The Connected Consumer Q2 2021

PREPARED BY DECISION LAB

J U L Y 2021 Content

Introduction

TRACKING THE CONNECTED CONSUMERS

THE CONNECTED CONSUMERS’ PROFILE Overview Platforms by functions Key findings & What it means for Advertisers Our solutions Contact us Introduction Background

The Connected Consumer is a quarterly study conducted by Decision Lab starting in 2019. The study focuses on consumers’ online habits, including usage, entertainment (music, movies, online videos), as well as online shopping. Data in this report is collected using Decision Lab’s online panel.

Disclaimer: This report has been prepared solely for information purposes over a limited time period to provide a perspective on the market. Information, analyses and conclusions contained herein should not be construed as definitive forecasts or guarantees of future performance or results. Decision Lab shall not be liable for any loss arising from the use of this report. Online quantitative survey using Decision Lab’s online panel

NORTHEAST A P R 2021 – J U N 2 0 2 1 1833 NORTHWEST SAMPLE COLLECTION PERIOD TOTAL SAMPLE SIZE

RED RIVER DELTA JAN 2021 – M A R 2021 2028 TOTAL SAMPLE SIZE SAMPLE COLLECTION PERIOD NORTH CENTRAL O C T 2 0 2 0 – D E C 2 0 2 0 884 TOTAL SAMPLE SIZE SAMPLE COLLECTION PERIOD

J U L Y 2 0 2 0 – S E P 2 0 2 0 1655 TOTAL SAMPLE SIZE SAMPLE COLLECTION PERIOD SOUTH CENTRAL A P R 2 0 2 0 – J U N 2 0 2 0 1099 TOTAL SAMPLE SIZE SAMPLE COLLECTION PERIOD WESTERN HIGHLANDS

DEC 2 0 1 9 – F E B 2 0 2 0 2149 TOTAL SAMPLE SIZE SAMPLE COLLECTION PERIOD 457 A U G 2 0 1 9 - S E P 2 0 1 9 SOUTHEAST TOTAL SAMPLE SIZE SAMPLE COLLECTION PERIOD MEKONG DELTA The Connected Consumers’ profiles

GEN Z GEN Y (MILLENNIALS) GEN X BORN BETWEEN 1997 – 2005 BORN BETWEEN 1981 – 1996 BORN BETWEEN 1960 – 1980 AGE 16 - 24 AGE 25 - 40 AGE 41 - 61 The Top platforms

TOP PLATFORMS

TOP PRIMARY PLATFORMS

PLATFORMS USERS CAN’T LIVE WITHOUT

MULTI - PLATFORM USAGE , Zalo, and YouTube remain the top 3 most popular platforms in Quarter 2/2021.

96% 85% 86% use Facebook use Zalo use YouTube

97% 96%

86% 83% 85% 79%

2019 Q1 Q2 Q3 Q4 Q1 Q2 2019 Q1 Q2 Q3 Q4 Q1 Q2 2019 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2020 2021 2020 2021

2021 Q1 n=2028 , 2020 Q4 n=884, 2020 Q3 n=1655 2020 Q2 n=1099 , 2020 Q1 n=2149, 2019 n=457 Besides Facebook and YouTube, all major social media platforms have experienced growth in popularity in compared to last quarter.

Other popular social media platforms

50% 46% 46%

26% 21% 15% 16% 17% 12% 9% 2% 2%

Instagram TikTok LinkedIn Lotus Gapo

2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021

2021 Q2 n=1833, 2021 Q1 n=2028 , 2020 Q4 n=884, 2020 Q3 n=1655 2020 Q2 n=1099 , 2020 Q1 n=2149, Q: Which of the following social media platforms are you using? (Choose all that apply) 2019 n=457 Social media platforms’ popularity grows more strongly among Gen X & Y consumers than among Gen Z consumers.

