Consumer_Lifestyles_Vietnam

  • Số trang: 74 |
  • Loại file: PDF |
  • Lượt xem: 51 |
  • Lượt tải: 0
jacksonalexander

Đã đăng 2 tài liệu

Mô tả:

Consumer Lifestyles - Vietnam Euromonitor International November 2010 Consumer Lifestyles Vietnam List of Contents and Tables Structure of the Report........................................................................................................................................... 1 Consumer Trends.................................................................................................................................................... 1 the Majority Are Spending Less, While A Few Are Spending More .......................................................................... 1 the Young Generation Are the Most Powerful Consumers ........................................................................................ 2 Promotion of Products Made in Vietnam .................................................................................................................. 3 Hi-tech Consumers.................................................................................................................................................... 4 A Poor Country, But A Profitable Market for High-end Cars................................................................................... 5 Consumer Segmentation......................................................................................................................................... 6 Babies and Infants..................................................................................................................................................... 6 Kids ........................................................................................................................................................................... 7 Tweenagers ............................................................................................................................................................... 8 Teens ......................................................................................................................................................................... 9 Twenty-somethings...................................................................................................................................................10 Thirty-somethings ....................................................................................................................................................11 Middle-aged Adults ..................................................................................................................................................12 Older Population .....................................................................................................................................................13 Table 1 Consumer Segmentation: 2005-2009................................................................................13 Table 2 Consumer Segmentation: 2010-2020................................................................................13 People ......................................................................................................................................................................13 Population................................................................................................................................................................14 Marital Status ..........................................................................................................................................................14 Town Or Country .....................................................................................................................................................15 Table 3 Population by Age: 2005-2009 .........................................................................................16 Table 4 Population by Age: 2010-2020 .........................................................................................16 Table 5 Male Population by Age: 2005-2009 ................................................................................17 Table 6 Male Population by Age: 2010-2020 ................................................................................17 Table 7 Female Population by Age: 2005-2009 ............................................................................17 Table 8 Female Population by Age: 2010-2020 ............................................................................17 Table 9 Population by Ethnic Groups: 2005-2009.........................................................................18 Table 10 Population by Ethnic Groups: 2010-2020.........................................................................18 Table 11 Population by Marital Status: 2005-2009 .........................................................................18 Table 12 Population by Marital Status: 2010-2020 .........................................................................18 Table 13 Marriage and Divorce Rates/Average Age at First Marriage: 2005-2009 ........................18 Table 14 Population by Urban/Rural Location and Population Density: 2005-2009.......................19 Table 15 Population by Urban/Rural Location and Population Density: 2010-2020.......................19 Table 16 Population by Major Cities: 2005-2009............................................................................19 Table 17 Population by Major Cities: 2010-2020............................................................................19 House and Home ....................................................................................................................................................20 Households by Annual Disposable Income ..............................................................................................................20 Households by Number of Occupants ......................................................................................................................20 Single-person Households........................................................................................................................................21 Couples Without Children ........................................................................................................................................21 Couples With Children .............................................................................................................................................22 Single-parent Families .............................................................................................................................................22 Table 18 Annual Disposable Income per Household (Current Value): 2005-2009 .........................22 Table 19 Annual Disposable Income per Household (Constant 2009 Value): 20102020 ..................................................................................................................................23  Euromonitor International Page i Consumer Lifestyles Vietnam Table 20 Households by Number of Persons: 2005-2009 ...............................................................23 Table 21 Households by Number of Persons: 2010-2020 ...............................................................23 Table 22 Households by Type: 2005-2009 ......................................................................................23 Table 23 Households by Type: 2010-2015 ......................................................................................24 Home Ownership .....................................................................................................................................................24 Running Costs ..........................................................................................................................................................25 Shopping for Household Goods ...............................................................................................................................26 Possession of Household Durables ..........................................................................................................................27 DIY and Gardening ..................................................................................................................................................27 Pet Ownership..........................................................................................................................................................28 Table 24 Households by Tenure: 2005-2009 ...................................................................................28 Table 25 Households by Tenure: 2010-2020 ...................................................................................29 Table 26 Running Costs: 2005-2009 ...............................................................................................29 Table 27 Possession of Household Durables: 2005-2009 ................................................................29 Table 28 Possession of Household Durables: 2010-2020 ................................................................29 Table 29 Pet Population: 2005-2009 ...............................................................................................30 Income .....................................................................................................................................................................30 Average Income .......................................................................................................................................................30 Average Income by Age............................................................................................................................................30 Table 30 Annual Gross and Disposable Income (Current Value): 2005-2009.................................30 Table 31 Annual Gross and Disposable Income (Constant 2009 Value): 2005-2009 ......................31 Table 32 Annual Gross and Disposable Income (Constant 2009 Value): 2010-2020 ......................31 Table 33 Average Annual Gross Income by Age (Current Value): 2005-2009 ...............................31 Table 34 Average Annual Gross Income by Age (Constant 2009 Value): 2005-2009 ....................31 Consumer Expenditure..........................................................................................................................................32 Living Costs .............................................................................................................................................................32 Table 35 Consumer Expenditure by Broad Category (Current Value): 2005-2009 .........................33 Table 36 Consumer Expenditure by Broad Category (Constant 2009 Value): 20052009 ..................................................................................................................................33 Table 37 Consumer Expenditure by Broad Category (Constant 