INDUSTRY PREVIEW

Vietnam Detergent Market 2018

Table of Contents

No Contents Page

1 Vietnam Home Care Market Preview 2018 2 – 10

1.1 Market Structure & Description 3

1.2 Size & Segmentation 4

1.3 Competition Dynamics 5

1.4 Development Trends 6

1.5 Financial Indicators 7

1.7 Appendix – Key Players’ Profile 8 – 10

2 StoxPlus Introduction 11 – 21

Page 2
 Market Structure & Description
Home Care market in Vietnam is divided into 03 main segments: Laundry detergent,
Dishwashing, Household cleaner and Bleach
• Detergent market occupied approx. 55% of total market size in 2017.
Figure 1: Vietnam detergent market structure, 2017 While powder detergent remained the key product with over 91%
detergent’s market size, liquid ones experienced high growth from low
base with CAGR 2012-2017 of 32.8%, which is much higher than powder
Detergent detergent’s figure (12.4%).
• Unilever continued the lead with it flagship product, Omo (51.5% market
share), followed by Ariel (4.7%) of P&G. Meanwhile, local players such as
Laundry Care LIX only occupied about 1.5% market share.

Fabric • Fabric softener is gaining popularity in Vietnam in recent years

• Comfort (Unilever) and Downy (P&G) dominated fabric softener market
softener with total market share of 80% in 2017.

• In 2017, the market size of dishwashing segment reached VND2,854bn,

VIETNAM equivalent to 8% of total market size.
Dishwashing • Sunlight and My Hao are two most favorable brands with the market
HOME CARE
share of 55.9% and 31.2% respectively, in 2017.
MARKET
• This segment has been expanding at CAGR 2012-2017 of above 13% over
Surface care
the reviewed period, driven by income growth and improved living
standards.
Household cleaner • In the surface care segment, together Gift and Sunlight occupied 40%
Toilet care market share in 2017. Meanwhile, in the toilet care segment, Duck
ranked the first place with 44% market share, followed by Gift (22%).

• Bleach is the niche market with relatively small size of approx.

VND115bn. Bleach faces fierce competition from laundry care products
Bleach with strong stain removal ability, thus, the development of bleach is
constrained in Vietnam.
• Javel brand dominated the market with over 50% market share in 2017.

Others
Source: StoxPlus
Page 3
 Size & Segmentation
Laundry care remained its dominating position, contributing approx. 80% to the total market
value
Figure 2: Market size breakdown by segmentation, 2012-2017

100% Scale of
Growth CAGR
2017
2016-2017 2012-2017
(VND bn)
80%
Laundry care 31,852 21.3% 16.7%
60% Powder detergent 21,447 17.9% 12.4%
Liquid detergent 2,353 24.5% 32.8%
40%
Fabric softener 8,532 30.3% 29.5%

20%
Dishwashing 2,854 9.8% 11.8%
Toilet cleaner 770 12.2% 14.3%
0% Floor cleaner 2,362 9.4% 12.7%
2012 2013 2014 2015 2016 2017
Others 2,980 7.8% 9.2%
Laundry care Dishwashing Toilet care Surface care Others
TOTAL 40,819 18.5% 15.4%

Source: StoxPlus Compilation

• The value of the laundry detergent segment takes up around 78% of the home care industry in Vietnam. In the coming years, the laundry
detergent segment is expected to prolong its dominating position with growth rate of 7.8% during the period 2017-2022. Notable trends in the
laundry care segment include:
➢ Liquid detergent segment is expected to be the key growth driver with the highest CAGR 2012-2017 of over 30%, which was also
recorded in other countries in Asia area such as China, Indonesia, Malaysia or Singapore. This could be explained by liquid detergent’s
convenience and efficiency. In addition, consumers also prefer products, which is good for skin.
➢ Big pack size is preferred in rural area due to its relatively cheap price.

Page 4
 Competition dynamics
Unilever remained its dominant position throughout years thanks to its wide distribution
network, marketing tactics, financial capabilities and management experience
Figure 3: Market share by sales value in laundry care sector, 2017

• In 2017, Unilever still dominates Vietnam laundry care industry with 70%
Lix
Viet Huong Others market share thanks to its wide distribution network, marketing strategies,
financial capabilities and management experience. The company has over
Kao 150 distributors with a pool of more than 300,000 retailers nationwide. By
Vico localizing the management team as well as marketing strategies, the
company has tailored made messages and campaigns suited for Vietnam
consumers. Being the largest FMCG manufacturer, the strategy of Unilever
is not only to adapt with the changes of consumers behavior but also to set
new trends for the market.
P&G
• It’s challenging for local companies to compete directly with two giants of
detergent market as Unilever and P&G. To survive, there are 02 main
strategies being applied by local firms:
➢ Becoming a contractor of Unilever and P&G
Unilever
➢ Developing their own brand and distribution network.
• In 2015, Unilever invested in a new factory in Bac Ninh to increase their
own production capacity as Vietnam is seen as a promising market. Due to
the low margin of manufacturing contract, local firms put effort to develop
their own brand and distribution network, especially in rural areas with big
Source: StoxPlus Compilation pack size products. For instance, ABA brand (Dai Viet Huong company)
concentratedly taps the economic class in rural areas, making it rank 5th in
Consumer Reach Points index in this area. Additionally, the revolution of e-
commerce players such as Shopee or Tiki assist local brands to penetrate
niche market.

