Photograph: Kiribane

TIME TO RESTOR TIME TO ACT?

PREPARED FOR
Scdadfadfad

William P. Badger, Jr., Associate Director, Office Services, CBRE Vietnam

June 26th, 2014

FROM TRADITIONAL MARKETS

Dong Xuan Market Hanoi (1890)

Ben Thanh Market HCMC (1914)

2
VIETNAMS REAL ESTATE MARKET

HIGH STREETS
District 1 HCMC

Hanoi Old Quarter

3
VIETNAMS REAL ESTATE MARKET

.TO SHOPPING CENTERS

Vincom Megamall Royal City, Hanoi

Crescent mall HCMC

4
VIETNAMS REAL ESTATE MARKET

AND LANDMARK PROJECTS COMING UP

SC Vivo City HCMC

Lotte Center Hanoi

5
VIETNAMS REAL ESTATE MARKET

RETAIL EXISTING SUPPLY

Vietnam has witnessed high annual growth in retail space
900,000

800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
2008

2009

2010

HCMC

2011

Hanoi

Phnompenh

2012

2013

2014f

2015f

Yangon

Source: CBRE

6
VIETNAMS REAL ESTATE MARKET

SHOPPING CENTRE SPACE PER CAPITA SQM 2013

Low retail density indicates room for growth or transition from wet markets/ street
shops to formal trade

0.70
0.59
0.53

0.50

0.43

0.45

Singapor
e

0.52

Manila

0.60

0.40
0.30
0.20
0.07

0.10

0.07

0.07
0.03

Source: TNS

Bangkok

Jakarta

Yangon

Phnom
Penh

HCM

Hanoi

0.00
Kuala
Lumpur

Retail space per capita (sm )

Retail Space per capita, Hanoi / HCMC

vs. Regional markets

Source: CBRE Research

VIETNAMS REAL ESTATE MARKET

RETAIL SPACE: HANOIS VS. HCMCS

In 2014, Hanoi supply is twice as much as HCMCs
HCMC, Retail supply in 2014 (NLA, 000 sqm)

32

2013 Supply

1,200

Aeon

1,000

SCVivoCity
Thao Dien Pearl
448

Others

NLA (000 sm)

41

16

Retail supply by city (NLA, 000 sqm)

800
600

400
200

HANOI, Retail supply in 2014 (NLA, 000 sqm)

2011

Times City (P2)

570

24
35

100

2012

Existing supply

Lotte Centre

2013

Hanoi

HCMC

Hanoi

HCMC

Hanoi

Ho Guom Plaza

257

HCMC

HCMC

20

Hanoi

2013 Supply

2014

New supply

Mo Market Shopping Centre

Lotte (Mipec Tower)

23

Others
Source: CBRE
8
VIETNAMS REAL ESTATE MARKET

TOP CITIES FOR NEW BRANDS, 2013

Hanoi ranked 1st with 30 new entries in 2013

Source: CBREs Retail Hotspot s in Asia Pacific 2013

9
VIETNAMS REAL ESTATE MARKET

NEW ENTRANTS
Big retailers entering the market
New retailers in Hanoi

Robins Department
Store
Occupied 10,000 sqm in
Vincom MegaMall Royal
City

Lotte Mart
1st store in Hanoi
in March 2014
2nd store in Hanoi
in September
2014

Upcoming in Hanoi?

McDonalds

Starbucks

1st store in HCMC in

February 2014, total
area 1,300 sqm
2nd opening soon in
HCMC

3 stores in HCMC
The 1st Starbucks in
Hanoi is expected to
open in 2014?

Aeon Mall
1st shopping center in HCMC opened in January
2014 (47,000 sqm GFA)
Aeon Mall Hanoi expected to open in 2015

10
VIETNAMS REAL ESTATE MARKET

NEW RETAIL DEVELOPMENTS

Completions in 2013 & 2014
HCMC

Aeon Mall Celadon City, Tan Phu

Parkson Cantavil Premier, D2

Pico Plaza, Tan Binh

Times Square, D1

SC VivoCity, D7

Thao Dien Pearl, D2

Viettel, D10

HN

Trang Tien Plaza

Hanoi Square, formerly Hang Da Galleria

Royal City, Thanh Xuan

Lotte Shopping Center

Times City, Hai Ba Trung

Ho Guom Plaza

Lotte Mart (Mipec Tower)

