FUTURE OF ADVERTISING IN VIETNAM OVER THE NEXT !

11 YEARS!

FUTURE SPARK IT’S ALL ABOUT PEOPLE- PRICELESS

TREASURES FOR ADVERTISING TO MINE

VIETNAM is forecasted to become the 13th most populated country in the world with population of approximately 100 million till 2025. Together with RELENTLESS TECHNOLOGICAL IMPROVEMENTS, possessing a desirably large amount of AUDIENCE with DIVERSITY in terms of demographic, lifestyle, purchase attitude & behaviors will propel the country itself to play very important role in steering category trends & hence changing future of advertising as well. !"Herein entry encompasses 9 UMISSABLE SIGNS in which advertising trends are tuned with newly emerging consumer segments & shift in categories:"

•  Aging population"•  Male-skewed population"•  Leading women"•  “A new life” inspired country folks "•  Third-gender Gen"•  New vinavalet"•  Nature lovers"•  MT shoppers with higher bargaining power "•  Gen C- connected consumers"

The last sign (Gen C-connected consumers) would be discussed specifically in depth since it gives concrete clues on the accelerated evolution of digital in Vietnam in the next 11 years!

#1"

“OPTIMISM-CONCEPTED” & EDUCATION-BASED ADVERTISING TO AGING POPULATION!Vietnam- older before wealthier. Big potential to grow unleashed elderly consumer market!"Young children (aged 0-14) population will decrease to 21% while aging population (aged 64+) rises to 8% by 2020. ""43% of surveyed respondents find too hard to shop for products that satisfy nutrition needs for elderly people""

Source: vietnamplus.vn, nhandan.org.vn, Nielsen data 2013 (n=30,000) on doanhnhansaigon.vn!

MOTIVATIONS!

COMMUNICATION MISSION!

Target to…!•  Young & older family (aged

25- 45) !•  Working Moms as key family

care-taker!•  Pre-retired & Retired couples

(46 & above)!

Motivated by…!“ Healthy body & mind for the whole family!Love yourself means being socially responsible & family-oriented !Safe investment for retirement life!Guardianship for my kids!Freedom/independence for myself & my children!

A better life quality when I get older ”!

Business opportunities for…!•  Financial services & insurance"•  Health care services & medication"•  Nutrition F&B "•  Fitness center"

How to approach them…!•  Traditional channels: always make it alive with the elder!

²  Visibility/counter at modern trade: designated for the elder"²  Magazine for the elder"²  Referral marketing "²  Networking activities"

•  Viral marketing: “Edu-tainment” videos to awake the younger to “be mindful of the future”!

What to inspire them…!•  Younger: Proof of risks to their health & future resulted

from their own ignorance"•  Family care-taker: solutions to be always fire-keeper &

progression of family "•  Elder: create source of optimism/positivity/wisdom to be

faced with aging "

#2 !“MASCULINE-FOCUSED” ADVERTISING!!Male-skewed population means million of men will get “ FOREVER ALONE”- prone!!Sex ratio at birth is 125 males per 100 females, calculated by general statistic of population & family planning till 2020… And in 2050 Vietnam is foreseen to have 2.3-4 million males more than females"

Source: vietnamplus.vn, tienphong.com, vnexpress.net, !

Target to…!Male aged 18-35 who is at the peak of ambition for starting a career, relationship & family""¾ of surveyed males expect to look elegant & professional as an important factor of business etiquette!30% of Gen Asia VN male will use dating agencies to find the right match for them """"Motivated by…!Being an impressive & trustworthy partner"Being a confident & smart achiever"Being a desirable man of woman""

TARGET TO! MOTIVATIONS!

COMMUNICATION MISSION!

Business opportunities for…!•  Personal care & fashion"•  Match-making services"•  Technology"•  Education"•  Beverage"

How to approach them…!•  Channels enable private information digestion &

engagement with like-minded peers (primary)!²  Email marketing"²  Digital: owned websites, mobile apps, google search"²  Social media: viral videos, FB community, native Ads, v-

logger, open marketing (influencer)"•  Mass media (secondary)!