Page 5
Development Trends
Development trends of Detergents sector in terms of consumer behaviors, potential market
and product development trend

CONSUMER ✓ Working women: Women still do the majority of housework, even though the number of women working outside the home
BEHAVIORS continues to grow. With busier lifestyles and rising income, consumers are willing to pay for premium products with
convenient and effective feature, creating opportunities for concentrated products. Consumers are more concerned about
how products protect their fabric and colors
✓ Bright lights, big cities: The proportion of urban population has been on the upward momentum from 28.9% (2008) to 35.5%
(9M2018). For many consumers, urbanization means smaller storage space, which may increase demand for smaller package
sizes, concentrated and multi-purpose products.

• In long term, rural areas are still the promising land for detergent products due to:
POTENTIAL
✓ Historical performance: In 2015, the detergent nominal value growth in rural area reached 6%, outperformed
MARKET
urban area’s figure with modest growth rate of 1%.
✓ Low penetration: The penetration rate of washing machines continues to increase over the forecast period thanks
to increasing disposable income and higher coverage of consumer appliance retailers to rural areas. Therefore,
demand for in-wash laundry care such as laundry detergents and liquid fabric softeners will remain consistent,
while bar detergents (hand washing) will continue to experience decline.

PRODUCT • Premium products: As of 2016, premium detergent products contributed less than 30% of total category value. Consumers
DEVELOPMENT are willing to pay for premium products with additional feature (safe, organic, environment-friendly, hypoallergenic, etc.)
• Packaging: Big packaging with relatively low price is preferred in rural area, which can be used for refilling purpose

Page 6
 Financial Indicators
Our Biinform portal provides ~ 1 million available company reports ready to purchase
Figure 6: Selected financial indicators (US$ mn) of key players in detergent sector, 2015

SALES TOTAL OWNER’S

COMPANY KEY BUSINESS LINE TYPE COGS NPAT
REVENUE ASSET EQUITY
• Home care: Omo, Viso, Comfort, Surf, Sunlight, Cif,
Unilever Vietnam VIM
Foreign-owned >500 471.7 106.1 409.3 145.2
International • Personal care: Axe, Closeup, Dove, Lifeboy, Lux,
Pond’s, etc.
Saigon Co-op • Diversified Private >500 516.2 41.6 375.3 185.1
• Home care: Laundry care, dishwashing liquid, floor
LIX Detergent cleaner, toilet cleaner SOEs 50-100 61.4 8.1 35.1 20.1
• Personal care: Shower gel
• Home care: Laundry care, dishwashing liquid, floor
cleaner, toilet cleaner, bleach, glass cleaner,
multipurpose cleaner, mostly branded “Vi Dan” and
Vico Private 25-50 36.0 1.5 28.3 5.2
“Vico”
• Personal care: Shampoo, shower gel, hand wash,
soap branded “Orian”, “Waha”, and “Luson”
• Personal care: Cleansing products, Shower gel, &
sunscreen named “Bioré”
Kao Vietnam • Home care: Powder & Liquid detergent branded Foreign-owned 25-50 26.7 -3.5 19.3 12.3
“Attack”
• Tampon and diaper branded “ Laurier” & “Merries”
• Home care: Laundry care, dishwashing liquid,
My Hao Chemical bleach, glass cleaner branded “My Hao”, “Siusop”,
Private 25-50 31.3 3.3 10.7 8.9
Cosmetics and “Ring”
• Personal care: Shower gel, shampoo, perfume, soap
Source:
S.C. StoxPlus& Son
Johnson
Household
• account
Note: The sales revenue takes into cleansing
all the brands: Pledge, Duck, MrMuscle Foreign-owned
business lines 25-50 13.0 -1.2 6.3 -2.0
(Vietnam)
Saraya Greentek • Diversified Private <25 0.7 0.1 0.5 0.3

Page 7
 Appendix| Key Players’ Profiles

COMPANY PROFILING KEY PRODUCTS & BUSINESS STRATEGY

• Registered name: Unilever Vietnam Company Limited HOME CARE PERSONAL CARE OTHERS
• Head office: Lot A2-3, Tay Bac Cu Chi Industrial Zone, Tan An Hoi • Omo • Sunsilk • Real estate
Commune, Cu Chi District, Ho Chi Minh City, Vietnam
• Comfort • Dove • Chemicals
• Establishment Year: 1995
• Sunlight • Pond • Livestock
• Principal businesses: Unilever is the leading FMCG company in
• VIM • P/S
Vietnam. The company’s business focuses on 03 main segments
including home care, personal care, and food & beverage. Some of
Unilever’s most well-known brands in home care sector include The company have a widespread contribution network of over 150
Ome, Comfort, Viso, Sunlight, Cif, Surf, and Vim. distributors and 300,000 retail stores. With regard to laundry
detergent, Unilever offers customized products for different customer
classes: OMO – premium product; Viso and Surf – economic product.

