HOME CARE IN VIETNAM - ANALYSIS

Country Report | Feb 2019

EXECUTIVE SUMMARY Market Sizes

Positive home care growth due to increasing income levels Sales of Home Care
Retail Value RSP - VND billion - Current - 2004-2023
According to the Institute for Economic and Policy Research (VEPR), Vietnam’s economy
grew strongly in 2018, recording the best performance over the past decade. Vietnam’s
GDP growth rate reached 6.8% in 2018, with good growth rates in all sectors 27,255 Forecast
accompanied by the positive signs of capital flows, foreign investment and increasing 50,000
average incomes, all raising the country’s consumer confidence. Higher education
levels, better living standards and increasing awareness of healthy lifestyles all play
vital roles in underpinning greater demand for quality home care products. 40,000

Especially in urban areas, living costs continue to increase and people are busily
engaged in their working lives, families and households are looking for the most 30,000
convenient and effective ways to complete onerous household chores. As a result,
multi-purpose cleaners and liquid laundry detergents, solving the requirement for
convenience, can be expected to see substantial growth over the forecast period. On 20,000
the other hand, the growth of modern retailers along with the rapid expansion of
convenience stores and online channels has also helped boost home care volume sales.
10,000
Global brands expand distribution to rural areas in order to dominate
Urbanisation, faster-paced lifestyles and rapid growth of the middle class lead to 0
constant change in home care purchasing habits. In addition, the development of new 2004 2018 2023
retail channels such as e-commerce also causes the competition between global and
domestic enterprises to become more intense than ever. With their financial power,
giant global players Unilever and Procter & Gamble still hold the leading positions and
Sales Performance of Home Care
largest shares in many different home care categories. While Procter & Gamble has
% Y-O-Y Retail Value RSP Growth 2004-2023
built its distribution based on a few large suppliers, Unilever has divided more
extensively, including around 150 wholesalers and more than 300,000 retailers, helping
the company succeed in reaching customers in all of Vietnam’s provinces. Unilever 2.9% Forecast
recorded positive growth for its sustainable living brands in 2018, comprising Omo in 25%
laundry care, Sunlight in dishwashing, floor cleaners and Vim in toilet care, highlighting
its ambitious goals to increase its influence in Vietnamese society.
20%
In line with healthy living, green products have grown in both offline and online
channels. Unilever acquired Seventh Generation Inc from 2016, although its products
are more prominent through internet retailing. Local brands are improving their 15%
positions with strong growth rates in rural areas such as Net and especially Aba in the
Mekong Delta region. Lix Detergent JSC also launched its liquid detergents at
affordable prices, which also brings value for money offers to urban consumers. Finally, 10%
the Vietnamese government also promoted the campaign “Vietnamese people use
Vietnamese brands” to support small local brands to display their products prominently
in Coop Mart supermarkets and hypermarkets. Over the forecast period, global 5%
companies will continue to extend more in rural areas, while local home care brands
must evolve to compete and maintain share to avoid being driven out.
0%
Booming internet usage and smartphone ownership helps e-commerce 2004 2018 2023
growth
According to the General Statistics Office, Vietnam’s internet penetration reached 67%
and continues to increase sharply. Additionally, smartphones have increased to 72% of
total phone users accessing e-commerce websites, while 53% of online shopping
transactions were made via mobile platforms, indicating that e-commerce grew at a
robust pace. Lazada, Tiki, Shopee and Sendo are the key online players in Vietnam.
Along with this trend, home care products have improved their packaging types and
closures to attract consumers visually on mobile platforms particularly.
On the other hand, there are some categories that are much easier to purchase via
online channels such as shoe, metal and furniture polishes, air care and other surface
products. Vietnamese consumers are now moving to buy home care from internet
retailing due to countless promotional programmes, bundled packages, free shipping
and delivery fees, and other discounts offered by different payment methods, which
also cater to busier lifestyles in urban areas. With this trend, there are also rising
number of homeshoppers selling products such as laundry care, dishwashing products
and air fresheners that claim to be natural via social network platforms such as
Facebook.

Consumers seek products with added convenience, organic and natural

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features Sales of Home Care by Category
Across all home care categories, Vietnamese consumers are seeking more choice Retail Value RSP - VND billion - Current - 2018 Growth Performance
among different types of products and closures that can provide them the most
convenience, and especially avoiding wastage is an attractive factor due to the Air Care
571.9
increasing costs of living. Generally, the types and formats of products that can ease
consumers’ household workload are expected to record strong growth, with consumers Bleach
122.7
still being wary of the quality of multi-functional products. As a result, consumers
require clear information and origin of the products they use daily, especially in air care Dishwashing
3,997.9
and laundry care. On the other hand, the healthy living trend spurs growth of organic
brands where they are claimed to be chemical-free, natural, hypoallergenic and Home Insecticides
2,537.9
imported from Thailand, South Korea and Japan. In addition, the rise of internet
retailing has also provided a much-needed platform for organic brands to market Laundry Care
16,503.8
themselves and a channel for sales, in contrast to the limited physical shelf space of
supermarkets. Polishes
266.9
Surface Care
Value growth expected over the forecast period 2,554.5