• Top 5 social media platform by generation

Gen X Gen Y Gen Z

91% 97% 98%

95% 97% 97% 89% 92% 85%

84% 90% 90% 79% 89% 73%

72% 85% 65% 30% 45% 70%

21% 22% 68% 44% 20% 56%

42% 6% 32% 22% 20% 36%

13% 9% 32% 18% 18% 21% 14% 3% 22%

Q: Which of the following social media platforms are you using? Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 (Choose all that apply) 2021 Q2 n=1833, 2021 Q1 n=2028 , 2020 Q4 n=884, 2020 Q3 n=1655, 2020 Q2 n=1099, 2020 Q1 n=2149 Not only are Facebook, YouTube, Zalo, and TikTok popular, but they are also platforms Vietnamese consumers cannot live without.

Facebook YouTube Zalo TikTok

Q2 2021 Q2 2021 Q2 2021 Q2 2021

54% 42% 39% 14% -2% +0% -2% +2%

63% 54% 43% 39% 46% 42% 14%

2019 Q1 Q2 Q3 Q4 Q1 Q2 2019 Q1 Q2 Q3 Q4 Q1 Q2 2019 Q1 Q2 Q3 Q4 Q1 Q2 2019 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2020 2021 2020 2021 2020 2021

2021 Q2 n=1833, 2021 Q1 n=2028 , 2020 Q4 n=884, Q: Which of the following social media platforms are you unable to live without? (Choose all that apply) 2020 Q3 n=1655, 2020 Q2 n=1099, 2020 Q1 n=2149, 2019 n=457 TikTok progresses, while stagnates as Vietnamese consumers’ fourth-most essential apps

Platforms Vietnamese consumers cannot live without TikTok has grown more 70% 63% essential to Vietnamese

60% 54% consumers, sharing the

50% 46% fourth spot with Instagram 42% Facebook in Quarter 2/2021. 40% 43% YouTube 39% Zalo 30% Instagram 20% 14% TikTok 11% 10% 4% 14%

0% 2019 Q1 2020 Q2 Q3 Q4 Q1 2021 Q2

2021 Q2 n=1833, 2021 Q1 n=2028 , 2020 Q4 n=884, 2020 Q3 n=1655, 2020 Q2 n=1099, Q: Which of the following social media platforms are you unable to live without? (Choose all that apply) 2020 Q1 n=2149, 2019 n=457 • Most used social media platforms

Consumers’ primary applications Generally, top

4% 3% 3% 3% 3% 4% social media 4% 4% 5% 8% 6% 7% platforms have 19% 17% 19% 21% solidified their 23% 23% Facebook positions as 18% 20% 18% 18% primary apps for 15% 16% YouTube Vietnamese users.

Zalo

Others/Don't 55% 56% 54% 51% 52% 50% care Instagram

Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 2021 Q2 n=1833 2021 Q1 n=1422 2020 Q4 n=582 2020 Q3 n=1655 Q: What is your one primary app? 2020 Q2 n=1099 2020 Q1 n=2149 Zalo is voted as Gen X’s primary app for the first time, while Facebook’s popularity is fading away across age groups.

Gen X Gen Y Gen Z

42% 53% 52%

53% 27% 55% 20% 40% 28% 25%

58% 9% 22%

13% 15% 10% 6% 14% 17% 4%

Q: What is your one primary app? Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 2021 Q2 n=1833, 2021 Q1 n=2028 , 2020 Q4 n=884, 2020 Q3 n=1655, 2020 Q2 n=1099, 2020 Q1 n=2149, 2019 n=457 Quarter 2/2021 sees a dramatic increase in the number of multi- platform Gen X & Y users, while Gen Z remains the most digitally present age group.

Use 3 apps 52% 35% 28% 2%

Use 4+ apps 48% 13% 65% 10% 72%

Gen X n=168 Q: Which of the following social media apps do you use? Check all that apply. Gen Y n=482 Gen Z n=1183 Platforms by popular functions

MUSIC AND ENTERTAINMENT VIDEOS

SHORT VIDEOS

MUSIC/ AUDIO CONTENT

MOVIE STREAMING Entertainment Short Videos Music Movies

TikTok is in its nascent phase of becoming the go-to application for music and entertainment videos, a category dominated by YouTube.

