Kantar Worldpanel T +84-28 3930 6631

58 Vo Van Tan F +84-8 3930 6632

District 3 Vietnam@kantarworldpanel.com
Ho Chi Minh City www.kantarworldpanel.com.vn
Vietnam

Press release
21 November 2017

Global e-commerce grocery market

grows 30% up to 4.6% of FMCG E-commerce sales

Online FMCG sales reach 0.5% share in Vietnam, recorded a

significant uplift of 69% in comparison to last year

 E-commerce growth outpaces the overall FMCG market in the 12 months to March 2017
 Online sales now contribute 36% of global grocery growth
 In 2025 e-commerce will represent 10% of all FMCG spend
 South Korea and China will continue to lead the way of FMCG E-commerce growth
 Vietnam e-commerce, though small in size, is among top growing e-commerce markets
globally

Sales of groceries through e-commerce platforms grew by 30% in the 12 months to March
2017, according to the report “The Future of E-commerce in FMCG” by Kantar Worldpanel,
published today.

The study shows that e-commerce now accounts for 4.6% of all FMCG sales globally.
Whilst the e-commerce channel is growing, the FMCG market as a whole is sluggish,
increasing just 1.3% during the same period. E-commerce now contributes to a record 36%
of global FMCG growth and will continue to outpace growth in offline FMCG retail. “Our
projections show that in 2025, online FMCG will be a USD 170 billion-dollar business and
hold a 10% market share” says Stéphane Roger, Global Shopper and Retail Director at
Kantar Worldpanel.

Global hotspots
In terms of absolute value growth, the top six contributors are all leading power economies,
led by China and the US. The other top performing countries are South Korea, the UK,
Japan and France. Last year, value increased by 52% in China, 41% in South Korea, 8% in
the UK, 7% in France and 5% in Japan and in the US.

However, the online grocery sector is also expanding into new markets. There has been
significant value growth, for example, in Thailand (+104%), Malaysia (+88%) and Vietnam
(+69%) where e-commerce is in early stages.

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 Kantar Worldpanel T +84-28 3930 6631
58 Vo Van Tan F +84-8 3930 6632
District 3 Vietnam@kantarworldpanel.com
Ho Chi Minh City www.kantarworldpanel.com.vn
Vietnam

Table 1
E-commerce % of FMCG online value share per markets (excluding fresh produce)

E-Commerce Value Share (%) 12 months to March 2016 12 months to March 2017
South Korea 14.1% 19.7%
UK 7.0% 7.5%
Mainland China 4.1% 6.2%
Taiwan 4.8% 5.8%
France 5.2% 5.6%
Spain 1.4% 1.8%
Portugal 0.9% 0.9%
Malaysia 0.4% 0.8%
Argentina 0.9% 0.8%
Thailand 0.4% 0.7%
Vietnam 0.3% 0.5%
Brazil 0.1% 0.1%

In Vietnam, e-commerce channel has evolved thanks to booming internet usage and smart
phone ownership along with massive investment of key retail players, and now takes 0.5%
of the FMCG market in 4 key urban cities of Vietnam. The percentage of e-commerce
shoppers grew from 5.4% to 8.8% of urban 4 cities population in the last year alone, and an
online trip size is at triple value of an offline basket.

VIETNAM urban 4 cities (HCM, HN, DN, CT)

1 year ending 1 year ending

FMCG excluding Fresh Food
Q1 2016 Q1 2017
E-commerce value share 0.3% 0.5%
Penetration e-commerce 5.4 8.8
Frequency e-commerce per buyer per year 2.4 2.5
Spend e-commerce per buyer per Trip - USD 15.2 14.9

David Anjoubault - General Manager of Kantar Worldpanel Vietnam commented: “Although

the size of Vietnam e-commerce market is still small compared to other formats, it holds a
strong potential because the value growth of e-commerce within FMCG is up to 69%, which
makes Vietnam become one of the countries with the highest e-commerce growth rate in
the world.
It’s now the critical time for investors to enter this promising market, while current retail
giants should gradually move their offer online & take advantage of their brand equity with
omni-channels strategy, to be successful and to defend their current position. On the whole,
consumer trust and high logistics cost for delivery model are major challenges that need to
be addressed by businesses in order to move Vietnam e-commerce forward”.

