Nielsen Personal Finance Monitor June2011

Vietnam Landscape & Finance Trends
Presented by: The Nielsen Finance IPG June, 2011
Nielsen Finance IPG 2011
Agenda
A Glance at Vietnams Economic Performance The Latest Consumer Trends Finance Focus Points
1. Products & Accounts 2. Effectiveness of Advertising 3. Channels 4. The Rural Market
Q&A
PFM Personal Finance Monitor

Primary source Research Design N=600 per month HCMC / Hanoi Respondent Criteria Male & female 18-50 HIB: ABCD Financial Decision makers Methodology Random sampling F2F interviews
8,000+ interviews conducted since 2010
Information Sources
Internal Sources External Sources
Nielsen Vietnam PFM Nielsen Hong Kong PFM Nielsen Indonesia PFM Nielsen Business Barometer Nielsen Omnibus Nielsen Global Online Survey Nielsen Vietnam Retail Audit Nielsen Global Consumer Confidence Report Nielsen Shopper Trends Nielsen Rural Syndication
Asia Development Bank Outlook 2011 The General Statistic Office Central Bureau of Statistics www.dekitfinance.com
Nielsen Solutions
Nielsen Vietnam PFM Secondary Cities PFM Nielsen Ad-trak Mystery Shopping Customer Segmentation 4

Copyright 2010 The Nielsen Company. Confidential and proprietary.
A Glance at Vietnams Economic Position

Changing economical climate in the last 6 months
Fuel increased by +18% Electricity price increased by +15% Six currency
Devaluations
in the past 2 years Foreign Reserves: enough? Banking Capitalization? Trade Deficit of $9.5B
National Party Elections and Party Congress Jan. 2011 what changes will we see?
Vinashin are some state-owned firms are in trouble?
LPG retailer increases (4 adjustments)

Positive growth yet consumer confidence impacted in short-term

GDP Growth & Its Contribution Inflation
2011E: 6.1
2011E: 13.3%
FMCG Volume Growth
Consumer Confidence
+ +10% +4%
2007 2008
13%
+15%
106 97 109 85 101 119 88 103 98
2009
2010
2008Q1
2008Q3
2009Q1
2009Q2
2009Q3
2009Q4
2010Q1
2010Q2
2010Q3
2010Q4
2011Q1
Sources: Consumer Confidence, Nielsen Global Online Survey 2007-10; GDP Growth ; Inflation Data & Estimate from Asia Development Bank Outlook 2011 & The General Statistic Office, FMCG Growth from Nielsen Vietnam Retail Audit
Continuing devaluation of the VND has concerned consumers
99% of
respondents are aware of the devaluation of Vietnam Dong
94% of them
claimed that this change would have big impact for them
Personal daily expenses

1. 2. 3. Reduce spending (53%) Daily expenses rise (12%) No comfort spending money (11%) 1. 2. 3.
Vietnam economy
Economy growth will decline (34%) Inflation (21%) Price of all items increases (20%)

Luxury spending and savings are the two biggest casualties.

USD / VND EXCHANGE RATE
22,000 21,000 20,000 19,000 18,000 17,000 16,000 15,000 14,000 13,000
Total N=569
Cut spending on unnecessary items Have to cut monthly saving Spend less on entertainment activities I have to look for discounted daily goods to save money Spend less on other beauty care activities
81
67
49
Deposits & Savings could be a victim of this reaction.
44
33

Copyright 2010 The Nielsen Company. Confidential and proprietary. 2011
Consumer Confidence Index
10

Major concerns with job security & increasing daily commodities

VN consumers perception
Job prospects in N12M
58%
(Excellent/ Good)
62%
(Excellent/ Good)
Personal finances in N12M
Major concerns over the next 6 months