2009 Value): 20102020 ..................................................................................................................................33 Work .......................................................................................................................................................................34 Working Conditions .................................................................................................................................................34 Commuting ...............................................................................................................................................................34 Working Women .......................................................................................................................................................35 Alternative Work Options.........................................................................................................................................35 Retirement ................................................................................................................................................................35 Unemployment .........................................................................................................................................................36 Table 38 Employed Population: 2005-2009 ....................................................................................36 Table 39 Employed Population: 2010-2020 ....................................................................................36 Table 40 Unemployed Population: 2005-2009 ................................................................................36 Table 41 Unemployed Population: 2010-2020 ................................................................................37 Learning ..................................................................................................................................................................37 School Life ...............................................................................................................................................................37 University Life..........................................................................................................................................................38 Adult Learning .........................................................................................................................................................39 Table 42 School Students: 2005-2009 .............................................................................................39 Table 43 Graduates: 2005-2009 ......................................................................................................39 Table 44 Higher Education Students: 2005-2009 ............................................................................40 Eating (including Soft Drinks) ..............................................................................................................................40  Euromonitor International Page ii Consumer Lifestyles Vietnam Shopping for Food and Drinks .................................................................................................................................40 Dining in ..................................................................................................................................................................41 Dining Out ...............................................................................................................................................................42 Café Culture.............................................................................................................................................................43 Table 45 Consumer Expenditure on Food (Current Value): 2005-2009 ..........................................43 Table 46 Consumer Expenditure on Food (Constant 2009 Value): 2005-2009 ...............................44 Table 47 Consumer Expenditure on Food (Constant 2009 Value): 2010-2020 ...............................44 Table 48 Consumer Foodservice by Type (Current Value): 2004-2008 ..........................................44 Table 49 Consumer Foodservice by Type (Constant 2008 Value): 2004-2008 ...............................45 Drinking ..................................................................................................................................................................45 Drinking Habits .......................................................................................................................................................45 Shopping for Alcoholic Beverages ...........................................................................................................................46 Table 50 Consumer Expenditure on Alcoholic Beverages and Tobacco (Current Value): 2005-2009 ............................................................................................................47 Table 51 Consumer Expenditure on Alcoholic Beverages and Tobacco (Constant 2009 Value): 2005-2009 ............................................................................................................47 Table 52 Consumer Expenditure on Alcoholic Beverages and Tobacco (Constant 2009 Value): 2010-2020 ............................................................................................................47 Smoking ..................................................................................................................................................................47 Smoking Habits ........................................................................................................................................................47 Shopping for Cigarettes and Tobacco ......................................................................................................................48 Table 53 Smoking Prevalence: 2005-2009 ......................................................................................49 Personal Appearance .............................................................................................................................................49 Shopping for Toiletries and Cosmetics ....................................................................................................................49 Attitudes Towards Hair and Beauty .........................................................................................................................49 Table 54 Expenditure on Cosmetics and Toiletries (Current Value): 2005-2009 ............................50 Table 55 Expenditure on Cosmetics and Toiletries (Constant 2009 Value): 2005-2009 .................50 Fashion ....................................................................................................................................................................51 Fashion Trends ........................................................................................................................................................51 Shopping for Clothes, Shoes and Luxury Goods ......................................................................................................52 Table 56 Consumer Expenditure on Clothing and Footwear (Current Value): 20052009 ..................................................................................................................................53 Table 57 Consumer Expenditure on Clothing and Footwear (Constant 2009 Value): 2005-2009.........................................................................................................................53 Table 58 Consumer Expenditure on Clothing and Footwear (Constant 2009 Value): 2010-2020.........................................................................................................................53 Health and Wellness...............................................................................................................................................53 Healthcare ...............................................................................................................................................................53 Health and Well-being .............................................................................................................................................54 Sport and Fitness .....................................................................................................................................................55 Nutrition ...................................................................................................................................................................56 Home Medication and Vitamins ...............................................................................................................................56 Table 59 Health Expenditure: 2005-2009 ........................................................................................57 Table 60 Healthy Life Expectancy at Birth: 2005-2009 ..................................................................57 Table 61 Obese and Overweight Population: 2005-2009 ................................................................57 Table 62 Consumer Expenditure on Health and Wellness (Current Value): 2005-2009 .................57 Table 63 Consumer Expenditure on Health and Wellness (Constant 2009 Value): 2005-2009.........................................................................................................................58 Leisure and Recreation ..........................................................................................................................................58 Staying in .................................................................................................................................................................58  Euromonitor International Page iii Consumer Lifestyles Vietnam Going Out ................................................................................................................................................................58 Public Holidays, Celebrations and Gift-giving Occasions.......................................................................................59 Culture .....................................................................................................................................................................59 Holidays ...................................................................................................................................................................60 Table 64 Household Possession of Cable TV and Satellite TV: 2005-2009 ....................................60 Table 65 Household Possession of Cable TV and Satellite TV: 2010-2020 ....................................61 Table 66 Consumer Expenditure on Package Holidays (Current Value): 2005-2009......................61 Table 67 Consumer Expenditure on Package Holidays (Constant 2009 Value): 20052009 ..................................................................................................................................61 Table 68 Consumer Expenditure on Package Holidays (Constant 2009 Value): 20102020 ..................................................................................................................................61 Consumer Technology ...........................................................................................................................................61 In-home Technology.................................................................................................................................................61 Portable Technology ................................................................................................................................................62 E-commerce and M-commerce ................................................................................................................................63 Table 69 Household Possession of Broadband Internet-Enabled Computers, DVD Players and Video Game Consoles: 2005-2009 ................................................................63 Table 70 Household Possession of Broadband Internet-Enabled Computers, DVD Players and Video Game Consoles: 2010-2020 ................................................................63 Table 71 Household Possession of Mobile Telephones: 2005-2009 ...............................................63 Table 72 Household Possession of Mobile Telephones: 2010-2020 ...............................................64 Transport ................................................................................................................................................................64 Getting Around ........................................................................................................................................................64 Air Travel .................................................................................................................................................................65 Table 73 Household Possession of Passenger Vehicles: 2005-2009 ...............................................65 Table 74 Household Possession of Passenger Vehicles: 2010-2020 ...............................................65 Table 75 Consumer Expenditure on Transport Services (Current Value): 2005-2009 ....................66 Table 76 Consumer Expenditure on Transport Services (Constant 2009 Value): 20052009 ..................................................................................................................................66 Table 77 Consumer Expenditure on Transport Services (Constant 2009 Value): 20102020 ..................................................................................................................................66 Money......................................................................................................................................................................66 Savings .....................................................................................................................................................................66 Loans and Mortgages...............................................................................................................................................67 Credit .......................................................................................................................................................................67 Table 78 Savings and Savings Ratio: 2005-2009 ............................................................................68 Table 79 Consumer Loans, Mortgages and Credit (Current Value): 2005-2009 .............................68 Table 80 Consumer Loans, Mortgages and Credit (Constant 2009 Value): 2005-2009 ..................68 Table 81 Financial Cards in Circulation: 2005-2009 .......................................................................69  Euromonitor International Page iv Consumer Lifestyles Vietnam CONSUMER LIFESTYLES IN VIETNAM STRUCTURE OF THE REPORT This report forms part of the report series that complements the Euromonitor International Countries and Consumer Database. Each country profile is structured under the following primary headings: • Consumer Trends • Consumer Segmentation • People • House and Home • Income • Consumer Expenditure • Work • Learning • Eating (including Soft Drinks) • Drinking • Smoking • Personal Appearance • Fashion • Health and Wellness • Leisure and Recreation • Consumer Technology • Transport • Money The information in this report was gathered from a wide range of sources, starting with national statistics offices. This information was cross-checked for consistency, probability and mathematical accuracy. As well, the report seeks to fill the gaps in the official national statistics by using private-sector surveys and official pan-regional and global sources. Furthermore, Euromonitor International has undertaken an extensive amount of modelling in order to generate unique datasets that complement the available national standards. The wide range of sources used in the compilation of this report means that there are occasional discrepancies in the data, which were not reconcilable in every instance. Even when data are produced on specific parameters by the same national statistical office, such as total population in a particular year, discrepancies can occur depending on whether the data were derived from a survey, a national census or a projection and whether the data were based on mid-year or January figures. To identify recent past trends, data are presented for 2005, 2006, 2007, 2008 and 2009. For projections, data are presented for 2010, 2015 and 2020. CONSUMER TRENDS the Majority Are Spending Less, While A Few Are Spending More  Euromonitor International Page 1 Consumer Lifestyles Vietnam Impacted by economic fluctuations and the worldwide financial crisis, Vietnam is facing tougher economic times alongside other countries. As a result, Vietnamese consumers are generally becoming more careful when making purchases, only spending money on necessary items. Some choose to travel further to find a cheaper price. According to Vietnamese newspaper, The Labourer, almost 80% of the Vietnamese population claim to be spending less, of which 20% are the poorest segment of the population whose spending only accounts for 7.2% of the country’s consumption. Meanwhile, the wealthiest 20% of the population are responsible for 43.3% of total consumption. This small section of people purchase luxury products, while the majority of the population are trying to save more. Estimates suggest that this top 20% of consumers can spend around VND80 million-VND100 million (around US$4,000-$5,000) in a shopping trip to premium stores. Outlook The economic situation is forecast to improve in coming years, but prices of goods and services are expected to increase. Thus most Vietnamese consumers will become poorer, as salaries will not increase at the same rate as inflation. The Vietnamese will continue to follow the saving trend in the short term. Meanwhile, a small proportion of the population continues to buy expensive luxury products and invest in internationally famous brand names. Their high incomes mean that this section of the population does not pay attention to product prices when making a purchase, and the growth rate of spending by this group is expected to increase rapidly in coming years. Impact Vietnamese are estimated to spend more than 40% of their income on food, according to the Vietnam Household Standard Living Survey 2008, conducted by the General Statistics Office (GSO). The Government aims to stabilise food prices to protect the lives of the population, thus the market for food is likely to continue its healthy and substantial growth. Consumers prefer fresh foods rather than processed or packaged ones. It is estimated that almost 90% of housewives go to the market every day. On the one hand this is because, owing to agricultural and fisheries sectors, the price of fresh foods such as vegetables, meat and seafood is cheaper than that of processed and packaged versions. On the other hand, in the current economic climate, visiting the market every day is favourable when prices are fluctuating. It is likely, therefore, that fresh food will continue to be favoured by the majority of the population for the foreseeable future. With high incomes that are growing rapidly as a share of total expenditure, the wealthier section of Vietnamese are being targeted by high-end international brands, in particular clothes, shoes, handbags and cosmetics. This has created a profitable market for expensive imported branded goods, including Calvin Klein, Louis Vuitton, Mango, Etam, Valentino, Esprit, Bossini, Estée Lauder, L’Oréal, Revlon and Shiseido. An increase in the number of outlets selling imported products are predicted to grow in coming years. the Young Generation Are the Most Powerful Consumers Nearly 60% of the Vietnamese population are under 30 years old. Young, dynamic, wealthy and generous are typical characteristics of this group and it is said that they not only create consumer trends and the market for the goods that they demand, but that they also impact on the consumption psychology, behaviour and demands of other consumer age groups in society. This consumer group tends to go shopping quite regularly, on average weekly or fortnightly. Prices are not a major consideration: if this consumer likes a product, they will buy it. With financial independence and dedication to receiving and spreading information rapidly through the mass media and internet, they confidently establish new consumer trends. They are especially interested in fashionable clothing and accessories, cosmetics, technology and processed foods. They are also able to influence consumers through their posts on internet forums, even bringing about boycotts of products through complaints online. They are confident buyers who know what they want, and they are willing to express their preferences with regards to products and services. Thus this group of consumers has been considered the most powerful in recent years.  