11
VIETNAMS REAL ESTATE MARKET

OFFICE MARKET

12
VIETNAMS REAL ESTATE MARKET

OFFICE MARKET OVERVIEW

The overall Occupier Trend
2010

2011

ECONOMIC

SOCIAL

ENVIRONMENT

EFFICIENCY

EFFECTIVITY

EMOTION

2014

13

VIETNAMS REAL ESTATE MARKET

OFFICE MARKET ANALYSIS

The Rental Cycle
Asia Pacific, Office rental cycle, Grade A&B, Q4 2013
K
A

Kuala Lumpur
Adelaide
S
M
P
S

Shanghai
Melbourne
Perth
Sydney

Bangkok B
Jakarta J
B
M

LANDLORDS

Brisbane
Mumbai
Hanoi
Seoul
Hong Kong

Wellington
Canberra
Guangzhou
Singapore
Ho Chi Minh City

B
S
N
B

Taipei
H
S
H

Bangalore
Shenzhen
New Delhi
Beijing

Manila M
Tokyo T
A
Auckland

W
C
G
S
H

LANDLORDS

TENANTS

TENANTS

HANOI

HCMC
Grade A and B vacancy rate: y-o-y
Grade A and B asking rent: slightly
but watch for Grade B supply

Grade A vacancy rate:

Grade B vacancy rate:
Grade A and B asking rent: y-o-y

14
VIETNAMS REAL ESTATE MARKET

VACANCY AND DEVELOPMENT PIPELINE, % OF STOCK

Particularly in some emerging markets
Moderate Risk of Oversupply

Low Risk of Oversupply

Guangzhou

Shanghai

Bangalore

Mumbai

New Delhi

Shenzhen

High Risk of Oversupply

Source: CBRE Research (As of Feb 2014)

15
VIETNAMS REAL ESTATE MARKET

VACANCY RATE AT HISTORIC LOW IN SOME MARKETS

Particularly in some emerging markets
Long term average

Historic peak
Historic low

Current level

Markets below 10-year average

Markets above 10-year average

Low risk of oversupply

High risk of oversupply

16

Source: CBRE Research (As of Feb 2014)

VIETNAMS REAL ESTATE MARKET

OCCUPIER TRENDS
Work styles have changed

Changing generations
Technology rapidly changing
our world

Shift work life balance

any time
any place
any device

From individual to team focus

More complex work

Need for communication

17
Source: CBRE EMEA Occupier Survey 2013

VIETNAMS REAL ESTATE MARKET

OCCUPIER TRENDS
Optimal work/life balance drivers

1. Enjoyment at work

EFFICIENCY

EFFECTIVITY

2. Flexible workspace
3. Mobile connectivity
EMOTION

18
Source: CBRE EMEA Occupier Survey 2013

VIETNAMS REAL ESTATE MARKET

OCCUPIER TRENDS
New ways of working

1. Corporate branding
2. Sense of belonging
3. Stylish and colourful

19
Source: CBRE EMEA Occupier Survey 2013

VIETNAMS REAL ESTATE MARKET

DESIGN TRENDS
Building Criteria for Corporates
1. Location - district, accessibility, transport, address, access to clients
2. Pricing - rent per sq ft, incentive packages
3. Lease Flexibility - lease term, expansion / contraction options

4. Building profile - architecture, street presence, identity

5. Design floor plate, layout, efficiency

6. Specification - design criteria, quality of finishes, technical resilience

7. Arrival experience - size, finishes, level of service, security

8. Building management - efficiently run, service charges, security protocol

9. Landlord - reputation, "customer focused or shareholder focused?
10. Sustainability - BREEAM / LEED rating, green credentials
20
VIETNAMS REAL ESTATE MARKET
Source: CBRE EMEA Occupier Survey 2013

BUILDING TRENDS
Building profile

1. Architecture
2. Visibility
3. Lighting
4. Art

ICC, Hong Kong

CBRE Appointed Marketing and Leasing Agent
21
VIETNAMS REAL ESTATE MARKET

BUILDING TRENDS
Design

Cannon Place, London

1. Main lobby
2. Lift experience
3. Natural light
4. Health, safety and security
CBRE Appointed Marketing
and Leasing Agent

