Home Care - Vietnam

Euromonitor International : Country Market Insight June 2010

Home Care

Vietnam

List of Contents and Tables

Executive Summary ................................................................................................................................................ 1 Slower Growth Due To the Global Economic Crisis ................................................................................................ 1 Growth Led by Toilet Care ....................................................................................................................................... 1 Big Players Gain Value Share While Small Players Suffer....................................................................................... 1 Modern Distribution Channels Favoured by Consumers.......................................................................................... 1 Home Care Market Expecting A Positive Outlook.................................................................................................... 1 Key Trends and Developments .............................................................................................................................. 1 Slower Growth Caused by the Global Economic Crisis............................................................................................ 2 Small Players Were Losing Value Shares To Big Players ........................................................................................ 3 Promotional Packages Receive More Attention From Consumers ........................................................................... 4 Private Label Establishes Stronger Presence ........................................................................................................... 5 Corporate Social Responsibility Enhances Brand Awareness .................................................................................. 6 Market Indicators ................................................................................................................................................... 7 Table 1 Households 2004-2009...................................................................................................... 7 Market Data ............................................................................................................................................................ 7 Table 2 Sales of Home Care by Sector: Value 2004-2009 ............................................................. 8 Table 3 Sales of Home Care by Sector: % Value Growth 2004-2009 ............................................ 8 Table 4 Home Care Company Shares 2005-2009........................................................................... 8 Table 5 Home Care Brand Shares 2006-2009 ................................................................................ 9 Table 6 Sales of Home Care by Distribution Format: % Analysis 2004-2009 ............................... 9 Table 7 Sales of Home Care by Sector and Distribution Format: % Analysis 2009..................... 10 Table 8 Forecast Sales of Home Care by Sector: Value 2009-2014 ............................................. 11 Table 9 Forecast Sales of Home Care by Sector: % Value Growth 2009-2014............................ 11 Definitions.............................................................................................................................................................. 11 Summary 1 Research Sources............................................................................................................. 12

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HOME CARE IN VIETNAM

EXECUTIVE SUMMARY
Slower Growth Due To the Global Economic Crisis
The global economic crisis had a negative effect on the home care market in 2009. Despite the higher hygiene and cleanliness awareness amongst the general population, home care experienced slower growth. Consumers purchased just enough home care products to meet their basic usage to save money. Consumers, especially those living in rural and suburban areas sought economy brands, due to their lower unit prices. Manufacturers also offered frequent promotional packages to encourage purchases. Larger volume and free gifts were amongst the most popular promotions in the market.

Growth Led by Toilet Care

Toilet care registered the highest value growth amongst home care products over 2009. This was due largely to the governments efforts in educating rural consumers of the importance of hygiene practices in 2009. The Vietnamese Government cooperated with the leading manufacturers in toilet care products, such as Unilever and SC Johnson & Son, to inform rural consumers of the benefits of toilet care products as well as to distribute free product samples. Aside, dishwashing and laundry care products also recorded good growth, thanks to frequent advertising on television while other home care products such as polishes and bleach recorded slower growth due to product use maturity.

Big Players Gain Value Share While Small Players Suffer

Small players encountered difficulties over 2009 due to the higher prices of raw materials and transportation costs. These players typically refrained from increasing their prices as they were afraid that consumers would switch to other lower priced products. As a result, small players worked with lower profit margins in order to maintain their prices or keep increases to a minimum. At the same time, they also tried to reduce their production costs by cutting down on advertising and marketing and/or packaging costs to counter the economic crisis. Big players, with strong financial abilities, were able to maintain their value performance. Big manufacturers leveraged frequent advertising to stimulate consumption as well as to boost their value shares. Furthermore, they also launched promotional packages to appeal to consumers.

Modern Distribution Channels Favoured by Consumers

In 2009, modern distribution channels such as supermarkets/hypermarkets received higher acceptance from consumers. The habit of going shopping at supermarkets/hypermarkets is fast increasing in Vietnam. Previously, consumers went to supermarkets/hypermarket for the leisure shopping environment or only when looking to purchase premium/niche brands of home care products. However, there is now a smaller price difference between supermarkets/hypermarkets and the traditional channels. In addition, consumers also enjoy the wide range of home care products available at supermarkets/hypermarkets. Traditional channels, especially independent grocery stores, still accounted for the highest sales value because of their prime location near residential areas.

Home Care Market Expecting A Positive Outlook

Home care is projected to see strong positive outlook over the forecast period, thanks to higher living standards as well as rising household incomes. The fast urbanisation, together with the higher education, led to greater appreciation of the benefits of home care products, and the demand for more sophisticated products with strong cleaning ability without a detrimental effect on skin and environment. Toilet care and surface care especially are expected to lead sales growth over the forecast period.

