Kantar Insight Handbook 2019

Follow the shopper
where the growth is

A Message from Managing Director
Technology continues to evolve at
a fast rate and digital disruption
is more and more common and
impacting our lives in ways we
didn’t expect.
Insight Handbook 20194

5INTRODUCTION
The way we make decisions, like what
to buy, has changed and the way we
interact with brands is being constantly
redefined by the changes in technology
and the rise of social media which has
impacted greatly on the consumer
journey.
We have to continue to understand how
people live, get exposed and influenced,
interact with each other, and how they
shop between offline and online. As
a brand, it is vital to think about your
entire customer experience, everything
from your logo, your website, your social
media experiences as well as the product
quality. Brands need to build emotional
connection with their audience and
media owners need to provide content
that people choose to watch.
Knowing this, finding out the real
factors which influence consumer’s
attitude and purchase behavior are our
priorities more than ever and successful
brands and retailers will be the ones
who dig deeper and truly understand
how their consumers and shoppers are
changing.
But it certainly won’t be easy.
In recent years the data that consumers
have allowed to be collected so easily
have given brands an edge in terms
of marketing but with more and more
issues over misused data and even data
breaches, will 2019 be the year that we
will see a backlash? It is noticeable that
many have joined in exodus of some
websites and platforms that have lost the
trust.
Welcome to our 2019 edition of the
Kantar Worldpanel Vietnam Insight
Handbook, we wish to continue giving
you the must-know foundation to
contribute to your success.
Fabrice Carrasco
Managing Director of Kantar Worldpanel Vietnam | Philippines
Asia Strategic Projects Director

6 Insight Handbook 2019
The Kantar Worldpanel Vietnam
Insight Handbook is our initiative
providing you with a deeper
understanding of Vietnamese
families and a comprehensive,
up-to-date picture of the most
important consumer and shopper
trends in Vietnam.

7INTRODUCTION
Dear Friends and Partners,
Now in its fourth edition, we are proud
to keep you updated on changes in
consumers’ thoughts, perceptions and
shopping behaviours and bring you our
insights and forethoughts moving for-
ward to 2019 and beyond, in order to help
you stay one step ahead of the market.
Above all, you will need to pull out all the
stops to win as many shoppers as pos-
sible to drive growth. Since all markets
are composed of different segments of
consumers, based on their needs, desires
and behaviours; segmentation is essen-
tial for any business to find new shoppers,
to grow broadly and sustainably. Notice-
ably, in the next 5 years, Millennials still
matter to many brands and retailers, but
furthermore, the growing senior popula-
tion and the rising wave of centennials
hold a huge potential to capture incre-
mental growth.
On one hand, Vietnamese consumers
have a tendency to go out more and
enjoy different leisure activities such
as eating and drinking and travel. This
provides many more touchpoints that
marketers could utilize to reach their
target consumers, especially the younger
generations. In addition, this rising trend
will also drive further the explosion of
out-of-home market.
On the other hand, consumers seek
greater convenience, which leads to the
exponential development of E-commerce
today. However, online shopping will
not completely replace physical retail
presence. Instead, with technological
advancements, the boundaries between
online and offline will be more blurred,
offering enhanced shopping experienc-
es. The big question that brands and
retailers should think about is how to take
advantage of technological innovations
to build a deeper level of engagement
with personalized experiences and em-
bed them into their current omnichannel
strategy to ensure a seamless path to
purchase for consumers.
Enjoy your reading, get inspired, and we
wish you a successful year 2019!
David Anjoubault
General Manager of Kantar Worldpanel Vietnam

Table of Contents
9
17
68
01 K-FACTS
The new pace of FMCG growth
02 K-FORETHOUGHTS
The macro forces to unlock the future growth
03 K-TEAM
Meet, Greet & Get Inspired
Macroeconomic stability
Shifts in consumer spending
FMCG slowdown & growth opportunities
The many faces of future consumers
MORE GROUPS WITH MORE OPPORTUNITIES
Polarization
ONE SIZE DOESN’T FIT ALL
Innovation
UNLOCKING NEW VALUE
Living well. Playing well
ELEVATING CONSUMERS’ LIVES
Beyond Digital
THE FUSION OF ONLINE AND OFFLINE
Enhanced Shopping Experience
THE BLEND OF DIFFERENT SHOPPING CHANNELS
10
13
14
18
26
32
38
50
58
01
02
03
04
05
06

K-FACTS01
The new pace of FMCG growth

Macroeconomic stability
Source: GSO Vietnam
2010 2011 2013 2015 20172012 2014 2016 2018
6.8 5.9 5.3 5.4 6.0
24.5
24.2
16.0
12.6
10.6
9.5
10.2
12.0
12.4
9.1
6.6
4.1
2.7
3.5 3.5
9.2
18.7
0.6
6.7
7.1
6.2
6.8
Expectation for 2019 - 2022
GDP
6-7% 3-4%
CPI
GDP Growth (%) Inflation (%) Sales of Goods & Service (%)

11K-FACTS
Beside major driving forces for Vietnam’s
economic growth, both challenges and
opportunities are lying ahead…
Source: GSO Vietnam | 2018 versus 2017
14% GROWTH 20% GROWTH
Total export turnover Tourism: International
Visitors
12% GROWTH
Total retail sales of services
& consumer goods
9% GROWTH
FDI (implemented)
OPPORTUNITIES CHALLENGES
Trade agreement: EVFTA, CPTPP,…
• Opportunities for export
• More foreign investment
• Technology transfer & development
• Wider range of imported products with
good quality and competitive price
Business environment
• Legal reforms
• Competitiveness and attractiveness of
local companies
ASEAN Smart Cities Network: smart
solutions in transport systems, urban
management, flood monitoring systems
and e-government services.
Rising global price of oil threatens
inflation
Privatization of State-Owned-Enterprises
(SOE): attract foreign investment,
increase Government budget
Public debt burden
Growing urban middle class: strong
domestic demand & consumption
Exchange rate pressure amidst US-
China trade war
Environmental issues (climate
changes, air pollution, plastic
pollution,…)

