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TRANSCRIPT
CONNIE CHENG 1 August 2013
SEIZE THE NEXT BIG ‘SHOPPORTUNITY’
BAG OR BYTE
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RETAILING IN ASIA IS DIVERSE AND DYNAMIC
STORE FORMATS
RETAILER CONCENTRATION
SHOPPING STYLES
HONG KONG 74% CHINA 9%
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THEREFORE DAUNTING?
CATEGORIES SHOPPERS TOUCH POINTS
WHO WHAT HOW
NOT WHEN YOUR FUNDAMENTALS ARE RIGHT
WHO
SHOPPERS MATTER
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DO YOU KNOW WHERE YOUR ‘SHOPPORTUNITIES’ ARE?
ON HER MIND TO IN HER CART Primary grocery shoppers Drivers of value and choice
AFFORDABLE TO ASPIRATIONAL Rising consumer class Rising aspirations
MAKE GOLD FROM SILVER Very Old : 65+ years Very Young : 0-14 years
WHO
WHAT
HOW
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FEMALE SHOPPERS ARE AT THE CENTRE OF DECISIONS
categories in the next
5 years
SAVINGS
GROCERY
CLOTHES
WHO
WHAT
HOW
Women control almost
USD 12 trillion of the $18 trillion in global
consumer spending
49% primary decision makers for foods
65% primary decision makers
for health & beauty products in Asia
SPEND TOP 3
DECIDE
Source: Nielsen Research
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USA
UK
France
Germany
South Korea
Japan
Australia
Malaysia
Thailand India
China
0
100
0 100
7
GIVE HER MORE ME-TIME AND LESS AISLE-TIME OPPORTUNITY TO WIN WHEN YOU HELP HER MAKE DECISIONS QUICKLY
EMPOWERMENT
TIME PRESSED I often feel pressed for time
I believe men and women have equal opportunities
EMERGING ASIA
WHO
WHAT
HOW
Source: Nielsen Women of Tomorrow
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DIFFERENT FOLKS, DIFFERENT STROKES
DEVELOPED WHAT’S IMPORTANT: PRICE/BENEFITS
DEVELOPING WHAT’S IMPORTANT: LOW PRICES
Top ‘Value Related’ Attribute Driving Store Equity Shopper Trends 2012/2013
OPPORTUNITY TO CUSTOMISE PROMOTIONS ACCORDING TO NEEDS
WHO
WHAT
HOW
Low prices for most
items
Low prices for most
items
Food and groceries are good value for money
Provides good deals
and promotions
Provides good deals
and promotions
Offers rewards
Has high quality
premium brands
VIETNAM INDONESIA PHILLIPINES THAILAND SOUTH KOREA SINGAPORE HONG KONG
Discount on Regular Eggs Discount on Premium Eggs
EVERYDAY LOW PRICES LOYALTY CARD EXA
MP
LE
Food and groceries are good value for money
AUSTRALIA
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AS SHE BECOMES MORE SAVVY, SHE HUNTS FOR CHOICE, NOT JUST PRICE AND PROMOTIONS
FRESH FOODS PACKAGING & LABELING
HEALTHY OPTIONS
WHO
WHAT
HOW
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FOOD TAKES UP 60% OF THE SHOPPING BASKET KEEPING IT FRESH, LIKE IN THE WET MARKETS IS CRITICAL
SHOPPER SEGMENTATION
Source: Nielsen Shopper Trends 2012/2013
TRIPS TO WET MARKETS PER MONTH
WHO
WHAT
HOW
VIETNAM
INDONESIA
PHILIPPINES
THAILAND
SINGAPORE
MALAYSIA
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WOMEN ARE THE SAME, YET DIFFERENT OPPORTUNITY TO WIN NOT JUST HER WALLET BUT MIND AND HEART
DAUGHTERS AV. AGE = 30
OPTIMISTIC MOTHERS
AV. AGE = 47
UNCERTAIN MOTHERS
AV. AGE = 47