KEY TRENDS AND DEVELOPMENTS

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Slower Growth Caused by the Global Economic Crisis

In 2009, the global economic crisis negatively affected the expansion of most home care products. The value growth of laundry care, air care, bleach, insecticides, polishes and surface care was slower than in 2008. Consumers continued to purchase these home care products because these products became necessary in their daily life especially laundry detergents, insecticides and bleach. However, their usage was kept to a minimum in order to save money. In addition, they had a tendency to choose economy brands that had acceptable quality and sold at very competitive prices. Despite economic difficulties, toilet care and dishwashing recorded better performances than in 2008 in terms of value growth. This was thanks to the higher awareness of hygiene and cleanliness as well as the higher living standards in Vietnam. The Government put its efforts into educating consumers who live in rural and suburban areas about how to keep their toilet clean and avoid disease from bacteria. Manufacturers cooperated with government offices and local health centres to educate consumers about how to use toilet care products correctly as well as to distribute free samples for consumers to encourage them to try their toilet care products. Current Impact Both domestic and multinational manufacturers encountered difficulties due to the global economic crisis. In addition, high inflation that occurred at the beginning of year 2009 led to higher raw material and transportation costs. Consequently, manufacturers were pushed into a worse situation. They had to cut production and advertising costs to try to retain their prices or keep increases to a minimum, not only to boost consumption from consumers but also to prevent consumers from switching to a lower price brand. Multinational manufacturers which had strong financial ability and established brands in the market seemed to be less affected by economic crisis than domestic manufacturers. Big multinational manufacturers such as Unilever and Procter & Gamble continuously advertised their products in the public media such as television, magazines and radio to create consumer awareness of their products in the market. Moreover, they also launched promotions and lucky draws to encourage existing consumers to continue purchasing their products as well as to attract new consumers to try their products. For example, laundry detergent Omo from Unilever set up booths outside supermarkets and hypermarkets and wet markets to demonstrate the high effectiveness of Omo at washing clothes. Besides, every consumer who purchases Omo products from supermarkets, hypermarkets or booths was eligible to take part in the lucky draw. Domestic manufacturers had further penetration in rural and suburban areas to avoid strong competition from multinational manufacturers. Domestic players offered low price products to appeal to consumers to purchase their products. Rural consumers did not care much about product quality and they seemed to choose products based on their price due to their low income. Outlook The global economic crisis is expected to be over soon. This is thanks to the stimulus package from the government to boost economic activity in Vietnam in 2009. The Government launched several programs to help domestic manufacturers withstand with difficulties. For example, the Government lowered the interest rate so that domestic manufacturers could borrow money from banks to deal with the crisis in 2009. As a result, domestic manufacturers were able to maintain their production activity during hard times. Home care is projected to register stronger growth over the forecast period as the economy started to recover at the end of the year 2009. Consumers have bigger budgets to spend on home care which provide them convenience and time saving opportunities. In addition, consumers are more aware of hygiene and cleanliness in Vietnam thanks to higher living standards as well as higher disposable incomes. Future Impact As the economic crisis has already started to recover, the value sales of home care might increase faster; especially toilet care, laundry care and dishwashing. Therefore, manufacturers might launch new product development to respond to the more sophisticated demand.

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For example, Procter & Gamble plans to launch its new line of liquid laundry detergent Ariel in the market in January 2010. Although liquid laundry detergent was present in Vietnam long ago, it did not create high awareness from consumers. The main reason behind this was that only domestic manufacturers such as My Hao Cosmetics and Lix Detergent Co produced liquid laundry detergent. Domestic manufacturers were not able to increase consumers awareness due to their limited budget for advertising and marketing activities. Ariel from Procter & Gamble wants to tap a new product segment to satisfy higher demand for sophisticated products. The competition is intensifying in home care products such as laundry care, surface care and toilet care. Multinational manufacturers might have more advertising and marketing activities to enhance their brand status as well as to increase their value shares. Domestic manufacturers might maintain good relationships with their distributors and independent grocery stores so that they could recommend their products to their consumers.

