The Connected Consumer Q P R E P A R E D B Y D E C I S I O N L A B J U L Y 2021

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The Connected Consumer Q2 2021

P R E P A R E D B Y D E C I S I O N L A B J U L Y 2 0 2 1

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Content

Introduction

T R A C K I N G T H E C O N N E C T E D C O N S U M E R S T H E C O N N E C T E D C O N S U M E R S ’ P R O F I L E

Overview

Platforms by functions

Key findings & What it means for Advertisers Our solutions

Contact us

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Introduction

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The Connected Consumer is a quarterly study conducted by Decision Lab starting in 2019. The study focuses on

consumers’ online habits, including social media usage,

entertainment (music, movies, online videos), as well as online shopping. Data in this report is collected using Decision Lab’s online panel.

Background

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.

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2149

T O T A L S A M P L E S I Z E

D E C 2 0 1 9 – F E B 2 0 2 0

S A M P L E C O L L E C T I O N P E R I O D

Online quantitative survey using Decision Lab’s online panel

NORTHEAST

SOUTH CENTRAL NORTHWEST

RED RIVER DELTA

NORTH CENTRAL

WESTERN HIGHLANDS

MEKONG DELTA

SOUTHEAST A U G 2 0 1 9 - S E P 2 0 1 9

457

1099

A P R 2 0 2 0 – J U N 2 0 2 0

1655

J U L Y 2 0 2 0 – S E P 2 0 2 0

884

O C T 2 0 2 0 – D E C 2 0 2 0

2028

J A N 2 0 2 1 – M A R 2 0 2 1

1833

A P R 2 0 2 1 – J U N 2 0 2 1

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The Connected Consumers’ profiles

GEN X

BORN BETWEEN 1960 – 1980 AGE 41 - 61

GEN Y (MILLENNIALS) BORN BETWEEN 1981 – 1996

AGE 25 - 40 GEN Z

BORN BETWEEN 1997 – 2005 AGE 16 - 24

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The Top platforms

T O P P L A T F O R M S

T O P P R I M A R Y P L A T F O R M S

P L A T F O R M S U S E R S C A N ’ T L I V E W I T H O U T M U L T I - P L A T F O R M U S A G E

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Facebook, Zalo, and YouTube remain the top 3 most popular platforms in Quarter 2/2021.

97% 96%

2019 Q1 2020

Q2 Q3 Q4 Q1 2021

Q2

83% 85%

2019 Q1 2020

Q2 Q3 Q4 Q1 2021

Q2

79%

86%

2019 Q1 2020

Q2 Q3 Q4 Q1 2021

Q2

2021 Q1 n=2028 , 2020 Q4 n=884, 2020 Q3 n=1655 2020 Q2 n=1099 , 2020 Q1 n=2149, 2019 n=457

96%

use Facebook

85%

use Zalo

86%

use YouTube

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Besides Facebook and YouTube, all major social media platforms have experienced growth in popularity in Vietnam compared to last quarter.

46%

15% 16% 17%

12%

50% 46%

26% 21%

9% 2% 2%

Instagram TikTok Pinterest Twitter LinkedIn Lotus Gapo

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

Other popular social media platforms

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 Q: Which of the following social media platforms are you using? (Choose all that apply)

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• Top 5 social media platform by generation

Social media platforms’ popularity grows more strongly among Gen X &

Y consumers than among Gen Z consumers.

Gen X Gen Y Gen Z

3%

9%

6%

21%

72%

84%

95%

18%

20%

30%

79%

89%

91%

14%

13%

42%

22%

85%

90%

97%

18%

22%

44%

45%

89%

92%

97%

22%

32%

68%

65%

90%

97%

21%

36%

56%

70%

73%

85%

98%

Q: Which of the following social media platforms are you using?

(Choose all that apply) 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

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Not only are Facebook, YouTube, Zalo, and TikTok popular, but they are also platforms Vietnamese consumers cannot live without.

