2

Key Movement in Finding Growth Pocket in Winning in the 2022 Preparation

FMCG Industry the Amidst of Next Normal Transformation of Channel and Outlook
in Shoppers Landscape

4
Before we start…Where are our Insights today coming from?
Continuous and representative tracking records Covering the important Ws
since 1999

Looking from the

perspective of • Actual real (not claimed)
SHOPPERS: take-home purchase
towards more than 100
FMCG categories.

• Over 1 Million
purchase records
annually in National
Thailand.

5
List of Categories Tracked in Take Home Panel
All Packaged Food All Packaged Food All Beverage All Home Care All Personal Care
Take Home FMCG Total Snack Total Cooking Needs Total Non Alcoholic Beverage Total Household Chemical Total Hair&Body Care
Biscuits Rice Bottle Water Fabric Detergent Shampoo
Potato Chips Cooking Oil Carbonated Soft Drinks Fabric Softener Hair Conditioner

113 Extruded Snacks

Rice Cracker
Prawn Cracker
Cuttle Fish
Fish Snack
Sugar
MSG
Bouillon
Seasoning
Meal-maker
Juice
RTD Tea
Instant Tea
RTD Tonic Food Drink
Instant Tonic Food Drink
Laundry Additives
Bathroom Cleaner
Floor Cleaner
Glass Cleaner
Kitchen cleaner
Hair Colorant
Hair Styling
Body Wash
Liquid Hand Soap
Bar Soap
Categories Seaweed
Other Fish/Seaweed Snack
Fish Sauce
Oyster Sauce
RTD Coffee
Instant Coffee
Multipurpose Cleaner
Dish Wash Detergent
Body Scrub
Deodorant
Popcorn Stir Fried Sauce Coffee Beans Air Freshener Toothpaste
Nut Soy Bean Sauce Coffee Creamer Insect Control Toothbrush
Others Snacks Seasoning Sauce Energy Drink Total Paper Goods Mouthwash
Ice Cream Chili Sauce Sport Drink Toilet Tissue Hand&Body Moisturizer
Cup Yogurt Vinegar Functional Drink Facial Tissue Sun Protection
Total Instant Food Ketchup Soy Milk Total Batteries Talcum Power
Instant Porridge Dressings Cereal Milk Batteries Body Cologne
Instant Jok Coconut Milk Liquid Milk Shaving Products
Instant Soup Other Cooking Products Drinking Yogurt Total Cosmetics
Instant Noodles Butter Condensed Milk Facial Cleanser
Total Canned Food Margarine Total Health Supplement Facial Moisturizer
Canned Fruit Jam Infant Formula Toner
Canned Vegetable Spread Adult Milk Powder Facial Mask
Canned Fish Total Pet Food Cereal Beverage Powder Eye Moisturizer
Pet food Essence Of Chicken Make Up
Bird's Nest Total Diaper & Feminine protect
Total Alcoholic Beverage Baby Diaper
Whisky Adult Diaper
Beer Feminine Protection
Wine
Alcohol Pops

Source : Kantar, Worldpanel Division – Household Panel – National Thailand 6

List of Channels/Retailers Tracked In Take Home Panel
TOTAL Hypermarket TOTAL Supermarket TOTAL Convenient Store TOTAL Provision Store TOTAL Online Channel TOTAL Other Channels
Take Home FMCG Hypermarket National Supermarket National Convenient Store Provision Store Online Shopping Other Channels
Tesco Lotus HPM Talad Lotus 7-Eleven Provision Store Tesco Online Gift

