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Kantar Worldpanel -_FMCG_monitor
1.
1 © Kantar Worldpanel 12
weeks period ending 26 January 2014 (12 w/e P1/14) Urban 4 Key Cities & Rural Vietnam Previous Start An integrated update of Vietnam FMCG market
2.
2 © Kantar Worldpanel INSIDE THIS
ISSUE KEY INDICATORS Improved economic outlook with modest inflation FMCG TRENDS FMCG market flourishes under Tet’s peak season HOT CATEGORIES Confectionery Season with Candies in Urban and Biscuits in Rural. RETAIL LANDSCAPE All key channels spring up during Tet, especially Street Shops in Rural. SPOTLIGHT ON VN FMCG 2013 in numbers: Find out more of the year’s highlights!
3.
3 © Kantar Worldpanel FMCG
Value Growth Improved Macro Outlook By end of 2013, Vietnam’s economy expanded at an annual rate of 5.4%, a slight improvement compared with the previous year. Eased CPI After marking its decade-low record in 2013, CPI continues to ease down in January, partly under relatively weaker demands compared with previous year. FMCG Flourishes FMCG enjoys high growth thanks to the peak season of Tet. FMCG TRENDS HOT CATEGORIES RETAIL LANDSCAPE SPOTLIGHT ON VIETNAMKEY INDICATORS *: 12 weeks ending 26 January 2014 vs. year ago Source: GSO Kantar Worldpanel – Households Panel – Urban 4 Key Cities & Rural Vietnam – Total FMCG excluding Gift GDP +5.4% +5.3% 2013 vs. YA 2012 vs. YA CPI +5.5% +7.1% Jan’14 vs. YA Jan’13 vs. YA URBAN +13% RURAL +22% 12 w/e P1/14 vs. YA
4.
4 © Kantar Worldpanel -10 0 10 20 30 40 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 12w/eP1'14
-10 0 10 20 30 40 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 12w/eP1'14 FMCG consumption witnesses a strong bounce- up thanks to high demand during Tet. This trend is clearly demonstrated in Rural where Tet celebration together with early signs of recovery since late 2013 have boosted FMCG consumption in Rural during the first month of the year. KEY INDICATORS HOT CATEGORIES RETAIL LANDSCAPE SPOTLIGHT ON VIETNAMFMCG TRENDS Urban Rural FMCG – 12 WEEKLY YEAR-ON-YEAR CHANGE (%) Avg. Price paid* Value Volume**% change *: To calculate FMCG price paid change, we calculate how much price contributes to the value change for each category, sum up these contributions and relate to value YA **: To calculate FMCG volume change, we calculate how much volume contributes to the value change for each category, sum up these contributions and relate to value YA (this results in an average category change in volume) Source: Kantar Worldpanel – Households Panel – Urban 4 Key Cities & Rural Vietnam - Total FMCG excluding Gift
5.