12 Insight Handbook 2019Source: Kantar Worldpanel | LinkQ project | Vietnam Urban 4 key cities
Along with a brighter outlook, Vietnamese
consumers are more optimistic
Top 3
Household’s Concerns
1st
2nd
3rd
Environmental
issues/Diseases
Health &
Wealthness
Food safety
Most key decisions makers for FMCG
BELIEVE IN A POSITIVE SITUATION in the coming months
% Housewives agree
Vietnam economic growth
Better or same as today
Household’s purchasing power
Better or same as today
86% 96%

13K-FACTS
Fresh Food & FMCG dominate households’
share of wallet, however, consumers have a
tendency towards new aspirations
URBAN
(4 cities)
RURAL
Investment
Housing
Others
Savings
Basic Needs*
Education & Healthcare
New Aspirations*
Fresh food & FMCG
New Aspirations*
Housing
Others
Education & Healthcare
Basic Needs*
Savings
Investment (incl. farming cost)
Fresh food & FMCG
4.4
2.9
5.4
11.8
15.6
16.0
17.2
26.8
25.9
16.8
6.4
7.3
9.7
9.8
11.2
12.6
% Spending per month
Source: Kantar Worldpanel | Expenditure Survey 2017 | Urban 4 cities & Rural Vietnam
*Basic needs: Transportation, Communication, Household utilities
*New aspirations: Eating/Drinking out, Travel/holiday, Entertainment

FMCG slowdown & growth opportunities
Source: Kantar Worldpanel | Households Panel | Urban 4 Key Cities & Rural Vietnam |
FMCG excluding Gift | Value growth % | 12 months ending September 2018
% Value growth
Forecasted for
2019 - 2022:
5-6%
FMCG market
value growth
CAGR (2012-2018)
Urban
(4 cities)
Rural
Value 6% 7%
Volume 4% 8%
Avg. paid price 2% -1%
RuralUrban (4 cities)
2012
14.8 12.3
2015
2.7 8.5
2013
9.8 12.0
2016
4.8 2.7
2014
3.8 10.4
2017
5.3 4.4
2018
2.3 6.4

15K-FACTS Source: Kantar Worldpanel | Households Panel | Urban 4 Key Cities & Rural Vietnam |
FMCG excluding Gift | 12 months ending September 2018
There is room for many categories to develop
further across all sectors
% Value Share in total FMCG
Da
Be
Pa
Pe
Ho
URBAN
(4 cities)
RURAL
Dairy
Beverages
Packaged foods
Personal care
Home care
29.8%
22.6%
9.4%
29.5%
27.0%
9.6%
22.1%
22.5%
% No. categories reach <50% households
Dairy Beverages Packaged
Foods
Personal Care Home Care
71 79 71 76 74 76 78 86 58 58
16.0%
11.5%
Beverages and Personal Care are gaining
more share, partly thanks to the push of
innovation

• Vietnam macro-economy
stabilized
• Vietnamese consumers’
confidence stays high
• Both opportunities and
challenges are lying ahead
• New aspirations are arising
• FMCG is growing, but slowing
• Room for growth across many
categories
Key take-aways
Macro
Economy
Consumer
Spending

K-FORETHOUGHTS02
The macro forces to unlock the
future growth

01 The many
faces of future
consumers
MORE GROUPS WITH
MORE OPPORTUNITIES
All markets are
composed of different
consumer segments,
based on their needs,
desires and behaviors.
Hence your market
strategy must take
segmentation into
account in order
to find new growth
opportunities.
18

19K-FORETHOUGHTS Source: Kantar Worldpanel | Brand Footprint 2018
The growing Senior population
Vietnam is now considered as one of the world’s fastest aging population by
the World Health Organization. Getting older ultimately impacts consumer
choices, attitude and behaviors. This will force businesses to adjust their
growth strategies in the years to come to meet the needs of this growing
consumer group. With well-being as their top priority, this consumer group
will be focusing on products that help preserve their health, thus providing
numerous opportunities for businesses to uncover.
Millennials still matter
Brands and retailers still need to keep their eyes on millennials as they are
the most valuable consumer group in Vietnam today (contributing 36%
of value to in-home FMCG market) and will remain the core workforce for
the country in the next 5 years. Millennials value innovations (those that
bring truly new benefits, new formats) and seek for greater convenience to
help them ease their lives. They also have influence on other generations’
decisions, so it’s crucial to convince them.
Centennials: The next wave of influencers and
consumers
Talks around Centennials, known as GenZ or post-Millennials, are
happening more and more these days. Born after 1997, they have grown up
surrounded by smartphones and tablets, forming digital natives who are
mostly connected. They love going out and gathering with friends - making
the greatest contribution to the development of milk tea market today! As
their spending will increase , this group offers great opportunities for the
out-of-home F&B market.
What’s changing?