22
VIETNAMS REAL ESTATE MARKET

BUILDING TRENDS
Arrival experience

TAIPEI 101, Taiwan

1. Multiple cafes, restaurants and bars

2. Soft seating areas
3. Trendy and expressive lobbies
4. The shopping center experience
CBRE Appointed Marketing
and Leasing Agent

23
VIETNAMS REAL ESTATE MARKET

SUCCESSFUL LEASING STRATEGIES

Research

Heron Tower, London

1.
2.
3.
4.
5.
6.
7.

Design
Specifications
Facilities
Management
Environment
Accessibility
Ownership

Introduced the Village Concept

Business support services
Community focused
Building strategic partnerships

Our goal is to foster a relationship between

the tenant and landlord based on trust. At
the very least, its about giving the tenant
peace of mind, but more than that, we
want tenants to feel valued and have a
genuine sense of belonging.

CBRE Appointed as Marketing and Leasing Agent

24

VIETNAMS REAL ESTATE MARKET

SUCCESSFUL LEASING STRATEGIES

Create a theme and be more visible
Global Destination

Inspiring Business

25
China World Tower,
Beijing
CBRE Appointed as Marketing Consultant

VIETNAMS REAL ESTATE MARKET

SUCCESSFUL LEASING STRATEGIES

Increase your marketing budget

1. Traditional:
Print
Show suite
Banners
Events
2. New :
Digital
Social media
Advertising

26
VIETNAMS REAL ESTATE MARKET

CBRE GLOBAL OFFICE LOCATIONS

THANK YOU
2012 CB Richard Ellis (Vietnam) Co., Ltd. This report has been prepared in good faith and with due care by CB Richard Ellis (Vietnam) Co., Ltd. We obtained some of the
information above from sources we believe to be reliable. However, we have not verified the accuracy of the information which we obtained from other sources and make no
guarantee, warranty or representation about it. We include projections, opinions, assumptions or estimates which are made with careful consideration of factors known to us for
example only, and they may not represent current or future performance of the market. This information is designed exclusively for use by CB Richard Ellis clients, and cannot be
reproduced without prior written permission of CB Richard Ellis.

27
VIETNAMS REAL ESTATE MARKET

Power brand building with impact

For retail & leasing professionals
June 26th 2014, Hanoi

P
A brief introduction to our process

How to create a distinctive Brand Personality to build long-term trust

and emotional connection with customers
How to consistently communicate your Brand Personality to appeal to
your target customers at touch-points that drive experience & leasing

We are a multi-national
branding consultancy &
marketing agency team
inspired by the colour of
prosperity, passion and love

Credentials

Since 2004 we create & shape

unique brand personalities
to form emotional connections
and trust with consumers
from Australia to Vietnam

Credentials

Our senior team build long-term partnerships by keeping our promises

Ha Tran

Chief Accountant

Uyen Nguyen
Dung Huynh
Business Strategy
Consultant

Credentials

Client Representative
Director

Chris Elkin

Tra Nguyen

Marc Gough

Managing Director

Chairman

Senior Designer

Lennart Schaberg
Creative Director

Connect with us at: red.tm/team

Dammy Abdulkadri
Digital Art Director

Our clients include challenger brands & blue

chip brands, local & international

Credentials

Read client case studies at: red.tm/work

Our real estate and retail clients include local & international developers

Credentials

Read client case studies at: red.tm/work

Lets get started

As Bill from CBRE have shared

Its time to adapt to the changing market place and customer needs,
wants, desires & changing buying behavior to succeed as the market
improves

Consumers are rapidly evolving

their approach to brand choice &
purchase-behavior decisions

Technology is influencing every stage of the

consumers shopping journey
- from personalized promotions, to in-store
research and price checks

Retailers can not survive just by being

pass through sellers
They have to give consumers clear reasons, an experience, to
choose their stores/destination over competitors

Office leasing customers have more choices

than ever and are extra-cautious, only trusting
the most credible developers - they are
looking for something different

Youre probably here...