Q: Which of the following social media platforms are you unable to live without? (Choose all that apply)

Facebook Q2 2021

54

^%

-2%

YouTube Q2 2021

42

^%

+0%

Zalo

Q2 2021

39

^%

-2%

TikTok Q2 2021

14

^%

+2%

63% 54%

2019 Q1 2020

Q2 Q3 Q4 Q1 2021

Q2

46% 42%

2019 Q1 2020

Q2 Q3 Q4 Q1 2021

Q2

43% 39%

2019 Q1 2020

Q2 Q3 Q4 Q1 2021

Q2

14%

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, 2020 Q1 n=2149, 2019 n=457

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63%

54%

46% 42%

43% 39%

11% 14%

4% 14%

0%

10%

20%

30%

40%

50%

60%

70%

2019 Q1 2020 Q2 Q3 Q4 Q1 2021 Q2

Facebook YouTube Zalo Instagram TikTok

Platforms Vietnamese consumers cannot live without

TikTok progresses, while Instagram stagnates as Vietnamese consumers’ fourth-most essential apps

TikTok has grown more essential to Vietnamese consumers, sharing the fourth spot with Instagram in Quarter 2/2021.

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 Q: Which of the following social media platforms are you unable to live without? (Choose all that apply)

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• Most used social media platforms

55% 54% 56% 51% 52% 50%

18% 20% 18%

15% 18%

16%

19% 17% 19%

23% 21%

23%

4% 5% 4% 8% 6% 7%

4% 3% 3% 3% 3% 4%

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

Facebook YouTube Zalo

Others/Don't care

Instagram

2021 Q2 n=1833 2021 Q1 n=1422 2020 Q4 n=582 2020 Q3 n=1655 2020 Q2 n=1099 2020 Q1 n=2149

Consumers’ primary applications

Q: What is your one primary app?

Generally, top social media platforms have solidified their positions as

primary apps for Vietnamese users.

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Zalo is voted as Gen X’s primary app for the first time, while Facebook’s popularity is fading away across age groups.

Gen Z Gen Y

Q: What is your one primary app?

Gen X

4%

10%

25%

53%

6%

9%

20%

52%

17%

22%

55%

15%

28%

53%

14%

58%

27%

13%

40%

42%

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

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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.

Q: Which of the following social media apps do you use? Check all that apply. Gen X n=168

Gen Y n=482 Gen Z n=1183

Use 3 apps 52% 35% 28%

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

2%

13%

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Platforms by popular functions

M U S I C A N D E N T E R T A I N M E N T V I D E O S S H O R T V I D E O S

M U S I C / A U D I O C O N T E N T M O V I E S T R E A M I N G

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

Q: Which platform do you go on when you want to watch music videos/entertainment videos?

12

^%

-1%

YouTube Q2 2021

63

^%

-1%

TikTok Q2 2021

8

^%

+2%

75% 63%

Q1 2020

Q2 Q3 Q4 Q1 2021

Q2

8% 12%

Q1 2020

Q2 Q3 Q4 Q1 2021

Q2

1% 8%

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, 2020 Q1 n=2149

Entertainment Short Videos Music Movies

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TikTok is becoming more relevant for Gen Z’s music and

entertainment needs, while YouTube’s position has stabilized.

Q: Which platform do you go on most often when you want to watch music videos/entertainment videos?

Gen X Gen Y Gen Z

4%

13%

14%

62%

7%

8%

9%

63%

1%

9%

4%

81%

2%

10%

11%

66%

5%

2%

7%

81%

8%

13%

14%

56%

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

= Vietnamese (local) websites/ platforms (*)

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

Q: Which app do you use most often when watching short videos?

YouTube Q2 2021

27

^%

-3%

37

^%

-2%

TikTok Q2 2021

24

^%

+5%

41% 37%

2019 Q1 2020

Q2 Q3 Q4 Q1 2021

Q2

40% 27%

2019 Q1 2020

Q2 Q3 Q4 Q1 2021

Q2

8% 24%

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, 2020 Q1 n=2149, 2019 n=457

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• Popular platform to get news

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

Gen Z

2020 n=266

Gen Y

Q: Which app do you use most often when watching short videos?