82
Big C HPM Tops Lotus Express Big C Online Co-Operation St
Makro Super Khum Family Mart TOTAL Health&Beauty Store Tops Online Wholesale St
Super Khum Wholesale/ Home Fresh Mart Mini Big C Health&Beauty Store Central Department Online Special Event
Top Superstores Maxvalu Tops Daily Watson's JD Central Online Flea Market
Other HPM Foodland Lawson 108 Boots 7-Eleven Online Kiosk & Stall
Big C Market CP Fresh Mart & Plus Pure Makro Online Mobile Stall & Peddler
Major TOTAL Department Store Gourmet Supermarket Took-Dee Mee Mardtratharn Other Health&Beauty Store Lazada Drug Store/Pharmacy
Retailer Grouping Department Store Villa Market Other National CVS Oriental Princess Facebook Local Cosmetics Store
Central Dept Store Other National Supermarket Beauty Buffet Instagram Others
The Mall Dept Store Local&UPC Convenient Store Other Cosmetic&Beauty Store Line
* ‘Gift’ channel is excluded when Other Department Store (C) Akekaparb Shopee
calculate average number of retailers Local&UPC Supermarket (N) Betong TOTAL Direct Sales Tiktok
shopped at. (C) Chaisaeng (NE) Tiahahuad Direct Sales&Delivery Other Online Shopping
(C) Phoenix (NE) Mill ka Moss Direct Sales&Delivery
(C) CJ Supermarket / Express (S) D-Mart
** Direct sales & Delivery is different
(N) Vithitep Other Local CVS
from online delivery (eg. Yakult lady
(N) Chaiyaphong Minor CVS & Mini Mart
delivery is included.) (N) London
(N) Thaisaengthong
***Local & Upcountry retailers rely (N) Seri
heavily on one of the following (NE) Ngee-soon
regions: (S) Sahathai
Central (C) (S) Leewiwat
North (N) (S) Thaisomboon
(S) Sahamitr
North East (NE)
Other Local Supermarket
South (S)
Minor Supermarket

Source : Kantar, Worldpanel Division – Household Panel – National Thailand 7

How to Grow Sales for Categories/Brands/Retailers

# OF COMSUMERS FREQUENCY BASKET SIZE PRICE

Sales Value = Penetration X Purchase Frequency X Average Purchase Pack

per Occasion
X Average Price
per Pack

# OF BASKET/
BASKET SPEND
STORE TRAFFIC

Purchase Occasion X Average Purchase

Spend per Occasion

Retailers More/Less Chance to my Stores More/Less No. of Categories Right Promotion/Pack Size for my Category

Shoppers Channel/Retailer Choice Category/Product Choice Price/Pack Size Choice

Manufactures More/Less Chance for my Brand Higher/Lower Category/Brand Penetration Right Promotion/Pack Size for my Brand

Source : Kantar, Worldpanel Division – Household Panel – National Thailand 8

Key Movement in FMCG
Industry

9
 Take-Home Grocery market has highest growth since 2014.
Government subsidy campaign is the main factor for driving growth in 2021 and unlockdown in late Q3’21 help market
surge from 2.7% growth in Q2’21 to 3.4% in end of Q4 2021.
15 National Thailand Take home FMCG
Value Growth MAT YoY % NEGATIVE FACTORS
11.0
Lower Consumer Confidence Index*
10
7.7 Low Tourism
6.2
5.5 5.3 Covid-19 Delta Outbreak
4.7
5 3.5
2.6 High unemployment rate**
2.2 2.1
1.7
0.9
0.3
0
KEY GROWTH FACTOR
-0.4
-1.9 Welfare Card & Government
83% 95%
HH Debt : Impact HH Debt : Government
Subsidy programs
-5 Influenza A vírus Income
Financial of drought Income Subsidy
outbreak COVID-19
Crisis Welfare Card Campaign
Campaign
Unlockdown & Open for tourism
Key macro 1st Car HHs Debt To crop & HHs Debt Export
events Political protest Flood Scheme Politic unrest increase agriculture increase Slowdown
Slightly higher inflation rate (1.2%)**
-10
FY'07 FY'08 FY'09 FY'10 FY'11 FY'12 FY13 FY14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21

Source : Kantar, Worldpanel Division – Household Panel – National Thailand – Total FMCG 113 Categories
*University of the Thai Chamber of Commerce 10
**Bank of Thailand - Monetary Policy Report Q4 2021
Unprecedented growth with more OOH to in-home occasions
A massive shift of shopper lifestyle have significantly impacted purchase pattern
Every Shopping trip counts!