A vision from the Chairman & Board
Large Leasing & Sales targets
A demanding boss

Hopefully not here

Your competition has grown

your bosses got more demanding : )

Competitors can
Copy your products
Imitate your sales promotions

Cut prices
Target the same customers
copy your products
imitate your sales promotions
cut prices
target the same customers

But there is an extra way to

Compete more strategically

 Happy bosses :-)

Greater ROI
Brand asset

Price premium
GROWTH

Brand choice

What is a brand?
A brand lives in the
mind of consumers

and is the sum total of

what they experience
& feel about a product
& service

We believe people choose brands on their

perception of it's reputation and it's unique
ability:
To understand and satisfy
their desires on a functional &
emotional level

To express their personality

Proposal

Brands with
strong personalities
+ emotional connection

= succeed

Brand Personalities
have a clear
understanding of
what they stand for, with
focus & consistency
succeed

So, how can you

create and shape your own
Brand Personality?

Our proprietary
3- step
brand building
process

Step one

Proposal

If your audience cant identify what

your brand stands for, they wont
consider it.

You cant sell a secret.

Remember your audience are hardwired

only to notice what is different

Target Audience segmentation

?
?

Consumer-first:
Demographic
Geographic
Psychographic
Life-Stage
Behavioral
Retail (retail/brand managers)
in Vietnam and overseas
Office leasing managers

Target Audience segmentation end consumer

aged

30-36

Female

Married

-primary target-

with 1-2
Children

A-A+
University
graduate

Director

Vy Nguyen
Living & working in HCMC

I am always striving to improve

myself and my families lifestyle.
I am looking for

Consumer spend a mix bag of conserving and maintaining

lifestyle in 2014 vs 2013
Education
Health care products / services
Food & beverages products
Household care products

46

16

50

0
34

62

29

11

61

28

28

Communications

21

Household utilities

20

Personal equipment

46

50
56

25

23

54

20

Transportation

22

58

20

Personal care products

23

57

20

Home appliances
Entertainment & dining out

Less

35

49
50

Same

15 0
36

More

13 0

+
-

Don't Know

2014 appears to be a mixed bag Note: F&B increase at 20% noting more spend,
while entertainment and dining outs sharp decline
Source: TNS VIETCYCLE 2014 Urban only

59

The reality of incomes

Declared monthly household income % :

USD Monthly
A
B

1,501 +

48

1,001 1,500

45

Urban
6

(%)
Wealthy
16%

Rural
4

Wealthy7
%

10
3

C36
D

701 1,000
43

526 700

29

14

Middle
43%

Middle
19%

10

E 36

326 525

28
32

F1
F2

45176

325

49
Below
175

10

Lower
41%

27

Lower
74%

3
15

Huge disparities in income levels still prevalent between urban and rural Vietnam,
creating further polarization and product and service affordability
Source: TNS VietCycle 2014
Base: n = 3,100

60

Competitor trends

How will your

brand stand out
from the
competition?

Competitor trends

Open Air
Markets

Mass
Grocery
Retails

Shop
Houses

The retail market

has not only
grown but has
evolved
Entertainment

Centres
Retail
Centres

Malls

Collate document & analyze

Collate, document and analyze everything

your team have learned
View our full services at: red.tm/services

Step two

React Creating a Brand Personality Framework

Creating a Brand Personality Framework

allows your team to align and design
around a shared Brand Proposition
To inspire future distinctive, appealing and
consistent brand communications
The Brand Personality Framework is the
written foundation of your future brand
View our full services at: red.tm/services

React Creating a Brand Personality Framework 9 key questions

1. Competitive
Environment

2. Target Customer
Segments

How does your brand/ services fit

in the market what are the
drivers and barriers to your brand
success?

Who is going to buy or influence

the choice of your brand?

3. Target Customer Insights

4. Core Brand Benefits

Whats the most valuable insight(s) we

know about the target customers
behavior?

How will your brand/ services benefit

target customers, partners and
shareholders?

5. Core Brand Values

What does your brand value
the most?

6. Core Brand
Personality

9. Your Brand
Proposition

What personality
characteristics does your
unique brand have?

7. Core Reasons to Believe

8. Your Brand Discriminators

Why should your customers believe what you

say?

How is your brand distinctive from its

competitors?