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 Kantar Worldpanel T +84-28 3930 6631
58 Vo Van Tan F +84-8 3930 6632
District 3 Vietnam@kantarworldpanel.com
Ho Chi Minh City www.kantarworldpanel.com.vn
Vietnam

2025 Forecast
Kantar Worldpanel projections show that by 2025, online FMCG will be a USD 170 billion-
dollar business, and hold a 10% total market share. The big global uplift will come from the
USA, predicted to rise from a 1.5% e-commerce share in 2017 to 8% in 2025. This can be
attributed to the successful rollout of click and collect, delivery and subscription models,
and the acceleration of disruptive models.
South Korea and China will continue to lead the way and Asia in general remains at the
cutting edge of online adoption. Vietnam e-commerce specifically, is expected to expand
from 0.5% to 2.2% share in 2025 coupled with the rise of digitization.

Other findings of the report include:

Megacities
Megacities have become natural breeding grounds for e-commerce. For example, in
London, Beijing and Shanghai, e-commerce accounts for 10% of the FMCG market.

Pure players vs. bricks and mortar retailers with online offer
“We know that e-commerce is still cannibalizing offline purchases. However, there is
growing evidence that online formats – in isolation – are no longer the best option for
winning share.
It´s about how online and offline work together to create a better shopper experience.” says
Stéphane Roger.

Categories
Personal care and baby care products continue to dominate the online basket. Young and
time-strapped families are increasingly seeking convenience when it comes to repeat
purchases of everyday households’ essentials.

Focus on Amazon and Alibaba

The perception of E-commerce has changed dramatically after Amazon’s acquisition of
Whole Foods and Alibaba’s alliance with Bailian Group. Amazon and Alibaba’s strategies
compared and an Interview with Kurt Li, Head of business intelligence at Alibaba show
some clues.

Mobile and Social Commerce

Today’s digitally adept consumers are always connected, browsing products on the move
and comparing prices. It’s in this space that FMCG brands now need to position
themselves.

Technology as a major accelerator

Advancements in technologies such as voice commerce and the Internet-of-things have
enabled e-commerce to become a more streamlined and consumer-centric industry.

ENDS

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 Kantar Worldpanel T +84-28 3930 6631
58 Vo Van Tan F +84-8 3930 6632
District 3 Vietnam@kantarworldpanel.com
Ho Chi Minh City www.kantarworldpanel.com.vn
Vietnam

Link to the report

Please click here to access to the full report.

About Kantar Worldpanel

Kantar Worldpanel is the global expert in shoppers’ behavior.

Through continuous monitoring, advanced analytics and tailored solutions, Kantar Worldpanel inspires
successful decisions by brand owners, retailers, market analysts and government organizations globally.

With over 60 years’ experience, a team of 3,500, and services covering 60 countries directly or through partners,
Kantar Worldpanel turns purchase behavior into competitive advantage in markets as diverse as FMCG and
baby products, among many others.

Visit us at
Website www.kantarworldpanel.com.vn

LinkedIn vn.linkedin.com/in/kantarworldpanelvietnam

Contact us

Nguyễn Huy Hoàng Nguyễn Thị Như Ngọc

Commercial Director Associate Marketing Manager
T +84 (0)283930 6652 T +84 (0)283930 6631 ext.665
F +84 (0)83930 6632 F +84 (0)83930 6632
M +84 (0)98524 7503 M +84 (0)98844 5401
E HuyHoang.Nguyen@kantarworldpanel.com E nhungoc.nguyenthi@kantarworldpanel.com

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