Consumer Electronics in Vietnam [PDF]

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Consumer Electronics in Vietnam Euromonitor International August 2019

CONSUMER ELECTRONICS IN VIETNAM

LIST OF CONTENTS AND TABLES Executive Summary ..................................................................................................................... 1 Growth Continues To Decelerate in 2019, With Producers Having To Work Harder To Sell To Device-sufficient Consumers .................................................................................................... 1 Premium Sales Are Rising As Incomes and Living Standards Increase ................................... 1 Aggressive and Sustained Advertising Characterises An Increasingly Competitive Landscape1 Internet Retailing Is Now A Major Channel in Consumer Electronics ....................................... 2 Achieving Volume Growth Will Be Tougher As Competition Increases and Consumers Have Less Need To Upgrade Their Devices ...................................................................................... 2 Market Data .................................................................................................................................. 2 Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11

Sales of Consumer Electronics by Category: Volume 2014-2019 ................ 2 Sales of Consumer Electronics by Category: Value 2014-2019 ................... 3 Sales of Consumer Electronics by Category: % Volume Growth 20142019 ............................................................................................................. 3 Sales of Consumer Electronics by Category: % Value Growth 20142019 ............................................................................................................. 3 NBO Company Shares of Consumer Electronics: % Volume 20152019 ............................................................................................................. 4 LBN Brand Shares of Consumer Electronics: % Volume 2016-2019 ........... 4 Distribution of Consumer Electronics by Channel: % Volume 20142019 ............................................................................................................. 5 Forecast Sales of Consumer Electronics by Category: Volume 20192024 ............................................................................................................. 6 Forecast Sales of Consumer Electronics by Category: Value 20192024 ............................................................................................................. 6 Forecast Sales of Consumer Electronics by Category: % Volume Growth 2019-2024 ....................................................................................... 6 Forecast Sales of Consumer Electronics by Category: % Value Growth 2019-2024 ....................................................................................... 7

Sources ........................................................................................................................................ 7 Summary 1

Research Sources ........................................................................................ 7

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CONSUMER ELECTRONICS IN VIETNAM

CONSUMER ELECTRONICS IN VIETNAM EXECUTIVE SUMMARY Growth Continues To Decelerate in 2019, With Producers Having To Work Harder To Sell To Device-sufficient Consumers In 2019, consumer electronics is seeing the slowest current value growth of the review period. With incomes having risen during the review period, consumers were better able to afford these items, especially with a wide range of promotional offers and financial assistance packages being on offer. As such, the demand for consumer electronics has already been fulfilled in many cases, leading to slower growth in 2018 and 2019. On the other hand, sales should still register strong growth in peak times of the year such as the summer, major holidays, year-end events, and worldwide sporting events – in 2018 the FIFA World Cup gave a strong push to sales of inhome consumer electronics, particularly televisions. Additionally, key players in the market are still launching new products on a regular basis and are offering attractive promotional programmes as well as investing heavily in marketing campaigns to boost sales. Emboldened by higher incomes and pursuing higher living standards, Vietnamese people are paying more attention to products with long warranty periods rather than just products that are trendy. Although they are willing to pay more for better products, for the mid-price group the newest technologies are considered as just nice to have rather than essential. Nevertheless, rising health concerns amid busier lifestyles are increasing demand for wearable electronics, which can both monitor their health and fitness levels and motivate them to achieve their activity goals – the presence of these devices has recently improved significantly in key retailers.

Premium Sales Are Rising As Incomes and Living Standards Increase Vietnam’s real GDP growth remains at a fairly high level, with inflation relatively low and steady. Higher disposable incomes in the population are helping improve living standards and allowing more consumers to explore global brands of consumer electronics and experience the very latest innovations and newest technologies. Producers are reacting to this by focusing more on premium ranges, which can provide a source of value sales growth amid decelerating volume growth in the market. For instance, in 2019 Sony Electronics Vietnam Ltd has been very active in launching OLED TVs, which carry some of the highest price tags in consumer electronics. Premiumisation is also being driven by the fact that the smartphone is making several other consumer electronics increasingly obsolete – more and more high-end tablets are being purchased as these models still have certain performance advantages over smartphones, eg work-related tasks. While the majority of consumer electronic shoppers in Vietnam cannot regularly afford premium devices, continued economic and income growth will keep more people interested in trading up, especially as premium products reflect high status.

