Download - Standing out during slow-down
MEETING WITH TAITRA
Prepared by Nielsen Vietnam -
STANDING OUT DURING SLOW-DOWN
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AGENDA
FMCG LANDSCAPE
CATEGORY SNAPSHOT
TAIWANESE BUSINESSES IN VIETNAM
NIELSEN SOLUTION AND CONTACT
1. FMCG LANDSCAPE
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THE ECONOMY KEEPS UP THE GOOD MOMENTUM IN Q2’15
Source: Vietnam General Office of Statistics (www.gso.gov.vn)
H1’15 GDP
+6.28% vs YA, the fastest first-half-of-
the-year growth rate in the past 5 years
H1’15 CPI +0.86% vs YA, still under
control
PETROL AND ELECTRICITY’S PRICE INCREASE slightly bring up CPI
MANUFACTURING sector performed
strongly, +9.5% vs YA
AGRICULTURE
+2.4% vs YA, slower growth may
dampen rural income growth
STABLE FOOD PRICES keeps CCI under control
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# CONCERN
1 HEALTH
2 THE ECONOMY
3 JOB SECURITY
4 INCREASE UTILITY BILLS
5 WORK LIFE BALANCE
…MAINLY DRIVEN BY PETROL PRICE AND ELECTRICITY PRICE INCREASE
21390 19930
17570 15670
17280
20430 21710
Q1 2015 Q2 2015
PETROL PRICE (RON 92) – NOV’14 – JUN’15
SINCE 16.03.2015, ELECTRICITY
PRICE INCREASE FOR 7.5%
TOP 5 CONCERNS IN VIETNAM
DECREASE IN RANKING
INCREASE IN RANKING
THE SAME IN RANKING
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-2.8%
1.0%
-1.2% -2.3%
-5.2%
-1.9%
1.1%
0.5% 2.9%
0.0% 0.5%
2.3% 2.4% 1.4%
-2.0%
0.5%
3.1%
1.8%
3.4%
0.9%
-6%
-5%
-4%
-3%
-2%
-1%
0%
1%
2%
3%
4%
5%
Unit value change Volume change Nominal growth
AFTER A STRONG TET SEASON, FMCG STAGNATES IN Q2’15 WITHOUT VOLUME GROWTH
Source: Nielsen Retail Index – Versus year ago
FAST MOVING CONSUMER GOODS DYNAMICS – TOTAL 6 CITIES
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GROWTH IS UNDER EXPECTATION ACROSS APAC
Soủrce: Nielsen Growth Reporter Q2 2015
FMCG GROWTH RATE
Volume > Value Growth Volume = Value Growth Volume < Value Growth
FMCG Volume Growth Rate (in%)
Q1 2015 Q2 2015 Avg. (Q1 2015
& Q2 2015)
INDONESIA 0.3% 2.5% 1.4%
VIETNAM 3.4% 0% 1.7%
HONG KONG 2.2% 1% 1.6%
THAILAND 4.3% 4.5% 4.4%
INDIA 5.2% 7.4% 6.3%
CHINA 0.9% -0.5% 0.2%
AUSTRALIA 0.3% 1% 0.7%
TAIWAN -1.2% 0.1% -0.6%
SINGAPORE 1.4% 3.6% 2.5%
KOREA -1.6% -0.3% -1%
PH 3.6% 2.2% 2.9%
NZ 2.8% 1.9% 2.4%
MY 3.9% -0.4% 1.8%
JAPAN -3.4% 5.5% 1.1%
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35
39
39
44
78
32
35
35
45
73
Out of homeentertainment
Home Improvements/Decorating
New clothes
Holidays / vacations
Putting into savings
Q2 2015 Q1 2015
VIETNAM IS STILL IN THE TOP 10 MOST OPTIMISTIC COUNTRIES GLOBALLY In Q2 2015, Vietnamese consumers are spending less on some non-essentials
TOP 10 MOST OPTIMISTIC - CCI Q2 2015
Source: Nielsen Asia Pacific Consumer Confidence Index – Q2’15 Note: Q: How to utilize spare cash after covering essential living expenses All respondents who answered Yes to Q11 (1 Code) n=506
SPENDING STRATEGY - CCI Q2 2015
OOH
CHANGE VS Q1’15
INDEX COUNTRY
+1 131 INDIA
+7 122 PHILIPPINES
-3 120 INDONESIA
+6 112 DENMARK
-3 111 THAILAND
-7 108 UNITED ARAB EMIRATES
+1 107 CHINA
-2 105 SAUDIA ARABIA
+1 105 HONG KONG
-8 104 VIETNAM
DECREASE INCREASE THE SAME
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WHILE TAIWANESE IS SKEPTICAL ABOUT THE MARKET, THOUGH BEING IMPROVED
2. CATEGORY SNAPSHOT
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VULNERABLE GROWTH FOR MAJOR COMMODITIES Similar pattern with Vietnamese market when alcoholic beverage posed strong growth
Source: Taiwan Retail Audit dat a– ending Aug’15
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16%
38%
15%
BEVERAGE MILK BASE FOOD
Unit Value change Volume change Nominal growth
DIFFERENT PICTURE AMONG SUPER GROUPS. BEVERAGE(INCL. BEER) PROVES TO BE THE STAR
Source: Nielsen Retail Index – Versus year ago
-2.5% -2.8%
-0.9% -4.4%
5.2%
-2.5% -3.9%
2.5%
8.2% 9.7% 9.6% 6.7%
-2.4% -0.5%
-0.6%
-0.1%
-3.0%
-3.5%
SUPER CATEGORY CONTRIBUTION AND GROWTH – TOTAL 6 CITIES
