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  • Copyright 2014 INTAGE VIETNAM LLC. All Rights Reserved. INTAGE VIETNAM LLC.

  • REPORTED TO

    FINDING REPORT

    INTAGE VIETNAM LLC http://intage.com.vn

    Copyright 2014 INTAGE VIETNAM LLC. All Rights Reserved.

    VIETTRACK Q1.2015

    CONSUMPTION TREND WHEN

    ECONOMICS RECOVERY

  • Content

    Consumer perception about Vietnam Economics in 2014

    Consumer household income in 2014

    Consumer spending behavior in 2014

    Consumer shopping personality in 2015

    Consumption trend in 2015

  • PERCEPTION ABOUT VIETNAM ECONOMICS IN 2014

  • Perception about Vietnam economy in 2014

    All over the country, more than 50% of Vietnam people are optimistic about economic recovery.

    People in The South, especially Cantho are more positive than Hanoi & Danang people.

    TOTAL HCMC HA NOI DA NANG CAN THO

    N = 500 N = 150 N = 150 N = 100 N = 100

    44 47 4754

    24

    17 9

    14

    23

    4532

    53

    23

    3930

    Yes, it is

    recovering

    It will recover soon

    It has not had any

    clear signs of

    recovering yet

    %

    Based on all respondents

    Q: In your opinion, do you think Vietnam's economy is starting to recover or not? [SA]

  • Signals of recovering economy - unprompted

    Increasing foreign investment and big investment on transportation are among top clear recovering signals across 4 key cities.

    Decreasing unemployment rate, increasing personal income and consumption capacity make 76% of Danang

    people think Vietnam economy get recovery. 70% of Cantho people have positive thoughts due to the fact the

    stable CPI and inflation are being controlled.

    Increasing foreign investment

    Big investment on transportation projects

    The decrement of petrol's price

    Decreasing unemployment rate

    CPI is stable and inflation is well controlled

    Increasing personal income

    Increasing consumption capacity

    More people running entrepreneurship

    Decreasing loan interest

    More business is established/expanded

    Support packages to increase the demand

    Increasing salary

    Real estate starts to increase back

    Exchange rate USD/VND is stable

    Stock market starts to increase back

    N = 282 N = 80 N = 80 N = 46 N = 76

    21

    23

    25

    29

    31

    39

    39

    40

    47

    47

    37

    17

    31

    13

    12

    29

    26

    15

    26

    33

    26

    43

    30

    40

    50

    35

    20

    33

    5

    15

    15

    23

    13

    30

    30

    29

    26

    40

    59

    39

    26

    29

    33

    16

    10

    39

    39

    28

    35

    70

    30

    67

    39

    37

    44

    76

    13

    46

    17

    17

    7

    12

    46

    29

    7

    68

    30

    50

    49

    53

    28

    3

    17

    15

    9

    %

    Based on those who think the economics is recovering

    TOTAL HCMC HA NOI DA NANG CAN THO

    Q: Why do you think that Vietnam's economy is showing signs of recovery? [MA]

  • CONSUMER INCOME IN 2014

  • Comparing household income between

    2014 and 2013

    In parallel with positive thinking, 33% of Vietnamese consumers confirmed that their household income

    increased in 2014.

    Da Nang is the city where people have biggest improvement in household income with 55% increased.

    %

    N = 500 N = 150 N = 150 N = 100 N = 100

    2 2 3 417 19 13 17

    28

    62

    50

    211 1 5

    17

    4848 52

    31 30 272

    Increase significantly

    Increase slightly

    Keep the same

    Decrease slightly

    Decrease significantly

    TOTAL HCMC HA NOI DA NANG CAN THO

    Based on all respondents

    Q: Please indicate the financial status / income of your family this year compared with 2013? [SA]

  • Consumer spending behavior

  • Average expenditure by Household income

    At present, consumers share 50% of their household income to Daily necessity (food, household care product...). It

    is still an promising opportunity for FMCG & retail companies.