TOTAL TAKE-HOME GROCERY IN FY2021

Total Spend Frequency Spend per Trip

+3.5% -6.8% +10%

2021 vs 2020 2021 vs 2020 2021 vs 2020

2.1% -3.2% 4.1%

2020 vs 2019
2020 vs 2019 2020 vs 2019

Source : Kantar, Worldpanel Division – Household Panel – National Thailand – Total FMCG 113 Categories 11
Food and Beverage sector are the main source of FMCG growth in Thailand
Eating and Cooking at home becomes a new norm. Healthier and Kid Beverages are booming.
Personal care could recover next year.
FY 2020 FY2021
MAT FMCG Sales Value Growth % – National Thailand
11.0
Personal care -0.6 -1.1

7.7
Home care 1.9 1.0
6.2

3.5
Food 6.0 9.2
2.6
2.2 2.1
1.7
0.9
0.3
Beverage 1.5 3.8
-0.4

FY'11 FY'12 FY13 FY14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 *LMC: Limited Movement Control

Source : Kantar, Worldpanel Division – Household Panel – National Thailand – Total FMCG 113 Categories 12
More efficient and stay-home lifestyle even more in 2nd year of covid.
Food and Beverage can still bring footfall to the stores

% Change in Driver

Food 11.6 Beverage Home Care Personal Care

8.1 8.1 8.4
6 6.9
5.8
4.8
2.4 2.8
0.8 1.7
0.5 0

-1.2 -1.9 -1.9 -1.9

-3.1 -3.5
-5 -5.3
-7.7 -8.2
20 vs YA 21 vs YA 20 vs YA 21 vs YA 20 vs YA 21 vs YA 20 vs YA 21 vs YA

Spend per Buyer Frequency Spend per Trip

Food Beverage Homecare Personal Care

Source : Kantar, Worldpanel Division – Household Panel – National Thailand – Total FMCG 113 Categories 13
 14

12 w/e 2022/01/02
The highest impact goes to Food product, followed by Beverage, shopper tend to stock up more than other categories as

12 w/e 2021/12/05
12 w/e 2021/11/07
12 w/e 2021/10/10
12 w/e 2021/09/12
12 w/e 2021/08/15
12 w/e 2021/07/18
12 w/e 2021/06/20
12 w/e 2021/05/23
12 w/e 2021/04/25
Every wave, every lockdown there always stock up behaviour in all sector.

12 w/e 2021/03/28
2nd+ Outbreak

12 w/e 2021/02/28
Beverage

12 w/e 2021/01/31
12 w/e 2021/01/03
12 w/e 2020/12/06
Food

12 w/e 2020/11/08
Thailand Total Spend in Take-Home Grocery

12 w/e 2020/10/11
12 w/e 2020/09/13
Total Personal Care

Source : Kantar, Worldpanel Division – Household Panel – National Thailand – Total FMCG 113 Categories
12 w/e 2020/08/16
12 w/e 2020/07/12
12 w/e 2020/06/14
12 w/e 2020/05/17
12 w/e 2020/04/19
cooking and eating at home become a new normal.

12 w/e 2020/03/22

Total Household
12 w/e 2020/02/23
12 w/e 2020/01/26
1st Outbreak

12 w/e 2019/12/29
12 w/e 2019/12/01
12 w/e 2019/11/03
12 w/e 2019/10/06
12 w/e 2019/09/08
12 w/e 2019/08/11
12 w/e 2019/07/14
12 w/e 2019/06/16
12 w/e 2019/05/19
12 w/e 2019/04/21
12 w/e 2019/03/24

5
0
15
45
40
35
30
25
20

10
Billions
Finding Growth Pocket in the
Amidst of Next Normal
Demographic Shifting &
Impact on Shopper Behaviors
Thailand : Urbanizing, smaller household, low birth rate and aging society.
Thai citizen moving to urban area for more opportunity which make household size getting smaller. Furthermore, young
couple don’t want to have child anymore led to lower birth rate while Thai’s public health service and more accessible as a
state welfare make older generation live longer which make aged population higher than kids in Thailand.

