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How does the increase of modern channel change purchase behaviors of mom?

Objective Vietnam has seen an increase in the number of modern stores such as supermarkets, shopping malls and especially convenience stores. How does the change affect the shopping behaviors of Vietnamese moms, especially on their traditional shopping experience at GT channels? We conducted a large scale survey on more than 1,000 moms in the age of 20 - 39 in Hanoi and Ho Chi Minh to understand the differences in their shopping behaviors.

Retail types

Supermarket Convenience store Local store Local market

MT (Modern Trade) GT (General Trade)

Ref: Supermarket in Vietnam (2017 Feb)

Name of the company Established

HCM stores

Hanoi stores

Other stores

Total stores

LOTTE Mart 1998 5 2 7 14

Co.opmart 1989 32 1 52 85

Aeon Mall 1758 2 1 1 4

AEON Citimart 1994 22 3 4 29

VinMart 2014 13 15 25 53

Big C 1993 6 4 14 24

Metro 1996 3 3 13 19

FiviMart 1997 0 18 0 18

Total 83 47 116 246

83

47

116

HCM Hanoi Other LOTTE Mart Co.opmart Aeon Mall

AEON Citimart VinMart Big C

Metro FiviMart Total

Ref: Convenience store in Vietnam (2017 Feb)

Name of the company Established

HCM stores

Hanoi stores

Other stores

Total stores

Family Mart 1981 117 7 9 133

Vinmart + 2014 400 400 150 950

Mini Stop 1980 71 0 0 71

Circle K 1951 153 54 4 211

Shop & Go 2005 31 15 0 46

B's Mart 2013 150 0 0 150

Total 922 476 163 1561

922

476

163

HCM Hanoi Other Family Mart Vinmart + Mini Stop Circle K

Shop & Go B's Mart Total

Mom’s shopping behaviors

Cooking frequency

55% moms cook on a daily basis. 78% of moms cook dinner themselves everyday.

Q. How often do you cook these following meals yourself?

40% 46%

78%

26% 18%

13%

6% 11%

2%

6% 7%

3%

5% 5%

1% 17% 13%

4%

Breakfast Lunch Dinner

I don't cook

Less often

Once / month

Several times/month

Once / week

Several times/week

Everyday

Persons in charge of daily consumer products

Wife (85%) is the person in charge of shopping for the household

Q. Who takes care of buying the daily consumer products (DCPs) the most?

Wife, 85%

Grandmother, 11%

Husband, 2% Others, 2%

DAILY CONSUMER PRODUCTS (DCPs) Daily consumer products in the survey include the following

product categories

•  Fresh fruits, vegetables, meat… •  Canned / dried foods (i.e spaghetti sauce, ketchup...) •  Beverages (i.e coffee/tea, juice, soda) •  Frozen foods (frozen meat, vegetables, ice-cream…) •  Household products (kitchen ultensil, detergents,

furniture products…) •  Personal care (i.e shampoo, soap, hand soap,

shaving cream…) •  Healthcare (first aid kits, supplementary products…) •  Prepared foods •  Other – baby items, pet items, batteries, greeting

cards •  Others

Availability of modern channels

The ratio of MT stores is lower in Hanoi than in HCM.

Q. Do you have the following stores around your area (within 1km)?

33%

83% 82%

61%

16% 13% 7% 1% 5%

Shopping mall Supermarket Convenience stores

HCM

Yes No I'm not sure

37%

61% 74%

60%

36% 20%

4% 3% 5%

Shopping mall Supermarket Convenience stores

Hanoi

Yes No I'm not sure

What stores do they use for DCPs shopping?

60% 58%

40%

25%

14%

1%

74%

57%

32%

24%

13%

1%

48%

59%

48%

28%

15%

1%

Supermarket Local market Local store Convenience stores Shopping mall Others

All HCM Hanoi

Supermarket & local market competes neck-to-neck as the most frequented stores. The ratio of supermarket in use is higher in HCM (74%).