    As the result of recovering economics and increasing income, they spend around 15% of household income to buy

    high value products such as electronics, housewares, interest payments.. and Ha Noi people are willing to pay up

    to 20% out of their income for those items.

    15 11

    9 10 7

    1215

    1010

    52 52 56

    21 21112 10

    8 9

    15 14 18

    10 10 8

    53 54

    %

    Daily necessity (food, household care

    product,..)

    Personal care and accessories (clothing,

    shoes, cosmetics, sports activities)

    High value products (electronics, housew ares,

    car, interest payments)

    Long-term investment (education, life insurance)

    Health & entertainment (Health care,

    entertainment, tourism)

    Others

    N = 500 N = 150 N = 150 N = 100 N = 100

    TOTAL HCM HA NOI DA NANG CAN THO

    Based on all respondents

  • Consumer shopping personality

  • Consumer shopping pattern in 2013 vs. 2015

    Vietnam is expected to have significant change of customer shopping pattern as the ratio of people who are willing to pay for the product they want is doubled in total and tripled in HCMC in the past 2 years. Consistently, the substitute and minimum demand have been cut off across 4 cities. The fact that negotiation group covers 30% of consumers in the whole country might urge manufacturers to manage promotion campaigns to attract them.

    %

    158

    182

    238 11 14 2 12

    39

    22

    15

    35

    3240 30 60

    9

    26

    19

    26

    23

    21

    17

    18

    5233

    2918

    27

    16 2514 10

    309 10 12 4 2

    27

    2324

    1517

    2921

    16Willingness

    Negotiation

    Cut Down

    Minimum

    Demand

    Substitute

    TOTAL HCMC HA NOI DA NANG CAN THO

    2013 2015 2013 2015 2013 2015 2013 2015 2013 2015

    N = 150 N = 150 N = 100 N = 100 N = 500

    Willingness: Willing to

    buy any product that can

    prove themselves

    Negotiation: Still buy

    products of familiar brands

    but only when there are

    promotions

    Cut Down: Still buy

    products of familiar

    brands but cut down the

    consumption

    Minimum demand:

    Look for products that

    can meet minimum

    demand

    Substitute: Look for

    substitute products that

    are cheaper

    Based on all respondents

    Q: In compared with 2013, how will these expenditure of each following activities change in the next 12 months of 2015?

    Source: INTAGE VIETNAM

  • CONSUMPTION TREND IN 2015

  • Internet cost, 3G, phone

    Gathering, eating & drinking at

    home

    Gathering, eating & drinking outside

    Convenience food

    Drinks such as beer, wine, soft

    drinks

    Expenditure in next 12 months

    Generally, expenditure on each daily necessity item in next 12 months will be increased in all areas.

    Spending for Internet cost, 3G and phone will have highest increase among other expenditure, especially in

    Da Nang (49%) and Can Tho (38%)

    Among 4 cities, HCMC is still the leading city in consumption since increasing ratio of all items is equally to

    20% while, Da Nang and Can Tho will be two cities which have significant changes on necessity

    consumption in 2015 and Hanoi has less movement than other 3 cities.

    2

    6

    2

    3

    5

    7

    24

    33

    30

    33

    48

    52

    34

    24

    16

    15

    1348

    45

    57 2

    7

    1

    1

    2

    17

    21

    27

    21

    35

    51

    62

    19

    19

    22

    16

    1845

    53

    63 1

    1

    2

    1

    1

    5

    33

    41

    49

    42

    48

    46

    35

    12

    9

    4

    749

    54

    59 7

    18

    6

    14

    21

    3

    27

    35

    31

    27

    35

    45

    49

    38

    24

    10

    1339

    17

    41

    1

    2

    13

    29

    11

    24

    59

    53

    38

    37

    12

    36

    1561

    49

    60

    N = 500 N = 150 N = 150 N = 100 N = 100

    %

    Didnt spend on this Cut-off Keep the same Increase

    TOTAL HCMC HA NOI DA NANG CAN THO

    Based on all respondents

    DAILY

    NECESSITY

    Source: INTAGE VIETNAM Q: In compared with 2013, how will these expenditure of each following activities change in the next 12 months of 2015?