FINANCIAL PERFORMANCE COMPANY POSITION

Unit: US$mn No Plant Location Products

2014 2015 2016 2017
1 HCMC plant HCMC • Home care
Net sales 1,004.4
• Personal care
CoGS 490.5
Gross Profit 513.8 Content to be • Food
2 Bac Ninh plant Bac Ninh Province • Home care
% Gross Profit(*) 47.3% removed for
NPAT 92.7 demo purpose 3 Cu Chi plant Cu Chi North West • Home care
% NPAT (*) 8.5% Industrial Zone, Cu Chi
• Personal care
Total Assets 403.0
Total Liabilities 133.8
ROA (*) 23.0%
ROE (*) 69.2%
 Appendix| Key Players’ Profiles

COMPANY PROFILING KEY PRODUCTS & BUSINESS STRATEGY

• Registered name: Dai Viet Huong Joint Stock Company LAUNDRY CARE PERSONAL CARE OTHERS
• Head office: 111 Nguyen Trai Street, Ben Thanh Ward, District 1, • Aba • E100 • N/A
Ho Chi Minh City, Vietnam
• Junco • Biona
• Establishment Year: 1992
• Doreen
• Principal businesses: Dai Viet Huong Company (formerly known as
• Ramus
Viet Huong Cosmetics) was established in 1992 as a cosmetics
company. IIn 2012, the company marked its entry into the Dai Viet Huong position its Aba brand in high price segment. In
detergent sector by launching a brand new laundry powder addition, the company often offer attractive discount policies such as
product named Aba, directly compete with the 2 industry giants 15-20% discounts while multinational rivals only offer 10% limit . With
namely Omo and Ariel. Despite being a relatively new brand, Aba the advantage of low production cost, high selling price, the company
quickly ranks at No. 3 in the market, and became the core has a large profit margin which is reinvested in distribution systems
business of Dai Viet Huong. and promotion to to gain market share.

FINANCIAL PERFORMANCE PRODUCTION SITES

Unit: US$mn No Plant Location Products

2014 2015 2016 2017
Net sales 77.08 1 Vinh Long Plant Vinh Long Province • Personal care
CoGS 68.31 • Home care
Gross Profit 8.64
% Gross Profit(*) 11.23% Content to be
NPAT 3.61 removed for
% NPAT (*) 4.69% demo purpose
Total Assets 27.73
Total Liabilities 16.05
ROA (*) N/A
ROE (*) N/A
 Appendix| Key Players’ Profiles

COMPANY PROFILING KEY PRODUCTS & BUSINESS STRATEGY

• Registered name: Daso Company Limited DETERGENT JUICE OTHERS

• Head office: No. 35 Binh Duong Boulevard, Thuan Giao Ward, • Daso (Laundry • Delta • Real estate
Thuan An Town, Binh Duong Province, Vietnam powder, fabric
• Chemicals
softener &
• Establishment Year: 1988
dishwashing) • Livestock
• Principal businesses: Daso Group, initially Nha Rong cosmetics
• Javel
JSC, is a 7-member corporation, operating in many fields such as
chemicals, cosmetics, food & beverage, livestock and real estate. Daso company positioned its Daso detergent brand in the low to
In the The company chemical segment, the company is mostly middle income segment. Its supermarket partners are Co.op mart,
known for its detergent product line namely Daso Laundry Powder. Maximark and Metro. Although it was one of the well-known domestic
brands, after foreign brands such as Omo and P & G entered the
market and as the living standard increased , the company lost ground
and failed to catch up with its giant rivals’ financial and strategic
resources as well as to have an appropriate image change.
FINANCIAL PERFORMANCE PRODUCTION SITES

Unit: US$mn No Plant Location Products

2014 2015 2016 2017
Net sales 0.23 1 Daso Co., Ltd Binh Duong • Detergent
CoGS 0.24 • Home care
Gross Profit (0.01)
Content to be • Personal care
% Gross Profit(*) (6.98%)
2 Daso JSC Hai Phong • Sodium silicate
NPAT (0.04) removed for Laundry care
% NPAT (*) (18.92%) demo purpose • Detergent
Total Assets 11.72 • Home care
Total Liabilities 10.67 3 Delta Beverages Long An • Milk
ROA (*) N/A Co., Ltd
• Fruit juice
ROE (*) N/A 4 Binh An Vegetable Binh Duong • Cooking oil
Oil JSC
Table of Contents

No Contents Page

1 Vietnam Detergent Market Preview 2018 2 – 13

1.1 Market Structure & Description 3

1.2 Size & Segmentation 4

1.3 Competition Dynamics 5–7

1.4 Financial Indicators 8

1.5 Development Trends 9

1.6 SWOT Analysis 10

1.7 Appendix – Key Players’ Profile 11 – 13

2 StoxPlus Introduction 14 – 24

Page 11
Overview
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Page 13
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