Vietnam e-payments and mobile wallets

Cimigo explored Vietnamese consumer behaviour towards Vietnam e-payments and mobile wallets and the future of payments. The nascent e-payments and mobile wallet market has attracted a plethora of competitors and private equity financing has followed for start-ups, whilst banks have raced to launch mobile applications to fend of increased competition from fintech players. Some banks have opted to invest in mobile wallet companies (e.g. Standard Chartered was an early investor in Momo).

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Understand the rise of e-payments and mobile wallets in Vietnam

In quarter one of 2019 Cimigo interviewed 725 consumers aged 18 to 55 in HCMC and Hanoi from economic class ABC (above 9,000,000 VND household monthly income) to understand the rise in e-payments and mobile wallets.

Download the report here

Revenue is generated through commissions collected from merchants and charging users service fees when they conduct online transactions and payments through mobile wallets or payment gateway platforms.  Most key players have access to a wide customer base either through:

  • A pre-established online presence through other developed services and platforms e.g. VTpay via the VietTel mobile network operator, Samsung Pay via pre-installation on smartphone handsets, or Zalo Pay through instant messaging application and other properties within Vinagame’s eco-system (although they are yet to be fully integrated).
  • Partnerships with other large corporations e.g. Grab Pay by Moca.

There are 30 licensed non-bank payment intermediary services according to the State Bank of Vietnam, with around 20 of these services offer mobile wallets. See a detailed list here.  More than 40 banks also provide mobile payment services. Four main models are apparent;Key players in e-payments Vietnam 19-4-19


  1. Mobile e-wallet:  An e-payment service that allows users to make online payments via a mobile wallet account. Users do not need to have a bank account in advance.
  2. An e-payment service platform that offers electronic portals to enable online payment processing via bank accounts. Users need to have a bank account in advance.
  3. A mixed business model where the company will provide both a mobile wallet and payment gateway services.
  4. Banks have launched their own mobile applications for payments.

Bank mobile applications in Vietnam 19-4-19

Opportunity for e-payments and mobile wallets in Vietnam

The future opportunity for e-payments in Vietnam has four driving forces;

  • Internet usage in Vietnam has reached 67%. Internet economy reached US$9 billion in 2018, accounting for 3.8% GDP. See more here.
  • Smartphone penetration amongst adults aged 15+ nationally reached 85%. .  See more here.
  • Proactive support from the government creates favorable conditions to foster and develop supply side e-payment services in Vietnam. See more here 
  • Online shopping is exploding, Cimigo found that 60% of consumers shopping online in HCMC and Hanoi in Q1 2019. See more here.

Barriers to faster consumer adoption of e-payments

With 80% of grocery sales emanating from the traditional trade, arming merchants with e-payment facilities is the biggest challenge to driving growth of e-payments.   The merchants are mostly small and micro businesses that are happy to transact in cash and are not willing to pay transaction fees, pay for mobile data up-links nor invest in point of sale software.

Vietnam has a highly organised cash on delivery (COD) system, whether it is online shopping where Cimigo found that 88% paid for cash on delivery (COD) or the ability to pay cash at the doorstep for utilities.  Both are highly efficient and convenient for consumers.   Lessor yet additional barriers include;

  • People do not always trust financial institutions data privacy and transaction. When you can find bank customer databases online this is off little surprise.
  • Secrecy and the avoidance of transparency with authorities for consumers and merchants alike.
  • It is difficult for cash users to transition to digital methods of payment, as it is a new experience for them.

E-payment and mobile wallet use amongst Vietnamese consumers

Cash is the only payment method used by 5 in 10 respondents. Remember that the audience for this study is the top 50% of household wealth in urban HCMC and Hanoi. Bank mobile applications (30%) and mobile wallets (29%) are the most common e-payment methods, both are ahead of credit card usage (23%) in the past three months.

Bear in mind this is not a proportion of transactions (nor the value of those transactions) but merely a prevalence rate.  That is, the proportion whom has transacted at least once in the past three months using the said method.  It is too easy to generate click-bait hype around e-payments and mobile wallets by misquoting data. A classic case in point are false headlines generated from a management consulting report claiming that 60% of the Vietnamese population use mobile payments, which is clearly a fantasy, fueling further ignorance and misinformed hype.

