nielsen - global inflation impact report: the middle class state of mind or share of wallet?...
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Nielsen - Global inflation impact report: The Middle Class State of Mind or Share of Wallet? Spending Flexibility Around the World During Inflationary Times - October 2013 OVERVIEW • Income alone does not dictate spending considerations • Greater spending flexibility is reported among those with the lowest incomes • Unbranded cereal/grains, fruits, and vegetables are stock-up essentials • Discount stores and destocking/clearance retailers are poised for success • Convenience channels, family-owned stores and specialty retailers are most vulnerable • New brand experimentation is high in developing markets • Online deal seeking is a key method to saveTRANSCRIPT
1THE MiddlE Class | sTaTE of Mind or sHarE of WallET? Copyright © 2013 The nielsen Company
THE MiddlE Class
S tat e o f M i n d o r S h a r e o f Wa l l e t ? spEnding FlExibiliTy around THE World during inFlaTionary TiMEsOCTOBer 2013
2 THE MiddlE Class | sTaTE of Mind or sHarE of WallET?
3THE MiddlE Class | sTaTE of Mind or sHarE of WallET? Copyright © 2013 The nielsen Company
c o n t e n t SIntroductIon / Survey Methodology . . . . . . 4
Part I: SPendIng FlexIbIlIty and conSuMer dIverSItyIncome is relative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Categories with staying power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Deconstructing the demand landscape . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Private-label brands are not for everyone—yet . . . . . . . . . . . . . . . . . . . . . . . . 12
Strategies to deploy, marketing levers to pull . . . . . . . . . . . . . . . . . . . . . . . . . . 15
SectIon II: country SnaPShotS: . . . . . . . . . . . . . . . . . . 17
brIcBrazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
the bIg three United States ................................................................................. 22
Japan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
countrIeS to Watch by regIon Indonesia (Asia-Pacific) ..................................................................25
Mexico (Latin America).................................................................. 26
Poland (Eastern Europe) .................................................................27
Canada (North America) ................................................................ 28
United Arab Emirates (Middle East) .............................................. 29
4 THE MiddlE Class | sTaTE of Mind or sHarE of WallET?
OVERVIEW
• Income alone does not dictate spending
considerations
• Greater spending flexibility is reported among those
with the lowest incomes
• Unbranded cereal/grains, fruits, and vegetables are
stock-up essentials
• Discount stores and destocking/clearance retailers are
poised for success
• Convenience channels, family-owned stores and
specialty retailers are most vulnerable
• New brand experimentation is high in developing
markets
• Online deal seeking is a key method to save
5THE MiddlE Class | sTaTE of Mind or sHarE of WallET? Copyright © 2013 The nielsen Company
Social StatuS iS not dictated by the Wallet aloneThe expanding middle class meets rising food prices. The convergence
of these two mega trends is set to dramatically and permanently reshape
the consumer landscape.
With the global middle class growing by 70 million each year, and
food prices expected to more than double within 20 years, the world is
entering an unprecedented period of rising demand, economic pressures
and aspirationally-driven buying behavior.
But focusing solely on the middle class, which is often defined by
income parameters that are either too high or too low for universal
acceptance, is unlikely to fulfill economic growth expectations for
business. New findings from Nielsen reveal that differences in buying
intentions for food products with regard to what we buy, where we shop,
and our perceived spending flexibility is driven more by aspirations and
cultural norms than by income alone.
The Nielsen Global Survey of Inflation Impact polled more than 29,000
Internet respondents in 58 countries to understand how respondents
around the world of all income ranges were coping with rising food
prices. The study identifies the countries, categories and retail channels
that were more insulated to weather hard economic times and those
that were more vulnerable. Ultimately, we outline tactics and strategies
necessary to reach consumers across the world in these demanding and
changing times.
“While measuring the global middle class carries real-world implications,
the broadest income classification is too low and the narrowest
classification is too high to represent real-world buying potential,” said
James Russo, senior vice president, Global Consumer Insights, Nielsen.