The aging population offers more
opportunities for manufacturers and
retailers
2018 2038
105 Million95 Million
20 Million 36 Million
~22% pop. ~34% pop.
Seniors are in high need for nutrition
and health, save or invest more for
the future, and are price conscious.
80+
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
1,922
1
2,077
3,558
4,790
5,555
6,103
6,730
7,269
8,084
8,766
8,525
6,740
6,683
7,360
7,752
1,390
1,141
2,206
3,464
4,505
5,319
5,856
6,887
7,676
8,477
7,130
6,451
6,703
7,255
7,676
7,320
6,460
5,136
6,359
The growing Senior population
Source: United States Census Bureau | GSO Vietnam
1

21K-FORETHOUGHTS Source: Household panel | Urban 4 cities | % Value among FMCG excluding Gift |
12 months ending September
Mature families – those without kids and
teens – are dedicating more spending to
dairy consumption
Dairy value share (%) in their FMCG wallet
2018 20182017 2017
All Families
All Families
Mature Families
Mature Families
Dairy value growth (%)
31.5 20.7
-2.7% 11.1%
29.8 21.0

22 Insight Handbook 2019Source: United States Census Bureau | GSO Vietnam | 2018
Millennials are still the most sizeable
consumer base
* Millennials who were born between 1980 and 1996
Vietnamese Millennials
of Vietnam
population
of Global population
Millennials are well educated,
tech-savvy, open minded and early
adopters of healthy lifestyle.
~33millions
~35%
32%
2 Millennials still matter

23K-FORETHOUGHTS
Millennials are more responsive to
innovative products and concepts,
which opens opportunities for brands to
experiment and create new things that
fulfill their aspirations
Source: Kantar Worldpanel | Households Panel | Vietnam Urban 4 Cities |
FMCG excluding Gift | 12 months ending June 2017 | Millennial under 40 y/o
Number of Variants
New flavors - % buyers
Biscuits
Biscuits –
Seaweed
flavor
Snack –
Cheese
flavor
Snacks & Nuts
Older Gen Older Gen
4.7 3.6
Millennials Millennials
5.0
5.9
18.6
11.3
22.7
4.4
MillennialsOlder Gen

Vietnamese Centennials 2018
Born in a digital world with full access
to information
Inseparable from mobile phones and
most active on social media platforms
Seek out new news, new experiences
Influenced by Korean culture and
concerned about social issues
Early self-conscious about appearance
*Known as GenZ who born from 1997 to present
Who are Centennials?
>29millionsof Vietnam
population
30%
Source: United States Census Bureau | GSO Vietnam
3
Centennials, consumers born after
1997, account for one third of Vietnam
population and are increasing their
influence in society
3
Centennials: The next wave of
influencers and consumers

25K-FORETHOUGHTS Source: Kantar Worldpanel | Out-of-home Panel | Individuals 15-49YO | HCMC | Food & Drinks | 3
months ending November 2018
*Bubble tea includes milk tea, tea with milk foam, milk with brown sugar bubble
They love being out of home with the
hottest food and drink trends, especially
bubble tea craze
Ready-to-drink and ready-to-serve Bubble Tea* for Out of
home consumption
% Reach
Centennials (15-22yo)
47%
Average shoppers
38%

02 Polarization
ONE SIZE DOESN’T FIT
ALL
All price tiers are making
efforts to justify their
position, hence getting
closer to each other
in terms of offers and
sharing consumer base
26

27K-FORETHOUGHTS
What’s changing?
Premium Brands go reasonable
Lower tier won’t die easily
Source: Kantar Worldpanel | Brand Footprint 2018
Consumers are paying higher price on 40% of their FMCG products, especially
for personal care items.
High-priced products in mass categories have paved their way into more
families thanks to affordable cash outlay of small size or saving packs.
Meanwhile, some others justify their price by special ingredients or serving
niche needs of consumers. The rest rely on their international image or
imported origin to capture the growing desire of Vietnamese consumers for
foreign products.
Given approx. 60% of Vietnamese households still live in Rural with lower
income than Urban, a majority of them use low tier brands. Premiumisation
does happen there, yet largely up to mainstream tier, while premium tier
remains at trial stage.
Even in Urban cities, those who use mostly premium items also spare a part
of their wallet to buy lower tier products, possibly for different usage purpose
or simply being satisfied with their adequate quality.
In high usage frequency categories, manufacturers are pushing jumbo
packs to leverage saving price and secure usage loyalty. Others thrive by
premiumizing their image with added nutrients or special format.

The hot keyword is ‘uptrading’, as >40% of
FMCG categories can grow their average
price higher than the CPI rate
Source: Kantar Worldpanel | Households Panel | Urban 4 cities & Rural Vietnam |
CPI YTD Sep 2018: 3.57%
Urban 4 key cities: counting 108 significant categories, Rural: counting 81 significant categories.
Multi & Omni Channel1
% Categories
URBAN
(4 cities)
RURAL
Uptrading (price increase > CPI)
Stable
Downgrading (price decrease < -3%)
53%
7%
40%
46%
44%
10%

29K-FORETHOUGHTS
That happens across sectors, majorly seen
in Personal Care
Source: Kantar Worldpanel | Households Panel | Urban 4 cities & Rural Vietnam |
% Categories
% Categories
URBAN
(4 cities)
RURAL
Uptrading (price increase > CPI)
Stable
Downgrading (price decrease < -3%)
Dairy Beverages Personal CareHome Care Packaged
Foods
13%
73%
13%
21%
71%
7%
37%
56%
7%
33%
50%
17%
60%
20%
20%
Packaged
Foods
Beverages Personal CareDairy Home Care
29%
52%
19%
33%
58%
50%
50%
40%
47%
13%8%
67%
29%
5%

30 Insight Handbook 2019Source: Kantar Worldpanel | Households Panel | Urban 4 cities | FMCG excluding Gift | 12 weeks
ending June/September 2018
* Super Premium Noodle: >=10k VND/bag; Super Premium Shampoo: price index >120.
** Economy-Mainstream Fish sauce: <60k VND/liter; Economy Shower Gel: price index <90.
Nevertheless, Economy-Mainstream tier
still has room to survive. Even households
who buy a lot of Premium items still buy
lower-priced items of that category or
other categories
Within that category
Cross categories
Heavy buyers of Super Premium
Noodle* still spend 20% wallet for
Economy-Mainstream Noodle
Noodle* still spend 49% wallet for
Economy-Mainstream Fish sauce**
Shampoo (*) still spend 26% wallet for
Lower tier Shampoo
Heavy buyers of Super Premium Noodle
(*) still spend 44% wallet for Economy
Shower Gel**
20% 26%
49% 44%