YouTube Facebook TikTok

Q2 2021 Q2 2021 Q2 2021

63% 12% 8% -1% -1% +2%

75% 63%

8% 12% 1% 8%

Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2020 2021 2020 2021

Q: Which platform do you go on when you want to watch music videos/entertainment videos? 2021 Q2 n=1833, 2021 Q1 n=2028 , 2020 Q4 n=884, 2020 Q3 n=1655, 2020 Q2 n=1099, 2020 Q1 n=2149 Entertainment Short Videos Music Movies

TikTok is becoming more relevant for Gen Z’s music and entertainment needs, while YouTube’s position has stabilized.

Gen X Gen Y Gen Z

63% 66% 56%

62% 81% 81% 9% 11% 14%

7% 14% 4% 13% (*) 8% 10%

2% 13% 9% 8% 7% 2% 5% 4% 1%

= Vietnamese (local) websites/ platforms

Q: Which platform do you go on most often when you want to Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 2021 Q2 n=1833, 2021 Q1 n=2028 , 2020 Q4 n=884, watch music videos/entertainment videos? 2020 Q3 n=1655, 2020 Q2 n=1099, 2020 Q1 n=2149 Entertainment Short Videos Music Movies

Despite efforts by Facebook and YouTube, TikTok is on a steady rise in the short videos category.

Facebook YouTube TikTok

Q2 2021 Q2 2021 Q2 2021

37% 27% 24% -2% -3% +5%

41% 37% 40% 27% 24% 8%

2019 Q1 Q2 Q3 Q4 Q1 Q2 2019 Q1 Q2 Q3 Q4 Q1 Q2 2019 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2020 2021 2020 2021

2021 Q2 n=1833, 2021 Q1 n=2028 , 2020 Q4 n=884, Q: Which app do you use most often when watching short videos? 2020 Q3 n=1655, 2020 Q2 n=1099, 2020 Q1 n=2149, 2019 n=457 Entertainment Short Videos Music Movies

In the short videos category, TikTok’s rise parallels Facebook’s fall especially among Gen Y & Z. YouTube maintains its relevance across age groups.

• Popular platform to get news

Gen X Gen Y Gen Z

48% 42% 36%

57% 47% 28% 45% 35%

26% 32% 13% 6% 19% 36% 2% 26% 22% 3% 5%

4% 7% 8%

2020 n=266

2021 Q2 n=1833, 2021 Q1 n=2028 , 2020 Q4 n=884, Q: Which app do you use most often when watching short videos? Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 2020 Q3 n=1655, 2020 Q2 n=1099, 2020 Q1 n=2149 Entertainment Short Videos Music Movies

Across age groups, YouTube is undoubtedly the No. 1 music streaming platform for Vietnamese consumers across age group.

• Local streaming services

Gen X Gen Y Gen Z

54% 53% 46%

61% 43% 40% 18% 15% 22% 34% 15% 33% 12% 8% 8% 6% 11% 10% 7%

7% 2% 8%

11% 5% 6%

5%

2021 Q2 n=1833, 2021 Q1 n=2028, 2020 Q4 n=884, Q: Which app do you use to listen to music most often? Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 2020 Q3 n=1655 Entertainment Short Videos Music Movies

Vietnamese consumers still consider YouTube a platform for all formats of visual contents, including movies.

YouTube Local platforms Search

Q2 2021 Q2 2021 Q2 2021

49% 16% 12% -3% -3% +2%

55% 49% 28% 16% 6% 12%

2019 Q1 Q2 Q3 Q4 Q1 Q2 2019 Q1 Q2 Q3 Q4 Q1 Q2 2019 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2020 2021 2020 2021

Q: Which of the following apps do you use most often to watch movies? 2021 Q2 n=1833, 2021 Q1 n=2028 , 2020 Q4 n=884, 2020 Q3 n=1655, 2020 Q2 n=1099, 2020 Q1 n=2149, 2019 n=457 Entertainment Short Videos Music Movies

Netflix has garnered a 5% increase in market penetration in Quarter 2/2021, slowly catching up to FPT Play.