  • Fashion items such as clothes,

    shoes, bags, etc.

    Personal care product such as

    shampoo, deodorant, etc.

    Beauty care service

    Cosmetics

    Expenditure in next 12 months

    Generally, fashion items and personal care products are top 2 categories that consumers will spend more

    (around 30%). And two cities contribute the most for this movement are HCMC and Cantho.

    HCMC and Da Nang consumers tend to spend more on beauty care service with 33% and 22% respectively,

    compared with 7% in Ha Noi and 5% in Can Tho.

    Ha Noi is the only city which has the lowest ratio in all aspects of personal care

    5

    42

    43

    14

    6

    10

    11

    31

    31

    29

    26

    18

    15

    68

    51 4

    28

    23

    18

    3

    14

    17

    25

    31

    29

    38

    33

    29

    59

    49 5

    41

    48

    10

    7

    6

    9

    45

    37

    14

    7

    7

    6

    87

    71 13

    51

    59

    18

    8

    10

    5

    17

    23

    37

    17

    22

    13

    75

    32

    55

    50

    10

    5

    8

    10

    32

    28

    45

    48

    5

    12

    47

    45

    N = 500 N = 150 N = 150 N = 100 N = 100

    %

    PERSONAL

    PRODUCTS

    Didnt spend on this Cut-off Keep the same Increase

    TOTAL HCMC HA NOI DA NANG CAN THO

    Based on all respondents Source: INTAGE VIETNAM

    Q: In compared with 2013, how will these expenditure of each following activities change in the next 12 months of 2015?

  • Electronic devices

    Saving for backup/business

    Saving for buying motorcycles

    Saving for buying housewares

    Saving for buying houses

    Saving for buying cars

    Paying interest for loans

    Education

    Life insurance

    Expenditure in next 12 months Among all high value products, purchasing Electronic devices, Saving for buying motorcycles and Saving for buying housewares are top 3 items which consumers plan to increase their spending for (20%-30% adding up in 4 cities).

    HCMC people also increase their saving to buy houses (22%).

    Education is the category that all cities accept to expend the most and the highest increasing ratio which could be

    up to 50% in HCMC.

    22

    47

    51

    27

    73

    82

    83

    2

    4

    15

    3

    1

    2

    1

    23

    38

    28

    26

    22

    20

    9

    7

    42

    6

    28

    85

    16

    1

    28

    7

    11

    12

    25

    35

    8

    12

    9

    33

    42

    15

    64

    77

    87

    3

    17

    2

    1

    1

    21

    46

    29

    41

    35

    22

    22

    15

    48

    9

    81

    40

    3

    23

    7

    39

    26

    12

    4

    3

    11

    13

    12

    31

    49

    14

    62

    80

    70

    15

    5

    5

    5

    1

    34

    49

    23

    24

    12

    21

    10

    8

    4

    44

    5

    17

    79

    1

    15

    1

    39

    15

    25

    23

    41

    50

    11

    43

    61

    69

    52

    77

    77

    79

    12

    16

    3

    3

    8

    18

    33

    29

    18

    14

    9

    4024

    84

    2

    7

    1

    6

    28

    5

    8

    6

    10

    12

    11

    11

    10

    14

    33

    81

    49

    37

    99

    100

    98

    12

    2

    28

    29

    5

    21

    3128

    100

    10

    3

    1

    27

    39

    2

    1

    13

    28

    23

    N = 500 N = 150 N = 150 N = 100 N = 100

    %

    Hig

    h v

    alu

    e p

    roducts

    L

    on

    g-t

    erm

    inve

    stm

    en

    t

    HIGH VALUE &

    LONG-TERM

    INVESTMENT

    Didnt spend on this Cut-off Keep the same Increase

    TOTAL HCMC HA NOI DA NANG CAN THO

    Based on all respondents Source: INTAGE VIETNAM

    Q: In compared with 2013, how will these expenditure of each following activities change in the next 12 months of 2015?