% Job security
Health Work/life balance Increasing food prices Increasing utility bills The economy Increasing fuel prices 4 7 9 6 18 14 18 13 12 9 14 10 14
Biggest concern Second biggest concern
13
% The economy
20 13 12 11 10 5 6 8 5 14 12 11 8
14
APAC
Increasing food prices Work/life balance Health Job security Increasing utility bills
Childrens' education/ welfare
11
Sources: Nielsen Global Consumer Confidence Q410 Base: All respondents (n=505, 7009)
Major concerns with job security & increasing daily commodities

Q1 2011
13 1 118 116 110 110 110 10 9 10 9 10 8
10 7
10 6
10 5
10 2
10 2
98
U .A .E
Ar ab ia In do ne si a A us tr al ia Ph i ll ip in Sw es it er zl an Si d ng ap or e
na
ia
nd
H on
Th
Sa
ud
ia
Ca na da Vi et na m
al ay si a
In d
Ch i
on
ai la
Eg
yp t
12
Sources: Nielsen Global Consumer Confidence Q410 Base: All respondents (n=505, 7009)
The Latest Consumer Trends
13

A purchase Vietnamese trend continues but has softened in the search for value.
14
Sources: Nielsen Shopper Trend Research 2010

Daily expenses now account for almost 50% of the customers wallet. Leaving around 20% for Savings and Investments.
% Allocation of Household Income
4.4 16.5 6.8 8.1 3.2 3.6 17.7 6.5 8.0 3.6 6.9 12.6 7.9 8.1 2.0 4.3 14.9 6.2 8.6 3.1 6.9 8.2 3.3 4.6 17.2 4.3 17.1 6.8 7.5 3.3 4.3 16.4 7.8 8.2 3.1
Others Investment Saving Buying luxurious items Shopping
41.9
40.7
40.3 46.1 42.0
43.0
42.1
Travelling Daily expenses
7.0
Total (n=5400)
8.0
HCMC (n=2700)
11.9 3.7
HN (n=2700)
4.7
6.5
5.3
Studying
18-25 yo (n=1166) 26-35 yo (n=1752) 36-45 yo (n=1578) 46-50 yo (n=904)
15
Sources: Nielsen Omnibus Mar 11

Security and childs future are the top priorities. Flexibility and immediate access helps to push people towards home saving.
Why do I save? Benefits of home saving
Monthly Average Saving Amount Mean score Total HCM Hanoi 1,276,675 VND 1,373,180 VND 992,834 VND
Why do I choose to save at banks?

Save for security 31%
1st
2nd
Save for child's education 25%
1st
More flexible access
23%
3rd
Save for future
8%
2nd
Money always available
14%
1st
- Earn interest - Convenient for doing business
16
Sources: Nielsen Vietnam PFM

Nielsen is the key provider of a valuable spectrum of category & brand insights
Products & Accounts

what are the trends?
17

Banking Products Awareness, Usage & Intention

Strong intention is not currently being converted into actual usage, with usage levels seemingly affected by the recent confidence levels.
Aware
Transactional account ATM/ debit card Deposit/ saving account Bank loan services Foreign exchange service Domestic money transfer/payment International money transfer Credit card Transaction account (without card) Custody service Other banking services Base: All Respondents (7200)
14 33 25 42 58 87 88 100 100 100 100
Currently using
32 31 12 2 1 4 0 1 1 0 0
Future Intention
32 38 36 7 11 21 7 13 9 2 6
18

Banking Products Credit Card Usage

Credit cards have yet to take off in Vietnam, but historical usage trends in other markets suggest its only a matter of time.
Awareness
ATM/Debit 100%
Credit 42%
Market Comparison
Indonesia Hong Kong
Indonesia
Hong Kong
Usage
ATM/Debit 32%
Credit 1%
Credit 5%
Credit 60%
Base: all respondent (n=7200)
19
Sources: Nielsen Vietnam PFM, Nielsen Hong Kong PFM, Central Bureau r of Statistics

What does the future hold?