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CIGARETTE PERSONAL CARE HOME CARE BABY CARE
Unit Value change Volume change Nominal growth
WHILE IT IS CHALLENGING FOR THE REST
Source: Nielsen Retail Index – Versus year ago
0.7% 3.0%
4.5%
-0.6% 3.4%
-0.3% 0.0%
0.8%
5.6% 3.9%
7.1%
2.1% -2.0% -2.2%
-2.8%
-5.2% -4.8%
-4.0%
12.8%
4.3%
0.6% -10.8%
-11.2%
-5.9%
6% 9% 13%
4%
SUPER CATEGORY CONTRIBUTION AND GROWTH – TOTAL 6 CITIES
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1.1%
3.5%
-1.5%
2.1%
4.6% 4.1% 3.7%
1.6%
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
Total Urban
Unit Value change Volume change Nominal growth
Source: Nielsen Retail Audit – Versus year ago Note: This slide only includes Feminine Protection, Hair Conditioner, Shampoo, Toothpaste, Toothbrush, Personal Wash, Dishwashing Liquids, Fabric Softener, Laundry Products, Bouillon-MSG, RTDM, Soft Drink, Packaged Water, Energy Drink, RTDT, Cigarette, Sport Drink and Sweet Condensed Milk
RURAL SHOWS BETTER GROWTH THAN URBAN IN THE LAST 2 QUARTERS
-0.2%
1.5%
-4.0%
-1.9%
0.2%
-0.7%
3.5% 2.7%
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
Total Rural
FAST MOVING CONSUMER GOODS DYNAMICS – URBAN vs RURAL
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AND 11/18 CATEGORIES HAVE POSITIVE GROWTH RATE IN RURAL, PROVING THE RURAL POTENTIAL Especially Beverage super group and small categories
54%
Rural
Urban
CATEGORIES’ VALUE GROWTH IN RURAL – H1 2015 vs YA VAL URBAN vs RURAL – MAT TY
Source: Nielsen Retail Audit Note: This slide only includes Feminine Protection, Hair Conditioner, Shampoo, Toothpaste, Toothbrush, Personal Wash, Dishwashing Liquids, Fabric Softener, Laundry Products, Bouillon-MSG, RTDM, Soft Drink, Packaged Water, Energy Drink, RTDT, Beer, Cigarette, Sport Drink and Sweet Condensed Milk
BEVERAGE FOOD MILK BASED PERSONAL CARE HOME CARE
68%
POPULATION FMCG
CIGARETTE
-7.5 -3.3 -2.5 -2.1 -2.0 -1.8 -0.3
0.7 1.8 2.1 2.7 5.2 5.6 6.2 7.0 7.5 8.0
14.5
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
46
46 53 49 47 53
58
47 50 34 49 57 67 46 42 51 63
60
Top 5 fastest growing categories
in Rural
X Rural contribution in total Nationwide – MAT TY
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LOCAL MANUFACTURERS PLAY AN IMPORTANT PART IN RURAL CONSUMER’S LIFE …demonstrating the large opportunity for MNCs in the rural market
Source: Nielsen Retail Audit data
Note: all the number is rounded Local Players = Non-Multi National Companies
CONTRIBUTION OF LOCAL PLAYERS IN RURAL OFF vs URBAN OFF – MAT TY
10%
PERSONAL CARE
30%
HOUSEHOLD CARE
77%
MILK BASE
28%
BEVERAGE
80%
BEER
45%
CIGARETTE
25%
03%
55% 65%
15% 13%
Rural Urban Rural Urban
Rural Urban
Rural Urban
Rural Urban Rural Urban
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KEY TAKEAWAYS FOR VIETNAM
GROSS DOMESTIC PRODUCT H1 2015
+6.28% vs YA
INFLATION H1 2015
FAST MOVING CONSUMER GOODS LANDSCAPE
RURAL HIGHLIGHT
11/18 CATEGORIES GROW POSITIVELY
CONSUMER CONFIDENCE INDEX Q2 2015
104
54% VALUE OF FMCG COMES FROM RURAL
OPPORTUNITY IN RURAL
+0.84% vs YA
TOTAL FMCG IN 6 KEY CITIES IN Q2’15 STAGNATES IN VOLUME GROWTH vs YA AFTER A PICK UP IN TET HOLIDAY RURAL SHOWS A BETTER MOMENTUM vs URBAN IN THE LAST 2 QUARTERS
HEALTH IS THE TOP CONSUMERS’ CONCERN
ECONOMY RANKS SECOND AND JOB SECURITY RANKS THIRD
• IT IS TIME FOR PLAYERS TO JUMP IN RURAL
• WIN RURAL RETAILERS TO WIN IN RURAL
• FOR AN EFFECTIVE AND TARGETED ROUTE TO MARKET, MANUFACTURERS MUST UNDERSTAND WHERE TO FOCUS
3. TAIWANESE BUSINESSES IN VIETNAM
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FACT AND FIGURE ON TAIWANESE BUSINESSES IN VIETNAM FMCG is still non – target sector for Taiwanese investors still promising
Source: Foreign Investment Ministry of Vietnam
Taiwanese investor position in Vietnam (after Japan, Korea)
Top 3 Industries for Taiwanese FDI into Vietnam
Processing/ Manufacturing Real Estate Construction
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NOTICABLE TAIWANESE PLAYERS IN VIETNAM
