esomar vietnam industry overview & future trends · vietnam consumer trends 2015 –2016 m2...

ESOMAR Vietnam – Industry Overview & Future Trends

Ralf MatthaesESOMAR Representative [email protected]

ESOMAR – VMRC Consumer Trends Summit - April 6, 2016

ESOMAR Vietnam 2015 Overview & 2016 Preview

ESOMAR 2015 Market sizing report

2015 was the first year in over a decade, witnessing a decline of overall growth of market research spend. The market contracted to US $75 Million fueled by a decline in custom revenues of 14%, while syndicated services continued their healthy growth by 6%.

2015 also marked the first year that syndicated research services, such as TV Advertising Measurement, Retail Audits, etc., exceeded custom research revenues, making Vietnam one of the few global markets where syndicated research services account for more spend than custom research.

A key contributing factors to Customs decline is the fact that 90% of data collection in Vietnam is still conducted face-to-face, which is slow, costly and declining in quality, as face-to-face does not pick up hard to reach and more affluent consumers.

Both clients and the MR industry are beginning to understand the limitation of face-to-face data collection and see the advent of smartphone data collection as a key innovation required to alleviate this issue.

For 2016, the industry should get back on track and see positive growth in both Custom and Syndicated research, but a shift is afoot to move research to both Mobile and On-line data collection platforms.

www.ifmresearch.com 3

Data Collection Methods & Benefits of Mobile

92%

5%

1%

1%

1%

10%

5%

50%

25%

10%

40%

5%

10%

35%

10%

0% 20% 40% 60% 80% 100%

Face 2 face

Telephone

On-line

Mobile

Big DataVN 2020 Estimate

Japan 2015

VN 2015

Vietnam has one for the highest face to face interviewing rates globally, but should shift to mobile over the next 5 years.

ESOMAR Global Report 2015

VN leap frogsto Mobile

80

7068

50

20

50

20

10

0

10

20

30

40

50

60

70

80

90

Speed of delivery Measure Behaviour Tactical decisionmaking

Price

Total mentions Most Important

Data collection methods Benefits of mobile research

100% are keen to use mobile if representative sample can be achieved

Source: Industry expert interviews n = 15 CEO’s

http://www.ifmresearch.com/

https://www.linkedin.com/company/infocus-mekong-research-ifm

https://www.facebook.com/IFMresearch/




mailto:[email protected]



ESOMAR Vietnam survey results 2016

25%

42%

33%

MR Industry biggest Fears

Biggest threats facing MR = mobile research, client sophistication, price pressuresClient detractors of MR = generating insights, a lack of innovation, poor quality

6 6 715

20

46

0

5

10

15

20

25

30

35

40

45

50

Price Timing Ruralcoverage

Quality Lack ofinnovation

Actionableinsights

Drawbacks of Market Research

Source: Industry expert interviews n = 15 CEO’s - Unilever, Mason, Dutchlady, etc…

Mobile

OthersClient

expectationPrice

Base: 12 MR companies









ESOMAR Vietnam

For more information contact: Ralf MatthaesESOMAR Representative [email protected]


THE GOAT IN REVIEW / THE MONKEY PREVIEWVIETNAM CONSUMER TRENDS 2015 – 2016M2 – ESOMAR – VMRC Consumer Trends Summit - April 6, 2016

Ralf MatthaesManaging DirectorInfocus Mekong Research

:www.ifmresearch.com [email protected]










7968

5651

8286

0

10

20

30

40

50

60

70

80

90

100

2011 2012 2013 2014 2015 2016

A massive increase in Consumer and Business confidence over last 18 months indicates that Consumer spend and business expansion should be on the rise.

Consumer Confidence Index (%): TNS 2011-2015 & Infocus CCI 2016 | Urban onlyx

2011 - 2016 Confidence Indices

79

48

56

7859

X Business Confidence Index (%): Euro Cham Vietnam










25%

48%

47%

18%

15%

11%

9%

35%

36%

36%

37%

29%

38%

32%

41%

17%

17%

45%

56%

51%

60%

Average %

Value of the Vietnamese dong

The cost of living

Employment

Vietnam's economy

My personal standard of living

Foreign investment

worse same better

Average

Perception of 2016 in terms of key economic indicesKey concerns for 2016 revolve around the value of the VND and the increase in the cost of living, while FDI, personal standard of living and Vietnam’s economic prosperity are big positives….

source: Infocus CCI Base: n = 512










Will you spend More - The Same - Less in 2016 vs 2015?

45%

34%

38%

38%

40%

44%

44%

47%

48%

50%

55%

56%

47%

55%

55%

56%

49%

52%

38%

47%

44%

44%

41%

38%

Average %

Home appliances

Household utilities

Transportation

Personal quip. (phones/laptops, etc)

communications (tele.email)

Entertainment & dining out

Food & beverages products

Personal care products

House hold care products

Health care products/services

Education

more same less


2016 should see continued growth in consumer spend. Education, Healthcare and Household products should see the positive upswings in spend.