Euromonitor International Page 2 Consumer Lifestyles Vietnam Product quality is not deemed an essential criterion, as there is a standing assumption that all products should be of high quality. Instead, these consumers pay attention to a product’s design, style, material, function and characteristics. Great attention is also given to quality of service received when buying: the aesthetics of the store, after-sales service and the service given by sales staff. This consumer prefers shopping in modern outlets, such as department stores and supermarkets, rather than traditional markets, because they do not like bargaining, even though this means that they will pay higher prices. The younger generation are considered fastidious consumers. Outlook Vietnam has a young population and the country’s relatively high birth rate means that the younger segment is going to continue to account for a major share in the country’s population. Vietnam is also currently at a “golden stage”, wherein the money-earning section of the population is twice as large as the dependent section, increasing this former section’s influence in the market. Impact It is the younger Vietnamese who establish the fashion, and the easiest way to identify current trends is by watching young people, and then adjusting slightly for other age and income groups. Young people look to fashion styles of other countries, such as South Korea and Japan, for their inspiration and as a result, the clothing market in Vietnam has rapidly improved in recent years. Young people also establish and influence trends in make-up and cosmetics. They like to try new things, so when Vietnamese television shows lots of Korean movies, the younger generation shows a preference for Korean make-up techniques, which impact on demand and sales of cosmetics. In consequence, in addition to the popular brands of Revlon, L’Oréal and Shiseido, the cosmetics market has welcomed Korean products including OHUI, Missa, Etude and the Face shop. The younger generation also favour high-tech products, with an increasing number using laptops, netbooks, mobile phones, webcams, digital cameras and Bluetooth technology. As this group always want the latest models and gadgets, these items are changed regularly, which has resulted in Vietnam becoming a dynamic and profitable market for high-tech goods in recent years. Another consequence of this technology-friendly group is the high demand for wi-fi in coffee shops in the larger cities. With an increasing number of young people using a laptop or netbook for studying, working or entertainment, access to the internet for downloading information, communicating and shopping online while on-the-go is seen as increasingly, and critically important. As a result, coffee shops offering wi-fi access are increasing in popularity. Promotion of Products Made in Vietnam The Vietnamese market has been flooded for years with Chinese-made or Chinese-grown products, including vegetables, fruit, clothes, shoes and electric appliances. This, together with industrialisation and urbanisation, has contributed to a decline in the agricultural sector in recent years. The clothing market has been heavily dominated by China, despite national production and export of textiles and garments. It is estimated that Chinese products account for around 60%-80% of the market and Vietnamese producers cannot compete, owing to higher production costs. Owing to trade liberation rules applied since Vietnam became the 150th member of the World Trade Organization (WTO), the Vietnamese Government cannot set up tariffs to protect domestic production. Therefore, the Government and domestic farmers and manufacturers are trying to influence consumers through a campaign to encourage them to buy products made in Vietnam. This campaign has been running for several years, but it was heavily emphasised in early 2010. At the Government’s encouragement, many retailers have been trying to introduce and deliver Vietnamese products to consumers. Supermarkets and hypermarkets have been increasing their share of Vietnamese products and giving key placements within the store to these products to make it easy for customers to choose them. Simultaneously, in conjunction with producers, they have organised promotional programmes to reduce  Euromonitor International Page 3 Consumer Lifestyles Vietnam domestic product prices. Moreover, retailers such as Saigon Co-op deliver Vietnamese products by van to customers in rural areas. Meanwhile, a consumer product survey called “high-quality Vietnamese products”, conducted by Saigon Tiep Thi magazine each year, has attracted a lot of attention from the mass media, informing consumers of the results, and it has become a reliable source of information on which consumers often rely when making a purchase. Fortunately for the domestic market, the number of Vietnamese products voted for by consumers has increased over time, with brand names showing success including An Phuoc, Viet Tien, Vinasoy, Hung Phat Tea, Trung Nguyen Coffee, Vinh Hao Mineral Water, Tribeco, Vinacafe, Dai Dong Tien Plastic, Duy Tan Plastic, Cholimex, Tuong An and My Hao. Based on this survey, many trade fairs have been organised in provinces such as Ho Chi Minh City, Hanoi, Hue, Hai Phong, Rach Gia, An Giang, Nghe An, Buon Me Thuot, Binh Dinh, Gia Lai, Da Nang, Cambodia and Vung Tau. As a result, Vietnamese consumers throughout the country are more aware of high-quality Vietnamese products and they are more willing to buy them. Outlook Knowing that Vietnamese products cannot compete with Chinese ones on many levels, the Vietnamese Government has been encouraging national consumers to buy products that are made in Vietnam, in order to support domestic producers. This encouragement has been stressed for several years and it has created a movement towards domestic product purchases, especially in rural areas. The Government will continue to encourage Vietnamese consumers to use domestic products. However, despite efforts made by the Vietnamese Government and manufacturers, many Vietnamese consumers still buy Chinese goods, even where they know the Chinese products to be of lower quality. This is mainly because they are very cheap and thus more affordable for the majority of Vietnamese. Moreover, Chinese products are said to be well designed and offer numerous styles and models. Impact Although the clothing market has been flooded by Chinese products, there has been an increasing number of Vietnamese manufacturers successfully establishing their brands and becoming increasingly popular with and familiar to Vietnamese consumers. They account for a firm market share and have built up loyal customers. With regard to casual wear for younger generations, Ninomax, PT 2000 and Viet Thy are sure to figure, while Viet Tien, An Phuoc and Nha Be are popular Vietnamese men’s wear and accessories brands and OXY, Moc Mien, Sifa Fashion, NEW and Senorita are equally popular with women. Additionally, young fashion designers are winning customers with well-designed Vietnamese clothes. Tea and coffee are two products with which Vietnamese producers can compete against China to win Vietnamese customers. With the advantage of being the largest producer and exporter of coffee in the world, some Vietnamese producers have marketed their products successfully in both the domestic and international markets. Vietnamese coffee is best known through Trung Nguyen Coffee, not only for its coffee products but also its franchise of coffee shops, while another Vietnamese coffee brand is Vinacafe. With regards to tea, Tam Chau Tea and Hung Phat Tea have created many kinds of herbal tea, which are well known in the market. Other areas where domestic products dominate include the market for sauces and spices. For the Vietnamese, fish sauce is necessary for every meal and thus Phu Quoc Fish Sauce, Lien Thanh Fish Sauce and Thien Huong Fish Sauce are high-quality Vietnamese products that meet the demand for this traditional item. Hi-tech Consumers Despite being a low-income country, Vietnam is potentially highly profitable when it comes to high-tech users, especially young people, who have increased significantly in recent years. Computers, laptops, netbooks, internet access and mobile phones are increasingly popular and have been widely used by Vietnamese consumers for some years. Vietnam has had a high growth rate of internet users in recent years. Owing to cheap connection fees, the number of internet subscribers has risen sharply. According to the Ministry of Information and Communication, there were 22.8 million internet subscribers in Vietnam in 2009, accounting for 26.6% of the total population,  Euromonitor International Page 4 Consumer Lifestyles Vietnam and an increase of 112.7% from 2005. With this number of internet users, Vietnam has been ranked seventh among countries in Asia by Internet World Stats. Vietnam also has one of the most rapidly growing mobile phone markets in the world. According to the Ministry of Information and Communication, there were 135.3 million telephone users in January 2010, an increase of 62.3% on the same period of the previous year, among whom were 115.7 million mobile phone subscribers, an increase of 68% on 2009, and six times higher than the 19.6 million landline telephone users. This meant that the share of Vietnamese households with a mobile phone reached 27.5% in 2009, a significant increase from 7.5% in 2005. For Vietnamese consumers, mobile phones are not just a means of communication, but are also a fashion statement and demonstration of one’s social status. A small proportion of Vietnamese consumers are willing to pay significant amounts of money for expensive mobile devices, as a result of which Vietnam is considered a prime market for smart phones such as the iPhone, HTC and BlackBerry devices. Smart phones are currently estimated to account for around 7% of the market, but they contribute 25% of total market turnover. Outlook The latest gadgets are always attractive to young people: they always want the most up-to-date technology. Therefore, the market for high-tech products is expected to become more crowded and develop significantly over the next few years. Although coping with a harsher economic reality, resulting in a lower growth rate for high-tech goods in 2009, this market is forecast to grow quickly over the next few years. The number of internet subscribers is expected to increase significantly alongside the rising number of laptop owners and mobile phone subscribers. Impact Laptops are increasingly favoured by consumers, especially younger consumers, owing to their flexibility of use, and their ideal form for students for study purposes. Currently, in addition to foreign brands such as HP, Compaq, Lenovo, Acer, Asus, Sony and Dell, a domestic laptop market has appeared, including brands such as eMachines, VENR, Axioo and MSI, now estimated to account for around 40% of the market share. All laptop producers have been cutting their prices to make their products more affordable for the majority of Vietnamese users, especially students, who have a high demand for finding information on-the-go. Since most Vietnamese consumers are on a low income, cheap mobile phones are in high demand and this is an important market segment for producer and seller alike, especially in the current economic climate. Therefore, in addition to brands such as Nokia and Samsung, cheaper, domestic brands have been successfully marketed in recent years, such as Q-Mobile, F-Mobile, I-Mobile, Mobell and MobiStar. The sustained increase in the number of internet users and internet-enabled computers in Vietnam has encouraged the development of e-commerce. Although e-commerce in Vietnam is in the early stages, it is becoming a more familiar option for Vietnamese consumers, and online stores such as muare.vn, 123mua.com.vn, hello247.net, goldmart.vn, nguyenkim.com, dienmaythienhoa.com and vitinhphongvu.com are becoming ever-more popular with those choosing to shop online. A Poor Country, But A Profitable Market for High-end Cars Cars are not a main means of transportation in Vietnam. Only a very small number of Vietnamese drive cars, as they are not affordable and the roads in Vietnam are unsuitable. However, there is a paradox here, which is that the prices at which cars are sold in Vietnam are said to be some of the highest in the world, despite the fact that Vietnam is one of the poorest countries. This is mainly because of the Government’s protection of the country’s infant automobile industry. However, a small number of high-income earners are willing to pay the high price demanded, especially since 2007 when the stock market and real estate netted some Vietnamese high earnings. As a result, there were more than 1.6 million registered cars in Vietnam as of June 2010, an increase of 6.3% on the previous year according to the Department of Land Transportation Police. With a population of more than 86 million people, the number of cars is indeed a tiny one, with a rate of 8 cars per 1,000 inhabitants.  