Step three

Proposal

Case Studies

Proposal

The Crescent
Brand creation

Credentials

Read case studies at red.tm/work

Create your
Brand Hierarchy
Investor Brand
Developer / Corporate Brand
Project Umbrella Brand
Project Brand(s)

Structure how your developer brand and

project brands relate to, support and
reinforce each other

Create your Brand Name

Take inspiration from your
Brand Personality Framework
An effective name is:
Meaningful & distinctive
Easy to remember and pronounce
Culturally sensitive
Future orientated
Modular / stretchable
Trademark protectable
Domain name available Positive Visual

Create your Brand Identity Guidelines to

express your brand story consistently

View our full services at: red.tm/services

The Brand Identity Guideline Content

Logo Treatments
This may include stacked, horizontal, small and large versions. It may also cover
different colour amounts.

Dos and Donts

Treatments such as logo rotation, embossing, colour variation and glow effects
are example of what you may want to avoid.

The Brand Colours

Supply PANTONE, CMYK, RGB and Hexadecimal values of the intended house
colours. Consider what their associative colours are too.

House Typefaces
You may give examples of header fonts, secondary fonts and body fonts along
with possible leading and tracking properties.

The Brand Imagery

Giving examples of styles of imagery is crucial to maintaining brand consistency
too. Remember to allow flexibility for brand evolution.
View our full services at: red.tm/services

Signage- 03

Billboard - 02

Billboard - 05

www.the-crescent.com

10/12/11

www.the-crescent.com

www.youtube.com/redbrandbuilder

Savico Megamall
Brand Creation

Credentials

Read case studies at red.tm/work

Big C

Brand Re-positioning

Credentials

Read case studies at red.tm/work

Brand audit at project start 2013

Centre Point
Brand launch

Credentials

Read case studies at red.tm/work

centre point
tower
centre point print campaign

Media touch points

owned
brand

earned
consumer
CRM
content

content
social

blogs

review

mobile
news

UGC

event
PR
Brand site

content

mobile

social
Licensed brand

camera
tv

sponsorship

print

paid search

Proposal

OOH

radio

paid
media owners

50% of all U.K. in-store sales

will be influenced by digital
services by 2014

Source: Deloitte

In-store conversion rates are

13% higher when shoppers
can use their digital devices
to research products and
services online.

Source: Deloitte

Peer recommendations carry

10 times more weight than
recommendations from
salespeople. social media
could be 22% of marketing
budgets by 2019 U.K.
Source: McKinsey

Connecting with your audience where

they really are these days

View our full services at: red.tm/services

Marketeers need to create a

personalised, consistent omnichannel brand experience, that is
relevant & appealing throughout
the retail experience and
purchase lifecycle

Source: McKinsey

Large shift to digital media across Vietnam

Time spent online increases, across all ages

When and where they access the internet

Online activities aged 25-35

Online activities aged 35-43

Most popular websites in Vietnam

30% of mobile users here have a Smartphone

You must use Search Engine Optimization

(SEO) to ensure your website is found

You must use Search Engine Marketing

(SEM)
select key words buying & sponsored links

You must use Social Media blogs, forums,

facebook, linkedin to be part of the conversation

Use adaptive interface design to

communicate across all digital touch-points

1 in 3 consumers are impacted to purchase by in-store ads, while over two

thirds deemed these ads to be influential.

Influence of ads on purchase decision (%) - Nationwide

65
50

47
38

38
28

Shopping malls/
centers

Modern
department
stores

Supermarkets

Convenient
stores

Minimarkets

Wet markets

SOURCE: Q109bc Thinking of your last visit to this type of store, did you notice any new advertising at the store, did it influence
you to buy?
Base: n= 1041 (nationwide)

144

In summary

Our proprietary
brand building
process

Give your brand impact

Brands with impact have
strong brand personalities built upon
Emotional Connections & trust with consumers
From first impression to action Checklist

- Know WHAT your brand stands for first

- Have a clear FOCUS
- Know HOW to tell your brand story
- CONSISTENTLY
- CONNECT with audiences in new ways
- Use new and digital communication
touch-points where your target audience
really discover, share and EXPERIENCE
your brand to drive sales
View our full services at: red.tm/services

Credentials

Visit our brand building blog at: brandbits.vn

Thank you,

wed love to help you

add impact to your brand

Credentials

Please visit: red.tm

Why red brand builders?

