TNS Worldpanel Vietnam Future trends

2 © Worldpanel™, TNS 2006 ` The TNS Vietnam INCREDIBLES by 2016 Incredible Ralf – Double the pride he has about TNS Vietnam!!! Incredible Fabrice – Always on the run for Worldpanel! Incredible Ashish – Business opportunities “great chaser”! Incredible Alison – beautiful as always but more and more powerful!

3 © Worldpanel™, TNS 2006 ` 1.How will Vietnam population look like in 10 years?

4 © Worldpanel™, TNS 2006 ` 2006 Population: 84 million 2016 Population: nearly 100 million Population are under 30 years old: 57% Population are under 30 years old: 50% Consumer base (from 15 to 69 years old): 60 million Consumer base (from 15 to 69 years old): 70 million Urban: 27% – Rural: 73% Urban: 33% – Rural: 67% Average household size: 4.8 Average household size: generation families: 50% 3-generation families: 30%

5 © Worldpanel™, TNS 2006 ` 2. Social & economic trends in 10 years

6 © Worldpanel™, TNS 2006 ` Infrastructure to be upgraded More modern apartments Modern shopping places Computers, internet, mobile phones, luxury products… will emerge!

7 © Worldpanel™, TNS 2006 ` Vietnam continues to keep the high GDP growth rate and double the GDP per capita in 10 years’ time

8 © Worldpanel™, TNS 2006 ` Vietnamese people are getting richer… there comes a new SEC – “Vina Valets” 23% 18% 59% <190 USD USD >285 USD monthly Low Income Middle Income High Income >600 USD monthly 29% 21% 50% 10% Vina Valets

9 © Worldpanel™, TNS 2006 ` DINKs Double Income – No Kids Not just an average Vietnamese but more clusters Vina Valets Extremely High Income – Luxury Product Drivers

10 © Worldpanel™, TNS 2006 ` Not just an average Vietnamese but more clusters Generation-V? dynamic kids/teens aged 5-19 Smart traditionals? HCM hipsters Trendy & open-minded Traditional oriented but open-minded

11 © Worldpanel™, TNS 2006 ` 3. Consumerism in 10 years

12 © Worldpanel™, TNS 2006 ` Changes in population, social & economic standings will have strong impact on Vietnamese consumerism Risk of bird flu Risk of obesity Snacking & Western food 1. Convenience 3. Indulgence 2. Health What differs? More relaxing More entertaining More taking care of oneself People are getting busier and busier

Changes in consumerism “convenience”

14 © Worldpanel™, TNS 2006 ` Shopping behaviors: move from daily shopping to bulky buy and stock-up ATMs Fresh food purchase in modern trade Online shopping Home deliveryShop less frequently but bulkier New retailers entering Credit card

Changes in consumerism “health”

16 © Worldpanel™, TNS 2006 ` “I worry about health more, NOW than before... Source: TNS lifestyles % Housewives Agreeing to Statement Vietnam: 70%

17 © Worldpanel™, TNS 2006 ` 74% often take Vitamins supplement 74% exercise regularly for better health Urban Vietnam: 80% like to buy food with active ingredient (Ginseng, calcium, vitamins…)

18 © Worldpanel™, TNS 2006 ` Urban Vietnam: 37% would like to have the choice of lower calories food 36% regularly diet to lose weight

19 © Worldpanel™, TNS 2006 ` Stage 1 ( ): Active ingredients (High calcium, ginseng, vitamin C…) and “healthy categories by nature” (ie Fruit Juice, Liquid Milk,…) Stage 2 (2008 – 2016): Low calories / Fat free / Sugar free products Stage 3 (2016 onward): Specifically designed active healthy products (Omega- 3, Probiotics…) Food & Beverage consumption trend 2006 : 54% of people drink some types of beverages because it is “healthy” 2016 : expected to be 80% Now Coming soon

Changes in consumerism “indulgence”

21 © Worldpanel™, TNS 2006 ` Indulgence What do women look for? Advice Prevention (Me Me Me) Self reward Seduction Trust Holistic

“ Taking their cue from Vietnamese women and the increasing influx of Western marketing campaigns, Vietnamese men are starting to pay attention to their appearance - from SKIN and HAIR to fashion & fitness” Metrosexual revolution

Changes in consumerism “consumer basket”

24 © Worldpanel™, TNS 2006 ` NOW Shopping basket now & in 10 years’ time Sugar Sauces Noodles Cooking Oil Grocery! Milk Yogurt Toothpaste Dairy! Non Food! San. Napkins Low fat dairies More Dairy! Fermented milk Skin care advanced Hair colorant More Personal Care! Leave-on Haircon Deodorants Fruit juices Flavored Water Healthy beverages! Sugar-free/ Diet Instant meals Grocery Sophistication! Branded Goods Shampoo Detergent FUTURE Family pack

25 © Worldpanel™, TNS 2006 ` 2. “Vina Valets” will drive luxury consumption in the future 1.60 million consumers today 2006 and will be 70 million in Modern Trade will dominate shopping behaviors – shopping less frequently but bulkier 3. Consumers’ convenience, health & indulgence will be key product features 5. Healthy lifestyles’ choices will drive consumer behaviors 7. Modern shopping basket will become more sophisticated & contain more line extensions 6. “ME ME ME” driven by both women and men

26 © Worldpanel™, TNS 2006 ` We are as powerful as we see ourselves! To be a small cat or to be a big lion !!!