31K-FORETHOUGHTS
What are the survival tips for Low tier
brands?
What are the growth accelerators for
Premium brands?
1.
Big Pack Size
1.
Affordable Pack Size
2.
Added Value
2.
Advanced Benefits
3.
Pure Ingredient
3.
Premium Concept
4.
International Image

03 Innovation
UNLOCKING NEW
VALUE

33K-FORETHOUGHTSK-FORETHOUGHTS
What’s changing?
Innovation in a nutshell
• Brands and manufacturers invest enormous amount of resources on
introducing new products to consumers.
• Innovators now are moving to launch a whole new product (pioneering
product) rather than simply offering a new choice of size, packaging
design under the same products or existing brands.
It’s never easy to make new launch succeed
• It becomes more challenging to grab consumers’ attention among
numerous new products as they are more skeptical of the influencing
factors around them.
• High quality innovation is needed as trial rate after 1 year of launching is
getting lower over time.
A successful innovation translates consumer needs
into an attractive story
• New products hitting the market must meet the consumers’ needs and
expectations.
• A successful innovation always comes with a long-term and sustainable
launching plan: Who should my brand talk to? Which channel to focus?
Does Promotion work?

The FMCG market is much more innovative
over time
Source: Kantar Worldpanel | Household Panel | Urban 4 key cities | FMCG
New SKUs is counted based on new brand, variant, pack size, pack type
New launches/day
2014 2017 YTD Nov 2018
URBAN (4 cities)
16.2
21.8 22.0
In 2018, new launches appear
almost every hour!

35K-FORETHOUGHTS
More focus on stretching brand’s variant
portfolio
Source: Kantar Worldpanel | Household Panel | Urban 4 key cities | FMCG 2018
Types of innovation
(% of new SKUs)
New Brands New Variants Changes to existing
products
URBAN (4 cities)
37% 31% 32%
37% 39% 35%
26%
31% 33%
2014 2017 YTD Nov 2018

36 Insight Handbook 2019Source: Kantar Worldpanel | Household Panel | FMCG | 12 months ending November 2018
Which sectors are the most innovative?
Personal Care & Packaged Foods!
Beverages Dairy Home Care Packaged
Foods
Personal Care
Share of innovation
(% of new SKUs)
15%
30%
38% 7%
10%2014
YTD 2018
2017
40%
11%
11%
7%
10%
37%
36%
8%
5%
35%

37K-FORETHOUGHTS Source: Kantar Worldpanel Vietnam | Household panel | Urban 4 key cities & Rural Vietnam
26.4%26.9%
New launches are facing more challenges
to grap consumers’ attention and retain
their loyalty
% Households a new launch reached after 1 year
(Trial Rate %)
% Households repeat purchase in the 1st
year
(Repurchase Rate %)
2014 2017 2014 2017
2014 2017 2014 2017
5.4% 5.2% 5.1% 4.6%
25.7% 27.8%

04 Living well
Playing well
ELEVATING
CONSUMERS’ LIVES
Simplifying household
chores, relying more on
convenience products/
services and investing
more on advanced values
and new experience

39K-FORETHOUGHTS
What’s changing?
My Home:
Modernizing & Smart Living leads
to Advanced Home Care needs
My Kitchen:
Less Cooking, Simpler Preparation,
relying more on Convenient Foods
My Health:
Active Lifestyle, Less Sugar, More
Natural Ingredients & Vitamin
Supplements
My Beauty:
Self-Appearance is of Higher
Importance, Endorsing Expert
Solutions & Regime Beauty Care
My Budget:
Spending more on Out-of-Home
Experience
1
2
3
4
5

Vietnamese consumers are moving up
the Maslow’s hierarchy of needs thus
expecting more from products & services
to ease their lives and indulge themselves
Less cooking & more convenient foods
Increasingly, consumers are expecting to have more products/solutions which
make cooking simple and quick. Products offering ease of use in the cooking
process such as Meal Maker and ready-to-cook, ready-to-eat are picking up
strongly while necessity items struggle to find growth. Light meals and snacking
items are increasingly adopted for in-home consumption. Modern retailers and
E-commerce players are also offering more solutions to home meals.
Beyond the basics
Together with the upgrading lifestyles, consumers are expecting more from
the products/services they use.
Basic and functional benefits are now taken for granted, thus at risk of
becoming commoditized. Consumers spend less on routine items and are
willing to spend a lot more on things that offer added values/advanced
features that differentiate from others and those that help reduce the tiring
in-home daily tasks so that they have more “me” time.
Insight Handbook 201940 Insight Handbook 2019

Healthy, natural ingredients & self-apperance focus
Consumers become more selective on the products that they consume.
Natural ingredients, fortified values, plant based Foods & Beverages are on
the rise inside consumer baskets. They also exercise more and take more
vitamin supplements.
Self-appearance is also getting higher attention. Skin Care and Make-up
items in new formats which promise higher efficacy and better results are
being adopted more. Regime usage also starts to build up.
Out-of-home pleasures
Consumers are increasingly seeking new experience and enhancing their life
quality. As majority of the population today are millennials, socializing needs
including travelling and drinking/eating out are also more important.
People tend to behave differently when being out-of-home. Also, the
product choice, price range and channel selection vary by gender, age and
consumption occasions with lower brand loyalty, and stronger impulsiveness.
41K-FORETHOUGHTSK-FORETHOUGHTS

