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1 Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Nielsen Vietnam April 11, 2017
MEET YOUR NEXT SOURCE OF GROWTH:
THE OMNI-CHANNEL SHOPPERS AKA THE CONNECTED SPENDERS
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MEET YOUR NEXT SOURCE OF GROWTH
Conventional approach:
MIDDLE CLASS
Earn $10-20/day
Modern approach:
CONNECTED SPENDERS
Have internet access
Are willing to spend discretionary
income
Overlooks consumer engagement, access
Better identifies likely purchasers, correlates to spending as % of GDP
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THE MOST ENGAGED CONSUMERS ACROSS INCOMES
Connected Spenders signal where consumers demand is headed
INCOME HIGH LOW
CO
NSU
MER
EN
GA
GEM
ENT
LO
W
HIG
H CONNECTED
SPENDERS
MIDDLE CLASS
UPPER INCOME
LOWER INCOME
Note: Visual representation; Not to scale
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A GROWING FORCE IN THE GLOBAL ECONOMY
1.37
2.97
2015 2025
Number of Connected
Spenders (BB)
$14.8
$31.9
2015 2025
Annual Spending from
Connected Spenders (TT USD)
SHARE OF GLOBAL TOTAL 53% 35% 37% 19%
53% 35% 37% 19% SHARE OF GLOBAL TOTAL
Spending from Connected Spenders
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HIGH-POTENTIAL MARKETS Top 10 markets for Connected Spenders by population, 2015 vs. 2025
Source: Nielsen Global Consumer Confidence Survey (2010-2015); The World Bank; The International Monetary Fund; The Demand Institute
China
China
India
India
U.S.
Brazil Japan
Russia
Germany
Germany Indonesia
U.S.
Brazil
Japan Russia
Indonesia
Vietnam
Vietnam U.K.
U.K.
Pakistan Nigeria
417M
710M
20M
32M
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CONNECTED SPENDERS WILL OUTGROW MIDDLE CLASS IN
TERM OF NUMBER AND IMPORTANCE, ESPECIALLY IN EAST
ASIA AND PACIFIC
Source: Demand Institute & Nielsen, Connected Spenders Report, 2017
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CONNECTED SPENDERS WILL ACCOUNT FOR 40% OF THE POPULATION IN 2025
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THE RISE OF VIETNAMESE CONNECTED SPENDERS
2015 2025
23 MILLION PEOPLE
ANNUAL SPENDING $50 BILLION
38% OF TOTAL CONSUMER SPENDING
40 MILLION PEOPLE
ANNUAL SPENDING $99 BILLION
48% OF TOTAL CONSUMER SPENDING
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CONNECTED SPENDERS ARE CONFIDENT
CONSUMERS
Source: Nielsen Global Consumer Confidence Survey (2015)
30
50
70
90
110
130
150 CONNECTED SPENDERS OTHER INTERNET USERS
115 GLOBAL
85 GLOBAL
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THEY PREFER NEW, INNOVATIVE PRODUCTS
Source: Nielsen Global Consumer Confidence Survey (2015)
72%
68%
56%
50%
56%
55%
34%
31%
I like when manufacturers offer new
product options
I like to tell others about new products I
have purchased
I am willing to pay a premium price for
new innovative products
I am an early purchaser of new product
innovation
CONNECTED SPENDERS OTHER INTERNET USERS
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WHY FOCUS?
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25.9 24.7 24.7 24.4 24.2 24.1 23.0 20.3 19.5
RISING CONNECTIVITY IS ON THE GO!
Source: CIA World Factbook; Nielsen: Cross Platform Insights 2016
USA GERMANY BRAZIL MEXICO CHINA INDIA VIETNAM
100 123 139 85 94 76 131
87 88 68 56 52 37 52
AVERAGE ONLINE TIME PER WEEK IN SOME COUNTRIES
PHONE USAGE AND INTERNET PENETRATION IN SOME COUNTRIES
P H O N E U A G E ( PHONE PER 100 PEOPLE)
INTERNET P ENETRATION (% POPULATION)
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SO, THE ‘CONNECTION BEHAVIOR’ MAKE THIS NEW CUSTOMERS
MORE CONFIDENT AND PROACTIVE IN THEIR WAY OF LIVING
Source: Demand Institute & Nielsen, Connected Spenders Report, 2017
YOUNGER, LIVING IN URBAN AND MORE
CONFIDENT
PROACTIVE IN SPENDING IN PRODUCTS AND
SERVICES
READY TO CONNECT
Connected Spenders Normal Internet users
AGED 25-34 31%
URAN LIVING
CONFIDENCE INDEX
ENJOY FREEDOM TO CONNECT EVERYTIME,
EVERYWHERE
83%
SPEND DISCRETIONARY
INCOME ON ACCESSORIES
90%
SPEND DISCRETIONARY
INCOME TO ENTERTAINMENT
78%
23%
65%
85
78%
115
71%
53%
75%
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THEY ARE MORE ENGAGED WITH DIGITAL
TOOLS FOR WORK AND PERSONAL ACTIVITIES
Source: Nielsen Global Survey – Mobile Ecosystem (2016)
85%
ON MOBILE CONNECTED DEVCES SUCH AS LAPTOP/TABLET/SMARTPHONES
67%
66%
65%
55%
49%
78%
49%
61%
58%
72%
40%
VIETNAMESE CONSUMERS SEA CONSUMERS
ACCESS EMAILS
READ DIGITAL BOOKS/NEWSPAPERS
WATCH YOUTUBE
PLAY GAMES
USE SODIAL MEDIAS
LISTEN TO MUSIC
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…THEY ARE MORDERN MEDIA VIEWERS
Source: Nielsen Global Survey – Media Fragmentation Report (2016)
90%
64%
53%
54%
84%
64%
56%
49%
VIETNAMESE CONSUMERS SEA CONSUMERS
PREFER TO WATCH MOVIES ON OWN SCHEDULE
ENAGE WITH OTHER VIEWERS ON SOCIAL MEDIA WHILE WATCHING
APPRECIATE LEARNING ABOUT PRODUCTS THROUGH ADVERTISING
EXPEXT A RELEVANT AND PERSONALIZED ADVERTISING EXPERIENCE
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…AND EAGER ONLINE SHOPPERS
64%
44%
66%
61%
47%
62%
VIETNAMESE CONSUMERS SEA CONSUMERS
SEARCH FOR INFORMATION BEFORE BUYING
LOOK FOR DEALS / COUPONS WHEN SHOPPING
COMPARE PRICES WHEN SHOPPINGS
Source: Nielsen Global Survey – Mobile Ecosystem (2016)
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17 Source: The Nielsen Omni Shopper Trend Report 2017
AUTO PILOT PRACTICE BEFORE BUYING
LARGE PANTRY RESTOCKING
TAKE ADVANTAGE OF SPECIAL OFFER
OR PROMOTION
OMNI-CHANNEL SHOPPERS IN VIETNAM
TRADITIONAL SHOPPERS IN VIETNAM
48%
44%
57%
82%
19%
6%
AND THEIR SHOPPING ATTITUDES ARE DIFFERENT
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UNDERSTAND HOW THEY
ENGAGE WITH YOUR BRANDS ALONG PATH-OF-PURCHASE
WHAT’S NEXT FROM HERE?
EMBRACE DIGITAL
OPPORTUNITIES
DIGITAL-PAYMENT
DISRUPTION
BUSINESS MODEL
INNOVATION