“A more accurate measure is to look at consumer diversity, spending
flexibility and the demand landscape in order to understand how to scale
goods and services that meet the needs of consumers in both developed
and developing markets around the world.”
about the global Survey Methodology
The findings in this survey
are based on respondents
with online access across
58 countries. While an
online survey methodology
allows for tremendous
scale and global reach,
it provides a perspective
only on the habits of
existing Internet users,
not total populations.
In developing markets
where online penetration
has not reached majority
potential, audiences may
be younger and more
affluent than the general
population of that country.
Additionally, survey
responses are based on
claimed behavior, rather
than actual metered data.
6 THE MiddlE Class | sTaTE of Mind or sHarE of WallET?
incoMe iS relativeWhen evaluating the impact of inflation among respondent households
that earned incomes reflective of middle-class income parameters (as
defined by the Organization for Economic Co-operation and Development
[OECD]), Nielsen found that in times of rising food prices, no single group
is immune from the pain. The buying sentiment for both discretionary and
non-discretionary food and beverage categories among “middle-class”
households compared with all other households, on average, was not
dramatically different. In other words, a closer look at buying propensity
by standards other than income was necessary to better measure financial
stability.
Another measure of buying power is spending flexibility, or the elasticity
in the household budget to afford a rise in food prices without having to
make difficult spending choices elsewhere. In the survey, we segmented
respondents into three spending capacities; those that had enough money to
spend freely, live comfortably, or just meet the basics for food and shelter.
The findings revealed that the notion of spending was relative to
many factors, including household composition, in-country spending
opportunities, aspirations and cultural diversity. For example, respondents
in the Middle East/Africa region reported the highest percentage (49%) of
households earning an income under $5,000 per year, yet this region also
reported the highest percentage of respondents (17%) able to spend freely.
What’s more, households in this region had the greatest number of mouths
to feed living under one roof. One-third (31%) of households in the Middle
East/Africa region reported living with six or more people in the home,
compared with the global average of only 8 percent.
At the opposite extreme, respondents in the North America region reported
the highest percentage (46%) of households earning an income above
$50,000 (compared to the global average of 22%), but reported the lowest
percentage (9%) able to spend freely. North Americans also had the smallest
household size compared with other regions, as more than three-quarters
(76%) lived with three people or fewer in the same house.
On average, 42 percent of all respondents said they were able to live
comfortably and bought some things just because they liked them, while 44
percent only had enough money for the basics—food and shelter. Only 14
percent said they were able to spend freely. Nine of the top 10 countries with
the least spending flexibility hailed from Europe. More than three-quarters
of respondents not able to afford a rise in prices were from Greece (87%),
Croatia (82%), Romania (81%), Hungary (77%), Ukraine (77%) and Bulgaria
(77%).
7THE MiddlE Class | sTaTE of Mind or sHarE of WallET? Copyright © 2013 The nielsen Company
INCOME IS RELATIVE
ASIA-PACIFIC
EUROPE
MIDDLE EAST / AFRICA
LATIN AMERICA
NORTH AMERICA
ANNUAL INCOME
33%20%
14% 32% 39% 15%
5%13%32%49%
29%20%30%22%
46%36%13%5%
27% 19%
33%20% 27% 19%< $5,000 $5,000 - $19,000 $20,000 - $49,000 $50,000+
ASIA-PACIFIC
EUROPE
MIDDLE EAST / AFRICA
LATIN AMERICA
NORTH AMERICA
NUMbER Of pEOpLE LIVINg IN hOME
46%5%
17% 54% 25% 4%
31%39%26%4%
10%44%42%5%
3%20%53%23%
40% 9%
33%20% 27% 19%1 2-3 4-5 6+
Source: Nielsen Global Survey of Inflation Impact, Q1 2013
ASIA-PACIFIC
EUROPE
MIDDLE EAST / AFRICA
LATIN AMERICA
NORTH AMERICA
SpENdINg fLExIbILITy IN ThE pAST yEAR
37%11%
17% 35% 48%
56%35%9%
51%40%9%
44%42%14%
52%
47%17% 36%
I’ve only had enough money for shelter, food and basics
I’ve been able to live comfortably, and bought some things just because I like them