Euromonitor International Page 5 Consumer Lifestyles Vietnam There is also a small group of high-income earners who only wish to drive the most luxurious cars in the world. Since the first Maybach 62 arrived in Vietnam at the end of 2006, it seems as if all the most luxurious and expensive cars in the world, such as Rolls Royce, Bentley, BMW and Mercedes, valued at hundreds of thousands of US dollars even without including taxes, have been imported into Vietnam by sea and air, alongside popular brand names such as Toyota, Ford and Peugeot. As of mid-2008, there were around 15 Rolls Royce Phantoms, more than 20 Bentleys and seven BMW X6s (the latter after its launch in the USA in April 2008). Outlook Since 2007, when the Vietnamese stock market and real estate become very hot, there has been a newly emerging high-income group. These individuals invest in luxury cars, not merely as a means of transport, but as a status symbol. The demand for the most luxurious of cars by Vietnamese high earners is predicted to increase over the next few years. Impact In 2009, in order to reduce the trade deficit, the Ministry of Trade and Industry asked the Government to increase import duty on imported cars from 83% in 2008, to 91%, in the hope that the number of imported cars would decline. However, despite this move, the number of luxury cars being imported has continued to increase, and providers of imported luxury cars are earning money while domestic automobile makers are facing difficulties in the harsher economic climate. CONSUMER SEGMENTATION Babies and Infants In 2000 the Vietnamese Prime Minister launched the Strategic Population Programme for the period 2001-2010, in an attempt to solve the high population problem in the country. The Programme has been implemented in two stages, first by reducing the birth rate sharply and sustainably by providing through the mass media educational information on family planning, especially in rural and remote areas. As a result, the Vietnamese birth rate has fallen significantly over the past 10 years. According to the National Population Survey conducted by the GSO in April 2009, the birth rate in that year was two infants per female, which was lower than the 2.3 infants/female in 1999. Owing to the Programme, the number of babies born in Vietnam has been decreasing continuously during 2005-2009, and it was estimated that there were 4.7 million babies and infants in Vietnam in 2009, a fall of 1.9% from the previous year, and 4.6% from 2005. Babies receive more individual care and attention now from their parents. As living standards and average family income in Vietnam have increased, the number of children in each household has fallen. Whereas in the past, especially in rural areas, one couple might have had 10 or more children and thus not have had enough time and money to take good care of all of them, the situation is now significantly altered, with most babies being well cared for from the time they are born. A traditional belief in Vietnam is that dressing a new baby in the old clothes of a healthy and rapidly growing baby might help the new-born, so mothers-to-be usually ask their relatives or friends for old clothes before giving birth, and they do not use new clothes for the new-born baby. However, the belief is gradually changing and although some families in rural areas still follow this tradition, most Vietnamese mothers now just ask for a few old items of clothing as a symbol, and some families even buy all new clothes for their baby. Besides essentials such as clothes and nappies (diapers), an increasing number of baby care products are being used in Vietnam. A higher living standard, higher disposable incomes and lifestyle changes have moved parents towards the convenience of modern baby-care products such as food-makers, training cups, baby strollers and buggies, baby walkers, car seats and breast pumps. Despite having fewer babies, the busier lifestyles and higher ambitions of Vietnamese women have resulted in an increase in bottle feeding for babies, especially in big cities such as Ho Chi Minh City or Hanoi, although breast feeding is still generally encouraged.  Euromonitor International Page 6 Consumer Lifestyles Vietnam Parents also now tend to send their babies to crèches sooner, especially those living in urban areas. According to the Labour Code, women can take four months off after giving birth, after which some of them ask for two more months off without salary. For those whose parents cannot help them to take care of the baby or who cannot find domestic help, and have to go back to work to keep their position at work, the baby will be sent to a crèche. Impact While the number of babies in Vietnam will continue to decline in coming years due to the Government’s family planning programme, related markets have been growing substantially due to changes in consumer habits and perception. In the past, the Vietnamese had to make clothes and other things related to caring for a baby, but they now usually use ready-made products to save time. More players have joined the baby clothing market, selling colourful, beautiful and cheap clothing in supermarkets and traditional markets all over the country. Currently, domestic clothing manufacturers dominate this market, while products made in China, Thailand or Taiwan are rarely chosen by Vietnamese consumers due to higher prices or concern about materials used to make Chinese products. As textiles and garments are one of Vietnam’s comparatively advantageous markets, and owing to the sustainable consumer habits for Vietnamese products, the baby clothing market in Vietnam is predicted to remain dominated by domestic players rather than imported products, even cheaper Chinese products. Formerly, the Vietnamese only used cotton nappies for their babies, despite its inconvenience, and disposable nappies were imported from other countries such as Thailand or Taiwan. However, most families now using disposable nappies for their babies, use domestically produced nappies. Vietnamese consumers have also become familiar with well-known brands such as Huggies, Pampers, Bobby, Nannys and Zuno, and these products have become so popular that the three producers involved have won and retained significant market share in the country. It will be quite difficult for new players joining this market in the future. An increasing number of Vietnamese are using modern baby care products, especially products for going out, such as baby strollers, buggies and car seats, particularly among families living in urban areas. The market for such products remains small and mostly imported from abroad. In Ho Chi Minh City, MBCare Group has been successful in creating a chain of outlets named Me&Be, distributing mother and baby care products imported from countries including Taiwan, South Korea and Germany. The number of consumers, however, is small, as transport in Vietnam discourages the use of such products, so this will be a slowly growing market in coming years. The fact that fewer women are breast feeding their babies has created an opportunity for powdered milk producers and helped this market grow sharply in Vietnam in recent years. There are many brands of powdered milk for each stage of a child’s growth, including Friso, Similac, Meiji, Dumex, Lactogen, Dutch Lady and Vinamilk. Manufacturers are working hard to persuade female consumers to trust their products for babies and this is expected to continue to be a profitable market over the next few years. There are not many toys for babies up to two years old and it is not a good market for domestic manufacturers, which produce few toys that are not good quality. However, imported toys that are classified for these ages, such as Fisher-Price, are quite expensive for Vietnamese consumers, so the market has been flooded with Chinese products for many years and most Vietnamese buy them without caring about the quality or about which kind of toy is suitable for which age. There are several retailers focusing on high-income consumers, who can afford to care about the quality of the toys for their babies, such as MBCare Group, Rainbow and World of Toys, which sell imported high-quality products from the European Union (EU), Thailand and Malaysia. Kids Although the general birth rate in Vietnam has been declining over the past 10 years under the campaign “each family should have one or two children only”, the number of families having a third child has been increasing, especially since 2006-2007. For a number of different reasons, including wanting a boy, these families decide to have a third child and accept the punishment from the Government for this. Therefore, the number of kids of three to eight years old increased by 4.8% during the review period of 2005-2009, and the number of kids is expected to increase again in 2010. However, the number of kids is expected to decline after 2010 as a result of the aforementioned family planning programme that started in 2001.  