Indonesia Credit cards have only been popular for the last 10 years
Number of cards increasing at 10% per year from 4.52 to 13.4 million in 8 year period Value of transactions increasing at 28% per year
Occasions of Usage
Routine household expenses Routine personal expenses Impulsive (unplanned) shopping Short of cash Emergency purpose Attractive discount for fashion items Attractive discount in restaurants Attractive installment program Irregular household expenses Routine billing payment
Channels of Usage
80
Grocery
72 47 31 24 19 19 14 13 9 37 32 26 20 47 64
96
Clothing & accessories
74 48 29
Restaurant / caf
Electrical appliances
Books
23 18
Health care
20 14
Entertainment
10 9
All CC Main CC
Travel
10 12
20
Source: Indonesia Credit Card Numbers: www.dekitfinance.com, Central Bureau of Statistics; Other: Nielsen Indonesia PFM
Credit Cards - Current barriers

Over half the market do not fully understand what a credit card is and for those who do there are barriers around their lack of knowledge and convenience
Reasons for not using credit cards
Inconvenience / Complicated procedure
Lack of knowledge
19%
18%
Base: who aware of credit card but do not currently use (n=1221) R 7-12
High fee is applied 7% 21


How to attract new users? Non-bank users

Both operational and marketing changes need to be made to address the concerns of the non-banking market.
Triggers to start banking
Marketing Issues
Reasons for not banking
%
Operational Issues
Lengthy procedures 64%
60% 58% 47%

Valued pledged assets required 52%
Simple and quick procedures
No financial/ income evidence required
Interest rates
33%
Financial/ income Information required 51%
Key Barriers (n=4136)
Issued by prestigious bank
High interest rates 46% (loan)
Not qualified for using loan services 21%
Potential triggers (n=4136)

Base on non bank users (R1-12)
22

Payroll Accounts
Payroll accounts make over a third of the market, however only a small fraction of these customers consider this to be their main bank.
Does company open bank account?
Yes, and I have to use bank account opened by my company I choose the bank in which my company opened account for me
Which account do you use?
Is this your primary account?

I use it as my main bank
35%
58
12%
19%
6% 59%
I choose another bank No Yes, and I have choice to use either my own bank account or account opened by my company
42
68%
I use it for receiving salary and some other transactions
I use it for receiving salary only
Base: Bank users (n=1501)
Base: Those who had a choice (n=85)
Base: Users of bank accounts opened by companies (n=603)
23

Vietnamese vs. Foreign Banks

On the whole customers feel more comfortable dealing with local banks. However, 68% said that they would feel comfortable using a foreign bank.
Total (n=1501)
1
Low rate of usage for foreign banks
Current usage rate: 1.HSBC: 2% 2.ANZ: 1%
HCMC (n=584)
1 12 26 2
Hanoi (n=917)
1 1
4 28
2 2 34
Totally not comfortable
29
26
30
Somewhat not comfortable
43 43 42 60 60 61
Neutral
Somewhat comfortable
25
28 19
Totally comfortable
Local banks
Foreign banks
Local banks Foreign banks

Base: Bank users 2H 2010
Local banks
Foreign banks
24

Advertising Effectiveness
25

Marketing activities are somewhat effervescent in the financial services industry
26

Advertising Effectiveness Brand Awareness

Amongst both users and non-users advertising helps to achieve brand recognition and recall.
USERS AD AWARE
VIETINBANK BIDV VIETCOMBANK AGRIBANK ACB DONG A BANK ABB TECHCOMBANK MB VIB SACOMBANK MARITIME BANK VP HSBC ANZ
52 62 76 74 86 84 89 84 82 86 85 80 83 79 90 48 32 13 1 100 15 1 100 11 100 15 1 100 17 1 100 14 100 15 100 20 100 17 100 50 65 62 78 43 29 53 50 58 64 75 47 31 16
USERS NON-AD AWARE

81 74 84 75 79 81 42 15 4 100 25 1 100 14 2 100 22 3 100 20 1 100 18 1 100 100 21 1 1 1 1
NON-USERS AD AWARE
54 37 76 76 70 63 76 38 23 16 1 49 11 28 11 8 74 82 49 88 72 89 92 61 62 45 100 99 23 100 23 100 28 36 99 99 97 99 97 98 99 99 100 100 100 1
NON-USERS NON-AD AWARE