Gen X

7%

26%

13%

47%

5%

19%

35%

36%

32%

57%

4%

2%

3%

6%

28%

48%

8%

36%

45%

22%

26%

42%

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

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• Local streaming services

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

Gen X

11%

10%

15%

61%

7%

8%

15%

54%

Gen Y

5%

11%

33%

43%

2%

8%

22%

53%

Gen Z

5%

8%

6%

34%

40%

6%

7%

12%

18%

46%

Q: Which app do you use to listen to music most often? 2021 Q2 n=1833, 2021 Q1 n=2028, 2020 Q4 n=884,

2020 Q3 n=1655

Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Entertainment Short Videos Music Movies

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

Q: Which of the following apps do you use most often to watch movies?

Local platforms Q2 2021

16

^%

-3%

YouTube Q2 2021

49

^%

-3%

Google Search Q2 2021

12

^%

+2%

55% 49%

2019 Q1

2020 Q2 Q3 Q4 Q1 2021 Q2

28% 16%

2019 Q1

2020 Q2 Q3 Q4 Q1 2021Q2

6% 12%

2019 Q1

2020 Q2 Q3 Q4 Q1 2021Q2

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

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25%

21%

13%

8%

6%

5%

23%

16%

14%

6%

Q2 2021 Q1 2021

Top paid streaming services in Vietnam by market penetration rates

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

2021 Q2 n=1833, n=1979

Compared to last quarter, the disparity between Netflix and FPT Play in terms of market

penetration rates has gotten smaller.

Netflix is the only foreign player in Vietnam’s market for streaming services.

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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.

Q: Which of the following apps do you use most often to watch movies?

Gen X

11%

9%

11%

60%

6%

7%

11%

23%

49%

Gen Y Gen Z

6%

9%

27%

53%

7%

10%

11%

16%

52%

5%

31%

10%

45%

10%

11%

12%

15%

44%

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

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Platforms by other functions

N E W S

C O M M U N I C A T I O N A N D M E S S A G I N G C A S U A L B R O W S I N G

T O P P O P U L A R B R O W S E R S E - C O M M E R C E P L A T F O R M S

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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

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

Q: Which platform do you use when you want to get news?

Local publishers Q2 2021

28

^%

+4%

26

^%

-4%

Google Search Q2 2021

29

^%

+1%

36% 26%

2019 Q1

2020 Q2 Q3 Q4 Q1 2021 Q2

33% 28%

2019 Q1 2020

Q2 Q3 Q4 Q1 2021

Q2

13% 29%

2019 Q1 2020

Q2 Q3 Q4 Q1 2021

Q2

News Message Casual Browser E-commerce

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• Popular platform to get news

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.

Q: Which platform do you use when you want to get news?

Gen X Gen Y

9%

14%

31%

37%

6%

25%

26%

35%

3%

21%

19%

45%

6%

17%

32%

Gen Z

14%

32%

14%

27%

8%

16%

29%

35%

Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 20212021 Q2 n=1833, 2021 Q1 n=2028 , 2020 Q4 n=884, 2020 Q3 n=1655, 2020 Q2 n=1099, 2020 Q1 n=2149

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Zalo is the No. 1 messaging app for Vietnamese consumers.

Facebook and Messenger are other popular communication tools.

Q: Which of the following platforms do you use most often to connect with friends and family?

Zalo

Q2 2021

45

^%

+4%

27

^%

-5%

Messenger Q2 2021

23

^%

+1%

41% 27%

2019 Q1

2020 Q2 Q3 Q4 Q1 2021 Q2

32% 45%

2019 Q1 2020

Q2 Q3 Q4 Q1 2021

Q2

22% 23%

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, 2020 Q1 n=2149, 2019 n=457

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

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

Gen X

20%

42%

30%

10%

32%

54%

Gen Y

Q: Which of the following platforms do you use most often to connect with friends and family?

Gen Z

16%

38%

41%

18%

24%

52%

16%

43%

33%

27%

32%

35%

Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 20212021 Q2 n=1833, 2021 Q1 n=2028 , 2020 Q4 n=884, 2020 Q3 n=1655, 2020 Q2 n=1099, 2020 Q1 n=2149

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

Q: Which of the following apps do you use when you want to browse mindlessly?

