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Euromonitor International
October 2017
HOME VIDEO IN VIETNAM Passport I
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HOME VIDEO IN VIETNAM Passport 1
TRENDS
Home video in Vietnam maintained its good performance in 2017 with retail volume growth of
9% and current value growth of 12%, although this growth was slower than in 2016. The
slowdown in the growth of home video was due to the significant volume decline seen by
video players in Vietnam. Nevertheless, the good performance of LCD TVs was the key
contributor to the overall performance of home video in Vietnam. In 2017, key players
continued to push the sales of their premium televisions through constant advertising and
marketing activities. For example, models with larger screens and 4k models were always
available at discounts of up to 25% on the original price.
In 2017, the average unit price of LCD TVs was higher than in 2016. This was due to the fact
that consumers are gradually upgrading to larger screens and sets with a higher resolution.
During 2016-2017, cable/satellite providers started to expand their services by providing ultra
HD content to stay competitive in the market, which boosted sales of ultra HD TVs in Vietnam.
In terms of digital TV network connectivity, internet smart TVs accounted for a volume share
of 43% in LCD TVs in 2017. As cable internet with high speed connectivity has become more
and more affordable, owning internet smart TVs allows consumers to almost turn a television
into a desktop monitor but with a bigger screen. Users can easily check emails, sign into
Facebook, play games, read the news, listen to music, and watch online movies. As such, the
volume share of internet smart TVs continued to increase from 27% in 2015 to 43% in 2017.
OLED TVs is available in Vietnam. However, due to the expensive price of these products,
sales of OLED TVs remain negligible. In 2017, key players introduced new models within
OLED TVs and looked to encourage consumers to purchase them by offering lower prices.
In 2017, video players declined by 26% in retail volume terms. During 2016-2017, the majority
of Vietnamese consumers felt it unnecessary to use video players for their entertainment due
to various reasons. Firstly, there is a wide range of cable television channels now available at
an affordable price for Vietnamese consumers. Secondly, the rising popularity of cinema in
Vietnam has reduced the demand for video players to watch movies. In addition, online video
content is freely available in Vietnam due to loose copyright laws, which served as a major
hindrance to the volume growth of video players towards the end of the review period. Instead
of replacing broken video players with a new DVD or BD player, many consumers are instead
looking to invest in an internet smart TV, which would give them unlimited access to the vast
video content available on the internet, without the need to pay for discs.
Cable/satellite TV providers do not offer TV on demand services in Vietnam. However, some
cable TV services come with the internet as part of a package which allows viewers to access
the provider’s streaming library of movies, music and games, which was also a factor behind
the negative performance of video players during the review period.
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HOME VIDEO IN VIETNAM Passport 2
COMPETITIVE LANDSCAPE
Samsung Vina Electronics Co Ltd continued to strengthen its leading position in 2017 with a
retail volume of 36%. In addition, Samsung Vina Electronics Co Ltd also registered the
biggest increase in volume share in 2017. Its success in Vietnam is thanks to its continuous
marketing and advertising activities as it looks to build a strong brand name associated with
high product quality and supportive customer service. In addition, Samsung Vina Electronics
Co Ltd also cooperated closely with retailers to decorate its sales section as well as to assign
its sales team at retail outlets in order to boost sales.
International players continued to dominate home video in 2017, largely thanks to the trust
Vietnamese consumers have in foreign brands. Moreover, multinational companies have
considerable resources with which to be able to invest in high-cost technological research and
marketing development, which in turn allows them to create more competitive products in
terms of their qualities and functions. This situation left only a humble share for domestic
players which offer home video products targeted at the lower-income segment in 2017.
PROSPECTS
Over the forecast period, home video is set to see a volume CAGR of 13%, which would be
higher than the CAGR of 9% seen over the review period. New product development in home
video, especially advanced technology in televisions such as OLED TVs and 4k ultra HD TVs,
is projected to encourage consumers to upgrade their current television sets. In addition, new
sales will also come from smart TVs and TVs with bigger screens. Thanks to the introduction
of new advanced-technology like OLED TVs, the average unit price of the current models of
smart TVs is projected to be lower. Given the convenience of internet smart TVs, which are
set to be offered at more affordable prices over the forecast period, more consumers are
expected to purchase new LCD TVs.
Manufacturers are expected to focus on internet smart TVs as the key product area to drive
volume growth in home video over the forecast period. To be more specific, internet smart
TVs is expected to increase its share of volume sales in LCD TVs from 43% in 2017 to 69% in
2022. The dynamic growth of internet smart TVs is mainly based on the more affordable price
of these products.
OLED TVs and Ultra HD TVs have been available since 2014. However, these novel
technologies are not expected to become mainstream by the end of the forecast period due to
their very high unit prices. Although their unit prices are predicted to go down over the
forecast period, the price drop is not expected to be significant enough to make them
affordable to the masses. Upper-middle- to high-income consumers are expected to be the
main target customers of these technologies.
Television broadcasting in Vietnam saw considerable development over the review period
through providers such as K+ and VTC. Over the forecast period, more and more consumers
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HOME VIDEO IN VIETNAM Passport 3
are expected to switch from analogue to digital TVs thanks to the broad network coverage of
digital broadcasting.
Video players is predicted to decline at a CAGR of 13% in retail volume terms over the
forecast period. The expected good performance of internet smart TVs is predicted to
contribute to the negative performance of video players. The internet is expected to become
much faster in Vietnam over the forecast period, which will allow internet smart TVs to
transmit better image quality, similar to that offered by video players. Consequently, the
demand for video players will be negatively affected.
Major players are likely to bring new advanced technology into Vietnam as they look to boost
consumer demand. For example, LG Electronics Vietnam Co Ltd is expected to introduce
various new and advanced models that are being designed for Vietnamese consumers, such
as Ultrawide with QuadHD. Meanwhile, retailers are expected to compete against each other
to offer the most competitive prices possible as more and more consumers will shift to internet
retailing and will then be able to easily check prices across different stores.
CATEGORY DATA
Table 1 Sales of Home Video by Category: Volume 2012-2017
'000 units
2012 2013 2014 2015 2016 2017
VND billion
2012 2013 2014 2015 2016 2017
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% volume growth
2016/17 2012-17 CAGR 2012/17 Total
% retail volume
2012 2013 2014 2015 2016 2017
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% retail volume
2012 2013 2014 2015 2016 2017
% retail volume
Company 2013 2014 2015 2016 2017
% retail volume
Brand (GBO) Company (NBO) 2014 2015 2016 2017
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HOME VIDEO IN VIETNAM Passport 6
% retail volume
2012 2013 2014 2015 2016 2017
'000 units
2017 2018 2019 2020 2021 2022
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HOME VIDEO IN VIETNAM Passport 7
VND billion
2017 2018 2019 2020 2021 2022
% volume growth
2017/18 2017-22 CAGR 2017/22 Total
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HOME VIDEO IN VIETNAM Passport 8
Table 14 Forecast Sales of LCD TVs by Network Connectivity: % Retail Volume 2017-
2022
% retail volume
2017 2018 2019 2020 2021 2022
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