Urbanization HH Size Low Birth rate* Ageing Society*

50
Urban/Rural Household Household Size Contribution

Millions
850
Contribution 45

Thousands
800 40
750 35

700 30
Number of Buyer
Number of Buyer

25
650
20
600
15
550
10
500 5
450 0

2015
2011
2012
2013
2014

2016
2017
2018
2019
2020
FY 19 FY 20 FY 21 400
FY 19 FY 20 FY 21

2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Small 1-2 Member HH Child (0-14 y/o)
Medium 3-4 Member HH Working Adult (15-59 y/o)
Urban Rural Aged Adult (60+ y/o)
Large 5+ Member HH Birth Rate

Source : Kantar, Worldpanel Division – Household Panel – National Thailand

*Thailand, National Statistic Office (NSO) - http://statbbi.nso.go.th/staticreport/page/sector/en/01.aspx 16
Polarization of consumer behaviors

More comfortable
More concerned More Conscious
Spend more in 1st and
Spend less in both Growing in spend but 2nd year of covid, and
year of covid and spend less than 1st even more in 2nd year
even less in 2nd year. Covid Greater Bangkok
Rural Area
Upcountry Urban Small Household (1-2 members) Urban Mid Income
Large Household (5+ members) Family with Baby (0-3 y/o) Medium Household (3-4
Young Shopper Age (<35) Family with Teenager (13-19y/o) members)
Urban Low/High Income Old Couple Old shopper age (35+)

Source : Kantar, Worldpanel Division – Household Panel – National Thailand 17

How household size matter? Mid size HH still the main spending source in FMCG market while
Small HH has biggest buyer base, but average spending is lower.
Unfortunately, Large household (5+ members) is the most valuable buyers in every sectors, but this group is declining base
on lower number of HH.

Market contribution by HH Size FMCG Index vs.

Household
100%

Small HH (1-2
75%
Member)
Small HH Mid HH Large HH
Top 5 % Increase Occasion
50%
Adult Diaper Liquid Hand Soap Liquid Hand Soap
Mid HH (3-4 Liquid Hand Soap Butter Rice Soup
Member) Margarine Cereal Milk Spread
25% Cereal Milk Spread Others Snacks
Spread Rice Soup Butter

0%
FY19 FY20 FY21 Large HH (5+
Member)
Large HH (5+ Member)
Mid HH (3-4 Member)
Small HH (1-2 Member)

Source : Kantar, Worldpanel Division – Household Panel – National Thailand 18

Time change people change - Each step of your life has different needs
Definition and Introduction to Lifestage

Pre-Family Young & Mature Family Post-Family

with Baby with Kids with Teenager

Younger Single Younger Couple Mixed Adult Older Couple Older Single
(0-3 y/o) (4-12 y/o) (13-19 y/o)

1 Member 2 Member 3 Member or more 2 Member 1 Member

Key shopper age under 50 y/o All key shopper age Key shopper age over 50 y/o

Source : Kantar, Worldpanel Division – Household Panel – National Thailand 19

 Single/Couple HH is spending more in take-home grocery, Younger HH seems to spend more than
any other group even more than 2020.
Older shoppers, family with baby are more concerned in the second year especially old couples that adjust their FMCG
basket. While Young couples and Family with child 4-12 more comfortable to spend more than last year of Covid.