Small Players Were Losing Value Shares To Big Players

In 2009, most small manufacturers encountered difficulties due to the global economic crisis. Inflation at the beginning of the year 2009 pushed up raw material and transportation costs considerably. In addition, small manufacturers could not increase their prices to offset the higher price of raw materials as consumers might switch to lower price products that are available on the market. Furthermore, consumers were not willing to pay for home care products during hard times, and some of them chose cheaper options. For example, rural consumers may stop purchasing floor cleaner products and reverted to cleaning floors with water and a little laundry detergent. Consequently, small manufacturers tried their best to cut operation costs as well as advertising and marketing activities to counter the difficulties, as well as to retain their competitive positions. Big manufacturers enjoyed better performances than the smaller ones because the former leveraged their established brands in the market, and took advantage of their wide distribution systems to maintain their value shares. In addition, with the support of strong financial capabilities, big manufacturers launched more advertising and marketing activities instead of cutting costs like small manufacturers did to encourage consumers to purchase their products. Current Impact Small, mainly domestic players were losing value share to big manufacturers. For example, Daso-Dacco Co experienced declining value shares in the laundry care sector in 2009 although the company enjoyed increased value shares in 2008. Daso-Dacco targets low- and middle-income consumers who live in rural and suburban areas. The target segment is quite price-conscious; therefore, their consumers purchased less laundry care than before the recession. Some of them purchased cheaper non-brand laundry detergent at independent grocery stores instead of Daso-Daccos products. Consequently, the companys values sales decreased slightly in 2009. Big players had an opportunity to strengthen their competitive position in the market thanks to their stronger finances. All three leading manufacturers: Unilever, Procter & Gamble and SC Johnson & Son grew their value shares considerably in current value terms in 2009. This was due to continuous advertising in media along with marketing campaigns. For example, Unilever continuously advertised its Omo laundry detergent, Vim Sunlight floor cleaner and Sunlight dishwashing brands on televisions, not only to create brand awareness among consumers but also to stimulate consumption. SC Johnson & Son also distributed free sample of its toilet care product, Duck, at supermarkets and hypermarkets and outdoor markets. Moreover, consumers who purchased certain Duck products were eligible to participate in a lucky draw with plenty of attractive prizes. Outlook The Government offered some stimulus packages to domestic manufacturers to counter the economic difficulties. For example, the government lowered the interest rate, and domestic manufacturers can borrow money via these stimulus packages to solve their difficulties. Moreover, the government also postponed tax for small businesses that were set up less than six years ago, so that they have additional resources to support their daily operations. These actions from the government were intended to help domestic manufacturers deal with the economic slowdown as well as to avoid bankruptcy in 2009.

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With the assistance of the government, some small players invested in new technology to launch new products in order to attract consumers attention as well as to avoid tough competition from big players. For example, Net Detergent Co added a new liquid laundry detergent Lix to its product line in December 2009. Net Detergent Co is seeking categories in which the big players such as Unilever and Procter & Gamble do not dominate. Other small players such as Rang Dong Cosmetics, Dat Tien Co or Phuong Hoang Co have further penetrated rural and suburban areas where the presence of big players is weaker, so they are able to maintain their value sales. Future Impact The consumption of home care is expected to increase in rural and suburban areas thanks to higher awareness of hygiene and cleanliness in Vietnam. Consumers have a tendency to support home care products from small players because their products were present in rural and suburban areas before those from the big players. Hence, small players might experience an increase in their value sales. Small players, especially domestic manufacturers, will start to see their prospects improve once the economy recovers. Smaller producers are expected to grow faster over the forecast period because the economic crisis has taught them to produce more efficiently as well as to manage their costs more effectively. Moreover, the emerging trend in support of Vietnamese products makes consumers more aware of domestic players thanks to government campaigns. The Government occasionally organises trade fairs for domestic players so that they have more opportunities to promote their products and brands to consumers in Vietnam. More importantly, the government rewarded domestic players, such as Hang Vietnam Chat Luong Cao and Sao Vang Dat Viet (producers of high quality Vietnamese goods) to encourage domestic players to enhance their product quality as well as to help advertise their products to consumers in Vietnam. Together with the improvement of product quality, domestic manufacturers might enjoy stronger growth during the forecast period. Big players continue to leverage their popular brands and their good distribution systems to expand into rural and suburban areas to increase their value shares. They might exploit mass advertising such as advertising on local television and radio channels to create brand awareness among rural consumers. Moreover, big players, especially multinational manufacturers, might launch new economy brands to cater to rural segments. For example, Unilever launched Surf laundry detergent to target consumers in rural areas. Acceptable quality at a cheap price appeals to rural consumers.