What to inspire them…!•  Advices/Tutorials on making it easy to seduce a girl!•  Customized gifting guide to shop for her (based on her

personality, stage of relationship, budget, occasion)!•  Challenges of his masculinity & sexuality (set by female

talent)!•  Interactive training on male lifestyle & success!•  Packaging & messaging tailored to male’s prefered images:

jacked, brave, gallant, manly, classy, smart/wise, successful, attractive!

Source: Kantar World Panel, Gen Asia VN!

Source: Trendwatching.com, cafeland.vn!

"

#3!“FEMINISM-LED” ADVERTISING!!Women- Spark of future leadership!"Vietnam is one of top 10 countries in worldwide with highest rate of female CEO. 6,2% of listed companies in HOSE & HNX (43/686 companies) are run by ladies"

Business opportunities for…!Target to…!Urban ambitious & dynamic working women"One of key family bread-winners"Aged 25-45"SEC: AB+"""

Motivated by…!Well balanced career & family "Being kid’s source of care & pride!Being a beloved & independent wife!Being highly respected woman in workplace!

What to inspire them…!•  Messaging emphasizes empowerment of woman !

²  You deserve/are made to live a life of more than a woman"²  Nothing can stop a woman "²  Lead your life like “a real woman” "²  Why not dare to lean in like a man"

•  Contents: !²  Simple ways to be a “housewives” businesswoman!²  Essentials of mothering for boss moms!²  Dos & don’ts to busy-working women’s reproductive

health!•  Competitions to honor Female leadership!

•  Personal care & fashion"•  FMCG"•  Education"

How to approach them…!•  Mass media to make a buzz about significance of being a

self-reliant & powerful woman"•  Social media: online contest, viral videos, peer forum/

fanpage/v-logging targeted to ambitious working women"•  Endorsement: featuring female influencers or celebs"•  PR: networking event, sponsorship, articles "

•  Luxury"•  Healthcare"

#4 !“MODERNIZATION-ORIENTED” ADVERTISING TO PROGESSIVE RURAL CONSUMERS"Open-minded to changes. Ambitious for better life!!68% of Vietnamese population goes to rural areas while this promising land has not been significantly unearthed. Rural consumers average income rise by 44%.!77% of polled respondents expected to have trial of new products and 95% highly appreciate product variety to make buying decision."81% of them revealed that their brand choice is derived from WOM!They visit wet market 14 times/ month & retail outlets 6-9 times/month"

Source: Nielsen research among rural respondents 2013 (n= 700)!

Business opportunities for…!•  Personal care "•  FMCG"•  Healthcare"•  Household items"

What to inspire them…!•  Messaging relating to life advance, improvements,

upgrading, “changing for the better” & smart woman image will make impact when their living standard is getting better"

•  Assortment of small-sized/economical product packaging & promotion!

•  Special offers on Tet occasion perceived as beginning of something new!

•  Interaction with brand ambassador (BA)!

How to approach them…!!•  Creating experiment & WOMs is the key!

²  TVC: most effective source to get information pervasive in rural areas"

²  TVC & OOH: featuring celebrity as BA favored by rural people "²  Trade marketing: commercial policies to provoke retailer’s

recommendation & activation (display/promo/sampling) accommodated to wet market vs outlets"

²  Home product placement & testimonial interviews!•  Event sponsorship, charity"•  Digital & social media (secondary)!

Target to…!Less risk-adverse, liberal & contemporary minded housewives (primary) & the younger (second) in rural areas!Class: BCD"Aged 18-45"""Motivated by…!Good health for the whole family"Main shoppers especially housewives crave to evolve from “inherited farming life” into “pursuit of new experiences” giving them the sense of a dynamic & forward-looking woman!

69% of surveyed consumers were aware of new product via TVC!59% of consumers aged 18-24 referred to internet connected computer !

