Product of Lion company

“Household and personal care are 2 categories that Lion are aim at launching in Vietnam.”

“Click in this tree to see more Lion categories and sub-categories”

Potential Market - Map visualization

“Vietnam and other countries. Please to click next slide to know more”

Potential Market- VietNam vs Other SEA Coutries- Value Contribution and Growth

" In recent years, the Vietnam economy is experiencing an upward trend, possessing one of the highest GDP growth rates of Southeast Asia, reaching 6.7% in 2019. This would mean that the Vietnamese people are getting wealthier and spending more and more. Vietnam also shows a very high FMCG consumption growth compared to other countries in the region. It shows the potential of the FMCG market in Vietnam."

Modern Trade - The number of store increasing each year

Increase of number of modern trade store, shopper penetration and frequency

With the predicted increase of 34% in the number of modern trade store compared to last year, and:

" the increase of FMCG growth (+ 14%) Sky-rocketing shoppers penetration (as can be seen on the data below) Positive customer frequency at MT store Also, there has already been a huge and diversified network of supermarkets, cvs and mini marts in urban areas. All of these together will create a qualified distribution and retail network, which will easily bring the product of Lion to urban customers."

Value change through each year in Unit Value Growth and Volume Change

" If we look into the data of the FMCG trend in Vietnam, it is clear that the nominal value growth had been getting larger compared to the year before, in both moving annual total(MAT) and year to date(YTD) figures.

In detail, while the unit value growth rate kept rising by every quarter of the surveyed period, the volume change rate also showed a positive figure over the period. This implies that the demand of FMCG in Vietnam hasn’t reached its peak, as, in normal circumstances, an increase in unit value would result in a decline in the demand and the volume change would show a negative figure."

MT and GT comparison between Unit Value Growth and Volume Change

"As for the FMCG growth in traditional trade and modern trade, the figure of both channels gave off a positive outlook for the prospect of the FMCG market in Vietnam.

In conclusion, Vietnam possesses a very potential and relatively safe FMCG market."

Super- Category break through

" - FMCG is growing, becoming more and more important industry. Deeper look into FMCG, we can see except Baby care (because of aging population is a trend nowaday), all another category have higher value growth over year

• Value contribution of Household Care remains the same (6.2% from April 17 to March 19), Value Growth of Household Care increases too (2 (April 17-> March 18)→ 5 (April 18-> March 19))
• We can choose both Personal Care and Household Care"

Household care breaks in sub-category

< font size =“3”>" - Looking at the value growth of each category in household care and personal care, we see that the market of household care is more volatile (more competitive) than personal care. For example, household insect coil, from April 17 -> March 18, led and outstripped other categories in value growth, but from April 18 -> March 19, growth value decreased dramatically, becoming a category with lowest value growth.

• It’s more difficult to predict. -> household care more fluctuate than personal care -> personal care is more suitable for Lion to enter into Vietnam "

Personal care breaks in sub-category

< font size =“3”> " - Look deeper into personal care categories, for value contribution and value growth. Value contribution of shampoo accounts for 33.7% (largest contribution), increasing to 33.8% in April 2018-March 2019, but value growth increased dramatically from -2 to 4 → there are many competitors in the shampoo market → not suitable for new entrances.

• We should choose the market that can balance between value contribution and value growth (not one increase too much, but one increase too low) → We can see that Toothpaste will be ideally first product for Lion to enter into Vietnam "

Democratic map

Democratic Map

" - Lion Corporate’s toothpaste analysis:

By analyzing the insight of Lion Corporate’s products to enter the Vietnam market, the area most fit these Truths is the Northern consumers who prefer premium products, more loyalty and better for family and long-term orientation compared to other areas."

Rural Consumers and Urbarnization

Choice: Urban *

"

High Urbanization Rate and expected high urban population and migration With the urbanization rate ranked top 1 in SEA from 2015 to 2025, the urban population is predicted to increase and take up to 40% and 50% in 2025 and 2040 respectively. Not to mention 5 million of people migrating from rural to urban areas. These will bring greater demand in urban areas as an unavoidable consequence."

Urban customer mentality

< font size =“3” > " Customers in urban areas are believed to have practical and growth mindset. Also their quality of life is rising quickly and there has been more attention to superior and foreign products, not to mention the xenophile mentality of Vietnamese people.

On the contrary, customers in rural areas tend to seek products satisfying their demand with the lowest price, which is not good for Lion’s products. If Lion’s products are good enough, then it will surely win some market share and growth if entering the urban market."

Key landscape in Traditional Trade

Wait and see

Key landscape in Modern Trade

< font size =“7”> “Wait and see”

Trend of Vietnam consumers

Democratic Map

• Superior performance;
• Sustainable materials;
• Does something no other product does;
• Social responsibility claims;
• From a specific country.
• Vietnamese consumers care a lot about the ingredients. Therefore, Lion should use differentiation strategy, focus on the origin and quality of the materials "