Promotional Packages Receive More Attention From Consumers

Over the review period, consumers became familiar with promotional packages, as multinational manufacturers offered various promotions throughout the year. The most popular promotion among consumers was standard packs with an extra small gift. For example, when consumers purchased 5L Downy fabric softener, they received 500g Tide laundry detergent. Another example was the Duck toilet care brand from SC Johnson & Son which gave away a sample of its new kitchen cleaner. Manufacturers also offered promotional packs that offer more volume than standard ones. For instance, the volume of a standard pack of Omo was 800g, while the promotional pack was 900g. Both standard packs and promotional packs were sold at the same price of VND26,000. Current Impact Promotional packs benefit multinational brands as consumers like to purchase branded products at discounted prices. The global economic crisis made consumers thriftier when purchasing home care products. However, when they saw promotional packages, they were willing to buy the pack, even when the price remained unchanged. A free gift and additional volume appealed to consumers because they felt as though they were saving money. Moreover, consumers almost panic buy due to the limited time period that promotions run for. Besides advertising, multinational manufacturers such as Unilever and Procter & Gamble could boost consumption and increase their value sales through promotional packages. More importantly, they did not need to lower their prices to encourage consumers to purchase their products. Although promotional packs and

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discounting are quite similar and have the same goal, each strategy had a different effect on consumers. Both on-pack promotions and discounting encourage consumers to purchase products, however, discounting had negative effects too. Some consumers did not want to buy discounted products because they believed that manufacturers must have had to compromise on the quality to be able to offer a low price. In addition, discounting could damage brand image which multinational manufacturers spent time and money building up. More importantly, promotional packs appear to be cheaper than discounting for manufacturers. The reason being that manufacturers could offer a sample of one of their existing products as a free gift for consumers. Although manufacturers have lower margins by exploiting promotional packs, they were able to generate enough value sales to cover their production costs. While when they employ a discounting strategy, they may not generate enough value sales. Therefore, additional volume is a better business strategy than a cheaper price. Outlook Multinational manufacturers are expected to reduce their use of promotional packaging as a way to appeal to consumers over the forecast period, despite its success. Promotional packs are only effective when manufacturers do not use them too often, as the basis for consumers buying promotional packs is that they know that the promotion lasts for a limited period. Furthermore, the time difference between two promotions must be distant so that it did not create a negative effect. Consumers feel it is not necessary to buy in bulk because they know that sooner or later they will be offered the promotion again. Nonetheless, domestic manufacturers might use promotional packs to attract consumers attention, as they have not gone down that route in the past. Domestic manufacturers could benefit from offering promotional packs with additional free gifts during the forecast period. They can attract new consumers to their products as well as encourage existing consumers to continue to purchase their products. In addition, domestic manufacturers are able to advertise other products from their product ranges by using them as free gifts. As a result, domestic manufacturers might not only boost the value sales of two kinds of products but also brand awareness in the market. Future Impact Multinational manufacturers need to find another way to appeal to consumers in the long term. Advertising and corporate social responsibility might be their main weapon to enhance their brand name as well as to build a good reputation among consumers. In Vietnam, mass media advertising such as television and newspapers, usually brings immediate and effective results. Manufacturers would see an increase in value sales instantly; nevertheless, the effect would not last long. When manufacturers stop advertising, value sales grow slower. Moreover, advertising in the mass media proves too costly for small players. Therefore, only big players have enough financial backing to launch adverts on television, and in magazines and newspapers. There was an increasing trend of corporate social responsibility in Vietnam. Consumers were more aware of business ethics due to higher education. New product innovation and value-added products are another sustainable way for both multinational and domestic manufacturers to enhance their positions and to increase their value sales over the forecast period. Value-added products allow manufacturers to charge their consumers premium prices, while new product innovation helps them to expand their market shares.

Private Label Establishes Stronger Presence

Over the review period, consumers witnessed faster growth of private label. Big C supermarket introduced its private label Wow with the slogan surprisingly cheap. Its home care range included laundry detergent, dishwashing products, floor cleaner, and toilet care. Wow from Big C created ripples among consumers because it was the cheapest among the existing home care products at Big C. In addition, the word Wow in red really stood out on a yellow background, which easily caught the attention of consumers. Furthermore, Wow products were given prominent shelf-space so consumers were able to find it immediately. The key purchasers of Wow were price-conscious consumers. Besides Big C, the private label Quality Care from Metro continued to grow stronger in 2009. Quality Care did not generate as much attention as Wow as Quality Care was targeting small companies and organizations.

