WHAT’S AROUND THE CORNER? 2010 · .1 2000 2010 2020 5 TRENDS SHAPING THE FUTURE Presented by...
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1 pyright ©2016 The Nielsen Company. Confidential and proprietary. 1 2000 2010 2020 5 TRENDS SHAPING THE FUTURE Presented by Nguyen Anh Dzung - Head of Retail Measurement Services – Nielsen Vietnam WHAT’S AROUND THE CORNER?
Transcript of WHAT’S AROUND THE CORNER? 2010 · .1 2000 2010 2020 5 TRENDS SHAPING THE FUTURE Presented by...
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2000 2010 2020
5 TRENDS SHAPING THE
FUTURE Presented by Nguyen Anh Dzung
- Head of Retail Measurement Services – Nielsen Vietnam
WHAT’S AROUND THE CORNER?
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5 TRENDS SHAPING THE FUTURE
WE ARE…
GETTING OLD
CHANGING
DEMOGRAPHY
WE ARE…
DIGITAL DEPENDENT
DIGITAL
DEVELOPMENT
WE ARE…
MINORITY
RURAL - MARKET OF VOLUME
WE ARE…
DEMANDING
DEMANDING CONSUMERS
WE ARE…
POWERLESS
RETAILER POWER
CHANGING DEMOGRAPHY 1
4
Younger, Older, Wealthier
MIDDLE CLASS
33 MILLION by 2020
DYNAMIC & OPTIMISTIC ELDER** POPULATION
20% by 2020
MILLENNIALS*
30% of the current population
(*): Age of Adults in 2015: 18-34; (**): Age of Adults in 2020: 50-69
VIETNAM DEMOGRAPHY NOW & FUTURE
5 0 1 2 3 4 5 6
85
80 - 84
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-4
0 1 2 3 4 5 6
85
80 - 84
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-4
Source: General Statistics Office
HIGHER DEMOGRAPHICAL FRAGMENTATION– MORE SPECIFIC CONSUMPTION REQUIREMENT
2010 = 87M 2020 = 97M
Female
Female
Male
DIGITAL DEVELOPMENT 2
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25.9 24.7 24.7 24.4 24.2 24.1 23.0 20.3 19.5
MOBILE & INTERNET USAGE PARTIALLY WILL HELP SOLVE INFRASTRUCTURE WEAKNESS
Source: CIA World Factbook; Nielsen: Cross Platform Insights 2016
US GERMANY BRAZIL MEXICO CHINA INDIA VIETNAM
100 123 139 85 94 76 131
87 87 53 41 48 19 48
AVERAGE TOTAL TIME SPENT ONLINE EACH WEEK
MOBILE AND INTERNET ACCESS ACROSS COUNTRIES
M OB I L E S U B S CR I P TI ON S (PER 100 INHABITANTS)
I N TE R N E T U S E R S (SHARE OF POPULATION)
RURAL – MARKET OF VOLUME 3
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URBANIZATION CONTINUES BUT LARGE TOWNS/RURAL IS STILL THE MARKET OF VOLUME IN ASEAN
Source: Nielsen Age of ASEAN Cities Report
HIGH-DENSITY CITIES 5M+
MIXED-DENSITY CITIES 1-5M
MID-DENSITY CITIES 500,000-1M
LARGE TOWNS AND SMALL CITIES
<500,000
RURAL AND SMALL TOWNS
2015 2025 % CHANGE
52.2M 69.0M +32%
34.9M 52.6M +51%
17.7M 16.8M -5%
196.2M 231.8M +18%
330.6M 324.3M -2%
>65 MM people are and will be living in Rural Vietnam
DEMANDING CONSUMERS 4
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UTILIZATION OF SPARE CASH
Smartphones
Major Appliances
Domestic Tourism
Car Registration
FAST GROWTH IN NON-FMCG
YTD 2016
YTD Oct’16
1H’15 vs. YA
YTD Oct’15
+19%
+28%
+18%
+48%
VIETNAMESE CONSUMERS ARE GOING BEYOND BASIC COMMODITIES
0
10
20
30
40
50
60
70
80
90
Put into saving New technology/products
New clothes Holidays/vacations
Home improvements/decorating Out of home entertainment
Even saving is a habit
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MORE SOPHISTICATED: SEEKING FOR MORE BENEFITS AND MORE SERVICES ON-THE-GO LIFESTYLE
USING IN-STORE SERVICES
Petro/filling stations
52%
Fast-food
52%
In-store banking
56%
Prepared food
45%
Coffee services
47%
Postal services
47%
“HEALTH” - THE BIGGEST CONCERN
Source: Traditional Trade Thought Leadership Q4, 2015; Retail Growth Strategies Report 2016, Lifestyle report 2015
48% VIETNAMESE PEOPLE CONSIDER
“STAYING FIT AND HEALTHY” AS TOP ASPIRATION FOR THE FUTURE
9 13
15 18
21 34
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Malaysia
Indonesia
Thailand
Singapore
Philippines
Vietnam
SEA Average
% PEOPLE CONSIDERING “HEALTH” AS BIGGEST & 2ND BIGGEST CONCERN – Q4’15
VALUE-FOR-MONEY
89% Vietnamese consumers will PAY MORE for foods that promote HEALTH benefits
43% of Asian consumers will PAY A PREMIUM PRICE FOR AN INNOVATIVE new product
48% of Vietnamese consumers purchase packaged food because of “ADDED HEALTH BENEFITS” & “ALL NATURAL INGREDIENTS”
RETAILER POWER 5
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HUGE MISSING OPPORTUNITY WHEN RETAILERS ARE NOT ENGAGED
PROMOTION
2 out of 3 shoppers will follow
the retailer’s recommendation.
1% of the shopkeepers actively talk about
98% of the shoppers are not aware of
retailers made a recommendation to
shopper
3%
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THE SECRET OF FUTURE SUCCESS
INNOVATE, TRANSFORM & DISRUPT
“THE FUTURE STARTS TODAY, NOT TOMORROW” (Pope John Paul II)
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2000 2010 2020
THANK YOU
WHAT’S AROUND THE CORNER?