Many mobile wallets users also use a bank’s mobile application (or vice versa).   E-payment users are typically young, high-income white-collar professionals. They are mostly initially recruited by promotions for cash back or discounts; be that a cash back of 200,000 VND on an electricity bill or 20% off their favourite bubble tea.

The leading bank mobile application transactions are for money transfers, postpaid mobile credit top ups and paying utility bills. Whilst the leading mobile e-wallet transactions are primarily for food and beverage delivery and postpaid mobile credit top ups.

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User experience (UX) with e-payments and mobile wallets in Vietnam

Perceptions towards e-payments are stark in their dichotomy; e-payment and mobile wallets are perceived as fast, simple and cheap. Contrasting with bank cards which are associated with a good reputation, large networks and a stable secure system. 

Vietnam e-payment correspondence map of associations 04-11-2019

Mobile wallet early successes in Vietnam

Mobile e-wallets are dependent on promotions to drive transaction volume,  the most satisfying aspect experienced from e-wallet users is the simple process and then the promotions. Mobile e-wallets are the payment method with the highest net promoter score for recommendations (likelihood to recommend), compared with all other methods.

7 in 10 mobile e-wallet users top up wallets directly from their bank account with an average of 1,000,000VND.  Momo is the most salient mobile e-wallet by far, 9 in 10 consumers will mention Momo first when asked to recall mobile e-wallet brands. Momo achieves the highest use share with three quarters of mobile e-wallet users reporting to use Momo, this is followed by Zalo Pay, VT Pay, Grab Pay (Moca) and AirPay.

Compared to other payment methods, mobile e-wallets have the advantage on ease, speed, rewards, promotions and low fees. They have a strong user experience and high net promoter score.  Whilst bank mobile applications provide a good user experience, they lack rewards, promotions and have a poor reputation for customer care.

Mobile e-wallet providers still face State Bank hurdles with the inability to provide interest nor credit and the necessity to be linked to a bank account (and that providers are prohibited from issuing more than one wallet to the same bank account).

Vietnam e-payment and mobile wallet futures

Compared with bank mobile applications, mobile e-wallets have far greater consumer centricity and have much to teach banks, ultimately, they could perhaps provide a good distribution (and marketing channel) for an extended range of financial services. However, if banks can step up their customer centricity, mobile e-wallets may struggle for a meaningful role in consumer payments.  Momo leads the market today, but faces increased competition for smartphone real (screen) estate, saliency and continued meaning in consumer lives.

Zalo is the leading instant messenger application in Vietnam, but has failed to leverage this reach and thus far it has not effectively integrated Zalo Pay.   With Tencent (WeChat) as a shareholder, ambitions to be replicate the WeChat super application eco-system and payments must be ever present boardroom conversation.  Grab Pay by Moca continues to expand its role in consumer lives beyond ride hailing; to food and to payments. Like Zalo Pay, Grab Pay is a contender for creating a super application we cannot live without.

Only the Vietnamese consumer can win in the short term

Apple CardA diverse set of international and local competitors from Apple, Facebook, Visa, GoViet, Bao Viet and VIMO will join the battle and seek to win dominance in mobile enabled e-payments. The battle will be long and the investments losses substantial. Much like Vietnam’s online shopping platforms, until a dominant player can comfortably increase fees and cease to subsidise transactions, the only winner will be the consumer.


Download the report here


Vietnam consumer market trends 2016

Market research company Cimigo reports on the Vietnam consumer market trends 2016. The report was presented at the Vietnam Market Research Trends 2016 organised by M2 – Marketing & Media Network. The report can be downloaded here. The transformation of Vietnam between 2005 and 2015 demonstrates the rapidly changing consumer marketing environment. The report highlights the ten Vietnam consumer market trends in 2016, impacting the purchase priorities of consumers in Vietnam.