Source: Nielsen research among rural respondents 2013 (n= 700)!

#5 !“ADVOCACY-CONVEYED” ADVERTISING TO RISING LGBT GEN!More true loves found… Less mistaken marriage... Less unworthy sorrow.!"Vietnam as one of Asia’s most repressive country is currently a surprising torchbearer for LGBT issue. "“72% of surveyed respondents suppose homosexual marriage legalization will pose no effect on their family life and 33,7 % of them supports the legalization” "“56% of Gen Asia (18-35) supposed that love doesn’t have to only involve the opposite sex”"!Legal same-sex marriage is important but the biggest challenge for 1,65 million homosexual cohabiting couples is how to overcome the status labels.!

Source: Gen Asia VN 2012, ISS research on petrotimes.vn!

Target to…!!LGBT at all ages !

Motivated by…!LGBT community are all like us.!They always need ALLIES to listen, !support, love & respect them !which is key driver for them to !LIVE a FEE & NORMAL LIFE!

Business opportunities for…!•  Personal care & fashion"•  Sex stuff"•  FMCG"

What to inspire them…!“Call for action” messaging to erase their self-pity from status quos: !•  Open/Available for all genders"•  Always be your ally whatever your sexuality"•  A life of absolute freedom"•  It’s never too late to become whoever you want to be"•  Life is for nothing if you’re always trying to be normal""

If brand stands for innovation & equality. It needs resonate that value by incorporating LGBT into all benefits, policies, offering & communication toward its customer & stakeholders!

•  Self-help support group (online & offline)!•  Endorsements: LGBT celebs/KOLs to spell out voice of

LGBT GEN & share healthy lifestyle"•  Brand promotion videos featuring LGBT couples"•  LGBT targeted event sponsorships/organization !•  Social media: online platform for match-making, dating &

safe sex for LGBT!

How to approach them…!

•  Tourism"•  Match-making services"

#6!“AFFLUENCE-THEMED” ADVERTISING TO NEW VINAVALET- LUXURY LOVERS ""Number of high income consumers would reach "30 millions in more 10 years. ""56% of Vietnamese surveyed respondents was willing to spend more on luxury products only after China & India"During the first quarter of this fiscal year, Apple’s sales in Vienam tripled – five times faster than Apple’s sales growth in India. iPhone sales in Vietnam have doubled quarterly. Vietnam is now Apple’s fastest growing market. "

Source: Boston Consulting Group (BCG) 2013, Nielsen’s online research 2013 in 58 countries (n-29,000), Reuster!

Target to…!High income earners!Passionate to own favorite luxury !goods/services!SEC: AB+!Aged 25-55!

Motivated by…!“Peace of mind” feeling of “valued for money” quality!Badge of social status !Embodiment for success!Self-rewarding with new experience!Sense of uniqueness & pride!

Business opportunities for…!•  Technology "•  Fashion & cosmetics"•  Car"•  Real Estate"

•  Healthcare"•  Tourism & Hospitability""

What to inspire them…!•  Make it desirable & aspirational through

brand’s visual identity: resound newness, contemporary appeal & truly exceptional factors"

•  Elevate “Paucity” factor through limited editions, scarcity, G-time to launch the newly born"

•  Featuring public figures or celebrities: a conventional way but always work"

•  Enable “exclusivity”: consult & allow personalized styling & modeling of merchandise!

How to approach them…!•  Branded entertainment advertising: product

placement"•  PR: celebrities showcases, articles, events,

sponsorship"•  Trade activation: at high-end retail channels "

#7!PURITY INSPIRED ADVERTISING TO “NATURAL & HEALTHY” FACTOR HUNTERS!"All-natural & home remedies are what cosmetic shoppers keep scouting for beautification"Freshness with 100% fruit extract & mineral supplement is more triggering to beverage shoppers even it costs higher""86% of non-alcohol beverage shoppers pick up a nature inspired drink with vitamin supplement for healthy skin !Packaged fruit juice market will see 25% growth per year while carbonated soft drink sales have seen decline of 6% in recent years"

Source: brandsvietnam.com, vinaresearch 2013, Delta company data!