% Chg. in Spend % Chg. In Frequency % Chg. in Spend per Trip Top 5 % Increase Occasion
Younger Families w Baby/Kid 0- Families w
Older Singles/Couples
All Lifestage in TH Singles/Couples 12 Teen/Adults
Liquid Hand Soap Sterilized TFD Margarine Spread
Others Snacks Liquid Hand Soap Liquid Hand Soap Adult Diaper
Younger Singles
Dressings Cereal Milk Spread Powder Health Tonic
Cereal Milk Adult Diaper Mayonnaise Cereal Milk
Younger Couples Chili Sauce Mayonnaise Jok Functional Drink

Families w Baby 0-3

Families w Child 4-12

Families w Teenager 13-

19

Mixed Adults Families

Older Couples

Older Singles

21 vs 20 20 vs 19

Source : Kantar, Worldpanel Division – Household Panel – National Thailand 20

Urban/Rural buyers have unique behaviour.
Urban buyers have larger basket while Rural are more frequent buyer
G.Bkk buyers already adopt to live in pandemic time base on their purchase behaviour is stable in 2021 while upcountry
urban and rural buyers still reducing frequency and increasing trip spend since they go out less often.

FMCG % Spend Contribution Frequency vs Trip Spend Top 5 % Increase Occasion

by Region Liquid Hand Soap Grater Bangkok
100% FY2019
Popcorn Main growing category still in Food sector with
FY2020 additional taste to the meal like sauce or easy cooking
Spread
FY2021 like Spread and Butter for breakfast or afternoon
Chili Sauce
snack
Butter
75%

Upcountry Urban
Liquid Hand Soap Even though purchasing behaviour is like rural buyers
Mayonnaise but if we look in their basket, upcountry urban still
50% Cereal Milk have consumption and demand like G.BKK buyers. On
Butter the other hand, this group of buyer is the most
Toner valuable and potential buyers in Thailand

25%

Rural
Cereal Milk It’s un evitable that this group of buyers is driving in-
Others Snacks store traffic base on their frequency is the highest
0% Adult Milk Powder among other regions. The top categories bought also
FY20 FY21 G.Bkk UPC Rural G.Bkk UPC Rural show a sign of healthier product need.
Urban Thailand Urban Thailand Facial Tissue
G.Bkk UPC Urban Rural Thailand
Sun Protection

Source : Kantar, Worldpanel Division – Household Panel – National Thailand 21

Finding Growth Pocket in the
Amidst of Next Normal in
Shoppers

Pack Size Strategy

With decline of shopping frequency & growth of basket spend, Upsizing is more common. Thai
shoppers have paid higher price per Unit & Kg/Liter (sign of Trade up), compared to Pre-COVID and
1st year of COVID.
130
Down Size Trade Up
Decreasing Price per Unit Increasing Price per Unit
120 Increasing Price per Vol Increasing Price per Vol

110 12% → 14% 45% → 51%

Average price Of categories Of categories
paid per 100
volume
(KG/Liter)
90
22% → 12% 21% → 22%
Change
Of categories Of categories
80 Trade Down Up Size
Decreasing Price per Unit Increasing Price per Unit
70 Decreasing Price per Vol Decreasing Price per Vol
50 60 70 80 90 100 110 120 130 140 150
Average price paid per unit Change

1st year of Covid → 2nd year of Covid

%Chg. FY20 vs FY19→ %Chg. FY21 vs FY20

Source : Kantar, Worldpanel Division – Household Panel – National Thailand 23

Driving up-sizing or trading up is a better way to drive growth. More categories in Food & Beverage
and Personal care traded up while Homecare observed more categories downsizing in this year.

%Number of category

13% 14%
21%
25%

40%
47%

50%
36% 57%
53%

33%

40%
21% 29%
11% 13% 14%

16% 15% 13% 13% 14%

11%

Food&Bev 1st yr Food &Bev 2nd yr HH 1st yr HH 2nd yr Personal Care 1st yr Personal care 2nd yr

Down Size Trade Down Trade Up Up Size

Source : Kantar, Worldpanel Division – Household Panel – National Thailand 24

Not all categories will benefit from trade up or upsize and get more buyer and sales, and some category
benefits from trade down or downsize strategy. Understanding consumer changing in demand to identify
role of SKUs and pack size strategy in product portfolio is crucial for brand to grow.

