Luxury Brand

The Reality of Retailing & Luxury

Ralf Matthaes Regional Managing Director

Agenda
 Present consumer reality and confidence  spend  Areas of spend / areas of saving  Confidence  Consumer  Modern retail not growing very fast due to…  What and where consumers spend  The growth of Modern vs traditional trade  Drivers of growth  Hindrances of growth  Luxury myth  % whom have bought luxury items  Definition of luxury  Consumer misperception of luxury

Consumer Confidence – 2011-2012

2008 – 2012 Consumer Confidence Index
110 100 80 60 40 20 0 2008 2009 2010 2011 2012 89 78 64

79 68

Index has fallen drastically due to poor Vietnamese economic performance

4
Source: TNS CCIP – 2008 – 2012 urban only

Consumer overview of Vietnam's next 12 months
Q: In the next 12 months would you think that the following will be better, the same or worse than they are now?

Value of the Vietnamese dong Employment The cost of living Vietnam's economy Foreign investment My personal standard of living

2012 = 68
51
44 30

2011 = 79
15
26 20 21 13 7 5 27 42 43

34

57
42 43

25
36 36 58 41 51

16

29
34 20 13 Worse

41
35 38 48 Same

30
32 35 39 Better

Confidence has dropped substantially in the past 12 months

Source: TNS CCIP – 2011 – 2012 urban only

Job Security is Falling
Do you think your present job is safe, or do you think there’s a chance you may become unemployed?

Mid 2012

68

20

12

Early 2011

76

17

6

Present job is safe Chance of unemployment Don't know

Job security is falling, driving consumer caution
6
Source: TNS CCIP – 2011 – 2012 urban only

Employment Concerns
Will unemployment rise or fall in 2012 in Vietnam?

Mid 2012

25

69

6

Early 2011

30

54
Will see a fall in unemployment Will see a rise in unemployment Same/ Don't know

16

An additional 15% of the population believe unemployment will increase in 2012
7
Source: TNS CCIP – 2011 –...