Busy-working white collars. They tend to be naturalist (beauty & health conscious) who are highly interested in using natural & herbal ingredients for skin care & daily drink to reduce unhealthy environmental effects!Skewed to female!SEC: ABC!Aged 18-35!

Sense of well-being !Sense of balance & joy!Healthy & fresh beauty (for skincare)!Body cooling & refreshment (for beverage)!!!!

How to approach them…!

Business opportunities for…!•  FMCG"•  Healthcare"•  Personal care (beauty & cosmetics)"

What to inspire them…!•  Messaging!

²  Born to awake pure beauty in you"²  Embrace nature to discover your authentic beauty"²  Be original version of you"²  Make up to look like you’re not wearing any/ Make-

up look “no make-up”"²  Feel cool inside, vigorous outside (for beverage)!²  Call for “Eco-friendly”"

•  Visibility: associated with raw materials (herbs, plants, fruit) & greenness inspired color"

•  DIY Tutorials featuring public figure & contests on “pure beauty”!

•  Mass media (TV, OOH, Print)"•  Social media to amplify the trend: native ads,

endorsements (by naturalist as trend setters), video tutorials & interactive games."

•  PR: healthy lifestyle based topics, events "Source: brandsvietnam.com!

Target to…!

Motivated by…"

#8!MORDERN TRADE ADVERTISING TO SHOPPERS WITH HIGHER BARGAINING POWER!The more expansion of modern retail. The tougher price & promotion competition.!"Under the agreements of the WTO, which Vietnam has become a full member since 2007, as of January 2015, Vietnam will allow foreign retailers to set up businesses with 100 percent foreign capital. In addition, the import tax rate will be decreased to zero percent when when Vietnam joins the proposed Trans-Pacific Partnership (TPP). All these favorable conditions would expectedly lead Vietnam to be home of 1300 supermarkets & convenience stores till 2020 as estimated by Ministry of Industry & Trade"

Source: Reuster, zingnews!

TARGET TO! MOTIVATIONS!

BUSINESS OPPORTUNITIES!

Target to…!•  Mass market!•  Primary shopper: housewives

or working moms aged 25-55!•  Urban, SEC: ABC!

Motivated by…!•  Good for health of the whole family!•  Solutions for FUN, SAVING, SELF-

PAMPERING values!•  Convenience & variety (all-in-one

shopping)!•  Quality assurance!•  Sense of being a caring woman!•  Sense of being a wise shopper!•  Source of relaxation (shopping at

supermarket is a way of OOH leisure activities for family at weekend) !

Business opportunities for…!•  Retail & consumer products manufacturer"•  Modern trader"

How to approach them…!Create smooth path for shopper to pick up brand!•  Mass media (TV, OOH, Print)"•  Digital media across online & offline device (capitalized on

SOLOMO)"•  Point of purchase (PG, display, sampling, trade presenter)"

What to inspire them…!•  Promotion!

o  Set limit to launch desirable promotion!o  Immediate benefits (discount, buy X get Y free, Free gift with

purchase, Three for two…)"o  Lucky draw directly at the counter by QR code "o  Integrated mobile/online/on-shelf coupons!o  Offered on groupon sites!

•  Playful & joyful activities on the spot to earn prize/gift (especially for kid)!

•  Fine-tuned goods & planogram to best accommodate to needs of new shopper segments ie : LGBT, eldery, Mom-to-be…"

#9 !360o DIGITAL MAREKTING HUB TO GEN C- CONNECTED CONSUMERS!"Though Vietnam will witness rapid aging population, its current “golden population” structure is predicted to co-exist during the next 30-35 years. It is thus a favorable chance for the GEN C boom!Still, Vietnam becomes 13th country that have highest number of internet users (around 36 millions ) in the world and home to 20 million facebook users, over 17 million smartphone users. This give an evidence of strong digital transformation!"