I’ve been able to spend freely
GLOBAL AVERAGE
8 THE MiddlE Class | sTaTE of Mind or sHarE of WallET?
nearly everyone feelS the PainWhen it comes to rising food prices, nearly everyone feels the pain; 85
percent of all respondents said that higher costs impacted their choice of
grocery products. And in-home food products were not the only areas of
spending affected. The top ways that respondents in all corners of the world
would change spending habits because of increased food prices include
dining out (64%), buying new clothes (55%), spending on snack food (45%),
paying for recreation and entertainment (44%) and traveling for vacation
(39%).
As consumers make trade-offs, determining which categories have staying
power and which ones are more vulnerable is critical as tough in-store
decisions are made. While buying more of anything is a challenge when
wallets are squeezed, there were several categories that showed resilience
to inflation. The one category that rose to the top across all regions was
loose, unpackaged, unbranded cereal (such as rice, wheat and grains); with
14 percent of all respondents saying they would buy more of this category
if food prices increased. Fresh or frozen fruits and vegetables, and canned
fruits and vegetables were also stock-up essentials among 11 percent and 8
percent of all respondents, respectively.
9THE MiddlE Class | sTaTE of Mind or sHarE of WallET? Copyright © 2013 The nielsen Company
Percent saying they would buy more, buy same, buy less
More than half of global respondents had no plans to change their shopping
routine for staple categories like dairy products (68%), meat and poultry
(62%), bread and bakery goods (60%), packaged foods (55%) and fish and
seafood (52%).
Buying propensity that often exceeded the global average was found in many
developing countries, with India and China consistently among the highest
percentage of respondents indicating they would buy more dairy, packaged
foods, packaged cereal products, bread and bakery products, fresh, frozen
and canned fruits and vegetables if food prices increased.
Categories most vulnerable during inflationary times, and the ones that half
of all respondents said they would buy less frequently, included discretionary
products such as candies, cookies and other sweets (59%), chips and other
snack foods (58%), carbonated beverages (53%), alcoholic beverages (49%),
prepared meals (48%) and convenience foods (45%).
RESILIENT ANd VULNERAbLE CATEgORIES IN INfLATIONARy TIMES
Source: Nielsen Global Survey of Inflation Impact, Q1 2013
buy MorE
Loose, unpackaged, unbranded cereal - 14%
Fresh or frozen fruits and vegetables - 11%
Canned fruits and vegetables - 8%
buy saME Dairy - 68%
Meat and poultry - 62%
Bread and bakery - 60%
Packaged goods - 55%
Fish and seafood - 52%
buy lEss Candies, cookies and other sweets - 59%
Chips and other snack foods - 58%
Carbonated beverages - 53%
Alcoholic beverages - 49%
Prepared meals - 48%
Convenience foods - 45%
Top CounTry
32% - Greece
19% - South Africa
14% - India
83% - Belgium
78% - Denmark
85% - Poland
80% - Belgium
74% - Japan
81% - South Africa
80% - South Africa
73% - Philippines
70% - Greece
72% - Estonia
68% - Estonia
( global average )
10 the MIddle claSS | State oF MInd or Share oF Wallet?
deconStructing the deMand landScaPe With less money to spend and hungry mouths to feed, consumers
continually look for ways to stretch their budgets and find the best value
for the money, which is why one-third of global respondents would shop
more at discount/dollar stores in times of rising prices. One-fourth would
increase shopping frequency at de-stocking/clearance stores (28%) and
hypermarkets/mass merchandisers (23%), which were other outlets poised
for success during inflationary times as their competitive prices are often
difficult to beat.
One-fifth of all respondents would shop more at warehouse club stores
(21%), supermarkets (20%), fresh food farmers markets (20%) and outlet
stores (20%) as prices rise. Globally, 21 percent intend to grow more of
their own food, and 17 percent would increase their frequency at local
neighborhood stores.