20 4 38 30 18 22 1 24 25 12 2 3 7 18 18 18 18 52 31 31 53 47 46 77 74 49 49 84 86 62 64 66 57 61 77 67 95 91 95 89 84
33 3 100 20 5 100 3 100 4 100 22100 16 6 100 7 100 18 100
18 3 100 9 1 100 100 6 100
24 100 26 100
Base: For each individual bank
27
TOM Other spont
Aided

Advertising Effectiveness Brand Image

Financial services advertising is on the increase. Whilst this driving recognition it is less effective at distinguishing any differentiating attributes.
Nielsen Hypothesis:
If advertising impacts brand image, there should be a noticeable difference in attribute scores between those who have seen the ad and those who have not. VIETCOMBANK Current results indicate that there is no discernable difference in perception of the bank between those who have seen the ad and those who have not. DONG A BANK ACB
Results:
TECHCOMBANK
Wide range of services Efficient Process/ Procedure Broad network of branches Professional style and attitude Good customer services Is financially secure Attractive/user-friendly transaction points Is strongly recommended by every one Attractive promotion programs A market leader in Vietnam
20 40 (n=145) (n=43) 60 80 100 20
AGRIBANK
40
60
80
100 20
40
60
80
(n=462) (n=1128)
(n=420) (n=122)
(n=579) (n=710)
(n=261) (n=121)
100 20 (n=454) (n=1032)
40
60
80
100
20
40 (n=149) (n=35)
60
80
100
(n=152) (n=79)
(n=308) (n=955)
(n=632) (n=1114)
Users Ad-aware Users Non-Ad-aware

Non-users Ad-aware Non-users Non-Ad-aware
28

Channel Usage
29

Banking Channels
Vietnam ATM 87% 77% Hong Kong
Branch Service
84%
51%
HK also has a further 2 key channels: WM Center 22% RM 23%
Online Banking
2%
37%
Call Operator
4%
23%
Mobile Banking
Base: bank users (N=672)
4%
N/A
30
Sources: Nielsen Vietnam PFM, Nielsen Hong Kong PFM

Transactional Channels New Channels

While awareness still remains a barrier to usage, amongst those who are aware of the channel usage has increased rapidly in just the past quarter.
Q4 2010
Total HCMC (A) n=243 20% Hanoi (B) n=429 50% Total n=672
Q1 2011
HCMC (A) n=243 22% Hanoi (B) n=429 66%
Awareness
Mobile banking
n=672
31%
38%
Online banking
24%
16%
39%
30%
22%
43%
Total
HCMC (A) n=243
Hanoi (B) n=429
Total n=352
HCMC (A) n=67
Hanoi (B) n=285
Usage
Mobile banking
n=289
2%
0%
4%
17%
23%
13%
Online banking
2%
1%
2%
8%
11%
6%
Base: Bank users
Base: Bank users & aware of channel
31

Transactional Channels Intention & Concerns

Customers appear to be increasingly open to the use of technology to improve convenience in banking, but trust issues still exist.
Mobile banking Online banking
Intentions of Usage
(T2B: Somewhat will do this Definitely will do this)
Total 94%
Total (n=275)
23 51 66 53 38 17
HCMC 86%
HCMC (A) (n=33)
11 65 44 25 57 B 23
Hanoi 98%
Hanoi (B) (n=242)
28 A 45 74 A 63A 30 14
Total 96%
Total (n=214)
30 41
HCMC 94%
HCMC (A) (n=47)
22 37 78 70
Hanoi 98%
Hanoi (B) (n=167)
36 44 71 67 83 72 39 15
Concerns about usage

Lack of knowledge Concern about the effectiveness Security and trustworthy Errors might happened No evidence is recorded Not as convenient as advertised
34 22
28 30
32
Base: bank users (Round 10-12)