Source: Vinalink research, Nielsen research 2013!

WHO & WHY ARE GEN C?!

GEN C-connected consumers are…!•  Digital dynamos who have high use of"laptop, smartphone, laptops & passionate "for social networking services"•  Main adopter of digital-empowered shopping"•  Urban, aged 15-45 (skewed to 15-35), SEC: ABC"!

Motivated by…"•  Curiosity to connect with new people,

unearth new news & innovation "•  Delight to constantly livestream their

experiences to the world"•  Self-esteem to stay abreast of latest trends &

developments"

Highest internet penetration rate is dealt with consumers aged 15-29!

Social networking is most popular among consumers aged 15-34!

Source: Comscore 2013 based on July 2013, *VNNIC for Nov 2012!

GEN C’s attitudes & behaviors toward !digital media!

Source: GEN ASIA VIETNAM 2012 (aged 18-35)!

67% thought internet enables “ANONYMOUSM” to voice their own opinion!

52% wanted to share their “COOL” to the whole world!

59% preferred to share WHAT’S HAPPENING in their life with their friends on social networks!

72% supposed social media is forcing media to be more “HONEST”!

63% liked to hear about NEW OFFERS & PRODUCTS on their social networks!

57% got most of DAILY NEWS via social media!

Internet & Social networks obviously become must-have food !for GEN C’s daily life…!

… AND SMARTPHONE is increasingly known as their most approachable device to access internet, social media and

even make purchase…!

HOW?!

Source: thanhniennews, Dautu magazine, GFK research 2014, thegioididong data!

Smartphone is emerging as the indispensable cheapest luxury accessory for fast-paced life!

This allows GEN C- consumers to always keep updated & move constantly between online & in-store environment with affordable cost !

Social location-based apps available on smartphone is “getting popularized” to motivate user by its seamless

connectedness & life-changing information!

Strong penetration of low-end & mainstream brands as Asus (Zenfone), Lenovo (A316i), HTC, LG, Huawei with SOLOMO functionality is weakening dominant position of high-end brands as Samsung & Apple in marketplace!

!It is predicted that 70-80% of Samsung’s mobile phone production in South East Asia will be taken by smart phone in next few years!

“Mobile world” (a leading mobile retail chain) revealed to have seen year-on-year 50% sale increase of its cheap smartphone line.!

LOOKING AT THE CATEGORY…!

Base: Private smartphone users who use the Internet in general, n= 1.000 Google’s. our mobile planet Vietnam Q3,,2013 !

Internet connected smartphone mostly penetrates to urban consumers aged 18-34!

LOOKING AT USER’S BEHAVIOR…!

Base: Private smartphone users (aged 18-64) who use the Internet in general, n= 1.000 Google’s. our mobile planet Vietnam Q3,,2013. !

!Smartphone keeps users (mainly GEN C) “always on” wherever they go !

One-stop portal for their multi-activities…!

Base: Private smartphone users who use the Internet in general, n= 1.000 Google’s. our mobile planet Vietnam Q3,,2013 !

Base: Private smartphone users who use the Internet in general, n= 1.000 Google’s. our mobile planet Vietnam Q3,,2013 !

…which changes the way they shop!

Base: Private smartphone users who use the Internet in general, n= 1.000 Google’s. our mobile planet Vietnam Q3, 2013 !

…or becomes their point of purchase!

!… Multiscreen media usage of GEN C is significantly on the rise…!

HOW?!!

Source: Adreaction report 2014 in 30 countries by Millward Brown, respondent aged 16-45 (n= 12,000)- on ricecomms!

!Smartphone took the lead position with average screen time of 168 MINUTES PER DAY!!Vietnam was marked as the highest number of laptop minutes of average 160 MINUTES PER DAY!!Television minutes was 1/3 LESS THAN THE GLOBAL AVERAGE!! !