11the MIddle claSS | State oF MInd or Share oF Wallet? copyright © 2013 the nielsen company
Percent saying they would shop more and shop less
RESILIENT ANd VULNERAbLE RETAILERS IN INfLATIONARy TIMES
sHop MorE
Discount/dollar stores - 33%
De-stocking/clearance stores - 28%
Hypermarkets/mass merchandisers - 23%
Warehouse club stores - 21%
Supermarkets - 20%
Fresh food/farmers markets - 20%
Outlet stores - 20%
sHop lEss Convenience stores - 40%
Specialty retailers - 36%
Kiosks - 32%
Top CounTry
48% - Singapore
45% - Israel
40% - Chile
39% - South Korea
35% - Ireland
33% - South Africa
38% - Turkey
66% - Taiwan
52% - Bulgaria
50% - Argentina
( global average )
Source: Nielsen Global Survey of Inflation Impact, Q1 2013
Evaluating the country profile where the greatest percentage of
respondents would increase shopping frequency provides a retail
landscape roadmap that reflects both opportunity and availability. Nearly
half of respondents in Singapore (48%), South Korea (47%) and Ireland
(47%) intend to shop more at discount/dollar stores. De-stocking/
clearance stores were the preference for 45 percent of respondents
in Israel and 44 percent in Greece. Forty percent of respondents in
Chile and 36 percent in China would shop more at hypermarkets/mass
merchandisers. Outlet stores were the channel choice among 38 percent
of Turkey’s respondents. And fresh was best among 46 percent of New
Zealanders and 33 percent of South Africans who intend to grow more of
their own food and increase shopping frequency at fresh foods markets,
respectively.
Conversely, retailer formats most vulnerable during inflationary times
include convenience stores and specialty retailers, whereby 40 percent
and 36 percent of all respondents, respectively, said they would shop less
often. In Latin America, local/neighborhood and family-owned stores
showed vulnerability, as 44 percent would decrease shopping trips in
both outlets if prices were to rise.
12 THE MiddlE Class | sTaTE of Mind or sHarE of WallET?
Private labelS are not for everyone—yetAs shoppers increasingly look for value, private-label brands, also known
as store brands, have a potential advantage as shoppers become more
discerning and lower-priced alternatives proliferate. Today, private-label
products account for roughly 16 percent of global fast-moving consumer
goods (FMCG) dollar share, according to Nielsen’s 2012 Global Private
Label Report. This percentage varies dramatically around the world,
as the availability of private-label brands are typically found across
modern trade outlets (larger retail formats), which dominate the retail
landscape in the developed world. For example, private label constitutes
46 percent of FMCG dollar share in Switzerland, but only 1 percent in
China. But conditions are ripe for private label growth within the heavily
urban settings of developing countries, as the spread of modern retail is
poised to usher in a host of private-label brands and new opportunities.
13THE MiddlE Class | sTaTE of Mind or sHarE of WallET? Copyright © 2013 The nielsen Company
Urban India’s rapid expansion is a case in point. Nielsen estimates that
FMCG sales will more than double through modern trade channels from
$1.8 billion today to $5 billion in 2015. While modern trade channels
account for only 5 percent of the Indian retail landscape today, and 6
percent of sales nationally (9% in urban India), sales growth is already
outpacing traditional trade by double. And sales of private label are
reaping the rewards, reporting sales growth of 22 percent in 2012,
compared to 2011.
“Indian shoppers who are more sensitive to price typically toggle
between packaged and ‘loose’ alternatives for commodities like wheat,
rice and sugar during inflationary times,” said Adrian Terron, vice
president CR BASES, Nielsen India. “Private label offers consumers a
tolerable down-trade zone since it assures them quality, the retailer’s
assurance, and the comfort of a recognizable origin. Private-label
brands’ lower price and quality characteristics can prove a useful
combination for shoppers who do not want to revert to unbranded and
unpackaged alternatives even during tougher times.”