Business
Status in Taiwan
Status in Vietnam
Rice cake & Flavored Drinks Rice Crackers Food, Dairy and Beverage
Biggest Conglomerate Largest in Rice cake Noticable
Take over Tribeco – leading local Bev company Perform in Noodle, Beverage mainly limited share
<1pt share, focus on Modern Trade channel only
Not yet developed
A LOOK AT OUR NEIGHBOR
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TEA PLUS BECAME A SUCCESS STORY RIGHT AFTER SUNTORY-PEPSICO JOINT VENTURE
• Became JV since April 2013 • Launched Tea+ in August 2013: became the innovator of Tea category
with Oolong flavor • Emphasizes on 3 key benefits: Japanese quality, a ranges of health
benefits, and a premium image • Utilize Pepsi’s sale force to expand distribution quickly
251% GROWTH AUG-DEC’14 VS. AUG-DEC’13
8.6
VOLUME % SHARE IN FEB’15
0
10
20
30
Aug-13 Feb-14 Aug-14 Feb-15
Tea Plus – Nationwide
Numeric Distribution
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VINA ACECOOK ALSO SHARE SIMILAR SUCCESS STORY
• Started to operate as a JV in 1993 • Launched Hao Hao in 2000 – a breakthrough in the Vietnam
Instant Noodles category • Emphasizes on product quality
24.2% VOLUME % SHARE IN 2014
#1 DIAPER BRAND IN VOLUME SHARE
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WHAT ARE THE KEY SUCCESS FACTORS FOR JAPANESE JOINT VENTURES
INNOVATOR / TREND-SETTER OF THE CATEGORY
JAPANESE QUALITY / HIGH-QUALITY PRODUCTS
UTILIZE & LEVERAGE LOCAL STRENGHTS TO SUCEED
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WHAT THERE FOR TAIWANESE BUSINESSES?
TRANS – PACIFIC PARTNERSHIP GOLDEN TIME FOR INVESTMENT ON FMCG
DRIVE CONSUMER – DRIVEN BUSINESSES ON PRODUCT QUALITY, INNOVATION
EXPAND DISTRIBUTION VIA M&A, PARTNERSHIP WITH LOCAL COMPANIES
4. NIELSEN SOLUTIONS AND CONATCT
Prepared by Nielsen 2015
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• Ho Chi Minh Head Office
• FW Offices in top 6 cities in Vietnam
• The biggest in-house FW in Vietnam. Local employees based in most of provinces in Vietnam
• Company size: ~2000 employees
• Apx. 2 millions consumer and audit interviews annually
This means...
• We can offer full national coverage both urban & rural
• We have the capacity to take on any project large or small
* Employee data as of 2013
Cantho
Ho Chi Minh
Danang
Hanoi
Haiphong
Nhatrang
CAPABILITY: IMPLEMENTATION IN VIETNAM
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OUR CLIENTS RANGE FROM BIG TO SME
FMCG | Finance | Automotive | Technology | Pharmaceuticals and More
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OUR ROLE AS ONE NIELSEN
•Track / analyze performance
•Market trends
•Manufacturers’ SWOT
•Execution Excellence
•Sales planning
•Optimal Route to the Market
•Quantify the proportion of consumer with this type of behavior
•Understand the “what”, “when” and
“why”
Qualitative Services
Quantitative Services
Retail Measurement
Services
Sales Force Activation
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END – TO – END SOLUTION Nielsen supports client to make decision at each stage of their product cycle from understanding market to setting KPIs for product launch and monitoring
CONSUMERIZATION:
Identify and segment most profitable consumers to unlock demand and inform the Path to Performance
PERFORMANCE MEASUREMENT:
Activate plans through superior sales execution
INNOVATION:
Develop, price, and promote new products
MARKETING EFFECTIVENESS:
Engage consumers through effective and efficient marketing
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NIELSEN CONSULTANCY TEAM
Pham, Thi Mai Lan Senior Manager, Business & Research Consultant Nielsen Vietnam Mobile +84 909 379 094 Email : [email protected] Website : www.nielsen.com/vn Ngo, Dang Bao Tram Manager, Retail Measurement Service - Nielsen Vietnam Mobile +84 983 376 522 Email : [email protected] Website : www.nielsen.com/vn
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