Consumer healthcare trends 2015

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1 Consumer healthcare trends 0

2 Contents Changing consumer landscape 3 What will drive growth for healthcare? 9 Attitudes towards healthcare 8 Prevalence, treatments and influence The marketing budget dilemma 3 Key opportunities 33

3 Part Changing consumer landscape 3

4 US$7 billion economy US$.9 billion advertising spend US$,93 GDP per person % internet penetration 9 million people 69% urban adult mobile penetration ( in 0 smart) million households % urban adults banked 6 million rural households 37 million motorbikes 7. million households =>US$00,000 new cars in 0

5 000 rapid accession to 00 then a struggle to 0 78 million people 87 million people 9 million people US$7. billion economy US$79 billion economy US$7 billion economy US$3 GDP per person US$90 GDP per person US$,93 GDP per person US$08m advertising spend US$70m advertising spend US$.9bn advertising spend 0.m ABC households in 6 cites =>US$ m ABC households in 6 cites =>US$ m ABC households in 6 cites =>US$700.6m ABC consumers in 6 cities 3.m ABC consumers in 6 cities 3.7m ABC consumers in 6 cities

6 000 rapid accession to 00 then a struggle to 0 0.m ABC households in 6 cites =>US$ m ABC households in 6 cites =>US$ m ABC households in 6 cites =>US$700 Expectations not met 6

7 The family Nguyen - how this shapes who we are Progressive and entrepreneurial Happiness is money Success is imbued in pride Desperate to express myself Afflunenza Confused and frustrated Success through the eyes of my child Thirst for edutainment Youth translate the consumer world for their parents 7

8 Fast shifting social trends Nowadays freedom is an excuse for doing whatever one wants without thinking about others; women want careers rather than families, men spend more time out of home, drinking and enjoying with their friends, more than contributing to their families, women are freer with their favours and couples find it easier to divorce without thinking of what they are doing to their families and children Phuong 30 years old, from HCMC 8

9 What will drive strong growth for healthcare? 9

10 Traditional remedies vs. modern medicine expenditure 60% to traditional remedies 0% to modern medicine 0

11 Urbanisation and smaller households 6 million people 7% <30 years 6 million households 3. million =>US$00/household 9 million people % <30 years 8 million households million =>US$00/household 0 60 million people 38% <30 years 8 million households 0 36 million people 36% <30 years 3 million households

12 Urban lifestyles Aware of what could be. Increasing opportunities (commercial, education and travel) Community to individual gratification. Always out of home. Thirst for edutainment. Happiness defined as money. Conflicted and frustrated Emerging gender equality & changing roles in society. Change in parenting. From extended to nuclear families. Modern day working ethos. Divorce acceptable.

13 Sources of health awareness TVC Internet (online newspaper, forum, search engine, etc ) 3 Public health center (Ward health station, District PMC, etc) HCP recommendation Other media; newspaper, radio, etc. 3

14 Consumer health awareness evolves rapidly I search information on the internet, or go to webtretho.com to ask other moms, whether they have same issues as me. Mum in HCMC Patients today proactively ask about treatment choices, advantages of different medicines and tests available. Oncologist in Hanoi Patients have heard about this medicine in the media, then they ask me about the efficacy, price and even dosage. Pediatrician in HCMC

15 Healthy marketing propositions explode From personal care to food growing tide for;. Balance. Natural 3. Authentic (origin)

16 Healthy marketing propositions explode Wellness marketing behind many growth brands. Korean soaps and K Pop defining beauty for men and women alike. 6

17 Local pharma explosion in TVCs In 0 there were 3 different pharma TVC executions. 87% were from local pharma companies. Pharma TVCs comprised of 6% from all TVC executions. 7

18 Part Attitudes toward healthcare 8

19 Top 3 concerns in life Job Economy Health Cimigo Healthcare March years in urban. N=30 9

20 Why health matters? Achieve personal goals Not become burden for family Energy to work Balance body and mind Wish to KNOW more and DO more to enhance health 0

21 Top health concerns in 0 Versus 00 Cancer Poor eyesight Respiratory health (lungs, throat, nose) Dental health (teeth and gums) Digestive and gut health Blood pressure Stress Fertility health Contaminated food Skin problems (dry, dark, pimples) Being over weight Diabetes Joint health and flexibility Bone strength Liver/ gall Heart disease Male/ Female hormone Cimigo Healthcare March years in urban. N=370