Brand building is our passion,

we genuinely understand and care about your brand, marketplace
and customers

We bring over 10 years experience

partnering with local and international brands

Our process, international experience and local know-how deliver the

right strategic brand direction and expressions to realize your brands
full potential

We keep our promises and have a strong track-record of successful,

long-term
client partnerships

Credentials

Credentials

For more information visit: red.tm

Chris Elkin Managing Director

A UK Chartered Marketer and based in S.E. Asia for 14 years, Chris has
helped to build many famous brands throughout the U.K., S.E. Asia and
Vietnam.
Based initially in London, New York and then Singapore, Chris has held a
number of big agency regional Asia-Pacific roles, with in-market experience
ranging from Japan and Hong Kong to Singapore, Malaysia, Indonesia and
Vietnam with brands including Tiger Beer, Levi Strauss, Citibank, Credit
Suisse, Malaysia Airlines, Volkswagen and LOreal.
Chris came to Vietnam in 2005 managing the largest FMCG account in
Vietnam. As partner and Managing Director of red, his active clients
include a broad range of brands in the FMCG, Retail, Education, Personal
Care, Healthcare, Real Estate and Financial Services categories, including
partnerships with Unilever, VinaCapital, Viet Capital, VinaMilk, Friesland
Campina, Diageo, Phu My Hung, LG Cosmetics, Kimberly-Clarke, Dulux, Big
C, Commonwealth Bank, Liberty Insurance, Apollo English and Budweiser.

Credentials

Connect with us at: red.tm/team

Recommended
brand building approach
Brand Design and
Management

Brand Awareness

Brand Engagement &

Loyalty

To maintain consistency in the brand proposition

To update and maintain the brand framework & identity - with brand guidelines
to ensure that everyone associated understands what the brand stands for and
how it will be communicated

Recommended
brand building approach
Brand Design and
Management

Brand Awareness

Brand Engagement &

Loyalty

To develop an ongoing marketing campaign based on our local and

international target audience insights (considering both B2B & B2C audiences)
to amplify the brand story and to support retailer promotions
The strategy will be to focus on securing potential anchor retail tenants
initially, with a strong communications presence before the opening of each
project
Progressively communications will then target specific retail
consumer audiences to attract visitors/shoppers. Communication
presence will increase before the opening of each project, anchor
tenant's launch and during key shopping seasons

Recommended
brand building approach
Brand Design and
Management

Brand Awareness

Brand Engagement &

Loyalty

Post opening

To develop all necessary branding and marketing collaterals to support an

ongoing program of activities/events within The Crescent precinct / Mall
To provide local area and on-site marketing to support retail tenants:

To drive foot traffic (getting masses of people to the site)

To drive cheque average (getting our audiences to spend
as much money and time as possible per visit)

Recommended
brand building approach
Brand Design and
Management

Brand Awareness

Brand Engagement &

Loyalty

The Crescent Mall Co-operative Advertising Fund

red recommend that part of the Lease cost to the retailers is a contribution to a
central marketing fund (a Co-operative Advertising Fund) which is then
deployed on behalf of the whole development to create and run a monthly
calendar of events, supported by a consumer Loyalty Program:
To drive traffic to the site (increase penetration of our target audience the % of available customers who have visited the site)
To increase visit frequency of those who have visited
(give audiences reasons to keep coming back)
Support TET, Xmas, Ind Day, Victory/Labour Days,
Malls Birthday sales promotion etc.

Recommended
brand building approach
Measurements of Success:

Brand Equity:
- Awareness
- Image
- Perceived quality

Brand Sales / Leasing

B2B:
- Number of inquiries / requests for information
- Number of sales / leasing (and speed of sales)
B2C:
- Total of audience traffic visiting
- Frequency of audience traffic visiting
- Sales
- Website traffic / Loyalty Program participation

Brand Campaigns
- Each campaign will measured against S.M.A.R.T. objectives
(Specific, Measurable, Achievable, Realistic and Time bound)
- Measurements should be conducted pre-and-post each campaign