YouTube Q1 2021

10

^%

-4%

51

^%

+2%

Zalo

Q1 2021

6

^%

+0%

61% 51%

2019 Q1 2020

Q2 Q3 Q4 Q1 2021

Q2

17% 10%

2019 Q1 2020

Q2 Q3 Q4 Q1 2021

Q2

6% 6%

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, 2020 Q1 n=2149, 2019 n=457

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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.

Q: In 2020, which of the following apps do you use most often when you want to browse mindlessly?

Gen X

12%

19%

9%

45%

14%

16%

39%

Gen Y Gen Z

6%

8%

17%

50%

6%

9%

11%

53%

10%

18%

2%

51%

8%

9%

15%

55%

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

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

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Most often used browser - PC

Q4 2020 n=884, Q1 2021 n=2028, 2021 Q2 n=1833

Chrome is still by far the most

popular browser, followed by

CocCoc on PC and Safari on mobile devices.

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

Most often used browser - Mobile

63%

29%

3% 2% 1% 1% 1%

79%

26%

14%

3% 3% 2% 2%

Q2 2021 Q1 2021 Q4 2020

Q4 2020 n=884, Q1 2021 n=2028, 2021 Q2 n=1833 Other

63%

23%

5% 5% 3% 1% 0%

81%

46%

13% 9% 11%

3% 2%

Q2 2021 Q1 2021 Q4 2020

Other

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74%

48%

31% 28%

19%

60% 65%

43%

26%

40%

74%

51%

34% 34%

21%

80%

34%

25% 21%

7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Shopee Lazada Tiki Facebook Sendo

Total Gen X Gen Y Gen Z

Q2 2021 n=1833; Gen X n=168, Gen Y n=482, Gen Z n=1183

Top e-Commerce platforms

Q: Which of the following platforms/apps do you use for online shopping? Choose all that apply.

Shopee has captured the Gen Z segment well, while Gen X consumers are keeping other e-Commerce platforms

relevant.

Gen Y is curiously utilizing social commerce (Facebook) as much as Tiki for e-

Commerce.

Shopee is the most popular e- Commerce

platform.

However, Gen X- ers prefer Lazada.

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31%

29%

40%

46%

80%

17%

27%

32%

41%

80%

Sendo Facebook Tiki Lazada Shopee

Q2 2021 Q1 21 Q4 20

23%

30%

50%

51%

68%

24%

44%

54%

80%

21%

25%

37%

49%

67%

19%

27%

32%

45%

71%

22%

27%

29%

43%

65%

20%

30%

48%

73%

Sendo Tiki Facebook Lazada Shopee

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.

Q: Which of the following platforms/apps do you use for online shopping? Choose all that apply.

n=405 n=485 n=469 n=474

HN HCMC DN CT HP NT Other locations

2021 Q2 n=1833 2021 Q1 n=1925 2020 Q4 n=884

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Shopee is the go- to e-Commerce destination for Gen Y & Z

consumers.

Lazada is the favorite e-

Commerce

platform among Gen X-ers.

• Top e-commerce platforms

51%

18%

7% 8%

3%

24%

33%

11% 8% 9%

50%

18%

8% 11%

3%

66%

9% 6%

3% 0%

0%

10%

20%

30%

40%

50%

60%

70%

Shopee Lazada Tiki Facebook Sendo

Total Gen X Gen Y Gen Z

Q2 2021 n=1833; Gen X n=168, Gen Y n=482, Gen Z n=1183

Top preferred e-Commerce platforms

Q: What is your most often used platform/app for online shopping?

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• Apps penetration rates and the number of apps in concurrent use are increasing across age groups, which indicates that Vietnamese consumers are more present on digital platforms than ever.

• Even though Facebook is the most popular app in Vietnam, its leading position is increasingly diminished across multiple categories (primary apps, news, short videos).

• 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.

KEY FINDINGS WHAT IT MEANS FOR ADVERTISERS

• Advertisers should shift more budget to digital channels, especially during prolonged periods of time when people must stay at home.

• Advertisers should consider alternatives like TikTok and Zalo in addition to Facebook.

• To choose the optimal e-Commerce channels, advertisers should be mindful of the age and location of their target segment.

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 Media and Digital Channel Mix

Optimization

 Optimal Frequency

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 Touchpoints Study

 Media Habits

 Devices Usage

 Digital Consumer Segmentation

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