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Quality Care appealed to consumers with its high quality, and it was priced slightly cheaper than the popular brands in the market. Current Impact Despite the faster growth of private label, the value sales of private label remained negligible in Vietnam during 2009. Thus, the stronger presence of private label had no effect on the value sales of the leading manufacturers such as Unilever, Procter & Gamble or SC Johnson & Son. This was largely due to the narrow distribution channel of private label products. Only consumers who always shop at Big C or Metro were aware of the presence of Wow and Quality Care, furthermore, these ranges were only available from these two retail chains. In addition, the advertising support for private label was also limited, and it was mainly in-store at Big C or Metro. Nonetheless, the expansion of private label seemed to have little effect on domestic manufacturers which use supermarkets/hypermarkets as their main distribution channel. Domestic manufacturers also targeted low- and middle-income consumers, therefore, consumers switched to private label due to its cheaper price. For example, dishwashing product, E-Loja from Dat Tien Co, recorded slower value growth in 2009. Outlook Private label is expected to grow faster over the forecast period due to the success of Wow and Quality Care. Both of them received good responses from consumers thanks to their acceptable quality and low price. Private label also brings benefits to manufacturers. For example, consumers need to go to Big C to purchase Wow products; therefore, Wow not only attracts more consumers to come to Big C for shopping but also enhances consumers awareness of Big C. Private label slowly gains consumers trust and confidence. Hence, there are more home care products being produced under private label in the most popular product categories to satisfy the increasing demand from consumers. For instance, Big C plans to launch spray/aerosol air fresheners in 2010 in two popular fragrances of lemon and rose. Future Impact Over the forecast period, private label poses a potential threat to the performance of domestic manufacturers. Consequently, domestic manufacturers need to lower their prices in order to compete with private label. Moreover, domestic manufacturers need to continue to build wider distributions system beyond supermarkets/hypermarkets, to increase their value sales as well as to create good relationship with independent grocery stores. Even though multinational manufacturers are less affected by private label, they need to pay more attention to the growth of private label. Multinational manufacturers should strengthen their competitive position by offering value added products to differentiate from private label.

Corporate Social Responsibility Enhances Brand Awareness

In 2009, consumers seemed interested in advertising and marketing activities that contributed back to society thanks to higher education in Vietnam. In addition, Vietnamese consumers were more exposed to corporate social responsibility in the world through the internet, television, and newspapers. As a result, consumers, especially young working adults and students paid close attention to corporate social responsibility because they felt manufacturers had a responsibility to pay for society. More importantly, consumers felt happy when they purchased products from manufacturers that carry out social responsibility activities. Current Impact Unilever cooperated with the governmental office to launch Vim Building clean toilets for schools in rural areas in 2009. Schools in rural areas do not normally have proper toilets: typically built using temporary materials, and invariably smelled unpleasant. Consequently, pupils did not like to use the toilet at school, so

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they did not go until they got home. Every consumer who purchased Vim products automatically contributed VND1,000 to the fund which helped to built clean toilets in rural areas. Vim Building clean toilets received active participation from consumers. In 2009, Unilever was able to strengthen its position in the market. Its value sales increased thanks to Vim Building clean toilets. In addition, Unilever not only enhanced its brand name but also built its good reputation in the market. Hence, consumers paid more attention to Vim when they wanted to purchase toilet care products. Also, Omo annually collects old clothes from middle- and high-income consumers, and then Omo washes old clothes in its laundry detergent to make them look like new clothes. Then, it distributes these clothes to pupils from poor families. This event is organized every year during June, and it attracts thousands of donations from consumers. Unilever and Procter & Gamble worked with Metro Cash and Carry to launch a meaningful charity event for SOS village, a governmental orphanage for HIV abandoned children. Every consumer who purchased P&G products from Metro above VND150,000, also contributed VND5,000 to their fund. At the end of the event, Procter & Gamble used this fund to buy clothes for children in SOS village so that they could celebrate the holidays in new clothes. Outlook Corporate social responsibility will become more popular in Vietnam over the forecast period due to higher awareness of business ethics in Vietnam. The higher education is another reason for the increasing trend of corporate social responsibility in Vietnam. Manufacturers start to realize the potential benefits of corporate social responsibility. Manufacturers are able to create awareness toward their brands as well as to gain confidence and trust in their products. In addition, corporate social responsibility is a way that manufacturers show they care about consumers, and the environment around. In the long-term, manufacturers hope to attain sustainable growth. Future Impact Manufacturers are expected to follow the success of Unilever to improve the standard of living in rural and suburban areas through their home care products. It is a realistic and efficient way for manufactures not only to advertise the effectiveness of their household products but also to contribute to society. Other manufactures might donate to government education funds such as Nguyen Thai Binh or Le Quy Don to provide financial aid for children from poor families in order to encourage them to go to school. At the end of each year, officers organize an event to give the rewards to children who had outstanding results at school and during social activities in Vietnam. Furthermore, manufacturers might sponsor television programmes which try to help improve lives, such as Ngoi nha mo uoc (Dream House) and Vuot len chinh minh (Overcome yourself).