GRANDMOTHERS AV. AGE = 67
Most impulsive More shopping ahead Good value conscious Most habitual shopper
• Store decisions are important • Usually plans her shopping list
• While she checks prices, quality of products drives loyalty
Heavier media user Enjoys ads Heavy on texting/email WOM important
She watches TV and listens to the radio on a regular basis
• need to stay connected • information seekers • aspirational • optimistic • holds multiple roles • burdened • empowered
CONNECT
WHO
WHAT
HOW
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ASIA’S MIDDLE CLASS IS NOT JUST TAKING THE GLOBAL STAGE, BUT MAKING IT TOO
WHO
WHAT
HOW MIDDLE CLASS BY 2020
ASIA EUROPE NORTH AMERICA
ASIA 59%
USD 5.3 trillion new consumption from
lifestyle upgrade
Source: Nielsen Research
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‘PREMIUM’ SHOWING STRONG GROWTH
WHO
WHAT
HOW
DOMINATED BY MIDDLE CLASS NEED FOR ‘AFFORDABLE PREMIUM’
Source: Nielsen Retail Audit April 2011 – Mar 2012
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‘PREMIUM’ SHOWING STRONG GROWTH
WHO
WHAT
HOW
DOMINATED BY MIDDLE CLASS NEED FOR ‘AFFORDABLE PREMIUM’
ASIA’S DECOMPOSITION
OF ‘PREMIUM’
PREMIUM
LOW (PI: 1.2-1.5)
MID (PI: 1.5-1.8)
HIGH (PI: 1.8-3)
SUPER (PI: >3)
Source: Nielsen Retail Audit April 2011 – Mar 2012
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TOP PREMIUM PICKS ARE BISCUITS, FACE MOISTURISER, INSTANT MILK FORMULA, DETERGENT
Source: Nielsen Retail Audit April 2011 – March 2012; Hong Kong, Korea, Singapore, China, Indonesia, India, Malaysia, Philippines, Thailand, Vietnam
INSIDE ASIA’S PREMIUM BASKET
Biscuits
UNDERDEVELOPED EMERGING DEVELOPED
Facial moisturiser
Infant milk formula
Laundry detergent
Chocolate
Toothpaste
Shampoo
Baby diaper
Facial cleanser
RTD Tea
Breakfast cereal
Carbonated soft drink
Home cleaning
Bouillon
WHO
WHAT
HOW
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SOME BRANDS ARE AHEAD IN THE PREMIUM GAME COMPARISON IN JUST THREE ASIAN MARKETS
CHINA INDONESIA
RMB 105 RMB 32
RMB 189 RMB 139
RMB 21.9 RMB 15.5
Rp 5,049 Rp 36,629
Rp 119,233 Rp 91,962
Rp 15,000 Rp 11,567
WHO
WHAT
HOW
KOREA
KRW 1,056 KRW 3, 010
KRW 2,340 KRW 37,265
KRW 2,715 KRW 7,279
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MIDDLE CLASS EXISTS BEYOND URBAN METROS EMERGING TREND: ‘PREMIUMISING’ IN TRADITIONAL TRADE
Premium in Traditional Trade
WHO
WHAT
HOW
Source: Nielsen Retail Audit, April 2011 to March 2012
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YOUR STRATEGY TO GO PREMIUM IN ASIA
MASS PREMIUM CATEGORIES CUE ‘EXPENSIVE’
HIGH PREMIUM CATEGORIES STRONG ATL and BTL SUPPORT
Visible price tags to aid
comparison with mass ranges
Superior packaging is the key shelf
talker Superior Shelf Display TVC
In-Store Education
WE KNOW THEY’VE SMALLER BUDGETS AND DEPEND ON WORD-OF-MOUTH
WHO
WHAT
HOW
Planned Ad Spend (Index)
Mean seconds to explain idea
120 Premium products Parity products
110
100
Premium products Parity products 100
VS
VS
Source: Nielsen BASES Analysis
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HOW DO YOU ENGAGE THE MIDDLE CLASS WHEN YOU HAVE THEM IN YOUR STORE?
