consumer insights 2017 - consumer panel | consumer

CONSUMER INSIGHTS 2017

Consumer Insights ASIA Q3 2017

3 CONSUMER INSIGHTS 2017

Growth ≤ -0.5% -0.5% < Growth ≤ 5% Growth > 5%

Q3 2017 | SUMMARY ASIA

Northeast Asia West Asia Southeast Asia

China Taiwan South Korea

India (Urban)

Saudi Arabia

Indonesia Malaysia Thailand Philippines Vietnam (Urban)

Vietnam (Rural)

FMCG Total

2.9 5.4 4.0 5.9 -5.9 9.3 -0.1 0.3 1.9 5.2 4.7

Food 1.6 8.2 3.3 6.0 -6.8 10.9 1.1 3.8 4.3 6.7 -0.9

Beverages -1.3 4.4 4.1 2.6 -3.1 1.9 -3.7 -6.2 -3.2 9.8 7.8

Dairy 2.9 5.2 0.3 12.5 -5.6 6.5 -3.0 -0.7 3.1 -1.8 4.4

Home Care

2.3 8.8 3.1 7.6 -8.0 4.7 0.7 3.1 3.4 8.7 10.1

Personal Care

8.5 3.4 7.2 5.4 -9.2 18.2 2.3 0.7 0.3 10.4 10.5

% Value Change FMCG – MAT Q3 2017 vs. Year Ago


3.3%

1.1% 1.9%

5.3%

2.9%

6.9%

3.4% 3.2%

-0.4%

2.3% 3.4%

7.5%

FMCG Food Beverages Dairy Home Care PersonalCare

Q3'16 vs Q3'15 Q3'17 vs Q3'16

FMCG GROWTH IN ASIA : YOY

ASIA / MAT – VALUE SPEND GROWTH


2.9%

0.1% 0.8%

6.1%

1.6%

7.2%

3.2% 2.1%

-0.5%

2.7% 2.7%

8.0%

4.3%

2.1%

5.9% 4.6% 5.0%

6.1% 4.4%

6.1%

-0.2%

2.8% 4.4%

7.4%

FMCG Food Beverages Dairy Home Care Personal Care

Q3'16 vs Q3'15 Q3'17 vs Q3'16

3.9% 4.8%

1.7%

-1.9%

5.0% 6.0%

2.5% 4.3%

-0.3%

-4.9%

4.4% 2.7%

Southeast Asia

FMCG GROWTH IN ASIA : YOY

ASIA / MAT – VALUE SPEND GROWTH

Northeast Asia

West Asia


4.2%

-1.0%

2.5%

7.6% 4.1% 3.5%

9.3%

-0.1%

0.3% 1.9% 5.2% 4.7%

Q3'16 vs Q3'15 Q3'17 vs Q3'16

PHILIPPINES

FMCG: Overall market was stable; Indonesia the best performer among all other countries, followed by India and Taiwan

3.3% 3.5% 3.0%

-1.2%

6.2%

-1.9%

3.4% 2.9% 5.4% 4.0% 5.9%

-5.9%

ASIA / MAT Q3 2017 – Value Growth FMCG

ASIA

INDONESIA

INDIA TAIWAN CHINA SAUDI S. KOREA

MALAYSIA THAILAND

URBAN RURAL

VIETNAM VIETNAM


1.2%

-0.4% -0.1%

5.8% 2.4%

0.9%

10.9%

1.1% 3.8% 4.3%

6.7%

-0.9%

Q3'16 vs Q3'15 Q3'17 vs Q3'16

PHILIPPINES

1.1% 0.4% 1.6%

-2.5%

5.4%

-1.2%

3.2% 1.6%

8.2% 3.3%

6.0%

-6.8%

ASIA / MAT Q3 2017 – Value Growth FOOD

ASIA

INDONESIA


MALAYSIA THAILAND

URBAN RURAL

VIETNAM VIETNAM

FOOD: Increased consumer spending in Food sector leads to overall value growth in Asia


PHILIPPINES

1.9% 0.2% 4.0% 5.1% 5.1%

-1.2% -0.4% -1.3%

4.4% 4.1% 2.6%

-3.1%

ASIA / MAT Q3 2017 – Value Growth BEVERAGES

ASIA

INDONESIA


MALAYSIA THAILAND

URBAN RURAL

VIETNAM VIETNAM

BEVERAGES: More innovation required for continued growth, as seen in Taiwan.