130
Down Size Trade Up
Decreasing Price per Unit Coconut Milk Increasing Price per Unit
120 Increasing Price per Vol Ketchup Increasing Price per Vol
Spread
Butter Infant Formula LQ Soap
110 Hair Styling
Bottled Water Deo H&B Lotion
Average price Pet Food
Toilet Tissue
paid per 100
volume RTD TFD Cereal Margarine LQ Hand Soap
Facial Tissue
(KG/Liter) Condensed Milk Body Scrub
Change 90
Make up Instant Tea
Insect Control
Salty Snacks
80 Trade Down Seasoning Up Size
Decreasing Price per Unit Increasing Price per Unit
70 Decreasing Price per Vol Decreasing Price per Vol
50 60 70 80 90 100 110 120 130 140 150
Average price paid per unit Change

More buyer, Growing in Sales

Less buyer, Declining in Sales

Source : Kantar, Worldpanel Division – Household Panel – National Thailand 25

Different pack sizes will play different roles in building sales. Knowing what the role of each pack
size will impact how we distribute, price and develop our pack strategy

New Trial that Category

Consumption rate
leads to repeat consumption
Pack size impact on
Influence on first Trial consumption rate Is
(that results in repeat) the product used
faster in this size?

Brand Loyalty Price Premium

How long it takes a Does the Pack size
buyer to return to buy attract a price
the same brand (# insensitive shopper?
purchase cycles) for Which pack sizes can
next purchase we look to increase
prices on first?

Source : Kantar, Worldpanel Division – Household Panel – National Thailand 26

Winning in the
Transformation of Channel
Landscape
Evolution of Retailing and Consumer Behavior

Hypermarket and Supper Modern Trade Digital & Algorithm

Local Fragmented E Commerce
Market +CVS/Vending Machine commerce
Wet Market Lotus’s, Big C, Tops Convenient 7e Pure Play Predicting customer preferences
Mom & Pop Shop Discount Stores Vending Machine Social Commence showing the product at the right
E-Retailer time

“I buy it when I need it” “When I need it, I will buy “When I want it, I will buy “I can get the best deal “When I need it, it is there
it cheap.” it right away.” fast and from any just for me.”
channels”
Hybrid and Seamless Channels to meet the personalized needs of each of one individual – Mass Individualization
Retailer Centric Consumer centric
Product Centric

Source : Kantar, Worldpanel Division – Household Panel – National Thailand 28

Government supports have not shifted Thais away from Traditional Trade.
Thais also enjoy new channel like e-commerce.
(+30% more of Thais added e-commerce into their channel repertoire.)

Modern Trade Traditional Trade Online

% Change
39.3
30.9
4%

3% 6.0 5.2 6.4

0.1 0.8
3%
-1.6 -1.8
Modern Trade Traditional Trade Online

% Sales Growth % Buyer Growth % Spending per buyer

45%
48% 47%
49% % Penetration +1.9
50%
51%
67.8
60.1
million
HHs
FY19 31.6
24.3
FY20
FY21 2.3 2
6 6.3

MT Only TT Only MT+TT MT+TT+Online

2020 2021
Traditional trade = Provision Store, Direct Sales, Others (Drug store, wet market, etc)
Modern trade = Hyper, Super, CVS, Department Store, H&B stores

Source : Kantar, Worldpanel Division – Household Panel – National Thailand 29

Government Support together with Covid 19 situation, Local modern trade and provision store (proximity)
gain more share over the past 5 years. Offline stores not only compete with physical stores, but also with
online.
% Spend Contribution | National Thailand | Take Home Groceries| MAT Q4’2016-Q4’2021
Q4'2016 Q4'2017 Q4'2018 Q4'2019 Q4'2020 Q4'2021