Top paid streaming services in Vietnam by market penetration rates Compared to last quarter, the disparity between 25% Netflix and FPT Play in 23% terms of market 21% 16% penetration rates has 13% gotten smaller. 14% Q2 2021 Q1 2021 Netflix is the only foreign 8% player in Vietnam’s market 6% for streaming services. 6% 6%

5% 6%

2021 Q2 n=1833, n=1979 Entertainment Short Videos Music Movies

Netflix has captured more Gen X & Y audience in Q2 2021, while YouTube and local competitors serve as the go-to platforms for movie streaming.

• Local streaming services

Gen X Gen Y Gen Z

49% 52% 44%

60% 53% 45% 23% 16% 15%

11% 27% 10% 11% 11% 12%

9% 9% 31% 11% 7% 10%

10% 6% 7% 5% 11% 6%

Q: Which of the following apps do you use most often to watch movies? Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 2021 Q2 n=1833, 2021 Q1 n=2028 , 2020 Q4 n=884, 2020 Q3 n=1655, 2020 Q2 n=1099, 2020 Q1 n=2149, 2019 n=457 Platforms by other functions

NEWS

COMMUNICATION AND MESSAGING

CASUAL BROWSING

TOP POPULAR BROWSERS

E - COMMERCE PLATFORMS News Message Casual Browser E-commerce

As with previous quarters, consumers search for news on Google Search, Facebook, and local websites (VnExpress, Dantri, etc.)

Google Search Facebook Local publishers

Q2 2021 Q2 2021 Q2 2021

29% 26% 28% +1% -4% +4%

36% 33% 29% 26% 28% 13%

2019 Q1 Q2 Q3 Q4 Q1 Q2 2019 Q1 Q2 Q3 Q4 Q1 Q2 2019 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2020 2021 2020 2021

Q: Which platform do you use when you want to get news? 2021 Q2 n=1833, 2021 Q1 n=2028 , 2020 Q4 n=884, 2020 Q3 n=1655, 2020 Q2 n=1099, 2020 Q1 n=2149, 2019 n=457 News Message Casual Browser E-commerce

Facebook and Google has taken a back seat to local news websites for Gen X & Y audience in Quarter 2/ 2021. Gen Z are increasingly turning to Google Search as a source of information, ditching Facebook.

• Popular platform to get news

Gen X Gen Y Gen Z

35% 35% 32%

27% 37% 45%

29% 26% 32%

14% 31% 19%

16% 25% 17%

32% 14% 21%

8% 6% 6%

14% 9% 3%

Q: Which platform do you use when you want to get news? Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 2021 Q2 n=1833, 2021 Q1 n=2028 , 2020 Q4 n=884, 2020 Q3 n=1655, 2020 Q2 n=1099, 2020 Q1 n=2149 News Message Casual Browser E-commerce

Zalo is the No. 1 messaging app for Vietnamese consumers. Facebook and Messenger are other popular communication tools.

Facebook Zalo Messenger

Q2 2021 Q2 2021 Q2 2021

27% 45% 23% -5% +4% +1%

41% 45% 27% 32% 22% 23%

2019 Q1 Q2 Q3 Q4 Q1 Q2 2019 Q1 Q2 Q3 Q4 Q1 Q2 2019 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2020 2021 2020 2021

2021 Q2 n=1833, 2021 Q1 n=2028 , 2020 Q4 n=884, 2020 Q3 Q: Which of the following platforms do you use most often to connect with friends and family? n=1655, 2020 Q2 n=1099, 2020 Q1 n=2149, 2019 n=457 News Message Casual Browser E-commerce

Vietnamese consumers are moving away from Facebook as a communication tool, while increasingly favoring Zalo.