5.9%

-0.3%

3.8% 8.4%

6.2% 5.9% 1.9%

-3.7% -6.2%

-3.2%

9.8% 7.8%

Q3'16 vs Q3'15 Q3'17 vs Q3'16


PHILIPPINES

5.3% 7.5% 5.6%

-5.4% -4.0% -1.8%

2.3% 2.9% 5.2% 0.3%

12.5%

-5.6%

ASIA / MAT Q3 2017 – Value Growth DAIRY

ASIA

INDONESIA


MALAYSIA THAILAND

URBAN RURAL

VIETNAM VIETNAM

DAIRY: India is the star performer in this category – healthy and nutritious are the tag attached with dairy product

3.6%

-0.9%

0.7%

10.0%

5.1% 6.4% 6.5%

-3.0% -0.7%

3.1%

-1.8%

4.4%

Q3'16 vs Q3'15 Q3'17 vs Q3'16


PHILIPPINES

2.9% 3.0%

-3.9% -7.3%

8.2%

-5.8%

3.4% 2.3%

8.8% 3.1%

7.6%

-8.0%

ASIA / MAT Q3 2017 – Value Growth HOME CARE

ASIA

INDONESIA


MALAYSIA THAILAND

URBAN RURAL

VIETNAM VIETNAM

HOME CARE: Taiwan, Vietnam and India posted stellar performance in this category – hygiene is one of the factor leading this growth

6.6%

-4.0%

3.0%

9.9%

2.0%

-0.1%

4.7% 0.7% 3.1% 3.4%

8.7% 10.1%

Q3'16 vs Q3'15 Q3'17 vs Q3'16


8.2%

-1.1%

5.3% 7.0% 2.9% 3.1%

18.2%

2.3% 0.7% 0.3%

10.4% 10.5%

Q3'16 vs Q3'15 Q3'17 vs Q3'16

PHILIPPINES

6.9% 8.3% 5.7%

1.5%

7.9%

-1.9%

7.5% 8.5% 3.4%

7.2% 5.4%

-9.2%

ASIA / MAT Q3 2017 – Value Growth PERSONAL CARE

ASIA

INDONESIA


MALAYSIA THAILAND

URBAN RURAL

VIETNAM VIETNAM

PERSONAL CARE: Still the best performing category as consumers focus on self-image and cleanliness


CHINA #SolidGrowth China posted relatively solid economic growth in Q3, with GDP growth at 6.8%. FMCG grew 2.9% in Q3. #E-Commerce 58% of China shoppers used to buy FMCG products through online channels, revealing the sign of strengthening growth in e-commerce. #StableDemand Personal care category is still the main driver for FMCG market growth, both in value or volume. This category is dominating the online channel as well.

S.KOREA #InHighGear Korea economic growth soared to a seven-year high in Q3. Consumer spending improved with FMCG market value sales rose to 4% in Q3. #KidultTrend Offline retailers are moving towards this trend as it is growing into mainstream culture. Still in its infancy stage but expected to continue to grow. #Catch1-2HHs! Manufacturers in various industries including FMCG are developing small-volume products, customized services and promotions to target small households which close to 54% of total population.

Click on the country to spot the local trends

SAUDI ARABIA #ToughEconomic Saudi shoppers continue to spend lesser for the overall FMCG, with volumes also declining now across categories in Q3 2017. #CautiousShopper The decline is seen across income groups & nationalities with all households making conscious choice of "need-to-have" vs "nice-to-have". #RightPromotion All households are picking more on promotions leading to the drop in spends. Driving the right promotion strategy in alignment with retailers is key to arresting the decline in spends.

MALAYSIA #OptimisticView Consumer Confidence continues to climb since the dip at Q4 2016 but overall market sentiments remain conservative. #FMCG Recovering FMCG market started to recover. Consumers focus on basic necessity and essential categories. #Convenience Hypermarkets and General Trade continues to lose traction to close proximity modern trade such as modern day mini-market and personal care stores.

MAT Q3 2017 | SUMMARY ASIA PHILIPPINES #UpUpUp Philippines' GDP growth of 7.5% is still on track given strong consumption and resurgence of manufacturing. #HairConscious There seems to be a clamor for healthy hair as hair treatments aggressively grow in reach and consumption. #QuickAndRich There is sign of growing demand for quicker food preparation and richer taste as more households are buying semi-processed meat, liquid seasoning and mayonnaise/salad dressings.