“pay more, get more”

Q3-4 2021 for Modern Trade

Hypers National Chain National Chain Local Local Convinient Provision Store Health & Beauty Online Shopping Direct Sales
Supermarket Convinient Store Supermarket Store Store
National Chain Modern Trade Local SPM/CVS & Traditional Trade Category Killer/Emerging

Source : Kantar, Worldpanel Division – Household Panel – National Thailand 30

Half win, half lose – shoppers switch their store choice
Shoppers re-assess their store choice with more relevant criteria
Penetration
Impact of penetration towards a retailer
Key Retailer A
80
Key Retailer B
60
Buyer Growth% vs YA

40 Spend (THB)
Key Retailer A
20
Key Retailer B

0 Sales increased in line with the

-100.00 -50.00 0.00 50.00 100.00 150.00 shopper base expansion
-20
Average # of retailer
consumer shopped
New Norm In the Past
-40

Stock availability Shopping experience

-60 8.0 7.6 Accessibility vs Wide range of choice
2016 2021
-80
Reasonable Price Best promotion
Spend Growth% vs YA

Source : Kantar, Worldpanel Division – Household Panel – National Thailand 31

Online channel complements off-line store visits
E-commerce solves the price comparison & stock availability concern

Shopper penetration to eCommerce format Avg. Number of category both through online
Each HH buy +1 more of category online in 2021

Marketplace
3.7
(Pureplayer) 2.9
2.4
21% Brick & Click
4% FY19 FY20 FY21
0.5x 1.5x
+6.3 Pts 1.6 million HHs
Food & Bev

Social Brand
Commerce Website +3.1 Pts 0.8 million HHs

18% 1.7% Home Care

0.5x 3x
+5.5 Pts 1.4 million HHs
Personal Care

Source : Kantar, Worldpanel Division – Household Panel – National Thailand 32

Case study – Freshippo (Hema): Offline store adjustment in Mainland China
The surge of delivery services fuelled by the rise of eCommerce is lowering the incentive of shoppers to engage in such
activities on their own – buying from the Hypermarket is not as attractive anymore.
Extremely Digitized
40 e-Commerce % share in FMCG – Urban population Hema - % Penetration
7.9
• Interaction between shoppers
35
• Product information by scanning QR
4.8 code, getting product origin and
2.7 delivery time to the store
30

25 South Korea Seamless & Hybrid Channel

2019 2020 2021
• Revamp retail space—
Frequency

20 Revamped Retail Space to dinning area doubling up as distribution

center
Chinese
15
Mainland
• Ensure fast delivery in a few
hours when buying online
10
Thailand Taiwan
Indonesia
5 Emphasize Freshness
Malaysia
Vietnam • Hosting dining areas
Philippines Bubble Size = Online % of FMCG
0 • Buying fresh meat and
0 20 40 60 80 100
Urban Only Penetration seafood to cook and eat at
the stores

Source: https://www.Chinese Mainlandbc.com/2018/08/30/inside-hema-alibabas-new-kind-of-superstore-

robots-apps-and-more.html 33
E-commerce adoption is spreading nationwide
Different platforms and purchased sectors are preferred among different shopper's profiles

eCommerce in Urban vs Rural Category Preference

2019 2021 Total Food & Bev Total Household Total Personal Care

% Spend index against all online channel

Urban
Rural
1.9x

e-Retailer Online Pure Player Social Commerce

Platform Preference in Urban vs Rural

Total Food & Bev Total Household Total Personal Care
Urban Rural
% Spend index against all HH
% Spend index against all online channel

e-Retailer Online Pure Player Social Commerce Small HH Mid HH Large HH

Source : Kantar, Worldpanel Division – Household Panel – National Thailand 34

Where is your category?
Congratulate to those can win both offline, online and omnichannel shoppers.