Aggressive and Sustained Advertising Characterises An Increasingly Competitive Landscape As consumer electronics reaches maturity, players are having to make strong investments not only in research and development activities to cope with the needs of consumers, but also in advertising campaigns to boost sales. Maintaining a presence in this increasingly competitive market requires extensive understanding about the needs and trends of each income segment.

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CONSUMER ELECTRONICS IN VIETNAM

Hence, the market has been witnessing relentless efforts by key players in offering new products to all income levels. Additionally, in order to further increase sales, strong cooperation with distributors, finance companies and other related industries is another key measure required of the major players. Also, the key players in consumer electronics usually hire celebrities for their marketing campaigns, with this proving to be effective as it improves the brand’s credibility as well as its sales. The Vietnamese market is home to an increasing number of Chinese brands, which are heavily engaged in promotional and marketing activities as well as launching attractive products designed specifically to cater to all local requirements. Smartphones is the most significant category showing this trend: Oppo, Huawei, Xiaomi, Vivo and Realme (subsidiary brand of Oppo) are simultaneously launching many new models to compete with Samsung, especially in the mid-price segment for young people, the largest target consumer group. These Chinese brands have been extremely successful in Vietnam and are set to strengthen there over the forecast period.

Internet Retailing Is Now A Major Channel in Consumer Electronics There has been a boom in internet retailing in Vietnam, boosted by improved internet infrastructure, higher smartphone penetration and cheaper retail prices compared with storebased outlets. Lazada, Shopee, Sendo and Tiki are the leading e-retailers in the market. While the big names in physical retailing stores – Mobile World, FPT, VienthongA, CellphoneS and others – still generate the most sales, competition from online shopping is now very strong, driven by convenience, long-term warranties and a host of attractive promotions. The competitive landscape is in fact stronger than ever since many brand outlets are opening in Vietnam, such as Samsung, Oppo, Huawei and Xiaomi, though there is still no Apple Inc store in the market.

Achieving Volume Growth Will Be Tougher As Competition Increases and Consumers Have Less Need To Upgrade Their Devices Over the forecast period, consumer electronics is expected to see stagnant retail volume sales overall. Despite increased efforts to advertise and market new products, key brands such as Samsung anticipate slower growth in their sales. This is partly because the competitive landscape is becoming much tougher with the participation of new players from abroad. Additionally, even with improved features in their products, sales are seasonal and highly dependent on special occasions. Last but not least, improved living standards and increased disposable income are making consumers more selective when making a purchase. Therefore, the tendency to upgrade to new models only appears to be apparent among those with a high income level and who have a strong interest in certain consumer electronics. Meanwhile, lowand middle-income consumers mostly have their needs met with the features of a mid-priced item, so replacing their current consumer electronics device with a newer one within a 1-year period is highly unlikely. Nevertheless, wearable electronics will be boosted by consumers’ strengthening focus on health and wellness (allowed to manifest more prominently thanks to rising income). Meanwhile, wireless speakers will also post high volume growth, thanks to the devices’ high connectivity with smartphones and the strong desire for good-quality, portable music.

MARKET DATA Table 1

Sales of Consumer Electronics by Category: Volume 2014-2019

'000 units

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CONSUMER ELECTRONICS IN VIETNAM

Computers and Peripherals In-Car Entertainment In-Home Consumer Electronics Portable Consumer Electronics Consumer Electronics Source:

Passport

2014

2015

2016

2017

2018

2019

2,643.0 83.7 2,043.9

2,920.8 92.3 2,243.9

2,897.8 103.7 2,441.7

2,761.7 118.7 2,624.2

2,673.6 139.2 2,879.4

2,622.7 144.8 2,922.1

15,287.3

18,018.3

21,336.7

21,733.0

21,709.8

21,692.0

20,057.9

23,275.4

26,780.0

27,237.7

27,402.0

27,381.6

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 2

Sales of Consumer Electronics by Category: Value 2014-2019

VND billion

Computers and Peripherals In-Car Entertainment In-Home Consumer Electronics Portable Consumer Electronics Consumer Electronics Source:

Table 3

2014

2015

2016

2017

2018

2019

20,907.5 419.9 17,098.9

21,713.8 413.8 19,194.3

21,130.3 442.2 21,980.8

20,372.5 504.1 24,486.1

19,837.9 593.1 28,507.6

20,975.9 621.5 30,166.6

43,435.2

52,283.8

66,247.8

82,115.0

88,284.6

95,624.9

81,861.5

93,605.6

109,801.1

127,477.7

137,223.2

147,388.9

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Sales of Consumer Electronics by Category: % Volume Growth 2014-2019

% volume growth

Computers and Peripherals In-Car Entertainment In-Home Consumer Electronics Portable Consumer Electronics Consumer Electronics Source:

Table 4

2018/19

2014-19 CAGR

2014/19 Total

-1.9 4.0 1.5 -0.1 -0.1

-0.2 11.6 7.4 7.2 6.4

-0.8 73.0 43.0 41.9 36.5

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Sales of Consumer Electronics by Category: % Value Growth 2014-2019

% current value growth

Computers and Peripherals In-Car Entertainment In-Home Consumer Electronics Portable Consumer Electronics Consumer Electronics Source:

2018/19

2014-19 CAGR

2014/19 Total

5.7 4.8 5.8 8.3 7.4

0.1 8.2 12.0 17.1 12.5

0.3 48.0 76.4 120.2 80.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

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CONSUMER ELECTRONICS IN VIETNAM

Table 5

NBO Company Shares of Consumer Electronics: % Volume 2015-2019

% retail volume Company Samsung Vina Electronics Co Ltd Guangdong OPPO Mobile Telecommunications Corp Ltd Microsoft Corp Apple Inc Xiaomi Corp Huawei Technologies Vietnam Co Ltd Lenovo Group Ltd Vivo Communication Technology Co Ltd LG Electronics Vietnam Co Ltd Sony Electronics Vietnam Ltd Asus Technology (Vietnam) Co Ltd Panasonic Vietnam Co Ltd Dell Vietnam Inc Hewlett-Packard (Vietnam) Ltd TCL Vietnam Corp Ltd Canon Vietnam Co Ltd HTC Corp Sharp Electronics (Vietnam) Co Ltd JVC Vietnam Ltd Pioneer Electronics Asia Centre Pte Ltd Seiko Epson Corp Acer Vietnam Co Ltd Nikon Corp OKI Electric Industry Co Ltd Bose Corp Koninklijke Philips Electronics NV BlackBerry Ltd Toshiba Consumer Products Vietnam Co Ltd AOC International Nokia Corp Others Total Source:

Passport

2015

2016

2017

2018

2019

25.3

25.7

28.0

25.5

24.3

8.0

11.0

12.4

13.1

14.2

22.1 9.3 0.3

15.6 8.0 0.3 2.2

12.2 7.7 3.4 2.7

11.1 7.6 3.9 3.4

10.4 7.4 4.7 3.3

3.5 -

3.2 -

3.7 -

3.8 2.2

3.3 3.0

4.0

3.6

3.2

3.0

2.9

2.7

2.1

2.2

2.3

2.4

2.0

1.8

1.5

1.4

1.4

0.8 1.0 1.1

0.7 0.9 0.8

0.8 0.8 0.8

0.8 0.8 0.8

0.9 0.8 0.7

0.4 1.0 0.7 0.2

0.4 0.8 0.6 0.2

0.5 0.7 0.5 0.2

0.5 0.6 0.4 0.2

0.7 0.6 0.4 0.3

0.2 0.3

0.2 0.3

0.2 0.2

0.2 0.2

0.2 0.2

0.4 0.5 0.2 0.3

0.3 0.3 0.2 0.2

0.2 0.2 0.2 0.2

0.2 0.2 0.2 0.2

0.2 0.2 0.2 0.2

0.0 0.1

0.1 0.0

0.1 0.0

0.1 0.0

0.1 0.0

0.5 0.1

0.2 0.1

0.1 0.0

0.1 0.0

0.0 0.0

0.1 14.9 100.0

0.0 20.2 100.0

0.0 17.2 100.0

0.0 17.3 100.0

0.0 17.0 100.0

2018

2019

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 6

LBN Brand Shares of Consumer Electronics: % Volume 2016-2019

% retail volume Brand (GBO)

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Company (NBO)

2016

2017

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CONSUMER ELECTRONICS IN VIETNAM