10 Vietnam consumer market trends 2016 impacting purchase priorities

1. High income households double in 10 years in Vietnam.
2. Life stages in Vietnam are maturing. Kids are less influential in determining purchase priorities.
3. The rise of new retail chasing share before profits in Vietnam.
4. The rise beer clubs, cafes and casual fast service restaurant chains grow in Vietnam.
5. Health consciousness in Vietnam translates into action and spend.
6. Conspicuous consumption has always been mobile in Vietnam.
7. Keeping up with the Nguyen’s with consumer finance in Vietnam.
8. Self expression immediacy in Vietnam.
9. Mobile drives internet penetration and habits in Vietnam.
10. Consumers in Vietnam shift from brand ownership to new experiences.

High income households double in 10 years in Vietnam

High income households double in 10 years in Vietnam

The first of the Vietnam consumer market trends 2016 is the rise in purchase power. Over the past 10 years Vietnam has experienced rapid economic development. The number of high income households earning over US$500 per month per household, has risen from 1.8 million to over 4 million.

The Vietnam economy tripled in size over 10 years

Over the same period the size of the Vietnam economy has nearly tripled to USD175 billion. With population growth at just under 10% Vietnam’s population is now just over 91 million. Gross domestic product (GDP) per capita is now at US$1,923 per person.

Vietnam advertising expenditure grew nearly 600% in 10 years

Advertising expenditure in Vietnam grew 579% from US$280 million in 2005 to a US$1.93 billion in 2015. TV is still king dominating spend at over 75% of all spend. Digital advertising expenditure whilst the fastest growing is only at estimated US$62 million. Advertising has grown far faster then the economy, this is only in minor part owing media inflation, the vast majority of the increase, represents increasing numbers of brands scrambling for a voice and the rise of domestic companies (especially in foods, beverages and healthcare) embracing the consumer economy in Vietnam.

Life stages in Vietnam are maturing

Life stages in Vietnam are maturing

The second of the Vietnam consumer market trends 2016, is the maturing of life stages. Vietnam’s population by life stage has under gone a major transformation in between 2005 and 2015.  Young singles, young married couples with no children and young married couples with a child less than 10 years of age have all declined in absolute numbers. Vietnam’s population and household structures are changing by life stage, with children’s pester power having a declining influence on household purchase priorities.

The life stage with the strongest growth is old and single having growth of 74% over 2005 to just over 10 million people.  Empty nester’s, where the children have grown up and left home, have increased 63% and those married with the youngest child aged more than 9 and less than 20 have increased by 36%.   These changes in Vietnam’s population life stages have a strong impact on purchase priorities, children receive a disproportionate focus in household spend as parents seek to leverage opportunities for their children, that they feel they themselves missed out on.  This has an impact on baby care, infant milk formula, children’s beverages and snacks and off course larger ticket items including education, insurance and tourism.

Vietnam’s population by life stage will have changed radically by 2025 with fewer than 30 million people being in the empty nester and old single life stages.  This demographic shift in Vietnam will see a population with 33 million young singles, nearly 14 million empty nester’s and just over 16 million old singles.

Kids are less influential in determining purchase priorities

Ponder the fact that in 2005 one third of households had no dependent children. In 2015 44% of households had no children and by 2025 nearly 60% of households will have no dependent children.  The shopping basket (or perhaps delivery box) will look vastly different than today with major implications for consumer goods and a huge potential opportunity for services in Vietnam.

The rise of new retail chasing share before profits in Vietnam

The rise of new retail chasing share before profits in Vietnam

The third of the Vietnam consumer market trends 2016 is the rise in modern and convenient retail.

Supermarkets and shopping mall expansion in Vietnam

The number of supermarkets in Vietnam has risen form 47 in 2005 to 975 today.

Following on the tails of early entrants Diamond Plaza (opened in 1999) and Parkson (opened first mall in 2005 and has 8 as of December 2015), shopping malls are on the rise, lead by the exponential expansion of Vincom shopping centres, with 19 centres in 2015 and many more in the pipeline. Private equity firm Warburg Pincus, which has invested a total of $300 million in Vincom Retail of Vingroup to for their mall, mini mart and e-commerce expansion. Foreign entrants LotteRobinsAeon and Emart all opened new malls in 2015.