Average










41

54

60

81

84

86

4

11

42

37

58

31

0 10 20 30 40 50 60 70 80 90 100

Smart TV

iPad /Tablet

Desktop

Laptop

Home Wifi Internet

Smart Phone

Urban Digital Ownership 2013

2015

Explosion of Digital & Smartphones

source: Infocus Base: n = 2,800

In a short two years, all that is smart / communications driven, has exploded. Consumers are craving connectivity / info / entertainment via personalized gadgets…










Growth of high end / high cost items

111,000

157,000

215,000

290,000

0

50,000

100,000

150,000

200,000

250,000

300,000

2013 2014 2015 2016*

Automobile sales

Auto sales are indicative of Vietnamese joining the developed world & upscaling their lives

source: V.A.M.A

28 5

40

70

13

32

4859

91

0102030405060708090

100

Vehicles Lifeinsurance

Credit |Debit card

Air-con ATM Card

Urban ownership growth (%)

2013 2015

source: Infocus Base: n = 2,800

Huge growth in creature features and security products, highlighting desire for global integration

*estimate










Percent of consumer who took out loans in 2015 & why?

36

25

20

5

5

5

0 10 20 30 40

Lower income

Total

Higher income

Yes Yes More than 1

An astonishing 30% of those surveyed took out bank loans in 2015 & 41% of lower income earners, mostly for real estate (35%) & business investments (25%).

5%

35%

24%

13%

9%

14%

Purpose of Loan

Automobile

Real Estate

Business

Education

Personal

Others

Take out Loan

Source: Infocus CCI Base: n = 512










The disconnect between media spend and media consumption

5

85

3

4

29

16

57 6

1

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2016

2015

TV Print (all) Digital Smartphone Other

Media spend % of total

Time spent when not a work

Overall Media spend grew by 10% in 2015. TV makes up 85% of all measured advertising spend.However 57% of consumer note they send most time on their smartphone….

Base: 6,015










Daily activity you do most, when not working?

29%

5% 9%

Using Smart PhoneUsing Laptop / PCWatching TVOthers


2%

26%

25%

18%

29%

0% 10% 20% 30%

1 hour or less / day

1-2 hours / day

2-3 hours / day

3-4 hours / day

4 plus hours / day

Most popular daily activity (%)

Major shift in consumers activities to mobile and on-line. Over half of urban consumers note mobile usage as #1 activity, of which half spend 4 plus hours a day on their mobile.

57%

Time spent on your favorite medium(%)










2016 Predictions

“The trouble with our

times is that the future is not what it used to be.”

Paul Valery










Vietnam is out of recession, but…

2015 KEY GROWTH TRENDS 2016 PREDICTIONS

Positives = Confidence, Growth & Spend

1Business & Consumer confidence have increased substantially, driving growth

Increase investment and consumer spend should make 2016 best year ever, in terms of overall growth

2Over 25% growth of Digital & Mobile connectivity

Much more opportunity for digital content, messaging and overall connectivity…

3Gradual increase in FMCG spend in Modern Trade

Continued growth in modern trade with potential uplift for overall FMCG spend

4Growth of Banking, Education, Healthcare spend, etc.

Accelerations of all, so long at CPI stays in check

Negatives = debt culture aligning with China / US Sub-prime?

1VN becoming debt reliant / credit culture, borrowing to catch up with the “Nguyens”

Any major global crisis / currency destabilization, could be devastating for Vietnam due to bad debt

2New laws on investment, enterprise, real

estate, etc., yet to see impact - Danger!Fear of mass speculation and skyrocketing inflation as in 2008…










M2 Survey ResultsConducted live &presented within 20 minutesBase: N = 55










57

33

4 42

The growth of Mobile advertising

The growth of Online advertising

The decline of traditional free toAir TV

The decline of Print (newspapers /magazines) readership

New formats of Advertising not yetin Vietnam

Biggest change in media consumption

33

25 25

8 8

The increase in Onlineshopping

The increase in smartphoneshopping

The increase in conveniencestore usage

The increase in competition(new players)

The increase in Super /Hypermarket usage

Biggest opportunity for growth in Retail

Base: N = 55

Growth of Mobile / on-line adverting as seen as key changes in media consumption

On-line / mobile shopping and convenience store growth dominate retail future trends

@

@










47

25

1410

4

Smartphone research

Online research

Big data

Syndicated Research

Client sophistication

What do you think the biggest evolution will be in Market Research in Vietnam the near future?