Modernizing & smart living lead to
upgrading needs for products/services
to be quicker, more effective and more
customized to meet their lifestyle
% Households agree
“I would like to have more products/services which
can make cleaning tasks simple and quick”
2pts 1pts
Rural
72%
Urban
(4 cities)
76%
Washing Machine
% households with ownership (2017 vs 2012)
Cleaning Robot
Google search trend
87% 42%
13pts 30pts
URBAN (4 cities) RURAL
2016 2018
614
million
results
Source: Kantar Worldpanel | Family Form | Urban 4 Key Cities & Rural Vietnam |
12 months ending September 2018
Opportunity for
1 Home cleaning services
2 Multi-purpose cleaners
3 Quick effect products
My Home1

43K-FORETHOUGHTS
My Kitchen 2
69
Modernizing living, less cooking and more
reliance on convenient products
% Working Housewives
Opportunity for
I rely heavily on convenience
foods to make cooking
simple and quick
2013 2017
Rural
45%
Urban
(4 cities)
49%
64
% Households agree
Source: Kantar Worldpanel | Households Panel | Urban 4 Key Cities and Rural Vietnam |
Packaged foods including Gifting | 12 months ending September 2018 vs. YA
Instant packaged foods
Ready-to-cook, ready-to-
serve foods
Frozen/chilled/ready-to-eat
& ready-to-drink F&B
Home delivery

44 Insight Handbook 2019Source: Kantar Worldpanel | Lifestyle 2017 & Heath Survey 2018 | Urban 4 cities & Rural Vietnam
Prevention is better than cure
With increasing health concerns and issues, people need to have
a better prevention for health conditions.
% Households agree
% Households with members having
Back pain
Joint/muscle pain
High blood pressure
High cholesterol
Osteoporosis
Diabetes
89%
91%
79%
82%
59%
59%
I worry about my health more
than before
I exercise regularly for better
health
I often take vitamin or
supplements
72%
42%
33%
21%
16%
64%
My Health3

45K-FORETHOUGHTS
Higher demand for sugar reduction
Source: Kantar Worldpanel | Household panel | Lifestyle Survey 2017 | Urban 4 cities & Rural
Vietnam | Total RNGS
% Households agree
Liquid Milk – % Volume
H1’17 H2’17 H1’18
Less sugarNo sugar
7.0
8.1
15.3
16.9
17.1
9.3
Housewife 40+ YOTotal urban (4 cities)
“Nowadays, I am more
concerned about my and
my family’s weight”
“I prefer to buy low/free
sugar drinks”
“I read the product
label to avoid buying
unhealthy foods”
75 867076 8774
*RNGS: Rice, Nut, Grain, Seed
Natural ingredient need: plant based
products are on the rise
Volume growth
YTD P9’18 vs YA
Penetration
14.4%
44.5%
RNGS*
Soy Drink
61%
4%

As self-appearance becomes more
important, consumers spend much more
on beauty products and also expert
services (spa, skin clinics…) to make them
look good
Source: Kantar Worldpanel | Lifestyle Survey 2017 | Household panel | Urban Viet-
nam 4 key cities | 12 months ending September 2018
% Households agree
Average spend per buyer
(000 vnd)
Facial moisturizer Facial cleanser Sun protection
2013 20132017 2017
Nowadays you have to take care
of your skin more
I often go for skin care services
2015
2016
2017
2018
355
397
476
523
169 181
198 207 187
249
318
338
My Beauty4
73 2175 25

47K-FORETHOUGHTS Source: Kantar Worldpanel | Lifestyle Survey 2017 | Household panel | Urban 4 key
cities & Rural Vietnam | 12 months ending March 2018
Advanced Skin Care & Make Up items are
growing the fastest on consumers’ shopping
list as people adopt more new formats which
promise faster/more effective results
Make up remover +
oil cleanser
Become more relevant in
the Vietnamese beauty
care regimen
MAT P3’18 vs 2YA
Make up remover
Oil Cleanser
82,500
20,000
ADDITIONAL BUYERS
Treatment
Along with the rise of
sophistication trend, new
formats of Moisturizer are
adopted
ADDITIONAL BUYERS VS 2YA
Serum20,000
Lotion12,500
Gel10,000
Mask
Mask category is gaining
fast, esp sheet mask due to
convenience.
90,000
ADDITIONAL BUYERS VS YA
Make up
MAT P3’18 vs 2YA
Lipstick122,000
Concealer11,000
ADDITIONAL BUYERS VS 2YA

What’s more important to me?
With deeper pocket, what do
consumers spend more on?
Expenditure 2017 vs. 2012
My budget
(% monthly spending)
Source: Kantar Worldpanel | Expenditure & Lifestyle Survey 2017 | Urban Vietnam 4 key cities
Vietnamese invest much more on the future (education,
investment, savings); yet don’t neglect the presence: travelling &
eating/drinking out more often
Fresh food & FMCG
Housing
Household Utilities
Transportation
Communications
Healthcare
Education
Eating/drinking out
Entertainment + travel/holiday
Savings + investment
My family eats out regularly
% Households agree
2015 2017
12
17
Education 2.1 PTS
Savings &
Investment 1.8 PTS
Travel/
Holiday 0.6 PTS
Drinking/
Eating Out 0.4 PTS
My Budget5
26.8%
4.4%
6.6%
5.2%
3.8%
3.9%
12.9%
9.9%
7.3%
20.1%

49K-FORETHOUGHTS
Consumers spend a lot more for convenient
foods & drinks out-of-home (OOH)
Source: Kantar Worldpanel Take-Home & Out-of-home purchase panels
*HCMC: 12 weeks ending November 2018
Global HCMC
Out-of-home versus take-home spend 52-weeks ending June
2017
In home E-commerce in-homeOut-of-home
41%56%
3%
China Indonesia Thailand
66%
33%
1%
48%
2%
50%
56%44%
63%
37%

05 Beyond Digital
THE FUSION OF
ONLINE AND OFFLINE
Everything goes online

51K-FORETHOUGHTS
The way we communicate
The way we shop
People no longer wait until they get home to get online via computers.
Instead, they use their mobile devices to stay online everywhere, all the
time.
Internet, especially Social Media and Chat applications are rapidly changing
the way we interact with businesses and the way brands interact with
consumers. This allows businesses to expand visibility to a larger population
and connect with potential audience.
Gone are the days when a customer would simply walk into a store and
purchase the items they were looking for.
With just a few clicks, they now can check the price of the item in stores
around the world and read reviews from other people that have purchased
the item before they make their decision.
They even use multi channels before making a purchase.
What’s changing?

