Discover what is shifting in Vietnam’s retail environment and what will impact retailing the most in the near future, from Vietnam Supply Chain Summit

1. Vietnam Consumer
Retail Shifts
Wealth & Mobility
Ralf Matthaes
Managing Director
Infocus Mekong Research

2. www.ifmresearch.com 2
FMCG Value & Volume growth % 2013-2015
10.1
4.3
3.2
4.7
1.6 2
0
2
4
6
8
10
12
2012-2013 2013-2014 2014-2015
Urban Value / Volume Growth %
Value % Volume %
10.5
11.8
8
7.4
9.4
6.4
0
2
4
6
8
10
12
14
2012-2013 2013-2014 2014-2015
Rural Value / Volume Growth %
Value % Volume %
Overall FMCG growth is down from last year, partially driven by a reduction of CPI (0.3%
YoY end of November), but also largely due to limited increases in salaries, bonuses and
a sense that consumers have different spending priorities.
source:

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19
11
2
4
15
12
4.2
3.1
0
2
4
6
8
10
12
14
16
18
20
2012 2013 2014 2015
FMCG Modern vs General Trade Value Growth (%)
Modern General
Modern vs General Trade FMCG Value Growth (%)
The past 3 years have seen a huge drop of both Modern & General FMCG value growth in
urban Vietnam, indicating either saturation or consumers tightening spend for other
trade offs. Modern Trade is showing a positive increase for the 1st time in years, though
small.
source:

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The Future of Shopping in HCMC

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Present versus future shopping trends
68
61
5
6
21
7
6
26
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Shop in Future
Shop Now
Supermarket Traditional Convenience Wet Market
Q.1. Which of the following do you presently shop at Most often for groceries and which will you shop at most in the future?
Base: N = 200 HCMC
Convenience stores will see the largest future growth in HCMC followed by
supermarkets, all at the expense of wet markets…

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Modern Trade outlet with best overall offer
53
33
5 4 2 3
0
10
20
30
40
50
60
Co.opmart Big C Metro Lotte Mart Maximark Other
Q.3 which for the following Modern trade stores has the best offer in terms of Price, selection, service, location and overall shopping experience?
Base: N = 200 HCMC
Co.opmart is the distinct leader followed by Big C, while Metro has seen a drop in
preference.

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Convenience store with best overall offer
27
22
18
10 10
5
8
0
5
10
15
20
25
30
Vin Mart Family mart Citimart Circle K Shop & Go B's Mart Other
Q.4 which for the following Convenience stores trade stores has the best offer in terms of Price, selection, service, location and overall shopping experience?
Base: N = 200 HCMC
Vin Mart and Family Mart rule the convenience roost, but the market is quit
fragmented…

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0
20
40
60
80
My favorite place to shop
My most often shopped at
store
Has more reasonable prices
than other places
Has more range of products
than other places
Has more services than other
places
More secure than other places
Offer more promotions than
other places
Supermarkets / Hypermarket Wet markets Traditional
Modern trade = promotion, security and product range
Traditional trade = reasonable price.
Base: N = 200 HCMC

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Grocery shopping Phone order / Online / Smartphone
Ever shopped
77%
23%
Yes No
Future shopping intent
78
70
19
29
3
1
0% 20% 40% 60% 80% 100%
24-35 y
35-45 y
Yes Maybe No
Q.5 have you ever shopped for Groceries on-line, by telephone or smartphone and if the service were available, would you use?
Base: N = 200 HCMC
A surprising 77% have shopped for groceries via Phone, Mobile or On-line, while
future intent is also strong

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Preferred future shopping method
On-line – order / Telephone – place order / Smartphone Order
Phone
6%
On-line
27%
Smartphone
25%
Traditional Trade 1%
Modern
trade
31%
Convenience
6%
Base: N = 200 HCMC
Shopping at Modern trade, On-line and smartphone look to be the preferred
shopping means with smartphone having the largest growth.
25
14
10
9
9
8
7
6
6
5
5
0 10 20 30
Lazada
Hotdeal
KFC
Co.opmart
Cungmua
Nhommua
Adayroi.com
Tiki.vn
Foody.vn
Lotte Mart
Domino's
Most popular locations / SitesMost popular future shopping method
Wet Market
4%
49%