TAIWAN #SlowDown After valley low in 15H2, recovery trend was clear since 16H2. A recess occurred this quarter, ranging from GDP, stock market, to FMCG. #QualityLife Consumer needs for better quality increased, especially in non-food categories- detergent, shampoo, and toilet paper. #NPD Innovation Beverage market was impacted by bubble tea stands and CVS coffee. Packaged beverages strived to grow by launching various innovations, introducing new flavors or packaging materials.

INDIA #StructuralReforms The Indian economy has seen major structural changes in last one year due to demonetisation move, followed by implementation of Goods and Services Tax (GST) on July 01, 2017. #DairyOnTheRise Value and Volume growth observed across all the FMCG sectors, with Dairy sector growing the fastest. #FastGrowingBrand Patanjali continues to expand its portfolio and gains traction across all markets, mainly driven by North and West.

INDONESIA #SteadyGrowth Indonesia's growth remain steady at 5% threshold despite improved government spending and private consumption. #ConfidenceUplift Stable inflation rate able to hold consumer confidence. Lower Class consumers continued to increase their FMCG spending with bigger basket size purchase in new categories. #Premiumization Personal care sector has improved value contribution from last year as a result of both premiumization and price hike.

THAILAND

#SpendingConstraint GDP is still growing at 4.3% but this doesn’t reflect FMCG growth. Shoppers continue to exercise caution due to economic landscape. #SeesawEffect Shoppers increased trip spend on essential products however, this doesn’t offset against fewer shopping trips. #MultiChannelStructureShift Interplay of modern trade channels, large traditional trade, continued expansion of convenience stores and emerging online are now the channel trends in Thailand.

VIETNAM #RobustPerformance Vietnam's economy expanded 7.46% in Q3, boosted by the strong performance of export and wholesale & retail. #ModernRetailOutpace Both big and small retail formats keep up their momentum as a result of lots of M&A deals and foreign investments in recent time. #Hygiene&Cleanliness Impressive growth of Personal Care & Home Care is largely attributed to the rising consumers’ awareness on personal needs and hygiene.