User’s average time spent on multi electronic devices simultaneously in Vietnam was !8 HOURS PER DAY which was much higher than the world (7 hours per day)!

!“ TV is a trigger to usage and in general, digital devices are used to continue or complete tasks. In Vietnam, laptops dominate screen usage during working-hour periods while smartphones dominate for the rest of the day. TV sees a very pronounced spike particularly in the early evening primetime hours.”!

"

Base: Private smartphone users (aged 18-64) who use the Internet in general, n= 1.000 Google’s. our mobile planet Vietnam Q3, 2013 !

Robust evolution of social network, smartphone & multi-screen media habit, which is most receptive by GEN C, proves remarkable tendency to govern future of advertising in Vietnam.!!GEN C’s interaction/engagement is mostly devoted to mobile devices, yet TV & other traditional media are important constituents to build their brand awareness at early stage of its presence. Hence, cross-channel communication strategy in which 360o digital marketing is the key would generate greater impact on GEN C’s purchase journey"

RECAP & IMPLICATION"

GEN  C  

!How is 360o digital marketing strategy tapped into ? !

!!

Business opportunities for…!

TELCO!

TOURISM & HOSPITABILITY!

TECHNOLOGY!

RETAIL!

E-COMMERCE!

Content need spark a life of balanced connectedness & disconnectedness to drive their brand’s (FOR TELCO & HI-TECH)"

•  Satisfaction: “Always-on” life , “Just click for easy life”"

•  Emotional bond: Social responsible communication to minimize “tech-stress” caused by SNS & digital addiction and turn it as a positive contributor to a more entertaining life!

Offering advances (FOR TELCO & HIGH-TECH): "•  Ubiquitous & higher speed

connectivity"•  New apps (SOLOMO led) to build

user community and integrate online & offline experience"

"""""""""""""

"""""Create playground for galvanizing GENC to bring their new ideas into life"(FOR ALL)"""""""

!!!!Create all-in-one online portal for !GPI (FOR RETAIL, TOURISM & HOSPITABILITY, E-COMMERCE)"GPI = Product guide + Peer review + Individualization!•  Product Guide: online in-depth

information & usage instruction"•  Peer review: on the site & hyperlink to

other review sites"•  Individualization: self-create, self-plan

& self- adjust product offering "

INNOVATION!

OPENNESS FOR CREATIVITY!

ONLINE & OFFLINE INTEGRATION!

GPI MODELLED ULTRA-PERSONALIZATION!

LIVE HEALTHY!

WHAT to inspire GEN C…!

•  Online & offline product QS code linked with review sites (FOR HI-TECH, RETAIL, E-COMMERCE) to facilitate buying decision"

•  G-time for promotion (FOR ALL): apps & online portal to update latest promo that enable consumers to hunt for them across channels at anytime "

How to approach them…!

MULTI-SCREEN AD: !•  Digital ads & all kinds of interactive

multiscreen marketing channels (TV, tablet, location based/game/entertainment mobile apps, laptop, outdoor & in-store screens…) to follow individual consumers’ purchase journeys across touch-points. "

•  Messaging & creative is thereby tailored to fit their specific taste & level of engagement on different type of screen!

PERFORMANCE BASED AD: !consumer-centric, cost-effective, accurate & measurable!•  RTB display: operated by DSP, Ad

exchange & publishers to create effective coverage & tracking"

•  Targeting & retargeting at each conversion process across devices to push up sale"

•  Data driven: DSP enabled with cookies input & consumer segmentation by demographics & behaviors across devices"

•  Analytical tracking: goal, conversion, e-commerce tracking across devices"

"

SOLOMO !Brand should enhance its presence on location based apps & social networks to stay on top of the trend- think local, get social & pay mobile amongst GEN C (most suitable for Retail and Tourism & Hospitability)""

Source: Vinalink research, Ureka media agency (DSP model)!

Thank you