  • Health care service

    Tonic, functional

    foods, vitamin

    Prescription medicine

    Domestic travelling

    Travel to Asian

    countries

    Travel to European

    and American

    countries

    Expenditure in next 12 months

    In next 12 months, Da Nang, HCMC & Hanoi are 3 cities will extend their budget for Health care & Domestic

    travelling

    Tonic, functional food and vitamin will have great development in HCMC & Danang since around 20%

    consumers will spend more for it.

    11

    35

    16

    30

    82

    86

    17

    15

    21

    12

    5

    53

    34

    16

    15

    10

    25

    6

    4

    7

    35

    56

    6

    4

    7

    26

    9

    22

    85

    89

    18

    12

    19

    19

    4

    59

    31

    15

    27

    13

    29

    4

    3

    7

    35

    60

    7

    1

    9

    29

    15

    30

    79

    86

    12

    11

    18

    7

    1

    56

    41

    13

    7

    11

    23

    812

    52

    65

    7

    7

    29

    46

    35

    33

    64

    67

    12

    12

    17

    11

    16

    34

    17

    29

    19

    14

    39

    11

    17

    9

    23

    30

    8

    8

    3

    47

    8

    37

    100

    100

    27

    27

    32

    10

    58

    46

    7

    3

    2

    7

    23

    63

    N = 500 N = 150 N = 150 N = 100 N = 100

    %

    HEALTH &

    ENTERTAINMENT

    Didnt spend on this Cut-off Keep the same Increase

    TOTAL HCMC HA NOI DA NANG CAN THO

    Based on all respondents

    Q: Compared to 2013, please indicate your expenses for each of the following activities will change how the next 12 months (in 2015)? [SA]

    Source: INTAGE VIETNAM

    Q: In compared with 2013, how will these expenditure of each following activities change in the next 12 months of 2015?

    N = 500 N = 150 N = 150 N = 100 N = 100

  • RESPONDENTS PROFILE

  • Age Education Martial Status

    Respondent Information

    59

    51

    69

    42

    72

    30

    30

    21

    47

    26

    11

    19

    9

    10

    1

    Total

    HCMC

    HN

    DN

    CT

    Married with childrenSingleMarried without childrenDivorcedWidowed

    22

    19

    17

    34

    19

    19

    17

    17

    27

    17

    16

    15

    17

    13

    20

    14

    14

    16

    9

    14

    17

    21

    17

    9

    19

    13

    13

    16

    8

    11

    Total

    HCMC

    HN

    DN

    CT

    18-25 yo. 26-30 yo. 31-35 yo.

    36-40 yo. 41-45 yo. 46-50 yo.

    66

    75

    52

    55

    86

    24

    13

    31

    38

    13

    7

    11

    11

    2

    1

    3

    6

    5

    Total

    HCMC

    HN

    DN

    CT

    High school Undergraduate

    Vocational training Postgraduate

    N=300

    N=150

    N=150

    N=100

    N=100

    N=300

    N=150

    N=150

    N=100

    N=100

    N=300

    N=150

    N=150

    N=100

    N=100

  • Respondent Information

    1

    1

    1

    3

    14

    11

    22

    13

    8

    31

    34

    33

    29

    25

    27

    21

    31

    28

    27

    27

    32

    13

    27

    40

    Total

    HCMC

    HN

    DN

    CT

    SEC A SEC B SEC C SEC D No income

    24

    27

    27

    25

    16

    30

    29

    30

    30

    29

    30

    29

    30

    30

    30

    16

    15

    13

    15

    25

    Total

    HCMC

    HN

    DN

    CT

    Personal Income Household Income

    N=300

    N=150

    N=150

    N=100

    N=100

    N=300

    N=150

    N=150

    N=100

    N=100

  • THANK YOU !

    Copyright 2014 INTAGE VIETNAM LLC. All Rights Reserved. INTAGE VIETNAM LLC

    Contact: Website: http://intage.com.vn Mail: [email protected] Facebook: Intage Vietnam