Euromonitor International Page 7 Consumer Lifestyles Vietnam With the increase in the number of kids, spending for this group has also risen. This is not only because of an increase in parental incomes, but also an increase in demand for essential goods and services for this age group. From the age of three, most children have to go to kindergarten or school, thus they need a uniform, clothing, bags, notebooks, etc. Equally, at this age children are dynamic, creative and want to learn, and so demand for toys in this group is high. Being a traditionally Eastern country, children are expected to listen to their parents without demur. However, a freer and more liberal lifestyle development in recent years in Vietnam has encouraged some children to give their opinions on what they like and what they think. Vietnamese children now to some extent can choose the products that they use, although most consumer decisions for this age group are made by their parents. Vietnamese kids are rarely allowed to have a mobile phone or play video games, and some families even prevent the kids from watching too much TV. The parents are always watching their kids, even at home or on the way to and from school. Some kids in high-income families may have a computer on which they can play and learn. While advertisements targeting children are discouraged at certain times and in certain places in other countries, this issue is still open in Vietnam. There are many adverts on TV targeting children, for products such as fish sauce, milk, cheese, instant noodles, etc. At present, advertising targeting children is not of major concern for Vietnamese parents and so there are no debates in the mass media on the subject. At the time of writing, there was no indication that the Government would regulate advertising for children over the next few years. Impact The clothing market for kids has great potential, but it is estimated that Chinese-made products account for around 60%-80% of the market. Vietnamese products cannot compete with Chinese products due to higher production costs. Consumers can buy clothes made in China for VND15,000 (less than US$1), with which price domestic manufacturers cannot compete. Equally, the Chinese products are well made and well styled in fashionable colours, while locally produced clothing tends to be simple and unattractive to kids, although several domestic brands have managed to build a positive image, including YF (Young Fashion), Viet Thy, Anh Thu, Kico, Hoa Kim and Sun & Moon. New Vietnamese manufacturers are afraid of entering the market, however, due to lack of demand, while some existing producers are looking to exit the market due to the high cost of production. Thus, this market is predicted to be flooded by principally Chinese products in coming years. Besides the domestic brands Biti’s and Bita’s, all footwear sold in the Vietnamese market is also made in China. Domestic manufacturers have no expressed intention of focusing on this age group. The toy market for this age group faces the same problem. Demand for toys in this group is high, but domestic manufacturers ignore this market because they cannot compete with Chinese products in terms of cost or creativity. Therefore, almost all toys sold in Vietnam are made in China and this situation is likely to continue. The fact that advertising aimed at children is allowed in Vietnam has increased children’s ‘pester power’. However, Vietnamese kids have no influence over their parents’ decisions to buy larger, family items such as electronics, consumer durables and cars; kids can only influence their parents over choices of clothing, food, drinks or toys. Although ‘pester power’ is a new phenomenon in Vietnam, and not yet broad in influence, it is a powerful tool and manufacturers are taking advantage of it to push sales by using attractive adverts on TV. Kids in Vietnam are becoming ‘older’ than their age, and the range of goods and services that they are requesting from their parents is changing accordingly. To ignore this development would be a mistake for domestic manufacturers, as they risk being blocked entirely from the market, as has happened in other product sectors. Tweenagers Vietnam has successfully implemented family planning since the 1990s; however, it is said that the result of the family planning programme in the 1990s was much better than that of the programme in the 2000s. As a result, the number of births in the 1990s, many of whom are now tweenagers and teenagers, has been decreasing over time. There were 6.1 million tweenagers in Vietnam in 2009, a fall of 12.5% from 2005. However, this number  Euromonitor International Page 8 Consumer Lifestyles Vietnam was expected to rise by 4.9% from 2010, reaching 6.3 million tweenagers in 2020, due to an increase in the number of kids in the 2000s. This group has become more powerful in consumer terms in recent years, although parents are still the main decision-makers for consumption by tweenagers. The change has come about because this group has started to decide how to spend their pocket money, and this is an age group that is easily influenced by advertisements and personal recommendations (such as from friends). Normally, the money spent by this age group comes from parents. In most families, the parents give pocket money to the children monthly or weekly (a few give it daily). The amount of money that parents give their children depends on the family’s income. Pocket money is usually enough to allow the tweenagers to buy sweets, cakes, or snacks for themselves and their friends during break time at school. There is no current survey data available about average pocket money allowances for tweenagers. Some of this age group are allowed by their parents to use a mobile phone, especially those living in urban areas such as Ho Chi Minh City. The argument given is usually that of convenience for the parents to be able to contact the tweenagers if need be. Besides making and receiving calls, this group may use mobile phones to play games or even to access the internet or to watch movies. Vietnamese children face a difficult curriculum, regulated by the Ministry of Education and Training, from the time they start school at six years old. The higher the grade, the heavier the educational workload and the less time allowed for entertainment. Learning is required even during the summer holiday and sometimes it seems as if children have forgotten playtime. Even when tweenagers have playtime, the leisure activities available are poor, with traditional games such as skipping, hide and seek, etc. falling, especially in urban areas, where playgrounds are less common. In free time tweens may choose to watch TV, play computer games, go shopping or to the theatre with their parents. In Ho Chi Minh City, many kids, tweenagers and teenagers enjoy the TV drama series, “Ngay xua ngay xua” (Once Upon a Time)”, which relates fairytales. Impact Demand for clothes in this age group is high and tweenagers can influence their parents’ decisions on clothing purchases. Here, as with kids, Chinese-made goods are dominant, as they provide fashionable and attractive clothing for the age group. This age group is easily influenced by advertising, and it is targeted through television Milk producers are a good example here: since milk is deemed a necessary nutritional item, if children persuade their parents to buy milk for them to grow as strong and healthy as the actors in the advertisements, the parents are happy to comply. Thus, the milk market has been one of the fastest growing in Vietnam in recent years. The target consumers for mobile phones are not tweenagers, of course; however, some in this age group have started to use mobile phones. Parents give their children mobiles in order to contact them more easily; however, children familiarise themselves with technology rapidly and it is easy for them (particularly with GPRS – general packet radio service) to download games, ringtones and wallpapers, access the internet and watch films. GPRS has become the most popular mobile service and is advertised on all TV channels. Teens Current teenagers were born in the early 1990s, when Vietnam started to implement family planning. Although the impact of this programme did not result in such significant decreases as for current tweenagers, it did reduce the growth rate by 2.8% from 2005, to 12.4 million teens in 2009. Over coming years, as the tweenagers become teenagers, this growth rate will continue to decline, by 10% to 2020, when there will be nearly 11 million teenagers. Of course, teenagers need money to meet their daily needs, and most Vietnamese parents give teenagers monthly pocket money for them to spend. Teenagers have more freedom then tweens, who are normally treated as kids. Teenagers can decide independently how to spend their pocket money.  Euromonitor International Page 9 Consumer Lifestyles Vietnam Some teenagers are quite mature and do not ask their parents for money, instead earning a wage in a part-time job, perhaps being a stylist, model, musician, writing articles or organising events. In Vietnam, where traditionally most children have relied on their parents until they become an adult, this is an interesting and positive development, as it allows teenagers to grow more independent. An increasing number of teenagers use mobile phones, especially in urban areas. In addition to the positive aspects of mobile phone use, such easy access to the internet (with the popular GPRS) has created some negative aspects. Teenagers are at an age where they are half mature, half child, and they tend to show off to get attention and prove themselves. They are easily influenced and subject to peer pressure. At the time of writing, there was concern, for example, over teenagers recording and uploading to the internet clips of them fighting one-another. Teenagers today are more concerned with appearing attractive and fashionable, and they take more care over their appearance than previous generations. Vietnamese teenagers are significantly influenced by South Korean fashions and movie celebrities, and they thus use the cosmetics and imitate the hair styles (including dying their hair red or brown) popular in South Korea. Impact Teenagers are interested in fashion, and they shop for clothes, shoes and cosmetics. They may frequent shopping malls, stores or traditional markets. However, as yet there is no targeted market segment for teens in any of these three products, and there is no clear distinction in products for teens and for twenty-somethings. Clothing and footwear styles and brands for teens and those in their twenties are mixed together, which makes it easy for manufacturers to produce in bulk, but means that there is no differentiation for these two age groups. Despite this, as both groups look constantly for new styles and influences in fashion, the clothing and footwear market has grown quickly in recent years. Teenagers have no qualms about using new technologies such as computers, laptops/netbooks, mobile phones, 3G, the internet, etc. This is a positive development if used in the right way; however, negative aspects of this technological freedom are emerging. Online retail is not regulated with regard to the age of shoppers, and combined with a lack of supervision on the part of some parents, many teenagers are becoming addicted to online gaming. In fact, online gaming was one of the fastest growing markets in Vietnam in 2009-2010, and was predicted to grow sharply over the next few years. Twenty-somethings Owing to high birth rates in the 1980s, the number of people in their twenties increased by 7.9% during the review period, to reach 16.7 million people in 2009. However, with decreasing numbers of teens, tweens and kids, this age group is expected to decrease by 2.7% during the forecast period, to 16.5 million in 2020. People in their twenties are known as the “8X generation” in Vietnam, as they were born in the 1980s. They are said to be dynamic, creative, idealist, intelligent, independent and hard-working. At this age mature, twentysomethings start to work and earn money, make their own decisions, often for the first time, and choose what to wear, what to do and with whom to make friends. Because twenty-somethings are dynamic, they are early adopters of new technology. Laptops, netbooks, mobile phones and Bluetooth devices are popular with the 8X generation, for whom it is said that a mobile phone is one of their three indispensable belongings. It is estimated by the Ministry of Post and Telecommunication that there are more than 3 million mobile phone subscribers in Vietnam, of whom at least 50% are of the 8X generation. For them, mobile phones are no longer just a means of contacting others, but are fashion statements and status symbols. The other two indispensable items for an 8X-er are said to be a credit card and a USB storage device. An increasing number of twenty-somethings now use a credit card, mostly to shop online. With the ability to connect to the internet on their laptop via wi-fi in a coffee shop, 8X-ers can shop easily for books and other items, usually for cheaper prices. The USB stick is the 8X-er’s mobile hard disk, on which they can exchange and store music, pictures, stories, educational files, working materials and books. The USB storage device is increasingly a complement to 8X-ers’ laptops or netbooks.  