MARKET INDICATORS
Table 1 Households 2004-2009 2004 Households ('000) Average number of occupants per household (number)
Source:

2005 18,502.9 4.5

2006 18,825.4 4.5

2007 19,150.7 4.5

2008 19,479.2 4.4

2009 19,811.5 4.4

18,182.7 4.5

Official statistics, Euromonitor International estimates

MARKET DATA

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Table 2 VND billion

Sales of Home Care by Sector: Value 2004-2009

2004 Laundry Care Dishwashing Surface Care Bleach Toilet Care Polishes Air Care Insecticides Home Care
Source:

2005 3,431.3 439.4 418.7 29.7 310.4 77.7 180.8 288.5 5,176.4

2006 3,797.9 478.9 473.5 33.5 360.0 83.9 199.9 320.0 5,747.6

2007 4,202.5 538.8 543.0 36.9 420.4 92.2 228.4 359.0 6,421.2

2008 4,582.0 592.6 609.7 39.8 483.3 99.6 250.1 394.8 7,052.0

2009 4,996.3 660.8 676.0 42.8 557.2 106.5 272.1 432.1 7,743.8

3,107.0 392.3 368.2 25.3 263.2 73.6 163.0 262.6 4,655.3

Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates

Table 3

Sales of Home Care by Sector: % Value Growth 2004-2009

% current value growth 2008/09 Laundry Care Dishwashing Surface Care Bleach Toilet Care Polishes Air Care Insecticides Home Care
Source:

2004-09 CAGR 10.0 11.0 12.9 11.0 16.2 7.7 10.8 10.5 10.7

2004/09 TOTAL 60.8 68.4 83.6 68.8 111.7 44.7 66.9 64.5 66.3

9.0 11.5 10.9 7.5 15.3 7.0 8.8 9.5 9.8

Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates

Table 4 % retail value rsp Company

Home Care Company Shares 2005-2009

2005 46.1 12.2 3.7 3.4 1.5 4.6 1.8 1.3 2.4 1.0 1.1 1.3 0.7 0.5 0.6 0.6 0.9 0.7

2006 44.3 13.9 3.7 3.3 2.5 4.5 1.8 1.6 1.9 1.3 1.1 1.2 0.8 0.6 0.9 0.8 0.8 0.6

2007 44.0 14.4 3.9 3.3 2.8 3.6 2.0 1.8 1.7 1.4 1.2 1.2 0.8 0.7 0.9 0.8 0.8 0.7

2008 44.0 14.4 4.0 3.2 3.1 3.2 2.1 1.9 1.7 1.4 1.2 1.2 0.9 0.8 0.9 0.9 0.8 0.7

2009 44.4 14.4 4.2 3.2 3.2 3.2 2.1 2.0 1.5 1.4 1.2 1.2 1.0 0.9 0.9 0.9 0.8 0.6

Unilever Vietnam Procter & Gamble Vietnam Ltd SC Johnson & Son Vietnam Co Ltd My Hao Cosmetics Co Ltd AMG Vietnam Co Ltd Vico Ltd Co SC Johnson & Son Inc LB (Vietnam) Co Ltd Daso-Dacco Co Lix Detergent Co (LIXCO) Mosfly Vietnam Co Ltd Rang Dong Cosmetics Colgate-Palmolive Son Hai Ltd Goodmaid Chemicals Corp Sdn Bhd Nam Dinh Biological Technology Joint Stock Co Technopia Vietnam Ltd Reckitt Benckiser Plc Sara Lee Corp

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International Consumer Products Ltd Aval Vietnam Co Others Total

Source:

0.4 0.3 14.8 100.0

0.5 0.4 13.6 100.0

0.6 0.5 13.2 100.0

0.6 0.5 12.5 100.0

0.6 0.5 11.8 100.0

Trade associations, trade press, company research, trade interviews, Euromonitor International estimates

Table 5 % retail value rsp Brand Omo Tide Sunlight Comfort Downy My Hao Gift Duck Vi Dan Raid Viso Daso Lix Essence Mosfly Vico Duck Softlan Glade Jumbo Others Total
Source:

Home Care Brand Shares 2006-2009

Company Unilever Vietnam Procter & Gamble Vietnam Ltd Unilever Vietnam Unilever Vietnam Procter & Gamble Vietnam Ltd My Hao Cosmetics Co Ltd AMG Vietnam Co Ltd SC Johnson & Son Vietnam Co Ltd Vico Ltd Co SC Johnson & Son Vietnam Co Ltd Unilever Vietnam Daso-Dacco Co Lix Detergent Co (LIXCO) LB (Vietnam) Co Ltd Mosfly Vietnam Co Ltd Vico Ltd Co SC Johnson & Son Inc Colgate-Palmolive Son Hai Ltd SC Johnson & Son Inc Technopia Vietnam Ltd

2006 30.2 11.1 6.1 5.7 2.7 3.3 2.5 1.8 3.5 1.8 2.3 1.9 1.3 0.9 1.1 1.0 0.9 0.8 0.9 0.8 19.5 100.0

2007 29.7 11.2 6.4 6.3 3.2 3.3 2.8 2.0 2.5 1.9 1.7 1.7 1.4 1.1 1.2 1.1 1.0 0.8 0.9 0.8 19.2 100.0

2008 29.2 10.8 6.6 6.5 3.5 3.2 3.1 2.1 2.0 1.8 1.7 1.7 1.4 1.2 1.2 1.1 1.1 0.9 1.0 0.9 18.8 100.0

2009 28.9 10.6 7.0 6.9 3.8 3.2 3.2 2.3 2.1 1.9 1.6 1.5 1.4 1.3 1.2 1.1 1.1 1.0 1.0 0.9 18.0 100.0

Trade associations, trade press, company research, trade interviews, Euromonitor International estimates

Table 6 % retail value rsp

Sales of Home Care by Distribution Format: % Analysis 2004-2009

2004 Store-Based Retailing Grocery Retailers Supermarkets/Hypermarkets Discounters Small Grocery Retailers Convenience Stores Forecourt Retailers Independent Small Grocers Other Grocery Retailers Non-Grocery Retailers Mixed Retailers Department Stores Variety Stores Mass Merchandisers Warehouse Clubs Health and Beauty 100.0 86.0 20.4 60.3 0.7 59.6 5.3 14.0 1.3 1.3 0.0

2005 100.0 86.3 21.8 59.5 0.8 58.7 5.1 13.7 1.2 1.2 0.1

2006 100.0 86.0 22.3 58.8 1.0 57.8 4.9 14.0 1.1 1.1 0.1

2007 100.0 87.1 24.3 58.2 1.1 57.2 4.6 12.9 1.1 1.1 0.1

2008 99.9 87.2 24.9 58.0 1.5 56.5 4.3 12.7 1.0 1.0 0.1

2009 99.9 87.5 25.5 57.9 1.9 56.0 4.1 12.4 1.1 1.1 0.1

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Retailers Other Non-Grocery Retailers Non-Store Retailing Vending Homeshopping Internet Retailing Direct Selling Total
Source:

12.6 100.0

12.4 100.0

12.8 100.0

11.8 100.0

11.6 0.1 0.1 100.0

11.2 0.1 0.1 100.0

Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates

Table 7 % retail value rsp

Sales of Home Care by Sector and Distribution Format: % Analysis 2009

AC Store-Based Retailing Grocery Retailers Supermarkets/Hypermarkets Discounters Small Grocery Retailers Convenience Stores Forecourt Retailers Independent Small Grocers Other Grocery Retailers Non-Grocery Retailers Mixed Retailers Department Stores Variety Stores Mass Merchandisers Warehouse Clubs Health and Beauty Retailers Other Non-Grocery Retailers Non-Store Retailing Vending Homeshopping Internet Retailing Direct Selling Total 100.0 95.0 37.0 0.0 58.0 1.2 0.0 56.8 0.0 5.0 2.0 2.0 0.0 0.0 0.0 2.5 0.5 0.0 0.0 0.0 0.0 0.0 100.0 SC Store-Based Retailing Grocery Retailers Supermarkets/Hypermarkets Discounters Small Grocery Retailers Convenience Stores Forecourt Retailers Independent Small Grocers Other Grocery Retailers Non-Grocery Retailers Mixed Retailers Department Stores Variety Stores Mass Merchandisers Warehouse Clubs Health and Beauty Retailers Other Non-Grocery Retailers 99.5 97.6 27.5 0.0 67.1 1.2 0.0 65.9 3.0 1.9 1.1 1.1 0.0 0.0 0.0 0.0 0.8