In regions where private label is well established, the survey results
showed the potential power of private-label brands during inflationary
times. In North America, almost half (46%) of respondents said
they would shop more for private-label brands when food prices rise,
compared with only 7 percent that would increase shopping frequency
for national brands. Similarly, in developed European countries, 35
percent would shop more for private-label brands, compared with only 8
percent that would buy more national brands.
The price must be right and marketing must be effective for private-label
brands to be successful. Packaging impacts trust and quality perceptions
especially when private labels extend beyond commodity or low-risk
product categories.
Source: Nielsen Private Label Global Report, 2012
PRIVATE LABEL BRANDS
BRANDED
84%
16%
GLOBAL AVERAGE
2009
GLOBAL AVERAGE
2012
17%
83%
% FMCG DOllar Share
14 THE MiddlE Class | sTaTE of Mind or sHarE of WallET?
pRIVATE LAbEL dOLLAR ShARE by COUNTRy
Represents Developing Countries
SwitzerlandUnited Kingdom
GermanySpain
SlovakiaAustriaFrance
BelgiumPortugal
NetherlandsCanada
Czech RepublicSweden
DenmarkNorway
HungaryFinland
New ZealandUnited States
ItalyAustralia
PolandGreeceTurkey
ArgentinaChile
ColombiaRussiaMéxico
Hong KongBrazil
SingaporeMalaysia
VenezuelaTaiwan
South KoreaThailand
IndonesiaChina
Philippines
4643
3231
302828
272525
2424
2222
2020
1918
17
151414
1212
87
6555
532222
111
1
Source: Nielsen Private Label Global Report, 2012
15THE MiddlE Class | sTaTE of Mind or sHarE of WallET? Copyright © 2013 The nielsen Company
StrategieS to dePloy and Marketing leverS to PullUnderstanding brand position within the category demand landscape
allows for a tailored food inflation response that will protect the
most profitable shoppers with optimum efficiency. While the strategic
response to consumer buying behavior may be consistent across
regions, market-by-market tactical variations are essential. Knowing how
to scale goods and services across the world can be challenging when
consumer diversity must factor into the marketing mix.
Certain tactics resonated with strong consistency around the world,
such as the increased propensity to purchase only sale-priced items
(41%), but other saving strategies showed variations that aligned with
regionally-motivated shopping patterns. For example, transportation
and storage/refrigeration space was not an issue for half of respondents
(50%) in North America that would stock up on regular-use items when
they were on sale, compared with only one-third (34%) of Asia-Pacific
respondents. But purchasing larger pack sizes was a strategy favored
among 29 percent of respondents across all regions.
The speed and efficiency of online methods proved to be the platform of
choice for saving money among one-third (32%) of all respondents. As
online penetration continues to grow around the world, so too will the
use of the Internet to search for money-saving deals. Since the survey
results captured the sentiment of only online respondents, Nielsen
found that these leading-indicator consumers in developing regions
actually out-performed those in developed markets for their intention
to use online sources to search for deals. One-quarter (25%) of online
respondents living in developing countries said they would shop more
on the Internet if prices increased, compared with 14 percent of those
living in developed countries. Similarly, 30 percent of developing-country
respondents would use social media to find specials, compared with 23
percent of those in developed countries.
Innovation is vital to sustaining profitability and building a strong
platform for growth. Tactics that align with how consumers in different
parts of the world think, plan and shop is vital for success.
16 the MIddle claSS | State oF MInd or Share oF Wallet?
Winning sTraTEgiEs aroundTHE World
euroPe: Inflation may be driving shoppers from local stores
to chains, so understand pricing and promotional scenarios at the
competition.
eaStern euroPe: Consumers look to find value, so deals at
discounters, clearance and club stores, as well as the use of the Internet
to find bargains provide a strong avenue for marketing activities.
aSIa-PacIFIc: While the landscape varies from advanced markets
like Japan to developing markets like Vietnam, the overall outlook is
optimistic, as consumers are able to absorb rising food prices better
than most. Shoppers are nimble in seeking food value, and they will
switch retail formats and price hunt both in-store and online.
chIna: Strong saving ethics shield consumers better than most to
rising food prices, but consumers shift from convenience, specialty and
kiosk retailers in favor of supermarkets and mass retailers and online
retailers during inflationary times.