As the home care market in Vietnam is reaching a state of maturity, volume demand for Toilet Care
699.8
home care products will remain stable over the forecast period. On the other hand,
value growth of home care products is expected to rise as Vietnamese consumers enjoy 0% 10% 15%
rising income levels and urbanisation rates. In addition, consumers are also willing to HOME CARE 27,255.2 CURRENT % CAGR % CAGR
pay more for eco-friendly household products that meet their expectations. In YEAR % 2013-2018 2018-2023
response to increasing car ownership, car and gel air refreshers will also see higher GROWTH
demand. To reach more Vietnamese households, a brand must offer the following
features: convenience, competitive pricing, being aligned with natural ingredient
trends, and innovative packaging.
Competitive Landscape
SOURCES
Company Shares of Home Care
Sources used during research include the following: % Share (NBO) - Retail Value RSP - 2018

Summary Research Sources Unilever Vietnam Interna... 45.6%

Procter & Gamble Vietnam... 10.2%
Official Sources Customs Import Clearance Report
Genera l Sta tis tics Office of Vietna m Dai Viet Huong Co Ltd 7.0%

Minis try of Hea lth Vietna m SC Johnson & Son Vietnam... 5.3%
MOT Informa tion Center Lix Detergent JSC 3.5%
Tong Cuc Tong Ke Fumakilla Vietnam Pte Lt... 2.8%
Viet Bra nd
AMG Vietnam Co Ltd 2.7%
Vietna m Cus tom Office
My Hao Cosmetics Co Ltd 2.7%
Vietna m Living Sta nda rd Survey
Mosfly Vietnam Co Ltd 2.5%
Trade Associations Doa nh Nha n Sa i Gon
Vietna m As s ocia tion of Fra gra nce Es s ence & Cos metics Net Detergent JSC 1.7%

Vietna m Cha mber of Commerce Vico Ltd Co 1.5%

Vietna m High Qua lity Products As s ocia tion Lion Corp 1.4%
Vietna m Pulp & Pa per As s ocia tion Aval Vietnam Co 0.9%
Trade Press Alfa La va l Ma ga zine
International Consumer P... 0.8%
Ba n Sa c Thuong Hieu
Kao Vietnam Ltd 0.5%
Ba o 24g
Duong Thanh Co 0.5%
Ba o Da t Viet
Ba o Dien Tu Sa i Goi Tiep Thi Media
Nam Dinh Biological Tech... 0.5%

Ba o Ha Noi Moi Rang Dong Spca Co Ltd 0.5%

Ba o Tin Moi Goodmaid Chemicals Corp ... 0.5%
Binh Thua n Toda y Others 8.7%
Ca feF
Da Na ng News pa per
Dien Da n Doa nh Nghiep EShop
Dien Da n Kinh Te Vietna m
FPT Securities
Fres h Pla za
Gia o Duc Vietna m
Ha i Phong News
Huma n Development Report
Jus t Style
Kinh Te Sa igon
La o Dong News
Ma rketing Chien Luoc
Ma rketingvietna m.net
Mega fun
Nghe An Online
Ngoi Sa o News

© Euromonitor Interna onal 2019 Page 2 of 3

 Official Sources Customs Import Clearance Report Brand Shares of Home Care
Nguoi La o Dong % Share (LBN) - Retail Value RSP - 2018
Priva te La bel Buyer Omo 20.3%
Sa i Gon Gia i Phong News pa per
Sunlight 10.1%
Sa igon Ma rketing
Comfort 9.8%
Sa igon Tiep Thi
Aba 7.0%
Sa igon Times Da ily
Sa n Pha m Moi Downy 6.5%

Ta p chi Kinh Doa nh Lix 3.5%

Tha nh Hoa News pa per Jumbo 2.8%
Tha nh Nien News Gift 2.7%
Viet Ba o
Mosfly 2.5%
Viet Na m Thuong Hieu
Surf 2.4%
Vietna m Cha nnelNet
My Hao 2.4%
Vietna m Economic News Online
Vietna m Inves tment Review Ariel 2.2%

Vietna m Media Raid 2.2%

Vietna m Net Net 1.7%
Vietna m News Duck 1.5%
Vietna m Stock Ma rket News
Vim 1.4%
Vietna m Televis ion Corp
Falcon 0.9%
Vietpres s
Tide 0.9%
Vnexpres s .net
Vnma rketer
Vico 0.9%

Web So Sa nh Others 18.1%

Xa Lua n
Ya hoo! Viet Na m Hoi & Da p Increasing share Decreasing share No change

Source: Euromonitor Interna tiona l

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