Modern self service convenience accelerates in Vietnam

In 2005 there were 135 modern self service stores, mostly independently owned and managed. Today there are over 1,800 modern self service stores, mostly part of chains after an intense year of merger and acquisitions in Vietnam retail industry.  To the casual observer the rise is modern self service stores in Vietnam is anecdotal evidence of the rise in Vietnam’s middle class.  In reality the vast majority of this new modern convenient retail is excess investments funding a race to capture future exit (or listing) valuations, a long play and for many, a high stakes gamble. Local operators include VinMart+ and  B’s Mart and foreign operators such as Circle K, Shop&GoFamilyMart and Aeon Citimart. Yet there are still more to come in 2016, with the imminent entry of both Seven Eleven and AuchanSuper.

These numbers refer to modern (well lit, with aisles and air conditioning) and self service (shoppers may browse, select and pay at the counter) and include mini marts and convenience stores. However the most are not operating at a profit and are investing in a future that is less than certain, with a race to dominate retail space and are currently buying market share.

Despite the rise in modern self service retail outlets there are been no growth in modern trades contribution to grocery retail sales, which remains dominated by traditional trade (traditional trade still contributes over 80% of general grocery sales now as it did in 2005). Most traffic at convenience stores is dominated by students and first jobbers, using them as on premise snacking venues (with the advantage of air conditioning and wifi).

Consumer shopping behaviour in Vietnam

As in 2005, in 2015 traditional grocery stores still count for over 80% of grocery sales. Despite all the new modern trade stores, the modern trade contribution to retail sales in Vietnam has not shifted.  The convenience store operators are inhibited by ingrained consumer shopping behaviour in Vietnam where the traditional grocery trade involves four critical factors. Firstly, traditional grocery is ubiquitous and hence extremely convenient. Secondly, household purchasers maintain long term and trusting relationships with sellers who are the owner and operator (and often their own landlord) at these stores. Thirdly, the diet in Vietnam is fresh food based and therefore shopping trips for food stuffs are daily and this shopping basket in Vietnam is predominantly fresh food produce (unavailable at convenient stores and a limited choice at mini marts). Fourthly, most shoppers do not need to get off their motorbike when visiting their traditional neighbourhood grocery store, which is hard to beat for convenience!

The rise of e-commerce in Vietnam

E-commerce represents yet another false economy for many casual observers.  In 2005 e-commerce was essentially scratch cards used to extreme profitably for internet games at internet cafes.  Despite Vietnam being a cash payment economy in 2015 there are over 20 e-payment and e-cash service providers fighting for domination in Vietnam’s e-commerce market servicing over 50,000 e-commerce sites.  The race here is on for transaction volumes to attract funding; successful for some such as Momo.

Online shopping is strongest for gaming, utilities, mobile top up, fast fashion, travel, health supplements and household appliances to date. Despite the hype most of the e-commerce platforms are burning through investor’s funding whilst subsidising discounted prices as they buy market share, transaction volume growth and ultimately more investment funds.

The latest evidence is the owners of Lazada and Zalora and selling to Alibaba as the latter dives into South East Asia. In Vietnam where cash dominates payments, these platforms provide the extreme convenience of cash on delivery eliminating any shopper risk in online shopping and inhibiting any benefits from and the move to e-payments.

The only winners in this race are Vietnamese online shoppers, the few investors lucky enough to realise a return will likely find it from other investors, ultimately very few online shopping platforms will realise an operating success.

The rise beer clubs, cafes and casual fast service restaurant chains grow in Vietnam

The rise beer clubs, cafes and casual fast service restaurant chains grow in Vietnam

The fourth of the Vietnam consumer market trends 2016 is the growth in coffee, beer and fast service restaurant chains.

Beer clubs proliferate, per capita consumption reaches 36.75 litres per person in 2015

Beer clubs such as Vuvuzela (14 beer clubs from Golden Gate Group), Fox Beer Club, Beer Club V and a plethora of similar venues have been in places for the past few years.