Q. Which stores do you use to buy your DCPs the most?

What stores do they use for DCPs shopping? (by location)

60% 58%

40%

25%

14%

1% 1%

73%

56%

37% 32%

16%

1% 0%

24%

68%

47%

6% 7% 1% 0%

Supermarket Local market Local store Convenience stores

Shopping mall Others Others

All Those who have MT near their area Those who do not have MTs near their area

*Those who have MT near their area: those whose living areas are within 1km nearby supermarket and convenience stores (N=622) *Those who do no have MTs near their area: those whose living areas are not within 1km nearby supermarke and convenience stores (N=101)

By separating the data between those who have modern trade nearby or not, it is clear that the store distance affect their shopping behaviors

Q. Which stores do you use to buy your DCPs the most?

Modern trade that moms use for DCP purchase 52%

48%

32% 30%

20% 18% 14%

11% 11% 10% 9% 8% 8% 5% 5% 4% 3% 3% 2% 1%

Co.opmart & BigC are top 2 supermarkets in use while Vinmart+, Family Mart & Circle K are popular convenience stores

Q. Please share with us the name of the stores? (in case of MT stores)

Reasons to select modern trade

A variety of

products Location

Good quality of products

Good pricing

Good promotio

ns

Fresh foods

Quick shopping duration

Membership

Support of a

variety of promotion method

I can buy products in large quantity

Good parking

slots

The location

has many other

entertainment

Good delivery service

Good atmosph

ere

Opening hours

Pricing are

negotiable

Good relationships with

the vendors

Others

All 70% 57% 51% 47% 45% 43% 23% 22% 20% 18% 18% 17% 16% 15% 15% 10% 5% 1% HCM 72% 57% 56% 49% 57% 51% 23% 31% 23% 20% 22% 19% 25% 21% 16% 7% 4% 1% Hanoi 69% 57% 47% 45% 35% 37% 23% 15% 18% 17% 15% 16% 7% 11% 13% 13% 6% 1%

“ a variety of product”, “good quality” are more important than “pricing”

Q. Why do you choose the store mentioned above as the main source?

Shopping behaviors difference between MT and GT

Shopping frequency

Every day 4-6 times a week

2-3 times a week

Once a week

Several times / month

Once / month

Less ofthen

than that

I don't shop here Others

Local market 41% 16% 25% 9% 5% 1% 3% 1% 0% Local store 7% 11% 33% 12% 21% 2% 11% 2% 1% Supermarket 4% 4% 18% 26% 24% 14% 9% 1% 1% Convenience store 2% 5% 16% 12% 21% 5% 24% 15% 1%

Local market are for the every day use. Super market are used for 2-3 times / week or less. Convenience store usage is less often

Q. How often do you go to buy DCPs at the stores?

Transportation to stores

82%

27%

4% 2% 1%

52% 44%

3% 0% 0%

92%

8% 6% 5% 1%

72%

25%

0% 0% 2%

By motorbike Walking Bicycle By car By taxi / xe om

Local market Local store Supermarket Convenience store

Motorbike is dominant tool. Walking is quite common for local stores, due to its disatance

Q. How do you go to buy DCPs at the stores?

Purchased product types

Fresh fruits,

vegetables, meat…

Household products (kitchen ultensil,

detergents, furniture products

…)

Personal care (i.e

shampoo, soap, hand soap,

shaving cream…)

Other – baby

items, pet items,

batteries, greeting

cards

Beverages (i.e coffee/tea, juice,

soda)

Prepared foods

Canned / dried

foods (i.e spaghetti

sauce, ketchup...)

Healthcare (first aid

kits, suppleme

ntary products

…)

Frozen foods

(frozen meat,

vegetables, ice-

cream…)

Others

Local market 96% 31% 28% 19% 12% 10% 10% 9% 7% 1% Local store 12% 41% 54% 20% 46% 6% 36% 8% 13% 4% Supermarket 57% 62% 75% 46% 45% 41% 51% 20% 58% 1% Convenience store 40% 21% 34% 16% 50% 24% 30% 9% 31% 2%

Local market has dominant popularity for fresh foods

Q. What types of products do you usually buy from the stores?

Average spending

2%

26%

36%

20%

11%

3% 1% 1% 1%

12%

30% 28%

18%

9%

2% 1% 0% 0% 0% 2%

8%

15%

30%

19%

15%

10%

1%

7%

22%

30%

24%

12%

3% 1% 0% 1%

Less than 50,000

50,001 - 100,000

100,001 - 200,000

200,001 - 300,000

300,001 - 500,000

500,001 - 700,000

700,001 - 1,000,000

More than 1,000,000

Others

Local market Local store Supermarket Convenience stores

Spending at supermarket is high, as the frequency is less (purchase more products at one time)