B 100.0 97.5 32.0 0.0 65.5 0.0 0.0 65.5 0.0 2.5 0.0 0.0 0.0 0.0 0.0 2.5 0.0 0.0 0.0 0.0 0.0 0.0 100.0 TC 100.0 92.2 36.0 0.0 56.2 1.0 0.0 55.2 0.0 7.8 4.0 4.0 0.0 0.0 0.0 0.0 3.8

DW 99.3 89.5 19.0 0.0 63.5 3.5 0.0 60.0 7.0 9.8 2.3 2.3 0.0 0.0 0.0 0.0 7.5 0.7 0.0 0.0 0.0 0.7 100.0

IN 100.0 85.0 37.5 0.0 47.5 2.0 0.0 45.5 0.0 15.0 0.0 0.0 0.0 0.0 0.0 0.0 15.0 0.0 0.0 0.0 0.0 0.0 100.0

LC 100.0 85.0 23.0 0.0 57.0 2.0 0.0 55.0 5.0 15.0 0.5 0.5 0.0 0.0 0.0 0.0 14.5 0.0 0.0 0.0 0.0 0.0 100.0

PO 100.0 93.0 35.0 0.0 58.0 0.6 0.0 57.4 0.0 7.0 6.0 6.0 0.0 0.0 0.0 0.0 1.0 0.0 0.0 0.0 0.0 0.0 100.0

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Non-Store Retailing Vending Homeshopping Internet Retailing Direct Selling Total

Source: Key:

0.5 0.0 0.0 0.0 0.5 100.0

0.0 0.0 0.0 0.0 0.0 100.0

Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates AC = Air care; B = Bleach; DW = Dishwashing products; IN = Insecticides; LC = Laundry care; PO = Polishes; SC = Surface care; TC = Toilet care products

Table 8 VND billion

Forecast Sales of Home Care by Sector: Value 2009-2014

2009 Laundry Care Dishwashing Surface Care Bleach Toilet Care Polishes Air Care Insecticides Home Care
Source:

2010 5,313.5 720.3 729.9 44.7 607.2 111.8 289.2 459.4 8,276.0

2011 5,660.7 777.9 788.2 47.4 667.9 116.8 310.4 489.9 8,859.3

2012 6,046.5 836.2 848.0 50.7 727.9 121.5 337.1 524.1 9,492.1

2013 6,468.3 893.1 910.6 54.5 786.2 125.7 370.8 564.1 10,173.3

2014 6,928.2 946.7 975.9 59.2 841.2 129.2 412.9 611.6 10,904.9

4,996.3 660.8 676.0 42.8 557.2 106.5 272.1 432.1 7,743.8

Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor International estimates

Table 9

Forecast Sales of Home Care by Sector: % Value Growth 2009-2014

% constant value growth 2009-14 CAGR Laundry Care Dishwashing Surface Care Bleach Toilet Care Polishes Air Care Insecticides Home Care
Source:

2009/14 TOTAL 38.7 43.3 44.4 38.2 51.0 21.3 51.8 41.5 40.8

6.8 7.5 7.6 6.7 8.6 3.9 8.7 7.2 7.1

Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor International estimates

DEFINITIONS
This report analyses the market for Home Care in Vietnam. For the purposes of the study, the market has been defined as follows: Laundry care Dishwashing products Surface care Bleach Toilet care products Polishes

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Air care Insecticides

Explanations of words and/or terminology used in this report are as follows: Lan Xa - Literally means rinse once which intends to suggest to consumers that fabric softener products that they use can be mixed with water and wash detergent at the same time. They do not need to wash detergent many times before soaking with fabric softener. Manufacturers prefer to use this term as to communicate with Vietnamese consumers.

Sources used during research include the following:

Summary 1 Official Sources Research Sources General Statistics Office Ministry of Health Vietnam MOT Information Center Viet Brand Viet Trade Vietnam Chamber of Commerce Vietnam Custom Office Vietnam Living Standard Survey www.saigontimes.vn www.vneconomy.vn Trade Associations Vietnam Association of Fragrance Essence & Cosmetics Vietnam High Quality Products Association Trade Press Bang Dien Binh Thuan Today Dien Dan Doanh Nghiep EShop Fresh Plaza Human Development Report Just Style Kinh Te Saigon Lao Dong Marketingvietnam.net Nguoi Lao Dong Private Label Buyer Sai Gon Tiep Thi Saigon Marketing Saigon Times Daily San Pham Moi Television Hai Phong The Alfa Laval Magazine Viet Bao Vietnam Channel.Net

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Vietnam Economic News Online Vietnam Economy Vietnam Investment Review Vietnam Media Vietnam Net Vietnam News Vietnam Stock Market News Vnexpress.net
Source: Euromonitor International

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