Branded cafe chains growth in Vietnam

Branded cafe chains have followed on the success of Highlands Coffee  (98 outlets in Vietnam initially built by Viet Thai International Company and now owned by Jollibee Foods Corp) and Trung Nguyen with over 1000 outlets but without a consistent chain environment nor service. International brands now include; Starbucks (19 outlets by Maxims),  Coffee Bean and Tea Leaf (16 outlets), MOF (9 outlets), Angel-in-us Coffee (5 outlets by Lotte Group), NYDC (5 outlets), Cafe Benne (5 outlets) and Gloria Jean’s (3 outlets) and new entrant Holly’s Coffee (2 outlets).

The rise is not only foreign brands but local brands such as vertically integrated Phuc Long Cafe (14 outlets), Coffee House (10 outlets by Seedcom) and the Coffee Factory (3 outlets).  Other rapidly expanding chains include Urban Station (33 outlets), Passio Coffee (20 outlets) and Our  Matcha and Cafe (4 outlets).

Bubble tea is on the rise at menus in many of the aforementioned cafes, especially Phuc Long Cafe but bubble tea chains are also on the rise with the likes of Chattime (2 outlets), Tien Huong (2 outlets) and Hot & Cold (1 outlet).

Branded fast service restaurants and casual dining chains grow in Vietnam

Asian casual dining and fast service restaurants have been on the rise since the early franchiser Pho 24  (71 outlets – acquired  in 2013 by Viet Thai International Company and Jollibee Foods Corp) took the market by storm. Banh Mi Que Tam (95 outlets) quietly leads the way on store counts. Mon Hue (60 outlets), Pho Ong Hung (33 outlets), Com Tho Chay (13 outlets – previously branded Com Express) all from Huy Vietnam Group Limited  which has 112 restaurants under 4 brands and raised US$15 million in 2015 for further expansion. Kichi Kichi (22 outlets) from Golden Gate Group, which has developed 150 restaurants across 19 concepts since 2005. Wrap and Roll (10 outlets) looks set to expand further in 2016.

Western casual dining and fast service restaurants continue to proliferate since early entrant KFC (opening their first outlet in 1997, in 2015 KFC had 128 outlets by Yum! Brands Inc and Jardine Pacific).  Joining the fray are Lotteria (195 outlets by  Lotte Group), Jollibee (60 outlets by Jollibee Foods Corp), Pizza Hut (54 outlets by Yum! Brands Inc and Jardine Pacific), Domino’s Pizza (24 outlets), Popeyes (16 outlets ), Burger King (13 outlets by Imex Pan Pacific), McDonald’s (8 outlets by Good Day Hospitality), Subway (6 outlets) and Carl’s Jr (3 outlets).

Al Frescos Group has 31 outlets across 7 brands today including;  Al Frescos (11 outlets), Pepperonis (13 outlets) and Jaspas (3 outlets). L Concepts (The Longfort Group, Malaysia) plans to open the Sizzlin’ Steak chain one of many casual dining brands from the Manila based Max Group Inc.’s.  Following their acquisition  of L’Usine in 2015, yet another high end cafe and casual dining environment will be expanding sites.

Even ice cream joins the rise of branded chains with Baskin Robbins (24 outlets), Bud’s Ice Cream (20 outlets),Swensen’s (7 outlets) and Haagen-Dazs (2 outlets) with more to come as TNC Holdings are launching Cold Stone Creamery in Vietnam in 2016.  Chain bakeries have emerged with Fresh Garden (32 outlets), Dunkin Donuts (16 outlets), BreadTalk (15 outlets) and Tours les Jours (12 outlets).

The rise of modern chains has changed the shape of Vietnam’s retail environment and the rental market. They are set to continue to rise with property development and increased interest from private equity groups.

Health consciousness in Vietnam translates into action and spend

Health consciousness in Vietnam translates into action and spend

The fifth of the Vietnam consumer market trends 2016 is increased health consciousness and spend. In 2005 consumers in Vietnam ranked health as a top concern (behind their job and the economy). It remains the same in 2015. However in these health concerns had superficial misguided consumer reactions, for example consuming cleansing and detoxifying beverages such as 0 Degrees (an inner cooling and purification positioned beverage from THP) launched in 2006, which in fact contained very little green team and is mostly sugared water.