Remote Channels Users Improvements wanted

Improved security measures (or education around these) would greatly ease customer concerns and drive intention into actual usage.
Mobile banking (n=76) SAFETY (81%) I feel secured and safe (51%) Popular/ widely used (14%) Stable system, no technical errors (13%) High level of security (6%) No mistakes occur during transaction (6%) Supported/ recommended by others (5%) STAFF (17%) Well explained services by staff (10%) Online banking (n=61) SAFETY (86%) I feel secured and safe (60%) High level of security (20%) Trust-worthy (9%) Popular/ widely used (6%) STAFF (26%) Well explained services by staff (8%) Staff are agile and efficient (5%) CONVENIENCE (5%)
33
Base: Bank users (Round 7-12)

the next frontier of growth? Rural Vietnam
34

Vietnam - Rural population

Vietnam Population Male Female Urban 2009 88 millions 43.1 millions (49.5%) 43.9 millions (50.5%) 29.6%
Hanoi
Haiphong
Rural 2009
70.4%
Danang
approx. 62,000,000
Nhatrang
Cantho Ho Chi Minh
35

Despite concerns, leaders remain optimistic on strong growth largely via increasing demand & business expansion (secondary cities / rural)
Expected company growth rate in N12M Expected top factors for company growth
91%
Increased consumer demand in your existing categories/ industry Expansion to secondary cities/ rural areas
76
21 31 17 11 20 23
30
>25%
72 45
21% - 25%
Expansion to modern trade channel Expansion to new categories/ industries Increased marketing expenses
31
20
16% - 20% 11% - 15%
43
28 17 12 17 4
2009 2nd half
6% - 10%
14 5
2010 1st half
12 7 2
2010 2nd half
Less than 5%
Improved business conditions in Vietnam overall Improved business conditions in your industry overall
14
12
36
Sources: Nielsen Business Barometer

Rural Market Size of the market

The huge rural population of Vietnam accounts for 39% of todays FMCG sales - but is there any money for the banks?
National FMCG Retail Market Structure
100 14 80 60 40 20 27 0 Population Stores Retail Sales FMCG 7 5 23 37 10 6 22 74 61 14 39 Rural 14 7 53 Cities 40 6 Cities 30 Cities
* Six City, 30 cities and Rural store numbers and ACV from census results, 53 Cities estimated.
Sources: Nielsen Retail Audit
37

Rural Market Strong growth

Whilst income levels in the rural market remain well below those of urban areas the growth levels are actually very similar. The average income could be only 4 years behind the urban average.
Monthly Average Income Per Capita
1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 2002 2004 2006 2008
158% Rural growing faster than Urban

%: GROWTH vs. 2002
177% Rural income levels are only fours years behind Urban levels
Urban
Rural
38
Source: Government Statistics Offices

Rural Market Is there any money?

75% of rural families claim to save every month. Although the actual amounts are around half of that in urban areas 87% is still kept in the home.
How Many Households Save? How Much Per Month?
North West / North East
Where Does it go? Keep at home: 87%
North:
Ha Noi
462,000 VND
Red River Delta
75%
Monthly Average Saving Amount Mean score HCM Hanoi 1,373,180 VND 992,834 VND
Buy gold: 7%
North Central
Central: 377,000 VND

Central Highlands South Central
Savings Account: 6%
Foreign currency: 2%
South East South: Mekong Delta
571,000 VND
Buy insurance: 2%
39
Sources: Nielsen Rural Syndication

Rural Market Which products should be the focus?