27%

3%

23% 4%

20%

7%

16%

27%

3%

23% 4%

20%

6%

16%

CHINA %CHANGE FMCG BASKET PER SOCIAL ECONOMIC LEVEL

MAT MAT Q4’16 VS

year ago MAT Q1’17 VS



year ago

Total

Low Income

Mid Income

High Income

Value Volume Penetration

Mouthwash

Kitchen Rolls

Bleach

Make Up

Hand Wash

Mouthwash

Wet Tissues

Bleach

Kitchen Rolls

Mint Candy

Mouthwash

Bleach

Kitchen Rolls

Intimate Hygiene

Nutrient Solid Drinks

Channel Importance - %Value Spend/Trip

Super CVS Hyper Grocery Work unit/ Gift

E-commerce Others

Top 5 Categories with Positive Impact – MAT Q3’17 vs Q3’16

MAT Q3’17 v Q3’16

Shopping Occasions


29%

3%

24% 5%

20%

4%

16%

Q3 ‘17

Q3 ‘16

Q3 ’15 1%

4%

-2%

-9%

0%

34%

-2%

Super

CVS

Hyper

Grocery

Work Unit/Gift

E-commerce

Others

1%

-1%

3%

-1%

1%

-1%

4%


-3%

0%

0%

1%

-2%

3%

14%

Hyper

Super

CVS

Drug stores

Direct Sales

PX Mart

Internet

5%

5%

1%

-1%

15%

3%

-3%


20%

5%

6%

6%

5%

17%

6%

35%

21%

5%

6%

7% 5%

16%

5%

35%

22%

5%

6%

7% 6% 15%

4%

35%

Q3 ‘17

Q3 ‘16

Q3 ’15

Hyper Super CVS Drug Stores

Direct Sales

PX Mart Internet Others

Others: gift & sample, grocery & provision, department stores, company order

MAT MAT Q4’16 VS




year ago

Total

Low Income

Mid Income

High Income


Toothbrush

Ice Cream

Liquid Detergent

Cooking Oil

Razor Blades

Multi Purpose Cleaner

Cooking Vinegar

Peanut Butter

Chili Sauce

Razor Blades

Multi Purpose Cleaner

Razor Blades

Peanut Butter

Air Fresheners

Ice Cream

%CHANGE FMCG BASKET PER SOCIAL ECONOMIC LEVEL



Shopping Occasions

MAT Q3’17 v Q3’16

TAIWAN


1%

-3%

9%

-1%

21%

0%

Hyper

Super

Other Modern Trade

Traditional Trade

Internet

Non-Store

0%

0%

0%

8%

-2%

-4%

KOREA


28%

27% 11%

8%

19%

7%

29%

28% 11%

7%

17%

8%

32%

28%

10%

9%

13%

8%

Q3 ‘17

Q3 ‘16

Q3 ’15

MAT MAT Q4’16 VS




year ago

Total

Low Income

Mid Income

Mid-High Income

High Income

Hyper Super Other Modern Trade

Traditional Trade

Internet Non-Store


Retort

Foundation

Frozen Prepared Food

Kimchi

Body Cleanser

Spread

Multi Lip

Foundation

Kimchi

Retort

Retort

Kimchi

Spread

Foundation

Shading




Shopping Occasions

MAT Q3’17 v Q3’16


2%

78%

1%

1%

17%

2%

77%

1% 1%

18%

-5%

0%

-3%

1%

-3%

Super

Kirana/ Paan-Beedi

Chemist

Network Marketing

Others

4%

3%

-2%

-6%

2%

2%

77%

1% 1%

18%

Q3 ‘17

Q3 ‘16

Q3 ’15

Super Kirana/ Paan-Beedi

Chemist Network Marketing

Others

INDIA


MAT MAT Q4’16 VS




year ago

Total SEC

SEC AB

SEC C

SEC D/E

INDIA

Noodle/Macaroni

Toilet/Bathroom Cleaner

Ice Cream/Kulfi

Sauces

Floor Cleaners

Noodle/Macaroni


Ice Cream/Kulfi

Sauces

Coffee


Noodle/Macaroni

Coffee

Floor Cleaner

Sauces





Shopping Occasions

MAT Q3’17 v Q3’16


47%

37%

2% 6%

9% 45%

39%

2% 6%

8%

-5%

-3%

-10%

8%

-4%

Modern Trade

Lower Trade

Pharmacy

Wholesale

Others

-4%

-1%

-1%

-3%

-2%

48%

37%

2% 6%

9%

Q3 ‘17

Q3 ‘16

Q3 ’15

SAUDI ARABIA


MAT MAT Q4’16 VS




year ago

Total SEC

SEC AB

SEC C

SEC D

Modern Trade

Lower Trade

Pharmacy Wholesale Others

Chocolate Spreads

Sliced Bread

Bottled Water

Yoghurt (Zabadi)

UHT Flavoured Milk

Sliced Bread

Bottled Water

Chocolate Spreads

Honey

Energy Drinks

Chocolate Spreads

UHT Flavoured Milk

Evaporated Milk

Full Cream Milk Powder

Coffee





Shopping Occasions

MAT Q3’17 v Q3’16


-2%

13%

-13%

Hyper+Super

Mini Market

Traditional Trade

9%

17%

1%

73%


8%

14%

78%

8%

13%

1%

78%

Q3 ‘17

Q3 ‘16

Q3 ’15

INDONESIA

Hyper + Super

Mini Market

Other Modern Trade

Traditional Trade

Others

MAT MAT Q4’16 VS




year ago

Total

Low Income

Mid Income

High Income





Shopping Occasions

MAT Q3’17 v Q3’16

Lip Cosmetic

Potato Snack

Eye Cosmetic

Hair Colorant

Snack (Excl. Potato)