Fast forward to 2015 and as Cimigo noted in the Consumer healthcare trends in Vietnam, Asia report the use of traditional remedies and supplements as exploded.   Vietnam is seeing exponential growth in health supplements and healthcare spend, consider that outbound overseas medical tourism reached US$2 billion spend by consumers from Vietnam in 2015.

Food safety concerns have only increased over 2005 and remain very topical today, leading to new investments to address consumer fears. VinGroup’s Vineco has invested US$44 million in hygienic fresh vegetable production to supply its own Vinmart mini markets with fresh safe local produce.

Branded chains in gyms, health and beauty retail and pharmacies emerging in Vietnam

Branded chains are emerging with over 100 branded gyms now available to capture value from these healthy lifestyles. Beauty and healthcare chains are on the rise with GNC (11 outlets), Medicare (41 outlets) and Guardian (37 outlets) amongst those expanding. Pharmaceutical retail has reacted with a largely disorganised sector becoming gradually organised with the rise of chains (several of whom are vertically integrated) such as Phano (51 outlets), Pharmacity (31 outlets), My Chau (7 outlets), Indochina -Dong Duong (5 outlets) and Eco (2 outlets). Healthcare is one category growing strongly for e-commerce with sites such as Pharmacy Supermarket.

Conspicuous consumption has always been mobile in Vietnam

Conspicuous consumption has always been mobile in Vietnam

The sixth of the Vietnam consumer market trends 2016 is in status driven conspicuous consumption. In 2005 conspicuous consumption was most obvious and mobile in the motorbike that one drove. In 2005 The Gioi Di Dong (Mobile World) opened their fourth store, today they have 600 stores.  Other mobile phone retail chains include FPT (290 outlets), Viettel (285 outlets) and Viet Thong A (193 outlets).  The replacement cycle has shortened dramatically as mobile phones become the new signal for social status.

Keeping up with the Nguyen’s with consumer finance in Vietnam

Keeping up with the Nguyen’s with consumer finance in Vietnam

The seventh of the Vietnam consumer market trends 2016 is the rise of consumer finance for consumers in Vietnam. In 2005, 6,000 new apartments sold in Vietnam according to CBRE. In 2015, 36,000 new apartments were sold.   In 2005 just over 25,000 new passenger cars were sold, in 2015 just over 125,000 new passenger cars were sold. Consumer finance in Vietnam reached 3.6% of GDP in 2005 at US$1.6 billion in consumer loans, in 2015 it is an estimated 9% of GDP at US$16 billion.

Consumer finance companies with their quick approval processes for unsecured loans have fueled the growth in consumer financing. Home & improvements account for approximately 40%, home appliances and electronics 30% and motorbikes and cars 15%.  Look at a new apartment, a motorbike showroom or browse a mobile phone or home appliances store and there will always be several competing consumer finance agents, ready to sign up the consumer in Vietnam with financing.  Keeping up with the Nguyen’s is made far easier with this easy access to unsecured consumer finance.

Self expression immediacy in Vietnam

Self expression immediacy in Vietnam

The eighth of the Vietnam consumer market trends 2016 is the rise of social networks for self expression. In 2005 self expression was strongest on the now defunct Yahoo blogs, singing ballads at karaoke and football mania to rival the best British football fan.  In 2015, as this previous post noted on Online, mobile, social media in Vietnam Asia the growth in internet, social media and instant messaging applications is enabling 35 million consumers in Vietnam to post emoticons, stickers, selfies and status updates.

Mobile drives internet penetration and habits in Vietnam

Mobile drives internet penetration and habits in Vietnam

The ninth of the Vietnam consumer market trends 2016 is the changes in media consumption as mobile drives internet penetration and mobile, video and over the top TV streaming converge.

Nationally 48% of the population is accessing the internet in 2015.  Frequent online access (in the past 7 days) is far higher in urban areas having reached 72% by December 2015.  In contrast many rural consumers remain without online access or access infrequently, only 20% are regularly accessing the internet. Mobile penetration is increasing access for rural consumers as rural penetration of mobile smartphones increases.