• Popular platform to connect with friends and family for all generations

Gen X Gen Y Gen Z

54% 52% 35%

30% 41% 33%

32% 24% 32%

42% 38% 43%

10% 18% 27%

16% 20% 16%

Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q: Which of the following platforms do you use most often to 2021 Q2 n=1833, 2021 Q1 n=2028 , 2020 Q4 n=884, 2020 Q3 connect with friends and family? n=1655, 2020 Q2 n=1099, 2020 Q1 n=2149 News Message Casual Browser E-commerce

Facebook is the No. 1 app for casual browsing, followed by YouTube and Zalo.

Facebook YouTube Zalo

Q1 2021 Q1 2021 Q1 2021

51% 10% 6% +2% -4% +0%

61% 51%

17% 10% 6% 6%

2019 Q1 Q2 Q3 Q4 Q1 Q2 2019 Q1 Q2 Q3 Q4 Q1 Q2 2019 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2020 2021 2020 2021

Q: Which of the following apps do you use when you want to browse mindlessly? 2021 Q2 n=1833, 2021 Q1 n=2028 , 2020 Q4 n=884, 2020 Q3 n=1655, 2020 Q2 n=1099, 2020 Q1 n=2149, 2019 n=457 News Message Casual Browser E-commerce

An increasing number of Gen Z consumers are using TikTok for casual scrolling besides Facebook. Other age groups prefer YouTube and local websites for this activity.

• Local streaming services

Gen X Gen Y Gen Z

53% 39% 55%

45% 50% 51%

16% 11% 15%

9% 17% 2%

14% 9% 9%

19% 8% 18%

14% 6% 8%

12% 6% 10%

Q: In 2020, which of the following apps do you use most often Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 2021 Q2 n=1833, 2021 Q1 n=2028 , 2020 Q4 n=884, 2020 Q3 when you want to browse mindlessly? n=1655 2020 Q2 n=1099 , 2020 Q1 n=2149, 2019 n=457 News Message Casual Browser E-commerce

• Q: What browser(s) are you using on PC/mobile? Choose all that apply

Most often used browser - PC Most often used browser - Mobile

81% Chrome is still by 79% far the most

63% 63% popular browser, followed by 46% CocCoc on PC and Safari on 29% 26% mobile devices. 23%

13% 14% 9% 11% 5% 5% 3% 3% 3% 3% 3% 1% 0%2% 2% 1% 1%2% 1%2%

Other Other

Q2 2021 Q1 2021 Q4 2020 Q2 2021 Q1 2021 Q4 2020

Q4 2020 n=884, Q1 2021 n=2028, Q4 2020 n=884, Q1 2021 n=2028, 2021 2021 Q2 n=1833 Q2 n=1833 News Message Casual Browser E-commerce

Top e-Commerce platforms Shopee is the Total Gen X Gen Y Gen Z most popular e- 90% 80% Commerce 80% 74% 74% platform. 70% 65% However, Gen X- 60% 60% ers prefer Lazada. 51% 50% 48% 43% Shopee has captured the Gen 40% Z segment well, while Gen X 40% 34% 34% 34% 31% 28% consumers are keeping other 30% 25% 26% e-Commerce platforms 21% 19% 21% 20% relevant.

10% 7% Gen Y is curiously utilizing social commerce (Facebook) 0% Shopee Lazada Tiki Facebook Sendo as much as Tiki for e- Commerce. Q2 2021 n=1833; Gen X n=168, Gen Y Q: Which of the following platforms/apps do you use for online shopping? Choose all that apply. n=482, Gen Z n=1183 News Message Casual Browser E-commerce

The e-Commerce “hierarchy” is clear across regions with Shopee dominating the market. That said, in rural areas, social commerce (Facebook) competes with Tiki for the third spot after Lazada.