Rural demand for cards is understandably low, but demand for savings and loans not so different to urban areas. There are hotspots with some usage.
Urban (Q1 2011) Rural 2010 Rural Hotspots
Dak Lak Yen Bai
Current Usage (n=1800)

ATM/ debit card
Intention (n=1800)
Current Usage (n=4200)
Future Usage (n=4200)
Current Usage Current Usage (n=300) (n=120)
28
22
16
Deposit/ saving account at bank
37
13
14
12
Domestic money transfer/payment
22
Loan services provided by banks
15
Nielsens Rural Syndication report has basic information on 21 provinces, including current usage and future intention of products
40

Rural Market The current status

Although bank presence varies considerably by region there are only two main players who currently have a strong presence across the market.
Brand Awareness Usage Triggers Family Recommend ation Customer Share
84%
62%
42%
53% 15% 25%
Stood out 11%
Best rates 11%
A two horse race?
19%
Seen on TV 5%
19%
41

Summary
Summary
Market Volatility = Customer Uncertainty
Growth expectations, Inflation, currency devaluations and unstable consumer confidence are part of daily in life in Vietnam at present. These messages and events are having a real impact on the customer mindset. Get in touch with the customer mindset, their needs havent gone away.
Communication Effectiveness
At present there appear to be limitations on what financial services advertising is achieving. What are you trying to achieve? If its simply building awareness of your brand then fine but if its more than that what does your advertising to do differentiate your brand and how does that effect the consumer mindset?
Technology is welcome
These innovations are finally being accepted by the market in connection with financial services. Establishing a strong reputation for efficient and secure remote banking channels will drive usage, positively enhance your brand and attract new customers.
Rural Now or Next?

The rural market represents a huge number of potential new customers, but is there enough positive sentiment or financial reward in being there now? Are you positioned to act now and if you dont will you get left behind?
43

Thank you. Questions?

Nielsen Personal Finance Monitor June2011

Загружено:

Сведения о документе

Исходное описание:

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Nielsen Personal Finance Monitor June2011

Загружено:

Авторское право:

Доступные форматы

Vietnam Landscape & Finance Trends

Presented by: The Nielsen Finance IPG June, 2011

Nielsen Finance IPG 2011

Nielsen Finance IPG 2011

PFM Personal Finance Monitor

8,000+ interviews conducted since 2010

Nielsen Finance IPG 2011

Nielsen Finance IPG 2011

A Glance at Vietnams Economic Position

Nielsen Finance IPG 2011

Changing economical climate in the last 6 months

Fuel increased by +18% Electricity price increased by +15% Six currency

Vinashin are some state-owned firms are in trouble?

LPG retailer increases (4 adjustments)

Nielsen Finance IPG 2011

Positive growth yet consumer confidence impacted in short-term

FMCG Volume Growth

Nielsen Finance IPG 2011

Copyright 2010 The Nielsen Company. Confidential and proprietary.

Continuing devaluation of the VND has concerned consumers

Personal daily expenses

Nielsen Finance IPG 2011

Luxury spending and savings are the two biggest casualties.

Deposits & Savings could be a victim of this reaction.

Nielsen Finance IPG 2011

Consumer Confidence Index

Nielsen Finance IPG 2011

Major concerns with job security & increasing daily commodities

Job prospects in N12M

Personal finances in N12M

Major concerns over the next 6 months

Childrens' education/ welfare

Nielsen Finance IPG 2011

Copyright 2010 The Nielsen Company. Confidential and proprietary.

Major concerns with job security & increasing daily commodities

Nielsen Finance IPG 2011

Copyright 2010 The Nielsen Company. Confidential and proprietary.

The Latest Consumer Trends

Nielsen Finance IPG 2011

Nielsen Finance IPG 2011

40.3 46.1 42.0

Travelling Daily expenses

18-25 yo (n=1166) 26-35 yo (n=1752) 36-45 yo (n=1578) 46-50 yo (n=904)

Nielsen Finance IPG 2011

Why do I choose to save at banks?

Save for child's education 25%

More flexible access

Save for future

Money always available

- Earn interest - Convenient for doing business

Nielsen Finance IPG 2011

Products & Accounts

Nielsen Finance IPG 2011

Banking Products Awareness, Usage & Intention

Nielsen Finance IPG 2011

Banking Products Credit Card Usage

Base: all respondent (n=7200)

Nielsen Finance IPG 2011

What does the future hold?

Clothing & accessories

Nielsen Finance IPG 2011

Copyright 2010 The Nielsen Company. Confidential and proprietary.

Credit Cards - Current barriers