Euromonitor International Page 10 Consumer Lifestyles Vietnam Impact The rapid growth of the mobile phone market is put down to twenty-somethings, as their demand for communication is high: they need to contact friends, find new jobs or business opportunities, as they will have just entered the job market. Mobile phones are also seen as fashion statements and with mobile providers’ continuous special offers and discounts, mobile users can change their phone regularly, increasing the handset market. In addition to imported mobile phones of popular makes such as Nokia, Samsung, LG, BenQ-Siemens and Sony Ericsson, the Vietnamese market has welcomed new mobile phone brands such as Mobell, WellcoM, F-Mobile and MobiStar, for which Vietnamese manufacturers imported spare parts from China and assembled them in Vietnam. Mobile providers offer everything from premium handsets such as Vertu, Apple and Mobiado, to popular, cheap ones, in chain outlets across the country, especially in big cities such as Ho Chi Minh City or Hanoi. These outlets have also embraced e-commerce, selling phones and laptops online and providing additional services such as installing games, apps and software on phones and laptops for buyers. Some of the more successful of these outlets include gioi di dong (www.thegioididong.com), VienthongA (www.vienthonga.com) and Viettel mobile supermarket. Laptops are also highly attractive to twenty-somethings, owing to their mobile convenience. A laptop can be taken everywhere, from classes at university, to parks, coffee shops and the workplace. Laptop providers have given twenty-somethings discount offers and ‘affordable’ models. Acer and HP-Compaq are two brands that are mostly bought by twenty-somethings, as they are affordable, although some 8X-ers use brands such as IBMLenovo, Dell, Asus or the Apple MacBook. With their dynamic, high-tech image, 8X-ers have been driving the development of this market. Coffee shops are the most popular places for twenty-somethings to go when they have free time, to meet friends or business associates, or to relax. Coffee shops offering wi-fi internet access are thus in great demand and to meet it, coffee shops in larger cities such as Ho Chi Minh City or Hanoi have installed internet routers to provide wi-fi to their customers, have redesigned their shops with different areas for different activities, such as group gatherings in one area and workers in another. There are more and more coffee shops following this pattern in Ho Chi Minh City, Hanoi and similar cities or provinces throughout the country. The motorcycle market also has been impacted by this age group. As the main mode of transportation in Vietnam is motorcycle, each Vietnamese adult needs their own motorcycle to travel. When twenty-somethings start to earn their own money, they also need to have their own transport, and they often buy a motorbike to replace a bicycle or old motorbike given them by their parents when they were teenagers. Currently, there is a trend for scooters in Vietnam, particularly among twenty-somethings, with the most popular brands being SYM, Honda and Suzuki. Thirty-somethings People in their thirties were born in the 1970s when Vietnam had no family planning programme, thus they numbered 13.6 million in 2009, an increase of 7.4% on 2005. This age group was expected to continue to grow, by 21.0% over the forecast period, to reach 16.7 million in 2020. Most thirty-somethings at some point get married and have children, and with family responsibilities comes a new level of maturity. At this age, they are also likely to have established a career and their place in society, and are the principal decision-makers in their life, with consumer power to match. However, as those in their thirties often have jobs, work and families, far less time can be devoted to leisure. Indeed, often leisure time consists of trips to the country or, for the wealthier individuals, abroad, on public holidays. Traditionally, after work each day Vietnamese women do the housework and take care of their children (some may have domestic help), while the men go to coffee shops, restaurants, bars or pubs to meet their friends or business associates to maintain and build up social relationships. However, lifestyles are changing and a greater sense of freedom and equality for Vietnamese women has permeated the country, with traditional family life gradually changing. Working dinners and eating out with friends have reduced the number of family meals held, where all family members meet to eat and talk. As a result, the connection between husbands and wives, children and parents, has been changing, resulting in a higher divorce rate in Vietnam. Impact  Euromonitor International Page 11 Consumer Lifestyles Vietnam Although this age group has high spending power, they usually spend money on necessary goods. It is estimated by the GSO, from a survey on household living standards in 2008, that food accounted for more than 40% of a Vietnamese’s expenditure. Where the Vietnamese go to buy food and household items varies according to the different regions of the country. A survey on high-quality Vietnamese products conducted by Sai Gon Tiep Thi magazine in 2008 showed that 67.3% of southern Vietnam consumers chose to shop in supermarkets, while northern Vietnamese favoured specialist stores and the central and highland area consumers predominantly shopped in traditional markets. While traditional markets are everywhere in Vietnam, supermarkets have expanded their outlets widely to popularise these modern channels of consumption. The most successful supermarket in Vietnam is Saigon Coop, with its CoopMart. The Saigon Coop launched its 44th outlet in Da Nang City in January 2010 and planned to have 100 outlets by 2015, throughout the country. Working dinners have become more and more popular in Vietnam, and as a result many restaurants have opened to meet the high demand for eating out. In fact, most restaurants, from high-class to low-end, are crowded at night. They sell not only food but also drinks including beer, soft drinks and other alcohol. This trend continues to grow. Thirty-somethings also, of course, use mobile phones and motorbikes, although for them the onus is not on fashion, but on social status. Thus they will change their mobile less often than those in their twenties, but the handsets that they use will be more expensive or even high-end. The same is true for motorbikes. Therefore, for this consumer segment, mobile providers usually look to sell Nokia E or N series, or Apple phones, while motorcycle vendors favour SH, Dylan and Piaggio brands for this age group. Value sales from this age group are high and sustainably so, while the market segment is predicted to expand along with the number of thirtysomethings over coming years. The clothing market for this age group is diverse, as there is demand for work clothes, party clothes, clothes for special occasions (such as weddings), and leisure clothes. Manufacturers find it easy and worthwhile, therefore, to cater for this broad demand. Middle-aged Adults There were 19.8 million middle-aged Vietnamese in 2009, an increase of 18.1% on 2005. As a result of family planning programmes, the Vietnamese population is entering an ageing trend, with middle-aged Vietnamese expected to increase by a large 37.6% over the forecast period, reaching 28.3 million in 2020. Middle-aged adults tend to be more wary in their decision-making, although otherwise they share many of the characteristics of thirty-somethings. By contrast, they look to reinforce their status in society through their consumer decisions. With many years of employment and establishing relationships, they may have become expert in a particular area, they may be executives or even own their own business. Most successful businessmen are of around this age. Being important decision-makers in both their families and businesses, middle-aged adults have the highest spending power of all groups, impacting purchases not only by their children, but also possibly by their grandchildren. This age group spends not only on consumer durables, but also on real estate and investments. An increasing trend in recent years has been for the more successful and wealthy members of this age group to send their children to study abroad. Middle-aged adults use their free time to eat out with friends or business associates, but less regularly than those in their thirties. Equally, they may travel with their families on holiday or go to the theatre at the weekend. Impact Middle-aged adults are careful when spending money, looking at value for money, even if the item is expensive. Popular items in this category in Vietnam are LCD TVs and home cinema systems. However, most middle-aged adults are concentrating on saving money for their old age. While lower age groups buy motorcycles, middle-aged adults have started to buy cars, despite the failings of the road network. In recent years, despite the financial crisis worldwide, this market has been developing rapidly and the Vietnamese no longer just buy domestically manufactured cars, but also imported luxury models.  