# of categories growing # of categories whose # of categories whose # of categories whose

both online and offline in online growth growth came from offline online cannot
2021vs2020 compensate offline alone compensate offline
decline decline

Offline Online Offline Online Offline Online Offline Online

47
Liquid Milk
Cooking Oil
6
Toothpaste
6
Beer
27 Make Up
Baby Diaper Dish Wash Facial Moisturizer
Bottled Water Instant Tea Dressings Detergent
Rice
3-in-1 Coffee

Source : Kantar, Worldpanel Division – Household Panel – National Thailand 35

2022 Preparation
and Outlook
Significant number of government subsidies was added last year and will play a crucial role
FMCG market and channel dynamics.

Estimated Subsidy in THB B

500
2019 2020 2021 2022
Rao Rak Kan
450
Rao Chana* 37 Mar 22nd onwards
400 Co-Pay (Phase 1, 2, 3)
Welfare Card - add. THB 300/500
350
Welfare Card - basic THB 200/300 Feb-May – up to ฿7,000 over 6~8 weeks
300 213

250
Phase 1 – 10m Phase 2 – additional 5m eligible to receive ฿ Phase 4 – Mar,
200 eligible up to ฿
3,500. Existing 10m receive ฿500 from Jan to
453B Apr
3,000 from
150 Mar; Phase 3 – 28m eligible for $4,500 from Jul
Oct-Dec
141 – Dec
100 Additional ฿ Additional ฿ Additional ฿500 a month in Jan – Mar and
26 500 a month 500 a month Additional ฿300 a month in Nov, Dec
50 21 28 in Aug + Sep in Oct, Nov,
14
32 33 34 34 Dec
0
2018 2019 2020 2021

37
FMCG is expected to grow 2.1% by the end of 2022, under the pretense that most factors remain somewhat
the same (status quo) and the recent rise of food inflation are short-term, and that Omicron will have no
significant influence on movement control.
2022 Forecasting Factor
3.5

2.2 Inflation Rate GDP Consumer

2.1
Confidence Index
1.9% 3.5% 68.7

Food Inflation Welfare Card Residential

2020 2021 2022
Campaign Mobility
Forecast
1.6 THB 271 Billion -0.3

Source : Kantar, Worldpanel Division – Expert Solution – Thailand Multivariate Forecast Simulator
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Package Food and Beverage continue to be priorities for this year. Personal care will start to bounce back after
consecutive years of decline while Homecare still stable and Dairy might decline from global trend in decreasing Dairy
Product especially Liquid Milk.
Beverages Dairy Package Food Personal Care Home Care
2020
11.6 2021
2022 Forecast

5.6 5.3
3.9 3.4
2.8 3.1 2.5 2
1 0.7

-0.7 -1.4
-2.6 -2.1

Urban area may struggle growth this year which impacted by Urban Low Income ( more concerned group). While Rural
area have sign of high growth majorly impacted from Mid-Low Income, driven by government subsidy campaign.

Urban High Income Urban Mid Income Urban Low Income Rural High Income Rural Mid-Low Income
10.7

6.5 6.5 6.7

4.3 4.4
2.2 2.5 2.3
1.7 1.3 1.6

-1.7 -2.4
-3.4

Source : Kantar, Worldpanel Division – Expert Solution – Thailand Multivariate Forecast Simulator 39
So What?
Summary, Implication and Execution

•
•

•
•

Customer Strategy

40
So What?
Summary, Implication and Execution

• and turnaround
and forward
• will benefit from trade up or upsize
and get more buyer and sales, and
benefits from trade down or downsize strategy
•
(Trial, Build consumption, Brand Loyalty and price
premium), will impact how we distribute, price and
Product Strategy develop our pack strategy

41
So What?
Summary, Implication and Execution

• will still be important for

Thai consumers
•
- offering accessibility and price comparison
• Large format readjust their spaces to strengthen its assets-
encouraging and
•
to win online, offline and omni shoppers
Channel Strategy with minimal cannibalization

42
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