Q. How much do you spend each time / purchase in average?

Reasons to choose

A variety

of produ

cts

Location

I can buy

products in large

quantity

Good quality

of produ

cts

Fresh foods

Good pricing

Pricing are negotiable

Good relationships

with the

vendors

Good promotions

Support of a variety

of promo

tion metho

d

Good atmosphere

The location has many other entertainme

nt

Opening

hours

Membership

Good parking slots

Good deliver

y servic

e

Quick shoppi

ng durati

on

Others

Local market 51% 23% 8% 5% 51% 34% 53% 18% 3% 1% 1% 1% 11% 0% 4% 1% 32% 3% Local store 38% 69% 8% 14% 6% 34% 11% 21% 8% 2% 4% 1% 15% 1% 3% 1% 26% 3% Supermarket 83% 35% 35% 68% 34% 42% 2% 1% 62% 34% 25% 30% 12% 35% 26% 22% 10% 0% Convenience store 36% 67% 6% 34% 19% 24% 2% 2% 25% 11% 11% 3% 16% 9% 8% 3% 21% 2%

Supermarket is more for the quality and variety. Local market has its edge in their flexibility of price negotiation

Q. Why do you buy DCPs at the stores?

Modern trade impact on GT sales

General trade usage change: Local market

53% of moms state that they shop at local market less than before. Instead, supermarket (69%) is the replacement.

69%

36% 31% 23% 20%

4%

Replaced stores

Less than before, 53%

The same, 42%

More than before,

5%

Local market: before vs after

Q. Compared with before, how does the frequency of buying DCPs at local market change?

Local market visit frequency: before vs after

50% 45%

40% 37% 36% 36% 36% 35%

30%

1%

Personal care (i.e shampoo, soap, hand

soap, shaving cream…)

Frozen foods (frozen meat,

vegetables, ice-cream…)

Household products

(kitchen ultensil, detergents,

furniture products…)

Beverages (i.e coffee/tea, juice, soda)

Canned / dried foods (i.e spaghetti

sauce, ketchup...)

Healthcare (first aid kits,

supplementary products…)

Prepared foods Fresh fruits, vegetables,

meat…

Other – baby items, pet

items, batteries, greeting cards

Others

Non-fresh products such as personal care or frozen foods demands are replaced

Q. Where do you buy the items more often instead?

General trade usage change: Local store

40% of moms state that they shop at local store less than before. Instead, supermarket (80%) is the replacement

Q. Compared with before, how does the frequency of buying DCPs at local market change?

Less than before, 40%

The same, 48%

More than before, 11%

Local market: before vs after 80%

31% 29% 23%

8% 2%

Replaced stores

Local store visit frequency: before vs after 48%

39% 38% 37% 35%

29% 26% 26% 25%

2%

Personal care (i.e shampoo, soap, hand

soap, shaving cream…)

Household products

(kitchen ultensil, detergents,

furniture products…)

Canned / dried foods (i.e spaghetti

sauce, ketchup...)

Fresh fruits, vegetables,

meat…

Frozen foods (frozen meat,

vegetables, ice-cream…)

Beverages (i.e coffee/tea, juice, soda)

Prepared foods Other – baby items, pet

items, batteries, greeting cards

Healthcare (first aid kits,

supplementary products…)

Others

Non-fresh products such as personal care or frozen foods demands are replaced

Q. Where do you buy the items more often instead?

Potentiality of online shopping

DCP Online shopping frequency

The usage of online shopping for DCP are not that high still

43%

13% 12% 11% 11% 10% 8% 7% 6%

1% 1%

Online store names (FA)

2% 2%

7%

3%

28%

7%

32%

17%

2%

Every day

4-6 times a week

2-3 times a week

Once a week

Several times / month

Once / month

Less ofthen

than that

I don't shop here

Others

Purchase frequency

Q. Please share with us the name of the stores?

Reasons to use / not use EC

Top reasons that moms use EC is to save time and enjoy delivery service. However, the barriers of using EC are the concerns on product quality and the habits of shopping at stores.