Mobile phone penetration including smartphones has reached 69% nationally amongst those aged 15 years or more. Smartphone (included within the latter statistic) penetration has reached 28% of those aged 15 years or more. Mobile access to the internet is changing the habits amongst online consumers in Vietnam and is successfully increasing penetration for two key consumer groups; consumers in rural areas and consumers aged over 35 years. For many consumers in Vietnam their first online experience is via mobile, having leapfrogged other devices.

Online mobile page views are growing exponentially and as at the end of 2015 accounted for 1 in 4 page views.  The implication for brands and their digital marketing teams are discussed in more detail here Online, mobile, social media in Vietnam Asia.  Further evidence of the rise on smartphones is found in the growth of mobile app downloads which grew by 60% in 2015.

Vietnam consumer market trends 2016

Fragmented opportunities as mobile, video and OTT TV converge in Vietnam

Fragmented opportunities as mobile, video and OTT

Mobile audiences for video streaming are growing exponentially.   The convergence of video and mobile, which when married with local media content and efficient streaming, will reap huge rewards.  The next technology race for active users of mobile native applications in Vietnam will be the streaming of online video to mobile smartphones.

Experience in China demonstrates the massive revenue opportunity waiting to be grabbed for the winner of this battle.  Digital brand marketing teams in Vietnam will have to brace themselves for the winners of the real estate battle for chatting and video streaming native applications. Social media promotion in Vietnam remains inexpensive.  New dominant players in chatting and video mobile applications will be the omnipresent media channels to directly communicate with consumers. Soon the winners will be start to monetise and generate significant revenue from brands to access these consumers.

Watch out for Clip which has an abundance of local video on demand content and is closest you can come to a local YouTube in Vietnam. Other over the top (OTT) channels to watch include established telecommunications firms FPTplay (FPT),  NetTV (Viettel)  MyTV  (VNPT) and new entrants Fim+ and Netflix, which may be limited by a focus on Hollywood content.

Consumers in Vietnam shift from brand ownership to new experiences

consumer shift to new experience

The tenth of the Vietnam consumer market trends 2016 is the shift in consumer fulfillment from the ownership of brands to new experiences; particularly experiences which can be socially validated and shared to provide a sense of actualisation. In 2005 consumers in Vietnam were bombarded with new consumer packaged brands. Opportunities to use these new brands gave consumers a sense of fulfillment; of catching up with the consumer world seen overseas on TV.

Today the urban and more affluent consumer in Vietnam finds fulfillment and a sense of accomplishment through their shared experiences. That may be trying the new retail environments discussed herein, enjoying a gym membership, rock wall climbing, experiencing the delights of modern cinema or travelling independently.

Leisure travel and tourism habits provide a great example of this shift. In 2005 a traveller in Vietnam was likely to travel domestically in groups and the lucky few who travelled overseas would typically do so on tour group packages. As Cimigo’s Insights to Travellers report indicates, travel habits have changed dramatically with many urban consumers having experienced international leisure travel, where independent travel accounts for nearly half of these travellers’ experiences.

Garnering involvement and excitement with new packaged brand launches a has become far harder, as consumers shift purchase priorities to enjoying and sharing new experiences.

10 Vietnam consumer market trends 2016 impacting purchase priorities

1. High income households double in 10 years in Vietnam.
2. Life stages in Vietnam are maturing. Kids are less influential in determining purchase priorities.
3. The rise of new retail chasing share before profits in Vietnam.
4. The rise beer clubs, cafes and casual fast service restaurant chains grow in Vietnam.
5. Health consciousness in Vietnam translates into action and spend.
6. Conspicuous consumption has always been mobile in Vietnam.
7. Keeping up with the Nguyen’s with consumer finance in Vietnam.
8. Self expression immediacy in Vietnam.
9. Mobile drives internet penetration and habits in Vietnam.
10. Consumers in Vietnam shift from brand ownership to new experiences.

More hot consumer market research trends Vietnam Asia

Cimigo, a market research agency Vietnam, Asia presents the latest consumer trends.