Urban (4 cities)
Asian consumers are now more and more
connected. Mobile technology, including
smartphones and mobile data plans
contribute to a greater reach of the
Internet
Source: Internet World Stats and United Nations
Kantar Worldpanel I Household Panel I Urban 4 Key cities & Rural Vietnam I Lifestyle Survey
Internet Penetration by Countries (%)
(2017)
% Household with Smartphone in VN
10pts
Rural
90 88 87
95 93
84
79
67
56
53
50
United
Kingdom
South
Korea
United
States
Malaysia ChinaGermany Thailand PhilippinesFrance Vietnam Indonesia
8 8 9
58
28
36
13 13 11
19
6
23pts
95% 69%
Internet Penetration
(2017)
Penetration change
(2017 vs 2012)

53K-FORETHOUGHTS Source: Kantar Worldpanel | Lifestyle Survey 2017 vs 2015
36%
More and more people move deeply into
connected life
I am spending more and more time on
internet during my free time
% Agree
I surf Internet to get updates about the
world rather than traditional media
2015 2017 2015 2017
48%
31%
46%
34%
20%
29%
56%

Online is speeding up, reaching up to 8 out
of 10 shoppers in Urban 2 cities and even
having a higher usage time than TV. The
growth rate in Rural is also very impressive
Reach (%) Frequency (hours/day)
(*) Internet usage time of Housewives < 30YO
2014
2015
2018
2018
Television Internet
Television Internet
Television Internet
Television Internet
3.4 1.52.9 3.0
2.8 1.32.4 2.1
The millennials spend up to
30% of their waking lives
online with 4.8hrs online/
day*
DO YOU KNOW
100%
99%
62%
15%
98%
95%
81%
45%
URBAN
(2 cities)
RURAL
Source: Kantar Worldpanel | Media 2018 | Urban 2 cities & Rural | Among key decision makers
for FMCG

55K-FORETHOUGHTS
Reach (% households/day) Frequency (mins/day)
Social network and instant messaging
apps heavily dominate online activity
A lot of purchases take place
here, and thus make them
important e-commerce
touch-points
Source: Kantar Worldpanel I Media 2018 I Urban 4 cities & Rural | Among key decision makers
for FMCG
79% 179
70% 36
61% 32
45% 126
38% 34
25% 28
Internet
Social
Network
Chat
Online

56 Insight Handbook 2019Source: Kantar Worldpane | Europanel
[i] Modern trade includes: hypermarket and supermarket, convenience stores and discounters.
[ii] Other include: door to door, drugstore, and pharmacy.
As a result, e-commerce is growing,
especially in Asia
Global
Latin
America
5.8%
61.8%
76.0%
24.0%
7.3%
40.9%
51.8%
31.8%
44.9%
55.0%
9.9%
1.9%
5.6%
8.8%
88.2% 85.6%
0.1%
Africa &
Middle East
USA
Asia
Western
Europe
Globally e-commerce as a channel now accounts for 5.8% of
FMCG sales & this number rises to 7.3% for Asia
FMCG value share by channel (2017)
Modern Trade (i) Traditional and others (ii) E-commerce

57K-FORETHOUGHTS Source: Kantar Worldpanel | Households Panel | Urban 4 key cities & Rural Vietnam | FMCG
excluding Gift | 12 months ending September 2018 versus year ago
Keeping up with the global trend, online
shopping in Vietnam continues to rise and
recruit more and more shoppers
E-commerce
% Penetration
Frequency/year
Spend per Trip
(VND)
URBAN
(4 cities)
4.6%
2.4
259K
19.4%
3.7
346K
RURAL
+7.7 pts (2018 vs YA)
Last year: 2.6
Last year: 327K
+3 pts (2018 vs YA)

06 Enhanced
shopping
experience
THE BLEND OF
DIFFERENT SHOPPING
CHANNELS
58
Shifting dynamics in
retail landscape and
shopper trends that
businesses and brands
must understand

59K-FORETHOUGHTS
What’s changing?
Multi and Omni-Channel
Modern Proximity
Shoppers now go to more channels to serve different shopping missions, with
online playing a growing important role.
Yet, there is strong evidence that online formats–in isolation–are no longer the
best option for winning share. It´s about how online and offline work together
to create a better shopper experience.
It’s now the critical time for current retail giants and manufacturers to
develop an effective omni-channels strategy.
Proximity secures itself among top reasons to choose a store because
Vietnamese consumers have high preference towards convenience and ease
of shopping.
Therefore, it is not surprising to see a dramatic development of the modern
and convenient formats in Vietnam (convenience stores and mini markets),
with the expansion in number of stores as well as strong shopper acceptance.
From Mass to Specialized
We will see more and more new formats of modern retailers in everyday life,
across all industries. Some examples of growing specialized formats are Mom &
Baby stores, Health & Beauty stores, Lifestyle stores…
It is expected that Modern trade will develop towards more specialty and smaller
scale format, and increase the presence with the expansion in number of stores.
Tech Embedded Life
Technology empowers the creation of new occasion enhancement of experience,
digital/mobile order method, auto replenishment and cashless society.
Technology enables us to witness future retail experience where there is more
seamless shopping experience and online and offline boundaries are blurred.
With Technology development, new retail is crossroads of community, leisure and
shopping.