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Vietnam Supply Chain Participants Survey
Learn - Share - Network

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Most important reason for selecting grocery store?
35
30
14
9 7 5
0
5
10
15
20
25
30
35
Close to where I live product range Secure / trusted Better services Reasonable prices Better promotions
Close to where I live and product range were most important for CEO’s and supply
chain professionals
Base: N = 44
During the seminar we asked the audience of supply chain professionals their opinions on key
retail issues by smartphone survey and presented the results 30 minutes later. Here is what VNSC
participants thought…

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Present and future usage of virtual shopping means
Base: N = 44
Supply chain professionals have used on-line the most for shopping in the past,
but will use smartphone for shopping more in the future.
74
30
44
16
40
9
51
0
0
10
20
30
40
50
60
70
80
Online Phone order Smartphone order None of the above
Now Future

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Greatest impact in retailing in near future
42
40
14
5
0
5
10
15
20
25
30
35
40
45
Increase of Online / Mobile
shopping
Heavy competition due to
new players entering the
market
Trans Pacific Partnership
reducing import tariffs / Costs
of imported goods
Government regulations
protecting local players
(keeping international players
out)
Supply chain professionals see the advent of Mobile / on-line shopping and the increase
in completion from new players as being key changes in the future of retailing.
Base: N = 44

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Retail Solutions
Mobile New ways to reach consumers
POD Different priorities on Maslow’s hierarchal needs
Security More focus on health and eating healthy
Transport Location becoming less critical to store choice
Convenience All in one concepts attracting shoppers

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About us

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Our differentiators
We focus on 3 core deliverables; Mobile Panel Market Research, Specialized Custom and
Integrated Strategic Research, and have partnered with like-minded companies, who
have established businesses with a true point of difference and a long and successful
track record.
IFM MOBILE / PANEL
30,000 & growing pre-recruited
panellists with over 190 data points.
State for the art mobile research tech
STRATEGIC CONSULTANCY
Rapid decisions & clear action plans
by identifying the business issue &
customer needs and using multiple
data sources.
POD Market Research20 plus years VN experience

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Six key advantages to panel based mobile research
AFFORDABLE
30% to 60%
cheaper
FAST
Results in days
not weeks
DEMOGRAPHIC DATABASE
190 consumer data points
HIGH QUALITY
Negates interviewer
bias, built in security
filters
NATIONAL REACH
Urban / Rural,
any day, anytime
REAL TIME MEASUREMENT
Measures behaviour, not perceptions

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Mobile offer
MYSTERY SHOPPING
Understand in-store performance and
service levels using mobile. Ideal for
audits and PoS measurement.
TACTICAL & IMMEDIATE
RESPONSE (TAIR)
Sometimes you need to know things
quicker. Gain the answers in less then
72 hours. Ideal for sampling as well.
We offer custom solutions and syndicated insights with our core focus being…
ADVERTISING & CAMPAIGN
EVALUATION - RAPITEST:
Test & validate TVC’s, viral
campaigns and other marketing
materials. Know the results within 48
hours.
CUSTOMER SATISFACTION
Real –time customer satisfaction
scores utilizing mobile research
U&A / TRACKING
Unique alternative to traditional U&A
and tracking work with Mobile data
capture. You can receive your core
brand health measures within days
SPONSORSHIP EVALUATION
SponsorMap™ assesses influence of
sponsorship on consumers’ attitudes
& behavior changes. Ideal for
immediate event measurement

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A mobile-based survey tool delivering high-quality
compressed video / digital images & surveys
Rapitest works on all mobile devices, but focusing on smartphone
Surveys can be shared via SMS
to respondents or embedded in
an app, branded or unbranded
or emailed if required
 Ad Pre / Post-Testing
 All Viral materials
 Talent Evaluation
 Communications Concept
Tests
 Product / Concept Tests
 Sponsorship Evaluation
 Positioning Evaluation
 Brand Activation Evaluation
We are able to control which device our panellists
use and also control the size of screen for testing

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What is ?
IFM Panel is a pre-recruited active, managed and representative smartphone
panel, which includes over 190 core consumer data points
 1.5 million active and cleaned contacts
 100,000 intenders (expressed interest in joining)
 30,000 and growing pre-recruited and demographic panel
 250 (average) new panelists recruited / day
 30% average response rate / survey
 300-800 completed survey’s / day
 110 plus consumer demographics
 80 plus FMCG categories
 Portal based collection via mobile phone (On-line option)
 Can use Client data bases and guarantee Non-disclosure
IFM Panel by the numbers