Checklist
HELP CALCULATE
CUE DESIRED IMAGE
OFFER AN OPPORTUNITY TO TRY PREMIUM
ENCOURAGE USAGE
TRY OUT NEW CATEGORIES AND BRANDS
ENJOY MODERN RETAIL ENVIRONMENT
PRICE TAGS
PACKAGING
DIFFERENTIATED ASSORTMENT
TRIAL PROGRAMMES
FRIENDLY SERVICE
AIR-CONDITIONING
To…
WHO
WHAT
HOW
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TWO SEGMENTS AT OPPOSITE ENDS OF THE AGE SPECTRUM YOU SHOULD BE OPPORTUNISTIC ABOUT
30
23
25
19
17
15
15
14
15
12
64
69
66
70
70
69
67
63
61
58
6
8
10
11
13
17
18
23
24
30
0% 20% 40% 60% 80% 100%
Philippines
India
Malaysia
Indonesia
Vietnam
China
Thailand
Korea
Singapore
Japan
Population Share (%) By Age - Projected 2030
LITTLE EMPERORS
WHO
WHAT
HOW
4.8bn are rising
2.9bn are affluent
AGEING CONSUMERS
Source: Nielsen Research
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GROWTH IMPACT TO YOUR BRAND AND BUSINESS
WHO
WHAT
HOW
Consumers of
89% of CPG categories
Demand for new and premium categories: • Adult Diapers • Nutritional Supplements • Diabetic foods • Medical Insurance • Leisure Travel
LITTLE EMPERORS
Parents will
PAY MORE Demand for new and premium categories: • Infant Formula Milk • Baby Diapers • Toys and Games • Education Services
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VIETNAM 116%
22
LITTLE EMPERORS ARE BIG ON CATEGORY SPECIALISATION
INDIA 143%
Tota
l Cat
ego
ry R
OG
WHO
WHAT
HOW
NUTRILON
TAILORED ASSORTMENT SPECIALISED FORMULA
Pre
miu
m
Pre
miu
m
Med
ium
Med
ium
Bu
dge
t
Bu
dge
t
PRICE TIER RATE OF GROWTH
DIAPERS
Source: Nielsen Retail Audit, April 2011 to March 2012
TO
TA
L C
AT
EG
OR
Y R
AT
E O
F G
RO
WT
H
Standard Rp66,633
Super
Premium Rp183,730
INDONESIA
Standard KRW27,605
Super Premium
KRW79,000
KOREA
Standard RM27.92
Super
Premium RM101.69
MALAYSIA
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HELP AGEING CONSUMERS THROUGHOUT THEIR SHOPPING JOURNEY
WHO
WHAT
HOW
Lighter aluminum shopping carts
Widened aisles
Slower escalators
Lowered shelves
Enlarged price tags
Magnifying glass on shelves
Better lighting Dedicated
payment lanes
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WINNING STRATEGIES
WHAT MATTERS TO WHOM PRICE-VALUE CHOICE CONVENIENCE SHOPPABILITY
FEMALE ASIAN SHOPPER Value/Benefit
Low Price
Fresh Me-Categories
Proximity One-stop shop
In-store experience Quick Navigation Quick check out Online Shopping
MIDDLE CLASS Price options
Affordable Premium
New Choice Differentiation
Trial packs
Hinterland Availability
Modern Experience Information Support
SILVER ECONOMY High Value Targeted Categories
Small packs Quick in and out In-store mobility
LITTLE EMPERORS Best Value Targeted Categories
Bulk packs
Home Delivery Hinterland Availability
Online Shopping
Flexible formats Information Support
KNOW WHO YOUR SHOPPERS ARE AND WHAT THEY WANT
WHO
WHAT
HOW
CATEGORIES MATTER
WHAT
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CATER TO THE ‘EVERYDAY SHOPPER’ IN DEVELOPING ASIA
AVE. SHOPPING TRIP DEVELOPED DEVELOPING OPPORTUNITY
HOW OFTEN 135.2 TRIPS Per annum
269.2 TRIPS Per annum
DAILY PROMOS
HOW MUCH USD40.90 USD1.79 SMALLER PACKS
HOW MANY 19.3 items 6.6 items FITS IN
MOTORBIKES
WHO
WHAT
HOW
WITH SMALLER PACKS AND DAILY PROMOTIONS
Source: Nielsen CPS Panel 2012 Australia and Indonesia
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SET UP YOUR CATEGORY THE WAY SHOPPERS BUY THEM
FABRIC DETERGENT TOOTHPASTE CHOCOLATES
• Ensure offerings across all pack sizes
• ‘Block the shelf’ by
pack size
• Ensure high brand visibility on shelf
• Complement with
ATL brand support
• Consumers are strongly flavor loyal
• Shelf signage must highlight flavor first
WHO
WHAT
HOW
Source: Nielsen CPS Panel 2012 Japan and Indonesia
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SHELVES MAKE ROOM FOR LIFESTYLE CHANGES
SUSTAINABLE
VEGETARIAN
CHILDREN
DIET AND
WEIGHT LOSS
SPORT AND WELLNESS
FREE FORM
NATURAL
REGIONAL
FUNCTIONAL FOODS
ECOLOGICAL
EMERGENCE OF SUB-RANGES ACROSS CATEGORIES
WHO
WHAT
HOW
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WEIGH IN ON ASIA’S GROWING HEALTH CRISIS TO WIN
WHO
WHAT
HOW
• Very Overweight • Somewhat Overweight • A Little Overweight • About The Right Weight •Underweight