22 Actions taken to promote health Avoiding pollution (%) Do exercise more often (6%) Good work-life balance (7%) Good living conditions (33%) Be happy (%) Healthy food and drink intake (%) Cimigo Healthcare March years in urban. N=370

23 Beliefs toward heath maintenance. Eat healthy food. Sleep 8 hour/ night 3. Do exercise. Annual check up. Take vitamins 6. Get vaccination 7. Take traditional remedy 8. Protect hygiene Cimigo Healthcare March years in urban. N=370 3

24 Prevalence, treatments and influence

25 Modern medicine stronger. But traditional remedies grow over time. Diagnosis and therapy in past 6 months Note: Survey seasons differ so seasonal effects occur Had a health check up at a hospital or clinic Fallen ill and visited a pharmacy Fallen ill and visited a doctor 9 Taken modern medicine Taken traditional remedy Never for traditional 00 3% 0 3% Cimigo Healthcare March years in urban. N=370

26 Traditional remedies prevalent Prevalence of remedies used in past 6 months Both Traditional remedy only Modern medicine only Total Cold, cough, flu and fever remedies Antibiotic remedy Acne / skin complexion remedy Vitmin supplements Anti inflammatory remedy Eye health Nose-mouth-throat health Digestive health 8 6 Anit aging remedy 3 3 Antiseptic remedy 7 9 Anti acid remedy Allergy remedy Liver health Bone - joint health 9 7 Pain remedy 7 6 Cimigo Healthcare March years in urban. N=370 6

27 Traditional remedies prevalent Prevalence of remedies used in past 6 months Both Traditional remedy only Modern medicine only Total Libido remedy 0 3 Blood pressure health 7 6 Respiratory health 3 9 Ulcer remedy 8 Antioxidants / detoxifying remedy Gall stone remedy 7 3 Hair colour / loss remedy 8 Concentration and memory remedy Antifungal remedy 6 Fertility health 3 Gynaecological health 0 Dementia remedy 0 Mineral supplements Arthritis remedy 3 9 Immunity health 6 9 Cimigo Healthcare March years in urban. N=370 7

28 Traditional remedies prevalent Prevalence of remedies used in past 6 months Both Traditional remedy only Modern medicine only Total Heart burn remedy 9 Obseity remedy 9 Stress remedy 9 Antiviral remedy Cholesterol remedy Heart health 8 Diabetes remedy 7 Insomnia remedy 6 Hearing health 3 Weight control remedy Prostrate health 0 Menpause symptoms Ovarian health Virility remedy 3 0 Hormone health 0 0 Cimigo Healthcare March years in urban. N=370 8

29 Attitudes to treatments Child protection key Care more about product origin Green power Proactive look for information Pay more to get better service Seeking for convenience 9

30 Attitudes to treatments Trust and follow doctor Sacrifice for kids Influenced by pharmacist Repeat old prescriptions Prefer foreign for modern medicine Know the brand before go to pharmacy 30

31 The marketing budget dilemma.? Trust and follow doctor Influenced by pharmacist Know the brand before go to pharmacy Weighted influence for not severe/chronic ailments Initial choice 8% 8% % Repeat choice 0% 7% 8% 3

32 A side note: Local heath care system remains King in rural Aforementioned only applies to urban Vietnam. The local health care system is RURAL remains KING. Rural consumers remain reactive unlike proactive urbanites. Rural consumers place great import on HCPs and in particular the public district medical centres. 3

33 Part Key opportunities 33

34 So what will drive strong growth in healthcare? Potential for share of spend gain from traditional remedies to modern medicine. Traditional remedies dominate spend. Above the line marketing dominated by local pharma with propositions for traditional remedies. Increased health awareness. Better patient awareness, online information search and even compliance with prescribed treatments. 3 Key contributors to increased health awareness; ) healthy marketing platforms for pharma, food and beverages, ) an explosion in local pharma communication on TV and 3) online resources for consumers. 3

35 So what will drive strong growth in healthcare? Urbanisation and changing urban lifestyles. Increasing patient power in treatment choice (even ethical). Shifting influence from doctors to self and pharmacists (non chronic). 6 Rural awareness and accessibility (affordable and available). Local health care system is RURAL remains KING. Rural consumers remain reactive, placing great import on HCPs and in particular the public district medical centres. 3

36 Thank you 36

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