Euromonitor International Page 12 Consumer Lifestyles Vietnam Older Population Vietnam has a young population due to a high birth rate, thus the older population numbered 4.9 million in 2009, an increase of 5.9% over the review period. However, as with the middle-aged group, owing to the high numbers of younger groups, the older population of Vietnam is expected to increase significantly over the forecast period, rising by 41.0%, to reach 7.0 million in 2020. Most Vietnamese over 65 years old are retired, although some continue to work as advisers or run their own businesses. Therefore, most are not earning. Former public sector workers receive a retirement pension, but other older Vietnamese rely on their children to support them; as a result, their spending power is not high. The older population usually stays at home, helping their children to look after the house and children. Normally, they gather in groups to do exercises in the early morning in parks, or even in the road. Impact As older Vietnamese rely on their savings or pensions, they are extremely careful about spending money. As it is traditionally seen as their children’s responsibility to support them in old age, it is often the case that older people need spend nothing, as their children make all the necessary purchases. However, this age group is the target of insurance companies. In order to remove the worries of old age, some Vietnamese purchase insurance packages for their parents, and insurance companies have expanded sales of life insurance products in recent years. Table 1 Consumer Segmentation: 2005-2009 '000 Babies/Infants (0-2 years) Kids (3-8 years) Tweenagers (9-12 years) Teens (13-19 years) People in their twenties People in their thirties Middle-aged Adults (4064 years) Older Population (65+ years) Source: 2005 2006 2007 2008 2009 % Growth 4,957 4,968 4,913 4,819 4,728 -4.6 8,973 6,996 12,790 15,435 12,657 16,762 8,935 6,789 12,809 15,728 12,881 17,496 9,036 6,550 12,751 16,035 13,113 18,245 9,219 6,314 12,620 16,349 13,352 19,009 9,404 6,122 12,427 16,659 13,594 19,790 4.8 -12.5 -2.8 7.9 7.4 18.1 4,628 4,695 4,763 4,832 4,902 5.9 National statistics, Euromonitor International Table 2 Consumer Segmentation: 2010-2020 '000 Babies/Infants (0-2 years) Kids (3-8 years) Tweenagers (9-12 years) Teens (13-19 years) People in their twenties People in their thirties Middle-aged Adults (40-64 years) Older Population (65+ years) Source: 2010 2015 2020 % Growth 4,670 9,531 6,006 12,182 16,957 13,838 20,589 4,973 4,714 9,437 6,313 10,694 17,880 15,136 24,683 5,515 4,542 9,376 6,301 10,960 16,499 16,743 28,338 7,009 -2.7 -1.6 4.9 -10.0 -2.7 21.0 37.6 41.0 National statistics, Euromonitor International PEOPLE  Euromonitor International Page 13 Consumer Lifestyles Vietnam Population Vietnam has a large population, estimated at 87.6 million in 2009, an increase of 5.3% from 2005. Vietnam ranks as the third largest population in the Association of Southeast Asian Nations (ASEAN) and 13th in the world, according to the GSO. Vietnam was expected to continue to grow at a rate of 12.4% from 2010, reaching 99.8 million people in 2020. The Vietnamese population is young, with a median age of 26.4 in 2009. However, this median age has been rising gradually following several decades of the family planning programme, and it is estimated that the median age was expected to reach 31.2 by 2020. According to the results of a population survey carried out by the GSO in 2009, the Vietnamese ageing rate, calculated by the number of those above 60 years old against those below 15 years old, has been increasing, with the ageing rate in 2009 at 35.9% – an increase of 11.4 percentage points from 1999. Owing to the gradual changes towards gender equality in the country, the proportion of males to females is nearly balanced. In 2009 there were 43.8 million males and almost the same number of females in the country. According to the population survey conducted by the GSO in 2009, Vietnam had an earning population twice as large as its dependent group. The results included the fact that the proportion of under 15s had fallen from 33% in 1999 to 25% in 2009, while the proportion of 15-59 year-olds had increased from 58% in 1999 to 66% in 2009, and over 60s had increased from 8% in 1999 to 9% in 2009. This advantageous population ratio only happens for one generation, stretching from 15 to 40 years, depending on how well the birth rate is controlled. The survey also revealed that the life expectancy of the Vietnamese had improved during 1999-2009. The average life expectancy for males had increased from 66.5 years old in 1999 to 70.2 years in 2009. Meanwhile, the life expectancy for females had increased from 70.1 years old in 1999 to 75.6 years old in 2009. This was due to successful healthcare programmes conducted during the previous 10 years. There are 54 ethnic groups in Vietnam, of which Vietnamese accounted for 74.9% of the total population. As the Vietnamese tend to be better educated, they have also embraced a more modern lifestyle than other ethnic groups, resulting in a more controlled birth rate; this has had the effect of lowering the growth rate of Vietnamese compared with all other ethnic groups. Impact Despite improvements to living standards in recent years, Vietnam remains a poor country with a large population. The majority of Vietnamese incomes is spent on food and other necessities. However, with a large earning population, Vietnam has enormous potential as a market, with high rates of spending opening ever-more consumer opportunities. While foreign investors explore the domestic market, domestic manufacturers have been ignoring it, focusing on exports as a result of a national development strategy to increase exports for economic development. However, the fact that national economic growth has relied on exports has made the country heavily dependent on foreign markets, feeling the knock-on effect of downturns such as the recent financial crisis. Vietnamese manufacturers have found it difficult to turn to domestic markets in an attempt to stabilise sales. Marital Status Marriage is seen as one of the key life decisions for a Vietnamese, with its accompanying move into a new stage of life. There were an estimated 39.7 million married people in Vietnam in 2009, accounting for 45.2% of the population. In the past, people got married when they were very young, with average ages at first marriage for women of 13 and for men of 16. However, Vietnamese law has changed, owing to medical concerns about the effects of such early marriages, and nowadays women can marry from the age of 18 and men from the age of 20. The tendency of the younger generations now is to get married whenever they are in a stable job and earning enough money to support their family life. The average age of first marriage has been increasing and marriage at  Euromonitor International Page 14 Consumer Lifestyles Vietnam the age of 25-30 is popular in urban areas, while the age for first marriage in rural areas may be under 25. On average, the age of men at first marriage in 2009 was 23.0 years old, while that of women was 21.7. Traditionally, marriage must be approved by the couple’s parents, as it is not only a serious commitment between the couple, but also between the two families. While parents can still present an obstacle to marriage if they disagree with the couple’s decision to wed, more independent, modern couples are getting married without their parents’ consent. Because marriage today is made official by the registration of a certificate issued by the Government, these marriages are legal. However, two trends have emerged in recent years. The first is that some couples choose to live together before getting married. Most of these are either students or those starting out in their careers. The second is single parenthood. Recently, a number of movie stars and singers have become single mothers, which has had an important influence on the younger generation. However, despite a noted rise in co-habitation and singlemotherhood, society still tends to view these as negative developments. The average age for women having their first child has also been increasing in Vietnam in recent years. This is partly owing to an increase in the average age of marriage, but equally, more liberated women do not want to have children quickly, as they wish to focus on their career and higher studies. Modern, liberated lifestyles have resulted in a higher divorce rate in recent years. The demise of the more traditional family lifestyle, with activities bringing all family members together, have been replaced by an urge to make money, have a successful career and, in the case of the children, study hard. Time spent as a family has fallen, with consequential break-ups. In the past, divorce was seen as a serious problem for society, but nowadays it is becoming more familiar and less serious. Impact Wedding ceremonies are increasingly expensive, as incomes have not increased in line with inflation. However, it is practically compulsory to have a wedding ceremony in two parts: part one is the traditional ceremony held at home with relatives of the two families; part two is a wedding party organised in a restaurant or hotel for relatives, friends and work colleagues. Organising a wedding party takes an enormous amount of time, which is problematic for a couple who both work; thus, event companies and a wedding industry has appeared and rapidly grown in recent years to help couples to simplify their wedding plans. This is now a lucrative industry in Vietnam. Co-habitation is often a consequence of the couple not having enough money to pay for a wedding ceremony, nor buy their own home. The couple therefore often rent an apartment or even just some rooms for this “trial marriage” stage. This developing trend has impacted the housing market for rentals in recent years. Town Or Country Being an agricultural economy, almost 72% of the Vietnamese population live in rural areas. It is estimated that there are 62.7 million people living in rural areas, having increased by 2.6% from 2005. The positive growth here is generally as a consequence of high birth rates in these areas. Meanwhile, the process of urbanization has turned some rural areas into cities, such as Tuyen Quang Town and Tra Vinh Town, which had become Tuyen Quang City and Tra Vinh City by 2010, while some cities have incorporated their rural outlying areas in their expansion, including Hanoi and Ha Tay becoming “new Hanoi” in 2008. Industrialization has created a wave of migrants from rural to urban areas, increasing the urban population enormously. It is estimated that the population in urban areas in 2009 had increased by 12.8% from 2005, reaching 24.9 million. According to the GSO population survey in 2009, the south-east areas had the highest level of urbanization, with 57.1% of the population living in urban areas. The next highest urban population was in the Red River Delta, with 29.2% population living in urban areas. The survey also revealed that some cities and provinces had population growth rates more than two times higher than the country’s average growth rate during 1999-2009. These included Binh Duong Province, Ho Chi Minh City, Kon Tum, Binh Phuoc, Gia Lai and Da Nang. Binh Duong, in particular, more than doubled its population over this 10-year period.  Euromonitor International Page 15
- Xem thêm -