5 © Kantar Worldpanel FMCG
Basket Trend returns to its typical picture of Tet season, where Beverages conquer the leading position in both Urban and Rural markets. Packaged Foods spring up with 2-digit growth after long time of stagnancy, partly thanks to high consumer demand during Tet. KEY INDICATORS HOT CATEGORIES RETAIL LANDSCAPE SPOTLIGHT ON VIETNAMFMCG TRENDS VALUE CHANGE (%) Dairy Packaged Foods Beverages Personal care Home care Total FMCG 9 4 17 12 7 8 URBAN 4 CITIES 13 9 24 13 12 9 VOLUME* CHANGE (%) Dairy Packaged Foods Beverages Personal care Home care Total FMCG 19 10 35 14 30 18 RURAL 22 14 43 15 33 19 *: To calculate FMCG volume change, we calculate how much volume contributes to the value change for each category, sum up these contributions and relate to value YA (this results in an average category change in volume) Source: Kantar Worldpanel – Households Panel – Urban 4 Key Cities & Rural Vietnam – Total FMCG excluding Gift 12 w/e P1/14 vs. YA
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6 © Kantar Worldpanel Confectionery
Season Thanks to Tet, Candies in Urban and Biscuits in Rural has excellently earned their place as the hottest categories. KEY INDICATORS FMCG TRENDS RETAIL LANDSCAPE SPOTLIGHT ON VIETNAMHOT CATEGORIES VOL CHANGE % +116%BISCUITS RURAL +15pt Penetration Incremental of 2,549,000 households +43% Average volume per buyer Increase volume purchase by 43% VOL CHANGE % +75% CANDIES URBAN Penetration Incremental of 168,000 households +6.3pt +32%Average volume per buyer Increase volume purchase by 32% Source: Kantar Worldpanel – Households Panel – Urban 4 Key Cities & Rural Vietnam – Total FMCG excluding Gift
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7 © Kantar Worldpanel KEY
INDICATORS FMCG TRENDS HOT CATEGORIES SPOTLIGHT ON VIETNAMRETAIL LANDSCAPE Street Shops Wet Market Modern Trade Specialty Direct Sales Others 6212 19 422 Street shops Wet market Modern trade > Hyper/Supermarket > Ministores Growth ≤ -0.5% -0.5% < Growth < 5% Growth >15%5% ≤ Growth ≤ 15% 6212 19 422 60 11 19 6 23 69 25 25 71 22 2 5 73 21 3 4 Street shops Wet market Modern trade 12 w/e P1’12 12 w/e P1’13 12 w/e P1’14 12 w/e P1’12 12 w/e P1’13 12 w/e P1’14 Source: Kantar Worldpanel – Households Panel – Urban 4 Key Cities & Rural Vietnam – Total FMCG excluding Gift Urban Rural Except Wet Market, all key channels in Urban are springing up with 2-digit growth. In Rural, Street Shops even take a leap from decline to exceptionally high growth. 12 w/e P1’13 vs. YA 12 w/e P1’14 vs. YA % Value Share
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8 © Kantar Worldpanel KEY
INDICATORS FMCG TRENDS HOT CATEGORIES RETAIL LANDSCAPE SPOTLIGHT ON VIETNAM FMCG 2013 in NUMBERS of urban households shops at Minimarkets & Convenience Store at least once a year Ministore +162,000 the number of incremental urban buyers of Liquid Hand Wash ~ +5.7% penetration +1,635,000 the number of incremental rural buyers of Toothbrush ~ +8.7% penetration URBAN RURAL Source: Kantar Worldpanel – Households Panel – Urban 4 Key Cities & Rural Vietnam – Total FMCG excluding Gift TOP ON-SALE 25% of powder detergent consumed was under promotion 29% of powder detergent consumed was under promotion TOP FREQUENTLY BOUGHT An urban household shops for Liquid Milk 23 times in a year A rural household shops for Instant Noodle 24 times in a year TOP RECRUITER of FMCG categories have penetration <50%, demonstrating plenty of space to recruit more buyers 70% 23%
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© Kantar Worldpanel About
Kantar Worldpanel Kantar Worldpanel is the world leader in consumer knowledge and insights based on continuous consumer panels. Its High Definition Inspiration™ approach combines market monitoring, advanced analytics and tailored market research solutions to deliver both the big picture and the fine detail that inspire successful actions by its clients. Kantar Worldpanel’s expertise about what people buy or use – and why – has become the market currency for brand owners, retailers, market analysts and government organisations globally. With over 60 years’ experience, a team of 3,500, and services covering more than 55 countries directly or through partners, Kantar Worldpanel delivers High Definition Inspiration™ in fields as diverse as FMCG, impulse products, fashion, baby, telecommunications and entertainment, among many others. For further information, please visit us at www.kantarworldpanel.com.vn Contact us Kantar Worldpanel Vietnam | 58 Vo Van Tan St., Dist. 3, Ho Chi Minh City, Vietnam tel: +84 8 39306631 | fax: +84 8 39306632 email: vietnam@kantarworldpanel.com | website: www.kantarworldpanel.com.vn KWP_VN Kantar Worldpanel Vietnam
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