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EXECUTIVE SUMMARY
KEY
INDICATORS
Vietnam’s economy sees
positive outlook, coupled
with the stable CPI.
FMCG
GROWTH
Both Urban and Rural
FMCG market show good
movements.
Soft Drinks and Tonic
Food Drink liquid format
perform well in Urban
and Rural respectively.
Modern Trade maintains a
healthy growth.
Promising Private
Label?
HOT
CATEGORY RETAIL
LANDSCAPE SPOTLIGHT
4
KEY INDICATORS Vietnam economy has seen positive performance since Quarter 3 of the year. Both total demand and total supply are
predicted to continue improving in the last quarter with the strong growth of consumer demand and export. The
average CPI of 11 months remains stable but the index in December is more likely to rise slightly due to the higher
demand for the festive period.
+3.61% YTD November’17 vs. YA
+7.46% Q3’17 vs. YA
+10.8% YTD November’17 vs. YA
+2.47% +9.4% YTD November’16 vs. YA YTD November’16 vs. YA
+6.40% Q3’16 vs. YA
Source: GSO Vietnam
CPI GDP Retail Sales of
Consumer Goods 5.22
2.62 7.46
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17
2.9
6.1
3.0
-5
0
5
10
Q1
'15
Q2
'15
Q3
'15
Q4
'15
Q1
'16
Q2
'16
Q3
'16
Q4
'16
Q1
'17
Q2
'17
Q3
'17
12
w/e
P1
0'1
7
12
w/e
P1
1'1
7
5
FMCG GROWTH
FMCG – 12 WEEKLY YEAR-ON-YEAR CHANGE (%)
Avg. Price paid* Value Volume**% change
Urban
4 Cities
Rural 8.1 6.5
3.2 1.7 4.6
1.6
*: To calculate FMCG price paid change, we calculate how much price contributes to the value change for each category, sum up
these contributions and relate to value YA
**: To calculate FMCG volume change, we calculate how much volume contributes to the value change for each category, sum up
these contributions and relate to value YA (this results in an average category change in volume)
Urban FMCG market keeps showing good movement.
Meanwhile, in Rural, the market is improving slowly despite
the impact of disasters in the last two months. Vietnam’s
positive economic outlook and growing domestic demand
are expected to boost the growth of FMCG market by the
end of 2017.
2.9
3.5
0.8
-5
0
5
10
Q1
'15
Q2
'15
Q3
'15
Q4
'15
Q1
'16
Q2
'16
Q3
'16
Q4
'16
Q1
'17
Q2
'17
Q3
'17
12
w/e
P1
0'1
7
12
w/e
P1
1'1
7
2.9 1.7 4.3
2.3 5.4
2.3
2015 vs YA 2016 vs YA 2017 vs YA
Value Growth% Volume Growth%
Source: Kantar Worldpanel | Households Panel | Urban 4 Key Cities & Rural Vietnam | Total FMCG excluding Gift |
12 weeks period ending 05 November 2017
One year ending P11’17
6
DAIRY BEVERAGES HOME CARE
Urban
4 cities
Rural
FMCG GROWTH BY SECTOR Non-food sectors keep up their momentum, especially personal care categories. Beverage is now back to lead the growth
of Urban market while Dairy shows a slight increase in Rural partly thanks to milk-based products such as cup yogurt and
cream dessert. However, Dairy in Urban and Packaged Foods in Rural are still suffering from the drop of volume
consumption. Value change% Volume* change%
PACKAGED FOODS PERSONAL CARE
*: To calculate FMCG volume change, we calculate how much volume contributes to the value change for each category, sum up these contributions and relate to value YA (this results in an average category change in volume)
Source: Kantar Worldpanel | Households Panel | Urban 4 Key Cities & Rural Vietnam | Total FMCG excluding Gift | 12 weeks period ending 05 November 2017
12 w/e P11’17 versus year ago
-6
2
-5
1
21
4
17
2
4
-2
1
-3
18
15
8
8
4
11
0
5
7
0
10
20
30
40
50
60
P11'15 P1'16 P11'16 P1'17 P11'17
CSD Energy Drink% Buyers – Rolling 12 w/e
7
Source: Kantar Worldpanel | Households Panel | Urban 4 Key Cities & Rural Vietnam | Total FMCG excluding Gift | 12 weeks period ending 05 November 2017
HOT CATEGORY In Urban, Carbonated soft drinks (CSD) and Energy drinks have been returning to recruit buyers since the beginning of 2017, mostly
driven by the market leaders. In Rural, Tonic Food Drink liquid format are developing very well. The category not only expands buyer
base but also uplifts consumption. Its success is attributed to the widening distribution network in every corner of Rural areas.