Shoppers go to more channels to serve
different shopping missions, driven by
millennials housewives
Source: Kantar Worldpanel | Households Panel | Vietnam Urban 4 Key Cities | Total FMCG
excluding Gift | 12 months ending September
<3 channels 3-4 channels 5-6 channels
7-8 channels 9-10 channels 11-12 channels
13-14 channels 15+ channels
% Visited
Channels in
2018
< 3 channels
3-4 channels
5-6 channels
7-8 channels
9-10 channels
11-12 channels
13-14 channels
15+ channels
6%
21%
24%
24%
15%
6%
3%
1%
Average Number of Visited Channels (By Housewife Age)
20182016
<30
30-39
40-49
50+
TOTAL
7.1
6.6
6.4
6.4
6.3
6.4
6.1
6.1
6.0
5.8
Multi & Omni Channel1

61K-FORETHOUGHTS
In Vietnam, retailers are proactively
stretching their retail portfolio to meet the
needs of Omni-shoppers
Source: Kantar Worldpanel | Households panel | Urban 4 key cities | FMCG | 12
months ending September 2018
*Number of store: Updated to November 2018
Click &
Delivery
website
Supermarket Minimart
Hybrid franchise
format between
medium-sized
street shops and
convenience stores
PENETRATION: 1%
PENETRATION: 42% PENETRATION: 13%
Convenience
store
16 STORES
Hypermarket
PENETRATION: 5%
3 STORES 102 STORES 238 STORES
71 STORES
Hypermarket
13 STORES
Click &
Delivery
mobile app
Click &
Delivery
website
PENETRATION: 15%
Supermarket
PENETRATION: 18%
75 STORES
Click &
Delivery
Convenience
Stores
PENETRATION: 18%
812 STORES
PENETRATION: 1%

% Agree in 2017 Minimarts &
Convenience stores
% Penetration of Minimarts & CVS
“I choose a store because it’s
NEAR my home”
39% Value growth 2018
vs YA
Urban
(4 cities)
Rural
74%
78%
Source: Kantar Worldpanel | Households panel | Urban 4 key cities | FMCG | 12 months ending
September & Lifestyle Report 2017
36 42 53
Proximity & convenience are among top
reasons to choose store, explaining the rise
of mini stores
Modern Proximity2
2016 2017 2018

63K-FORETHOUGHTS
Ministores
Performance in
South East Asia
*Size of bubble is size of penetration %
Source : Kantar Worldpanel | GCD | 12 months ending September 2018 vs year ago
(Except PH: 12 months ending December 2017 vs year ago)
0 2 4 6 8 10-10
14
12
10
8
6
4
2
0
-2
-4
-6
-8
-8 -6 -4 -2
Spend per Shopper Growth %
+/-PenetrationChange
VN
Penetration: 53%
Penetration: 87%
GAIN SHOPPERS & SPEND PER SHOPPER
GAIN ONLY SPEND PER SHOPPER
Penetration: 77%
Penetration: 18%
TH
ID
PH
GAIN ONLY SHOPPERS

64 Insight Handbook 2019Source: Kantar Worldpanel | Households Panel | Vietnam Urban 4 Key Cities | Total FMCG
excluding Gift | 12 months ending September 2018 vs year ago
Online
Mom & Baby Store
Health &
Beauty Store
Shops sell mainly
baby and pregnant
mother products and
over 80% of space
dedicated for baby
and pregnant mother
products display
Consumers make
orders through Internet
merchandising sites,
including E-retailers like
Lazada, Shopee and
Social Commerce
79% 5%
GROWTH PENETRATION
56% 8%
GROWTH PENETRATION
149% 19%
GROWTH PENETRATION
70 STORES
140 STORES
64 STORES
384 STORES
141 STORES
Specialized stores are having better
growth than mass stores
From Mass to Specialized3

65K-FORETHOUGHTS
Direct Sales
Lifestyle Stores
Delegation
Service
Merchandise is delivered to house (door to
door, Multi Level Selling)
15% 25%
GROWTH PENETRATION
34 STORES 41 STORES 6 STORES
HAIR SALON
LAUNDRY SERVICE

Unmanned store
with AI
Personalized
& all-in-one
e-commerce
platform
Retail as
entertainment
= Retailtainment
In China and Indonesia, Tencent introduced
unmanned stores using facial recognition,
artificial intelligence and RFID tech, with an aim
to provide future shopping experience.
Alibaba also launched the staff-less and
cashless stores such as Tao Café.
COUPANG, the largest online retailer in South
Korea won over fans with personalized service
for e-commerce.
GoJek is Indonesia super App with food delivery,
fintech, logistics, payments, e-com and on
demand service all baked into one Super App.
Alibaba’s Tmall “See Now, Buy Now” fashion
show provided a seamless shopping and
entertainment experience. The event was live
and broadcasted across 7 media platforms incl.
TV, online video site, socmed and shopping apps.
Viewers were able to buy what they see, when
they see it, on all those platforms.
Tech Embedded Life4