Lip Cosmetic

Cold cereal/cereal bar

Yoghurt Drink

Eye Cosmetic

Potato Snack

Cold Cereal/cereal bar

Lip cosmetic

Potato Snack

Facial Moisturizer

Facial Cosmetic

6%

2%

15%


-3%

2%

-6%

7%

-5%

Hyper

Super

General Trade

Drug, Beauty &Pharmacy

Others

RTD Coffee

Chocolate

One Step

Coconut Milk

Flour

RTD Coffee

Toi/Bathr/Cleaner

Cosmetics

Drinking Water

Belacan

-1%

0%

1%

-3%

-4%

26%

46%

19%

4% 5%

27%

45%

20%

3% 5%

28%

43%

22%

3% 4%

Q3 ‘17

Q3 ‘16

Q3 ’15

MALAYSIA


Hyper Super General Trade

Drug, Beauty & Pharmacy

Others

MAT MAT Q4’16 VS




year ago

Total

Low Income

Mid Income

High Income

RTD Coffee

Mask

Toi/Bathr/Cleaner

Hair Treatment

Cosmetics



Channel Importance - %Value


Shopping Occasions Spend/Trip

MAT Q3’17 v Q3’16


-2%

1%

0%

-1%

1%

1%

2%

2%

-1%

4%

-2%

-1%

-5%

2%

Hyper

Super

CVS

PVS

H&B Stores

Direct Sales

Others

19%

12%

17% 32%

1%

6%

13%

19%

12%

16% 33%

1% 6%

13%

18%

12%

16% 35%

1% 5%

13%

Q3 ‘17

Q3 ‘16

Q3 ’15

THAILAND


MAT MAT Q4’16 VS




year ago

Total

Low Income

Mid Income

High Income

Hyper Super CVS PVS H&B Stores

Direct Sales

Others

Mask

Facial Tissue

Make Up

RTD Coffee

Rice

Jam

Mask

Spread

Sun Protection

Essence of Chicken

Spread

Essence of Chicken

Facial Tissue

Jam

Cooking Oil






MAT Q3’17 v Q3’16


Hair Treatment

Chocolate

Semi-Processed Meat

Liquid Detergent

Instant Pasta

Hair Colorant

Hair Treatment

Semi-Processed Meat

Baby Food

Scouring Pads

-1%

1%

0%

16%

2%

-10%

9%

8%

Sari-Sari Stores

Hyper/Super

Groceries

Market Stalls

Drug Stores

Direct Sales

CVS

Others

0%

-1%

1%

4%

2%

2%

4%

3% Sari-Sari Stores

Hyper/ Super

Groceries Market Stalls

Drug Stores

Direct Sales

CVS Others

40%

30%

6%

5%

5% 2%

12%

42%

30%

7%

4% 4%

2% 11%

43%

29%

7%

5% 4%

2% 10%

Q3 ‘17

Q3 ‘16

Q3 ’15

PHILIPPINES


MAT MAT Q4’16 VS




year ago

Total

SEC E

SEC D

SEC ABC

Hair Treatment

Mouthwash

Liquid Seasoning

Mayonnaise/Salad Dr.

Semi-Processed Meat





MAT Q3’17 v Q3’16



4%

2%

3%

3%

-7%

MAT MAT Q4’16 VS




year ago

Total

Low Income

Mid Income

Mid-High Income

High Income

-3%

-1%

-2%

1%

12%

Street Shops

Wet Market

Specialty Stores

Hyper & Super

Mini Stores

60%

10%

7%

13%

3% 6%

61% 11%

7%

13%

2% 6%

61% 10%

7%

13%

3% 6%

Q3 ‘17

Q3 ‘16

Q3 ’15

VIETNAM URBAN

Street Shops

Wet Market

Specialty Shops

Hyper & Super

Mini Stores

Others


Sun Protection

RTD GUM

Air Freshener

Hair Colorant

Lipstick






MAT Q3’17 v Q3’16

Sun Protection

RTD GUM

Liquid Detergent

Functional Drinking Yogurt

Mayonnaise

Ketchup/Tomato Sauce

Mayonnaise

Instant Tea

Cakes

Rice Soup


7%

7%

5%

36%

0%

-2%

-14%

3%

-10%

-2%

Street Shops

Wet Market

Specialty Stores

Direct Sale

Modern Trade

77%

16%

1%

2% 2%

1%

77%

17%

2% 2%

2%

75%

19%

2%

2% 1%

Q3 ‘17

Q3 ‘16

Q3 ’15

VIETNAM RURAL


Street Shops

Wet Market

Specialty Shops

Direct Sales

Modern Trade

Others

Liquid Detergent

RTD GUM

Tonic Food Drink

Deodorant

Shaving Products

Liquid Detergent

RTD GUM

Tonic Food Drink

Adult Milk Powder

Facial Cleanser

Liquid Detergent

Biscuits

Loose Leaf Tea

CSD

Insecticide






MAT Q3’17 v Q3’16

MAT MAT Q4’16 VS




year ago

Total

Low Income

Mid Income

Mid-High Income

High Income

consumer insights 2017 - consumer panel | consumer

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