Q. Why do you buy DCPs online?

2% 6% 8%

17% 19%

24% 31% 34%

43% 48%

55% 61%

Others Good quality of products

Membership No need to carry the items

They have products that Support of a variety of

Good pricing A variety of products

Good promotions Time flexibility

Good delivery service Time saving

Reasons to choose

1%

3%

7%

11%

11%

13%

22%

54%

63%

63%

Others

Security concerns

Lack of products

Concerns on the time

Complicated buying

Concerns on the delivery

Difficulties of receiving the

I want to touch and feel

I am used to buying items

Concerns on product

Reasons not to choose

Spending on purchased products online

Non-fresh DCP items are popular. ASP is not high - 365,000VND

1% 3%

18%

28% 28%

9%

6% 4%

3%

Average spending

Q. How much do you spend each time / purchase in average?

2%

4%

4%

4%

5%

21%

27%

35%

36%

52%

Frozen foods (frozen meat, vegetables, ice-cream…)

Beverages (i.e coffee/tea, juice, soda)

Canned / dried foods (i.e spaghetti sauce, ketchup...)

Prepared foods

Fresh fruits, vegetables, meat…

Healthcare (first aid kits, supplementary products…)

Others

Household products (kitchen ultensil, detergents, furniture products…)

Personal care (i.e shampoo, soap, hand soap, shaving cream…)

baby items, pet items, batteries, greeting cards

Online purchased product

Summary

Summary – Shopping behaviors in MT and GT

Modern trade General trade

Channel usage 60% 58%

Usage frequency Once / week Almost every day

Product to purchase A variety of products Fresh food (local market) and personal care (local

store)Average spending 545,000 VND

(super market)180,000 VND

Why the channel is selected

• Product variety • Product quality

• Fresh product • Pricing (bargaining)

Summary – Types of mom

Supermarket user (40%)

Convenience store user (11%)

Local store user (11%)

Local market user (41%)

•  Shops almost every day •  158K VND per shopping •  Fresh food and love

bargaining •  Alternative shopping area

•  Local stores (50%) for convenience • Supermarket (48%) for product quality and promotion

•  Shops almost every day •  155K VND per shopping •  Convenient location /

good pricing •  Alternative shopping area

•  Local market (64%) for fresh products • Supermarket (46%) for personal care or frozen foods

•  Weekly purchase •  545K VND per shopping •  Product quality + pricing •  Alternative shopping area

•  Local market (48%) for fresh products. Average spending 245K VND

•  Due to location convenience

•  250K VND per shopping •  Alternative shopping area

•  Supermarket (67%) •  Local market (58%) •  Local store (51%)

Summary – MT impact on GT sales

of Mom buys less DCPs at local market 53%

40% of Mom buys less DCPs at local stores

Appendix: Analysis via district

District analysis in Ho Chi Minh

We try to take a closer look at the differences in the shopping behaviors of moms in different locations. We group into 3 districts depending on the city center. §  Group 1: District 1, 2, 3, 4, 5, 10 §  Group 2: District Binh Thanh, Tan

Binh, Go Vap, Tan Phu, Phu Nhuan, 7 §  Group 3: District 6, 8, 9, 11, 12, Binh

Tan, Thu Duc, Binh Chanh

Modern trade numbers in HCM (by district)

As of June 2017

Modern trade numbers in HCM (by district)

Store name Group 1 Group 2 Group 3 Total

LOTTE Mart 2 2 1 5

Co.opmart 6 9 10 27

Aeon Mall 0 1 1 2

AEON Citimart 6 13 2 21

VinMart 6 7 3 16

Big C 3 5 1 9

Metro 1 0 2 3

FamilyMart 67 38 12 117

Vinmart+ 102 179 94 375

Ministop 30 43 7 80

Circle K 93 66 20 179

Shop&Go 34 39 14 87

B’s Mart 42 72 47 161

SatraFoods 22 41 41 104

FoodcoMart 17 9 11 37

Department stores 8 6 3 17

TOTAL 431 521 266 1218

431

521

266

Group 1 Group 2 Group 3

Supermarket Convenience store Total

•  Group 1: District 1, 2, 3, 4, 5, 10 •  Group 2: District Binh Thanh, Tan Binh, Go Vap, Tan Phu, Phu Nhuan, 7 •  Group 3: District 6, 8, 9, 11, 12, Binh Tan, Thu Duc, Binh Chanh

The availability of MT stores is centered more on districts in Group 1 & 2 and is sparsely on district in Group 3.

Shopping frequency at modern trade

Moms in center districts tend to shop at MT stores more often than moms in further areas.

