Recognition and individualism
Premiumnisation = Me values
Charge me more, indulge me more!
Customisation
Focus!
No longer one size (product) fits all (needs).
Seeking for performance enhancement
Help me to maximise my capability &
performance at work & life.
Detoxify me! Purify me!
Increasing seek to de-stress; mind and body.

17. 17
Intensive pressure to play multi roles
Seeks for appreciation & sympathy.
Growing financial pressure yet don’t want to
be left behind
Affordable quality doesn’t mean cheap.
Feeling solitude & confused
Seeks for a clear guidance & role model.
Constant pressure to balance work and family
Seeks for fast, simple, convenient efficiency to
take care of child & family.
Realise the importance of parenting & her
struggle
Seeks for knowledge & guidance from experts
& brands.
Challenge the man’s role in the family
Seeks for the support & sharing from husband.

18. The family Nguyen - how this shapes who we are
Youth translate
the consumer
world for their
parents
Progressive
and
entrepreneurial
Happiness is
money
Confused and
frustrated
Desperate to
express myself
Thirst for
edutainment
Success is
imbued in pride
Success
through the
eyes of my
child
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19. Part
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