Banking survey: only 34% of ‘silvers’ believe they have enough capital for retirement

Only one third of Hong Kong investors feel financially prepared for retirement: Cimigo banking survey

HONG KONG – Only one third of Hong Kong’s investors aged 55 and older feel they have adequate capital for retirement, according to a new survey by marketing and brand research specialist, Cimigo.

The annual Cimigo banking survey examines the investment attitudes, perceptions and banking behaviour of the ‘silver hair’ segment, Hong Kong investors aged 55 and above. The survey also asked more than 400 general Hong Kong investors aged 25 and above a range of questions about their confidence in the Hong Kong banking sector, their RMB investment and their use of mobile banking services.

When asked whether they perceive themselves as having adequate capital for retirement, close to half of all silver hair respondents (48%) said no, 18% said they were not sure and only 34% of respondents said yes.

Cimigo Managing Director Hong Kong, Ms Winnie Yeung, said the survey results demonstrate the level of financial stress older Hong Kong consumers feel about their retirement.

“With only 34% of silver hair investors believing that they have enough capital for retirement, the Cimigo banking survey results show that there are a large number of remaining investors who feel a significant level of financial stress about their impending retirement,” Ms Yeung said.

‘Silver haired’ investment

The Cimigo banking survey also asked Hong Kong investors aged 55 and over whether they intend to continue to invest after their retirement, and, if so, the reasons for their ongoing investment.

A majority of silver hair respondents (59%) said that they do intend to invest after retirement. A need to maintain their present standard of living was the most popular reason, quoted by 65% of those surveyed, while the need to counter the effects of inflation was the second most popular reason, cited by 60% of respondents.

Surprisingly, only 38% of Hong Hong’s silver hair investors said that they intend to continue investing after retirement to ensure they have more capital to pass onto the next generation. For the 21% of silver hair respondents who do not intend to invest after retirement, 38% are afraid of taking the risk, 29% do not want to spend the time required to manage such investments, and another 29% feel they will not have the energy to manage such investments. A further 19% of respondents said they just want to enjoy a carefree retirement.

In terms of who influences the wealth management decisions of Hong Kong’s silver hair segment, respondents cited family/myself as their greatest influencer (86%), followed by their bank (84%). The choice of family/myself (83%) was also an important influencer for the general investor aged 25 years and over, however only 69% of these respondents also named their bank as an influencer.

Family friends and colleagues are also an important source of information for researching investment decision among the silver hair segment. While 44% cite the news, 38% name printed media and 37% point to bank staff as their existing investment information source, more than three quarters (79%) of older investors will turn to their immediate social network for information. Only 36% of the general investor population will go to family, friends or colleagues for financial information.

Older investors also differ from general investors in how they use their banking centre or bank branch. While 89% of older investors name their bank branch or banking centre as their preferred channel for wealth management advice, only 55% of general investors feel the same. More than three quarters (79%) of silver hair investors will also purchase investment products from their bank branch, compared to only 31% of general investors.

Cimigo Managing Director Hong Kong, Ms Winnie Yeung, said the Cimigo banking survey results show that bank branches and their staff are vitally important in assisting the Hong Kong silver hair investor make financial decisions and purchase financial products.

“Three of the top five most important attributes driving satisfaction among Hong Kong’s silver hair segment are staff related. Banks need to ensure all their employees who deal with older customers can proactively give advice, know their products well, and can explain products to customers in simple terms.”

“Having a wide variety of relevant financial products is still important. However, Hong Kong’s older investors value staff contact and knowledge much more than the general investor, which is an important insight for Hong Kong’s bank managers to keep in mind for staff training and servicing levels,” Ms Yeung added.

About the survey

The annual Cimigo banking survey has been conducted by Cimigo since 2009 and is designed to provide information on investor confidence, the level of RMB investment in Hong Kong, and the development of mobile banking. The survey is conducted using online methodology among more than 400 Hong Kong general investors aged 25 or above.

The survey includes a booster sample of the ‘silver hair’ segment, comprised of Hong Kong investors aged 55 or above.

Please see the associated Cimigo banking survey media release for further Cimigo banking survey results.