K-FORETHOUGHTS 67
Mom&pop store
going digital
No cash society
via digital
wallet
Auto-
replenishment
Alibaba installed its cloud system in 600K++
independent retailers in China.
Go-Pay has now ventured towards cashless
payment system in 3000++ offline merchants
such as “food street hawker.”
Asia Consumers’ are on the shifting point from
cash to e-money fueled by integrated mobile
online payment driven by online players who
develop their own financial ecosystem.
In Vietnam, MoMo, ZaloPay, Airpay are some
among many e-wallet companies that offer
consumers with flexible financial platforms.
Voice activated products encourage shoppers to
give up non-experience products in favour of auto-
replenishment for necessities and routine shopping.
It’s expected to see the emergence of new
hybrid models in Vietnam that offer consumer
with maximum ease and convenience, such as
subscription model, click and collect, click and
delivery, virtual stores, etc.
K-FORETHOUGHTS

K-TEAM03
Meet, Greet & Get Inspired

69K-TEAM
Worldpanel Geographic Coverage
Our Commitment
Local, Regional, Global
Mexico
Venezuela
Guatemala
Honduras
El Salvador
Nicaragua
Costa Rica
Panama
Colombia
Ecuador
Peru
Bolivia
Chile
Brazil
Argentina
UK
Ireland
Belgium
France
The Netherlands
Germany
Austria
Spain
Portugal
Italy
India
Vietnam
Thailand
Malaysia
Indonesia
Philippines
South KoreaGhana
Nigeria
Kenya
South Africa
Household samples:
Largest panel sizes and largest
number of panels worldwide
GDP coverage
Asia
GDP coverage
Europe
GDP coverage
Latin America
Commitment to
consumer panels
Croatia
Bulgaria
Greece
Bosnia & Herzegovina
Turkey
Saudi Arabia
Egypt
Poland,
Czech Republic
Russia
Slovakia
Hungary
Romania
Ukraine
Kazakhstan
Serbia
Denmark
Sweden
Norway
China
Japan
Taiwan
Australia
USA
270,000
92% 96% 100%73%

Our Methodology
Panel Methodology Continuous Tracking
Urban
Household Panel
Weekly data collection
via diary
• Consumer purchase behavior of 5
sectors (~130 FMCG categories):
- Dairy
- Beverages
- Packaged Food
- Home Care
- Personal Care
• Brand performance
• Retailer performance
• Shopper insights
• Demographics and lifestyle
• Household durables ownership
Rural
Household Panel
Bi-weekly data
collection via diary
Baby Panel
Bi-weekly data
collection via diary
• Purchase behavior of ~ 10 baby
categories
Out of Home Individual
Purchase Panel
Smartphone data
collection
• Major convenient F&B purchased
for consumption away from home,
including 6 sectors (~ 24 F&B
categories):
- Milks & Nutritional Drinks
- Tea & Coffee
- Other Non-Alcoholic Drinks
- Sweet and Savoury Snacks
- Light Meal
- Beer
• Shopper KPIs
• Shopping Channels
• Shopper Profiling
• Occasion Moments
• Attitudes and Missions

71K-TEAM
Bottled Water
Energy Drinks
Tonic Food Drinks
Alcohol Beverages
Soft Drinks
Soya Milk
Juices
Tea
Coffee
Non-dairy Milk
Others
Sugar
Sauces
Ice-cream
Instant Cereal
Cooking Oil
Taste Enhancers
Noodles & Soup
Snack & Nuts
Confectionery
Canned Food
Packaged Bread
Pasta
Others
Milk Powder
Liquid Milk
Yoghurt
Butter
Margarine
Cheese
Condensed Milk
Fermented Yoghurt
Specialty Milk
Others
Beverages Packaged
Foods
Dairy
Hair Care
Oral Care
Facial Care
Baby Care
Make-ups
Sun Protection
Personal Wash
Shaving Products
Hand & Body Care
Sanitary Protection
Deodorant & Fragrances
Others
Toilet & Bathroom
Cleaner
Multi-purpose Cleaner
Dish Washing Liquid
Paper Products
Insect Products
Air Freshener
Detergent
Fabric Softener
Bleach
Floor Cleaner
Glass Cleaner
Personal
Care
Home Care

Key Contacts
Fabrice Carrasco
Managing Director of Kantar Worldpanel
Vietnam & Philippines
fabrice.carrasco@kantarworldpanel.com
Peter Christou
Expert Solutions Director
peter.christou@kantarworldpanel.com
Nguyen Thi Nhu Ngoc
Marketing Manager
nhungoc.nguyenthi@kantarworldpanel.com
David Anjoubault
General Manager Vietnam
david.anjoubault@kantarworldpanel.com
Nguyen Phuong Nga
New Business Development Director
phuongnga.nguyen@kantarworldpanel.com

73
Antoine Louat de Bort
Account Director
antoine.louat@kantarworldpanel.com
Nguyen Huy Hoang
Commercial Director
huyhoang.nguyen@kantarworldpanel.com
Pham Quynh Trang
Insight Director
trang.phamquynh@kantarworldpanel.com
Le Thi Bach Duong
Account Director
bachduong.lethi@kantarworldpanel.com
K-TEAM

Contributors
Fabrice Carrasco
Managing Director of Kantar Worldpanel
Vietnam & Philippines
Nguyen Huy
Hoang
Commercial Director
Antoine Louat
de Bort
Account Director
Nguyen Phuong
Nga
New Business
Development Director
Le Thi Bach
Duong
Account Director
Peter
Christou
Expert Solutions
Director
Pham Quynh
Trang
Insight Director

75K-TEAM
Vu Thi Thu
Dung
Senior Account
Manager
Ho Diem
Phuong
Expert Solutions
Manager
Le Thi Ha
Nhi
Account Executive
Nguyen Ngoc
Thuy
Marketing Trainee
Tay Cam
Khanh Linh
Senior Account
Executive
Tran Le
Dung
Account Trainee
David Anjoubault
General Manager of Kantar Worldpanel
Vietnam
Nguyen Thi
Nhu Ngoc
Marketing Manager
Vo Thi Kim
Nhu
Associate Account
Manager

Kantar Insight Handbook 2019

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