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20% 36% 23% 15% 6%
18-24 25-29 30-34 35-44 45+
53 47
Gender
overview: n = 30,252
Updated: March 25, 2016
Single Married
46 53
Marital status
Other 1
6% 15% 73% - University / Post Graduate
EducationGrade
1-12
Vocational
College
7%
12% 11% 10% 9% 8% 7%
4% 4% 3%
7%
12%
7%
7% 8%
7%
5%
4%
4% 4%
1%
9%
Education IT Sales Retail Finance Construction Hospitality Healthcare HR Marketing Other
Urban Rural
Age
Profession

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Location by Sample
48%
34%
18%
31%
39%
30%
29%
41%
30%
AB
CD
EF
Metro 2nd cities Rural
locations
IFM Panel segments Vietnam using the official GSO
statistics for urban metro Vietnam, Secondary cities and
rural Vietnam. Rural are all areas which do not fall into
either Metro or Secondary cities.
Metro Urban Cities
# City name Population Region
1 Can Tho 1,238,300 Mekong
2 Da Nang 1,007,700 Central
3 Hai Phong 1,946,000 North
4 Ha Noi 7,379,300 Red River Delta
5 Ho Chi Minh City 8,244,400 South Central
Total 19,815,700
Secondary Cities
City name Population Region
1 Hạ Long 203,731 North
2 Nam Định 191,900 Red River Delta
3 Thanh Hóa 197,551 North
4 Thái Nguyên 330,000 North
5 Việt Trì 277,539 North
6 Vinh 282,981 North
7 Huế 333,715 Central
8 Nha Trang 392,279 Central
9 Quy Nhơn 311,000 Central
10 Buôn Ma Thuột 340,000 Highlands
11 Đà Lạt 256,393 Highlands
12 Biên Hòa 1,104,495 South Central
13 Vũng Tàu 450,000 Mekong
Total 4,671,584
Source: Hanoi GSO
Base: n = 30,252
72%
10%
18%
Metro 21,600
2nd Cities 3,222
Rural 5,430
Location by income

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income & representation
0.5 0.5
5
10 10
23
50
1
7
10
24 24 24
10
14 13
16 17
19
13
8
0
5
10
15
20
25
30
35
40
45
50
A Class B Class C Class D Class E Class F Class Below Min
wage
IFM PANEL SEC vs F2F vs On-line (%)
On-line panels Face 2 Face IFM Mobilepanel
43% IFM Panel SEC: ABC
Consumers are now wealthier and harder to reach. Face-to-face sampling does not pick up representation of
high net worth respondents, while on-line is student driven. IFM Mobile panel naturally reaches higher net
worth individuals with smartphones.
Source: ESOMAR
Total
A1
A
B
C
D
E
F F1
14%
13%
16%
17%
19%
13%
2 6%
A1 40 Mil above D 15-20 Mil
A 30-40 Mil E 10-15 Mil
B 25-30 Mil F 5-10 Mil
C 20-25 Mil F1 5 Mil below

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IFM Panels Connecting you to your target consumers
IT Specialists
N = 3,090
CEO / Business Owners
N = 2,850
Financial Services
N = 2,436
Credit / Debit Card
Panel N = 17,040
HR Specialists
N = 1,080
Insurance Owners
N = 26,244
Income 30 Mil VND Plus
N = 8,958
Education Pros
N = 2,401
Home owners
N = 3,546
Retailers
N = 2,646
Mothers
N = 9,264
Healthcare Pros
N = 1,200
FMCG Panel
N = 30,020
Automotive
N = 5,034
Mobile Phone
N = 32,472
Rural Panel
N = 5,521

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Ralf Matthaes
Managing Director
Tel: +84-8 2262-7627
Mobile: +84-903-949-531
Website: www.ifmresearch.com
ifmpanel website: www.ifmpanel.com
Email: Ralf.matthaes@infocusmekong.com
1 Dang Huu Pho Street, Thao Dien, An Phu,
HCMC, Vietnam
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