URBAN 4 CITIES RURAL 12 w/e P11’17 versus year ago
Soft Drinks Volume growth
+19%
% Buyers Volume/ buyer
growth
+3.2pts +8%
Liquid
Tonic Food Drink Volume growth
+51%
% Buyers Volume/ buyer
growth
+2.4pts +26%
0
2
4
6
8
10
12
14
16
P11'15 P11'16 P11'17
% Buyer Volume per buyerRolling 12 w/e
55% of Urban households 16% of Rural households
10
66
16
2 2 4
MEDIUM-SIZED
STREET SHOPS
SMALL
STREET SHOPS
WET
MARKET
33
26
10
8
13
4 7
33
27
10
7
13
3 6
8
RETAIL LANDSCAPE
MEDIUM-SIZED
STREET SHOPS
SMALL
STREET SHOPS
WET
MARKET
SPECIALTY
STORES
HYPERMARKET &
SUPERMARKET
MINIMARKET/
CVS
8
69
15
1 2 4 VALUE SHARE %
Source: Kantar Worldpanel | Households Panel | Urban 4 Key Cities & Rural Vietnam | Total FMCG excluding Gift | 12 weeks period ending 05 November 2017
VALUE CHANGE % (12 w/e P11’17 versus year ago)
6%
1%
18%
=
23%
20%
2%
10%
MEDIUM-SIZED
STREET SHOPS
SMALL
STREET SHOPS
WET
MARKET
SPECIALTY
STORES
HYPERMARKET &
SUPERMARKET
MINIMARKET/
CVS
OTHERS
12 w/e P11’16
12 w/e P11’17 Urban
4 cities Rural
0%
9%
Modern Trade maintains healthy growth from brick-and-mortar stores (both big and small formats) to online channel. On top of
that, Minimarkets, Convenience stores and online shopping are getting more and more shopper’s familiarity and gaining more
ground in Urban market. While a fifth of Rural shoppers now shops in medium-sized street shops for a larger range of products
and choices, which seems a good sign for further expansion of this channel in Rural.
3.16cm
4.75cm
6.34cm
7.93cm
9.52cm
11.11cm
12.70cm
14.29cm
15.87cm
17.00cm
1.00cm 3.70cm 6.40cm 9.10cm 11.80cm 14.50cm 17.20cm 9.90cm 22.60cm 25.30cm 27.99cm 30.69cm 32.85cm 30.16cm 27.46cm 24.76cm 22.07cm 19.37cm 16.67cm 13.98cm 11.28cm 8.59cm 5.89cm 3.19cm
Content Bottom
Content Top
Heading Baseline
Left Margin Right Margin
9
SPOTLIGHT OF THE MONTH
Source: Kantar Worldpanel | Households Panel | Urban 4 Key Cities Vietnam | 52 weeks period ending 05 November 2017 (MAT P11’17) | HH: Households
Promising Private Label? While Private label accounts for 20-30% of total retail sales in US or EU markets, it still has limited development in Vietnam mainly due to
the underdeveloped Modern Trade, the lack of diversified product offers and the effective communication. However, with the rise of
smaller modern shopping formats and more investment from “giant” retailers, would it be able to leverage Private label further?
9.7289247 10.2434706 10.93786 000 VND
63%
30%
7%
Home Care
Packaged Food
Others
23%
23%
21%
20%
19%
17%
17%
16%
16%
15%
Toilet Tissue
Box Tissue
Table Napkins
Loose Leaf Tea
Floor Cleaner
Liquid Detergent
Frozen Food
Dishwashing Liquid
Powder Detergent
Cooking Oil
113
114
Mid-low HH income
(7.5-13.5 mln/month)
High HH income
(>20 mln/month)
HH 5 members
HH 6+ members
Value share
2.4% in Modern Trade
% Buyer
39% of Modern Trade
buyers
Share by sector
in total PL
Private label Top 10 categories (Based on % Private Label Buyers within category)
How do Private Label buyers look like?
% Private label buyer index vs total FMCG
106
109
Kantar Worldpanel is the global expert in shoppers’ behavior.
Through continuous monitoring, advanced analytics and tailored
solutions, Kantar Worldpanel inspires successful decisions by brand
owners, retailers, market analysts and government organizations
globally.
With over 60 years’ experience, a team of 3,500, and services
covering 60 countries directly or through partners, Kantar Worldpanel
turns purchase behavior into competitive advantage in markets as
diverse as FMCG, impulse products, fashion, baby,
telecommunications and entertainment, among many others.
For further information, please visit us at
www.kantarworldpanel.com.vn
Contact us
Nguyen Thi Nhu Ngoc
Associate Marketing Manager
Email: [email protected]
Tel: +84 8 39306631 | Mob: +84 (0)988 445 401
Kantar Worldpanel Vietnam | 58 Vo Van Tan St., Dist. 3, Ho Chi Minh
City, Vietnam
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