Nielsen Global Online Survey Q3 2011
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REGULATORS ARE STEPPING IN TO CONTROL WAISTLINES GLOBALLY
WHO
WHAT
HOW
JAPAN Regulations to control the waistlines of citizens above 40
MALAYSIA Anti obesity law by 2020
ENGLAND Healthy lives, healthy people whitepaper
DENMARK Higher taxes on ice cream, chocolate, sweets and soft drinks
SOUTH KOREA Ban on junk food commercials between 5-7pm
ARGENTINA No salt shakers on restaurant tables, unless specially requested by patrons
INDONESIA Levy on sweetened, carbonated beverages
FRANCE Tax on drinks containing added sugar
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GETTING THE RIGHT (PREMIUM) POSITIONING
WHO
WHAT
HOW
WILLING TO INCREASE PURCHASE STRONG
WIL
LIN
G T
O P
AY
PR
EMIU
M
WEAK
STR
ON
G
REDUCING A NEGATIVE
ADDING A BENEFIT
CONSUMER ATTITUDE TOWARD HEALTH POSITIONING
NATURAL
• Natural Ingredients
• Low saturated fats
• Low carbohydrates • Low/no calories
• Low fat/fat free
• No sugar
• Low sodium/salt
• Low/no cholesterol
• Calcium fortified
• High protein
• Vitamin fortified
• Minerals fortified
• Organic foods
• Contains Iron
• High fiber
TOUCHPOINTS MATTER
HOW
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MOBILE SHOPPING IS FAST-SHAPING RETAIL ASIA
Source of support before and during
shopping trip
mobile penetration in Asia
SHOP
WHO
WHAT
HOW
83%
SHARE
SEARCH
Source: Nielsen Research
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THEN NOW
Which store are you hitting?
Cash or credit?
Which website, app?
From consumer to shopper when you enter the store
What did the online review say?
Paypal, credit, e-wallet?
RETAILERS REJOICE AS STORE HOURS NO LONGER DICTATE SHOPPING HOURS
WHO
WHAT
HOW
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MORE ASIAN SHOPPERS SEEK FOR DEALS ONLINE, MORE VOCAL TOO Opportunity to tune in to what they see, love, say and share
Source: Nielsen Global Online Survey Q1, 2012
WHO
WHAT
HOW
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MANUFACTURERS AND RETAILERS ARE EMBRACING MOBILE AS A NEW CHANNEL
7-ELEVEN has begun testing NFC enabled kiosks at the store
entrance, so that users can download coupons before
shopping.
WHO
WHAT
HOW
ENGAGE WITH CONSUMERS
ENHANCE SHOPPING EXPERIENCE
DRIVE INCREMENTAL SALES
TESCO catalogue accessed by Smartphone users via QR code
scans.
STARBUCKS has made a high-
profile decision to push the new mobile payments firm Square
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HOW DO SMARTPHONE USERS FEEL ABOUT MOBILE ADVERTISING?
WHO
WHAT
HOW
A snapshot of the Global Mobile Consumer
I am OK with providing personal information in order to receive custom advertisement which match my interests
I am OK with advertising if it means that I can access content for free
I am OK with ads which contain geographically relevant information based on where I am at a given time
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BBC: MOBILE TECH BRINGS BIG RETAIL BRANDS TO RURAL INDIA
1. Sales staff visits shop owner
2. Presents Product Range
3. Takes order and messages via mobile app
4. Orders sent as mobile phone messages appear in a central server
5. Orders are lodged by rural retail customers
6. Consignments are packed into a small goods truck and driven to village stores
WHO
WHAT
HOW
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Urgency Barrier Inspection Barrier Stock-Up Enabler Price Enabler
Convenience
Choice
Convenience
Price-Value
• Urgent needs
• Immediate consumption
• Check quality in store
• Sensory product choice
• Steady use-up rate
• Willing to stock-up
• High price to weight ratio
• Product margin
BARRIERS AND ENABLERS TO M-COMMERCE In Fast Moving Consumer Goods
x x
Snack food Vegetables Bath tissue Prescriptions
WHO
WHAT
HOW
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SEIZE YOUR ‘SHOPPORTUNITIES’NOW
DRIVE GROWTH IN ASIA
CATEGORIES Pay attention to lifestyle changes
SHOPPERS Embrace diversity and
first-time shoppers
TOUCH POINTS Integrate brick, click
and mobile
WHO WHAT HOW
CONNIE CHENG
Shopper Practice Leader
Southeast Asia, North Asia, Pacific
+65 6672 6872
THANK YOU