HN HCMC DN CT HP NT Other locations 80% 80% 71% 73% Shopee Shopee Shopee Shopee 80% 68% 67% 65%

41% 54% 45% 48% Lazada Lazada Lazada Lazada 46% 51% 49% 43%

32% 44% 32% 30% Tiki Tiki Tiki Facebook 40% 50% 37% 29%

27% 24% 27% 30% Facebook Facebook Facebook Tiki 29% 30% 25% 27%

17% 24% 19% 20% Sendo Sendo Sendo Sendo 31% 23% 21% 22% Q2 2021 Q1 21 Q4 20 n=405 n=485 n=469 n=474

Q: Which of the following platforms/apps do you use for online shopping? Choose all that apply. 2021 Q2 n=1833 2021 Q1 n=1925 2020 Q4 n=884 News Message Casual Browser E-commerce

• Top e-commerce platforms

Top preferred e-Commerce platforms Shopee is the go- to e-Commerce Total Gen X Gen Y Gen Z destination for 70% 66% Gen Y & Z 60% consumers. 51% 50% 50% Lazada is the favorite e- 40% 33% Commerce 30% platform among 24% Gen X-ers. 20% 18% 18% 11% 11% 9% 8% 8% 8% 9% 10% 7% 6% 3% 3% 3% 0% 0% Shopee Lazada Tiki Facebook Sendo

Q: What is your most often used platform/app for online shopping? Q2 2021 n=1833; Gen X n=168, Gen Y n=482, Gen Z n=1183 KEY FINDINGS WHAT IT MEANS FOR ADVERTISERS

• Apps penetration rates and the number of apps in • Advertisers should shift more budget to digital concurrent use are increasing across age groups, which channels, especially during prolonged periods of indicates that Vietnamese consumers are more present time when people must stay at home. on digital platforms than ever. • Advertisers should consider alternatives like TikTok • Even though Facebook is the most popular app in and Zalo in addition to Facebook. Vietnam, its leading position is increasingly diminished • To choose the optimal e-Commerce channels, across multiple categories (primary apps, news, short advertisers should be mindful of the age and videos). location of their target segment. • Zalo is voted Gen X consumers’ primary app for the first time, supplanting Facebook.

• Shopee dominates Vietnam’s e-Commerce scene, driven largely by Gen Z users. Rankings among e-Commerce platforms are consistent across regions. We help marketers to establish a return on their ad investments

Understand Planning and Measuring and Learning and Your Audiences Executing Validating Iterating

. Usage & Attitude . Media and Digital . Brand Lifts . Media Hypotheses Channel Mix . -to-Purchase . Campaign Impact . Channel Hypotheses Optimization Validation . Touchpoints Study . Ad Format . Optimal Frequency . Brand Tracking Hypotheses . Media Habits . Media Performance . Digital Reach . Creative Testing . Devices Usage Benchmark Measurement . Cross-Channel . Digital Consumer . Brand Lift . Cross-Media Synergies Segmentation Benchmark Measurement Our Solutions

Agile research products that gives you direct consumer response and allows you to make fast decisions. Why us? AGILE CUSTOM TESTING BRAND HEALTH TRACK Make it easy to get fast and reliable feedback from Monitoring the brand health performance in real- . Agile research approach consumers time to make agile, consumer-focused decisions *From 3,890 USD From 1,800 USD/Month . Best-in-class survey methodology

. Largest and most accurate in Southeast Asia

. Decision-focused reports with real-time dashboards

AUDIENCE MEASUREMENT BRAND LIFT STUDY . Cost Effective Enable to analyze and optimize digital media Quantify and provide insights to understand the investments in real-time across platforms effectiveness of the digital campaigns From 2,000 USD *From 5,500 USD

(*) Price is applicable for a standard sample size of 300. Reach out to us

23RD F L O O R - WEWORK ETOWN CENTRAL 11 DOAN VAN BO, DISTRICT 4 HO CHI MINH, VIETNAM

+84 28 7101 0199 | [email protected] WWW.DECISIONLAB.CO