Samsung (Samsung Corp) Oppo

Nokia (Nokia Corp) iPhone Xiaomi Huawei (Huawei Technologies Co Ltd) Lenovo Vivo LG (LG Corp) Sony (Sony Corp) iPad Asus (AsusTek Computer Inc) Panasonic (Panasonic Corp) Dell (Dell Inc) HP (HP Inc) TCL (TCL Corp) Canon (Canon Inc) HTC Sharp (Hon Hai Precision Industry Co Ltd) JVC (JVC Kenwood Corp) Epson Acer (Acer Inc) Pioneer (Onkyo Corp) Nikon Oki Bose iPod Blackberry Toshiba (Toshiba Corp) Pioneer (Pioneer Corp) Others Total Source:

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Samsung Vina Electronics Co Ltd Guangdong OPPO Mobile Telecommunications Corp Ltd Microsoft Corp Apple Inc Xiaomi Corp Huawei Technologies Vietnam Co Ltd Lenovo Group Ltd Vivo Communication Technology Co Ltd LG Electronics Vietnam Co Ltd Sony Electronics Vietnam Ltd Apple Inc Asus Technology (Vietnam) Co Ltd Panasonic Vietnam Co Ltd

25.7

28.0

25.5

24.3

11.0

12.4

13.1

14.2

15.6 6.6 0.3 2.2

12.2 6.5 3.4 2.7

11.1 6.0 3.9 3.4

10.4 5.9 4.7 3.3

3.2 -

3.7 -

3.8 2.2

3.3 3.0

3.6

3.2

3.0

2.9

2.1

2.2

2.3

2.4

1.2 1.8

1.1 1.5

1.5 1.4

1.4 1.4

0.7

0.8

0.8

0.9

Dell Vietnam Inc Hewlett-Packard (Vietnam) Ltd TCL Vietnam Corp Ltd Canon Vietnam Co Ltd HTC Corp Sharp Electronics (Vietnam) Co Ltd

0.9 0.8

0.8 0.8

0.8 0.8

0.8 0.7

0.4 0.8 0.6 0.2

0.5 0.7 0.5 0.2

0.5 0.6 0.4 0.2

0.7 0.6 0.4 0.3

JVC Vietnam Ltd

0.2

0.2

0.2

0.2

Seiko Epson Corp Acer Vietnam Co Ltd Pioneer Electronics Asia Centre Pte Ltd Nikon Corp OKI Electric Industry Co Ltd Bose Corp Apple Inc BlackBerry Ltd Toshiba Consumer Products Vietnam Co Ltd Pioneer Electronics Asia Centre Pte Ltd Others Total

0.3 0.3 0.2

0.2 0.2 0.2

0.2 0.2 0.2

0.2 0.2 0.2

0.2 0.2

0.2 0.2

0.2 0.2

0.2 0.2

0.1 0.1 0.2 0.1

0.1 0.1 0.1 0.0

0.1 0.1 0.1 0.0

0.1 0.1 0.0 0.0

0.0

0.0

0.0

0.0

20.3 100.0

17.3 100.0

17.4 100.0

17.0 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 7

Distribution of Consumer Electronics by Channel: % Volume 2014-2019

% retail volume

Store-Based Retailing - Grocery Retailers

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2014

2015

2016

2017

2018

2019

82.2 0.2

81.4 0.1

79.9 0.2

77.9 0.3

76.3 0.3

76.8 0.3

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CONSUMER ELECTRONICS IN VIETNAM

-- Discounters -- Hypermarkets -- Supermarkets -- Other Grocery Retailers - Non-Grocery Specialists -- Electronics and Appliance Specialist Retailers -- Other Non-Grocery Specialists - Mixed Retailers Non-Store Retailing - Direct Selling - Homeshopping - Internet Retailing Total Source:

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0.2 -

0.1 -

0.2 0.0

0.2 0.1

0.2 0.1

0.2 0.1

82.0 81.6

81.3 81.3

79.7 79.7

77.7 77.7

76.1 76.1

76.5 76.5

0.4

0.0

0.0

0.0

0.0

0.0

17.8 0.0 17.8 100.0

18.6 0.0 18.5 100.0

20.1 0.1 20.0 100.0

22.1 0.2 21.9 100.0

23.7 0.2 23.5 100.0

23.2 0.2 23.0 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 8

Forecast Sales of Consumer Electronics by Category: Volume 2019-2024

'000 units

Computers and Peripherals In-Car Entertainment In-Home Consumer Electronics Portable Consumer Electronics Consumer Electronics Source:

2019

2020

2021

2022

2023

2024

2,622.7 144.8 2,922.1

2,521.4 147.3 2,942.7

2,403.9 149.2 2,975.0

2,289.2 150.5 3,044.0

2,195.1 148.1 3,084.6

2,111.2 148.1 3,165.6

21,692.0

21,488.7

21,431.4

21,492.5

21,686.3

22,000.0

27,381.6

27,100.1

26,959.5

26,976.2

27,114.0

27,424.9

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 9

Forecast Sales of Consumer Electronics by Category: Value 2019-2024

VND billion

Computers and Peripherals In-Car Entertainment In-Home Consumer Electronics Portable Consumer Electronics Consumer Electronics Source:

Table 10 2024

2019

2020

2021

2022

2023

2024

20,975.9 621.5 30,166.6

22,819.9 623.0 30,789.8

23,519.6 625.1 31,503.1

23,816.1 624.3 32,615.6

23,723.1 608.5 33,325.0

23,325.0 582.2 33,513.8

95,624.9

104,613.7

116,940.5

134,698.5

157,367.4

183,420.8

147,388.9

158,846.5

172,588.3

191,754.5

215,024.0

240,841.8

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Forecast Sales of Consumer Electronics by Category: % Volume Growth 2019-

% volume growth 2019/20

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2019-24 CAGR

2019/24 Total

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CONSUMER ELECTRONICS IN VIETNAM

Passport

Computers and Peripherals In-Car Entertainment In-Home Consumer Electronics Portable Consumer Electronics Consumer Electronics Source:

-3.9 1.7 0.7 -0.9 -1.0

-4.2 0.5 1.6 0.3 0.0

-19.5 2.3 8.3 1.4 0.2

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 11 2024

Forecast Sales of Consumer Electronics by Category: % Value Growth 2019-

% constant value growth 2019/2020

2019-24 CAGR

2019/24 Total

8.8 0.2 2.1 9.4 7.8

2.1 -1.3 2.1 13.9 10.3

11.2 -6.3 11.1 91.8 63.4

Computers and Peripherals In-Car Entertainment In-Home Consumer Electronics Portable Consumer Electronics Consumer Electronics Source:

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

SOURCES Sources used during research include the following: Summary 1

Research Sources

Official Sources

General Statistics Office Ministry of Information & Communications

Trade Associations

Vietnam Electronics Industries Association

Trade Press

DNA Branding Entrepreneur Forum PC World Vietnam Saigon Times The Business Review Tuoi Tre Vietnam Business Forum Vietnam Business News Vietnam Chamber of Commerce & Industry Vietnam Economy Times Vietnam Investment Review Vn Express

Company Sources

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Asus Technology (Vietnam) Co Ltd

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CONSUMER ELECTRONICS IN VIETNAM

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Asus Vietnam Co Ltd Big C Viet Nam Center for Press & International Communication Cooperation - Ministry of Information & Communication, Vietnam CMS Computer Co Co.op Mart SaiGon Danh Nhan Technology Dau Den Blackberry Dell Vietnam Co Ltd Digital World Duy Linh Auto FRT JSC GenK - VC Corp Gia Thanh Co Ltd Hewlett-Packard Vietnam Hoan Long Computer Co Ltd LG Electronics Vietnam Co Ltd Mai Hoang Informatics Co Ltd Mediamart Vietnam JSC Mobile World JSC Nam A Computer Oppo Vietnam Co Ltd Phong Vu Co Ltd Phuc Anh Co Ltd Pico JSC Samsung Vietnam Electronics Samsung Vina Electronics Co Ltd Sharp Electronics Vietnam Co Ltd Sony Electronics Vietnam Ltd Tabletmonkeys Tara JSC Thanh Binh Auto Tiki Viet Nam

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Toshiba Consumer Products Vietnam Co Ltd Tran Anh Computer & Electronics Appliances Supermarket Tran Anh Digital World JSC Trong Tu Store - Thanh mien - Hai Duong Vien Thong A Viet Cathy Co Ltd VTC - Vietnam Mutimedia Corp Source:

Euromonitor International

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