Q. How often do you go to buy DCPs at the stores?

Every day

4-6 times a week

2-3 times a week

Once a week

Several times / month

Once / month

Less ofthen

than that

I don't shop here

Group 1 13% 6% 17% 31% 21% 9% 1% 1% Group 2 2% 3% 18% 31% 29% 12% 4% 0% Group 3 2% 5% 20% 30% 25% 9% 8% 1%

Supermarket

Every day

4-6 times a week

2-3 times a week

Once a week

Several times / month

Once / month

Less ofthen than that

I don't shop here

Group 1 7% 7% 20% 16% 19% 6% 19% 7% Group 2 1% 7% 12% 5% 24% 3% 32% 15% Group 3 2% 4% 15% 10% 21% 6% 28% 14%

Convenience store

•  Group 1: District 1, 2, 3, 4, 5, 10 •  Group 2: District Binh Thanh, Tan Binh, Go Vap, Tan Phu, Phu Nhuan, 7 •  Group 3: District 6, 8, 9, 11, 12, Binh Tan, Thu Duc, Binh Chanh

Audience profile

Demographics (N=1032)

Hanoi, 53%

HCM, 47%

City

2% 3% 3%

2% 2%

3% 4%

6% 5%

4% 2%

9% 6%

7% 9%

4% 8%

5% 7%

3% 8%

District 1 District 2 District 3 District 4 District 5 District 6 District 7 District 8 District 9

District 10 District 11 District 12

District Bình Tân District Bình Thạnh

District Gò Vấp Quận Phú Nhuận

Quận Tân Bình Quận Tân Phú Quận Thủ Đức

Huyện Bình Chánh Others

HCM District

3% 5%

7% 3%

8% 4%

11% 7%

13% 6%

2% 3%

2% 6%

1% 1% 1%

2% 2% 2%

13%

Quận Hoàn Kiếm Quận Hai Bà Trưng

Quận Đống Đa Quận Tây Hồ

Quận Cầu Giấy Quận Thanh Xuân

Quận Hoàng Mai Quận Long Biên Huyện Từ Liêm

Huyện Thanh Trì Huyện Gia Lâm

Huyện Đông Anh Huyện Sóc Sơn Quận Hà Đông Thị xã Sơn Tây

Huyện Ba Vì Huyện Phúc Thọ

Huyện Thạch Thất Huyện Quốc Oai

Huyện Chương Mỹ Others

Hanoi District

20-24, 2%

25-29, 43%

30-34, 3%

35-45, 18%

Age

Demographics (N=1032)

5% 11%

16% 25%

21% 9%

7% 3%

2% 1%

Lower than 5,000,000 VND 5,000,001 VND - 7,500,000 VND

7,500,001 VND - 10,000,000 VND 10,000,001 VND - 15,000,000 VND 15,000,001 VND - 20,000,000 VND 20,000,001 VND - 25,000,000 VND 25,000,001 VND - 30,000,000 VND 30,000,001 VND - 40,000,000 VND 40,000,001 VND - 50,000,000 VND 50,000,001 VND - 70,000,000 VND

Household income Married without

kids, 8%

Married with kids,

92%

Married status

2, 6%

3, 27%

4, 31%

5, 17%

6, 9% 7, 4%

8 and more, 5% Others,

1%

Household name

5%

6%

7%

9%

74%

Unemployed

Part-time Employment

Other

Self-Employed

Full-time Employment

Employment status

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Our Solution

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0% 1%

18%

31%

22%

14%

7%

3% 3%1%

Age

19%

18%

6% 4% 3% 3%

47%

HCM Hanoi Can Tho Da Nang

Hai Phong Dong Nhai Others

56%

44%

Male Female

Gender City

Our Advantage: Direct Panel Management

Our strength is 16-39 years old and urban areas. This is where most biz customers would like to research. 200,000 members as of May, 2017

Married Status Household income Smartphone ownership

Single, 72%

Married, 25%

Others, 3%

26%

24%

14%

15%

9%

5%

3%

4%

< 5M VND

5 - 7.5M VND

7.5 - 10M VND

10 - 15M VND

15 - 20M VND

20M-30M

30-40M

<40M

27%

25%

18%

8%

8%

6%

15%

18%

Apple

Samsung

Nokia

LG

Asus

Sony

Others

Do not own

Our Advantage: Direct Panel Management

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