@

Base: N = 55

Smartphone research will dominate future research trends










Credentials

Smartphone based Panel Driven Research

M2 – ESOMAR – VMRC Consumer Trends Summit - April 6, 2016










Six key advantages to panel based mobile research

AFFORDABLE30% to 60%

cheaper

FASTResults in days

not weeks

DEMOGRAPHIC DATABASE190 consumer data points

HIGH QUALITYNegates interviewer bias, built in security

filters

NATIONAL REACHUrban / Rural,

any day, anytime

REAL TIME MEASUREMENTMeasures behaviour, not perceptions










Why Mobile Research - Focused - Faster - Efficient

Smart phones are becoming ubiquitous in Vietnam, exceeding 50% penetration (80% urban)

Consumers are more difficult to reach, especially the affluent, who are busy or not at home, limiting traditional data collection.

We provide clients with insights that are much more focussed, faster and more cost efficient, with high quality results.










The growth of smartphone opportunity in Vietnam

6857

4939

32 43 51 61

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014 2015 2016 est.

Smart vs Feature phone share growth (%)

Feature Phone Smartphones

Smartphone is the single largest consumer growth opportunity in Vietnam, with an average growth rate of over 30% annually.

With urban Vietnam already over 80% penetration, the last conquest is rural Vietnam, changing the face of communication forever…

Are you READY!

source:










We don’t believe in ‘device agnostic’We believe that the approach to research must be reviewed and customised to suit mobile in a way that makes sense to consumers: shorter surveys that hold relevance & allow for in-the-moment feedback - We are mobile research

Mobile specific – fits all phone screens and operating systems

Simple – key is to have clear and easy to follow instructions (limit to 10 attributes max)

National Reach – speak to thousands of consumers nation-wide, in days not weeks

Short survey’s – ideal is 7-12 minutes

Bunching – can send longer survey’s in increments of 2 to 3 mini surveys

Insightful – Encouraging top of mind open-ended responses – extremely diagnostic.

Mobile Research Benefits










The Mobile offer










Mobile offer

MYSTERY SHOPPING

Understand in-store performance and service levels using mobile. Ideal for audits and PoSmeasurement.

TACTICAL & IMMEDIATE RESPONSE (TAIR)

Sometimes you need to know things quicker. Gain the answers in less then 72 hours.

we focus on 7 core offers

RAPITEST: ADVERTISING & CAMPAIGN EVALUATION

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

PRODUCT WET SAMPLING Ideal for gaining immediate feedback on wet sampling and door to door qualiy control of sample promotions

impact / activities










A mobile-based survey tool that delivers high-quality compressed video or digital images & surveysRapitest 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










Active & Managed Mobile PanelRobust - Representative High net worth










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

VocationalCollege

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










Location by Sample

48%

34%

18%

31%

39%

30%

29%

41%

30%

AB

CD

EF

Metro 2nd cities Rural

locationsIFM 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 Region1 Can Tho 1,238,300 Mekong2 Da Nang 1,007,700 Central3 Hai Phong 1,946,000 North4 Ha Noi 7,379,300 Red River Delta5 Ho Chi Minh City 8,244,400 South Central

Total 19,815,700Secondary Cities

City name Population Region1 Hạ Long 203,731 North2 Nam Định 191,900 Red River Delta3 Thanh Hóa 197,551 North4 Thái Nguyên 330,000 North5 Việt Trì 277,539 North6 Vinh 282,981 North7 Huế 333,715 Central 8 Nha Trang 392,279 Central9 Quy Nhơn 311,000 Central

10 Buôn Ma Thuột 340,000 Highlands11 Đà Lạt 256,393 Highlands12 Biên Hòa 1,104,495 South Central13 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










income & representation

0.5 0.55

10 10

23

50

1

710

24 24 24

10

14 1316 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 Minwage

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










IFM Panels Connecting you to your target consumers

IT SpecialistsN = 3,090

CEO / Business OwnersN = 2,850

Financial ServicesN = 2,436

Credit / Debit Card Panel N = 17,040

HR SpecialistsN = 1,080

Insurance OwnersN = 26,244

Income 30 Mil VND Plus N = 8,958

Education ProsN = 2,401

Home ownersN = 3,546

Retailers N = 2,646

MothersN = 9,264

Healthcare ProsN = 1,200

FMCG PanelN = 30,020

Automotive N = 5,034

Mobile PhoneN = 32,472

Rural PanelN = 5,521










Ralf Matthaes | Managing DirectorTel: +84-8 2262-7627Mobile: +84-903-949-531Website: www.ifmresearch.comifmpanel website: www.ifmpanel.com

Email: [email protected] Dang Huu Pho Street, Thao Dien, An Phu, HCMC, Vietnam










http://www.ifmpanel.com/


esomar vietnam industry overview & future trends · vietnam consumer trends 2015 –2016 m2...

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