IndIa: The growth of modern trade will provide more private-label
opportunities, but food inflation may put a damper on this development,
as Indians are less likely to shop the very large merchandiser and
grocery outlets that could support private-label development.
MIddle eaSt/aFrIca: Money is tight and true value,
differentiation and benefits are necessary as tradeoffs for non-essential
purchases are made in favor of at-home meals. Channel switching from
convenient one-stop shopping hyper and supermarkets to low-price
outlets and local/fresh markets is evident so messaging that focuses on
price and value is important.
latIn aMerIca: Trading down behavior is evident during times
of inflation, and consumers will increase purchasing of basic categories
like cereal, fruit, vegetables and dairy. Consumers will stretch dollars by
shopping more in discount, clearance and outlet stores.
north aMerIca: Consumers have less discretionary income
and savings and will switch to private-label brands, look for deals,
and stock up on essentials. Consumers are willing to compromise
recreational activities, snacking and buying new clothes.
develoPIng countrIeS are More exPerIMental onlIne
IF FOOD prICeS InCreaSe, whaT aCTIOnS wIll yOu InCreaSe?
33%32%
23%30%
14%25%
lOOk FOr DealS OnlIne
uSe SOCIal MeDIa TO FInD SpeCIalS
ShOp MOre OnlIne
Developed Countries
Developing Countries
Source: Nielsen Global Survey of
Inflation Impact, Q1 2013
17the MIddle claSS | State oF MInd or Share oF Wallet? copyright © 2013 the nielsen company
a c l o S e r l o o k at:brazIlruSSIaIndIachInaunIted StateSJaPan
SoMe helPFul deFInItIonS
Percent lIvIng coMFortably: Able to buy some things just because I liked them
Modern trade: Larger retail stores, such as supermarkets and hypermarkets
tradItIonal trade: Roadside vendors, farmers markets, food stalls
outlet StoreS: Products sold direct from wholesalers or manufacturer stores
de-StockIng/clearance StoreS: Stores selling closeout items, near expiration date items
SuPerMarketS: Large self-service stores that sell mainly food and household goods
gerManyIndoneSIaMexIcoPolandcanadaunIted arab eMIrateS
Nielsen Global Survey of Inflation Impact, Q1 2013
Nielsen Global Survey of Consumer Confidence, Q2 2013
*CIA World Factbook, 2013
18 THE MiddlE Class | sTaTE of Mind or sHarE of WallET?
31%
18copyright © 2013 the nielsen company
briC
braZil
bEsT-bET CaTEgoriEs:
• Fresh or frozen fruits
and vegetables
• Loose, unpackaged,
unbranded cereals
• Fish and seafood
• Organic products
bEsT-bET rETailErs:
• Discount/Dollar Stores
• De-Stocking/Clearance Stores
• Outlet Stores
• Grow Your Own Food
Top aCTions TakEn:
• Purchase only sale price items
• Stock up on regular use items
when they are on sale
• Look for deals online
44%55%
TOTal pOpulaTIOn
201,009,622
MeDIan aGe
30.3
6% Increasing
Trips
5%Increasing
Dollars Per Trip
ShOppInG DurInG InFlaTIOnary TIMeS
GrOSS DOMeSTIC prODuCT
$2.396 trIllIon
COnSuMerCOnFIDenCeInDeX -Q2 2013
perCenT lIVInGCOMFOrTaBly
110
inFl
aTio
na
ry
TiM
Es
*
*
FaST MOVInG COnSuMer GOODS lanDSCape
% SaleS
MODERN TRADE
TRADITIONAL TRADE
*
19THE MiddlE Class | sTaTE of Mind or sHarE of WallET? Copyright © 2013 The nielsen Company
briC
ruSSia
52%
bEsT-bET CaTEgoriEs:
• Loose, unpackaged,
unbranded cereals
• Canned fruits and
vegetables
• Dairy
• Organic products
bEsT-bET rETailErs:
• Discount/Dollar Stores
• Outlet Stores
• Fresh Food/Farmers Markets
Top aCTions TakEn:
• Stock up on regular use items
when they are on sale
• Purchase only sale price items
• Purchase larger pack sizes
60%40%
TOTal pOpulaTIOn
142,500,482
MeDIan aGe
38.8
4% Increasing
Trips
18%Increasing
Dollars Per Trip
ShOppInG DurInG InFlaTIOnary TIMeS
GrOSS DOMeSTIC prODuCT
$2.022 trIllIon
COnSuMerCOnFIDenCeInDeX -Q2 2013
perCenT lIVInGCOMFOrTaBly
80
inFl
aTio
na
ry
TiM
Es
*
*
FaST MOVInG COnSuMer GOODS lanDSCape
% SaleS
MODERN TRADE
TRADITIONAL TRADE
*
20 THE MiddlE Class | sTaTE of Mind or sHarE of WallET?
briC
india
44%
bEsT-bET CaTEgoriEs:
• Loose, unpackaged,
unbranded cereals
• Organic products
• Fresh or frozen fruits and
vegetables
• Dairy
bEsT-bET rETailErs:
• Discount/Dollar Stores
• Neighborhood Stores
• Fresh Food/Farmers Markets
Top aCTions TakEn:
• Stock up on regular use items
when they are on sale
• Look for deals online
• Purchase larger pack sizes
5%
95%
TOTal pOpulaTIOn
1,220,800,359
MeDIan aGe
26.7
18% Increasing
Trips
14%Increasing
Dollars Per Trip
ShOppInG DurInG InFlaTIOnary TIMeS
GrOSS DOMeSTIC prODuCT
$1.825 trIllIon
COnSuMerCOnFIDenCeInDeX -Q2 2013
perCenT lIVInGCOMFOrTaBly
118
inFl
aTio
na
ry
TiM
Es
*
*
FaST MOVInG COnSuMer GOODS lanDSCape
% SaleS
MODERN TRADE
TRADITIONAL TRADE
*
21THE MiddlE Class | sTaTE of Mind or sHarE of WallET? Copyright © 2013 The nielsen Company
briC
china
56%
bEsT-bET CaTEgoriEs:
• Loose, unpackaged,
unbranded cereals
• Fresh or frozen fruits and
vegetables
• Convenience foods
(precut fruit, frozen
entrees)
bEsT-bET rETailErs:
• Hypermarkets/Mass
Merchandisers
• De-Stocking/Clearance Stores
• Supermarkets
Top aCTions TakEn:
• Shop more online
• Use social media to find specials
• Look for deals online
62%
38%
TOTal pOpulaTIOn
1,349,585,838
MeDIan aGe
36.8
13% Increasing
Trips
13%Increasing
Dollars Per Trip
ShOppInG DurInG InFlaTIOnary TIMeS
GrOSS DOMeSTIC prODuCT
$8.227 trIllIon
COnSuMerCOnFIDenCeInDeX -Q2 2013
perCenT lIVInGCOMFOrTaBly
110
inFl
aTio
na
ry
TiM
Es
*
*
FaST MOVInG COnSuMer GOODS lanDSCape
% SaleS
MODERN TRADE
TRADITIONAL TRADE
*
22 THE MiddlE Class | sTaTE of Mind or sHarE of WallET?
99%
1%
THE big THrEE
the united StateS
39%
bEsT-bET CaTEgoriEs:
• Loose, unpackaged,
unbranded cereals
• Canned fruits and
vegetables
• Fresh or frozen fruits and
vegetables
bEsT-bET rETailErs:
• Discount/Dollar Stores
• De-Stocking/Clearance Stores
• Warehouse Club Stores
• Grow Your Own Food
Top aCTions TakEn:
• Stock up on regular use items
when they are on sale
• Purchase only sale price items
• Look for deals online
FaST MOVInG COnSuMer GOODS lanDSCape
% SaleS
MODERN TRADE
TRADITIONAL TRADE
TOTal pOpulaTIOn
316,668,567
MeDIan aGe
37.2
4% Increasing
Trips
9%Increasing
Dollars Per Trip
ShOppInG DurInG InFlaTIOnary TIMeS
GrOSS DOMeSTIC prODuCT
$15.68 trIllIon
COnSuMerCOnFIDenCeInDeX -Q2 2013
perCenT lIVInGCOMFOrTaBly
96
inFl
aTio
na
ry
TiM
Es
*
*
*
23THE MiddlE Class | sTaTE of Mind or sHarE of WallET? Copyright © 2013 The nielsen Company
THE big THrEE
JaPan
29%
bEsT-bET CaTEgoriEs:
• Loose, unpackaged,
unbranded cereals
• Convenience foods (precut
fruit, frozen entrees)
• Fresh or frozen fruits and
vegetables
• Canned fruits and vegetables
bEsT-bET rETailErs:
• Discount/Dollar Stores
• De-Stocking/Clearance Stores
• Supermarkets
Top aCTions TakEn:
• Purchase only sale price items
• Stock up on regular use items
when they are on sale
• Purchase products closer to
expiration date or best
purchased before date
TOTal pOpulaTIOn
127,253,075
MeDIan aGe
45.8
4% Increasing
Trips
5%Increasing
Dollars Per Trip
ShOppInG DurInG InFlaTIOnary TIMeS
GrOSS DOMeSTIC prODuCT
$5.964 trIllIon
COnSuMerCOnFIDenCeInDeX -Q2 2013
perCenT lIVInGCOMFOrTaBly
78
inFl
aTio
na
ry
TiM
Es
*
*
*
24 THE MiddlE Class | sTaTE of Mind or sHarE of WallET?
80%
20%
THE big THrEE
gerMany
26%
bEsT-bET CaTEgoriEs:
• Loose, unpackaged,
unbranded cereals
• Packaged foods (coffee,
pasta, etc.)
bEsT-bET rETailErs:
• Discount/Dollar Stores
• Supermarkets
• De-Stocking/Clearance Stores
• Grow Your Own Food
Top aCTions TakEn:
• Purchase only sale price items
• Stock up on regular use items
when they are on sale
• Purchase products closer to
expiration date or best purchased
before date
TOTal pOpulaTIOn
81,147,265
MeDIan aGe
45.7
2% Increasing
Trips
9%Increasing
Dollars Per Trip
ShOppInG DurInG InFlaTIOnary TIMeS
GrOSS DOMeSTIC prODuCT
$3.401 trIllIon
COnSuMerCOnFIDenCeInDeX -Q2 2013
perCenT lIVInGCOMFOrTaBly
90
inFl
aTio
na
ry
TiM
Es
*
*
FaST MOVInG COnSuMer GOODS lanDSCape
% SaleS
MODERN TRADE
TRADITIONAL TRADE
*
25THE MiddlE Class | sTaTE of Mind or sHarE of WallET? Copyright © 2013 The nielsen Company
15%
85%
asia-paCiFiC spoTligHT
indoneSia
31%
bEsT-bET CaTEgoriEs:
• Fresh or frozen fruits and
vegetables
• Fish and seafood
• Organic products
• Loose, unpackaged,
unbranded cereals
bEsT-bET rETailErs:
• Discount/Dollar Stores
• De-Stocking/Clearance Stores
• Warehouse Club Stores
• Fresh Food/Farmers Markets
Top aCTions TakEn:
• Purchase only sale price items
• Stock up on regular use items
when they are on sale
• Look for deals online
TOTal pOpulaTIOn
251,160,124
MeDIan aGe
28.9
7% Increasing
Trips
6%Increasing
Dollars Per Trip
ShOppInG DurInG InFlaTIOnary TIMeS
GrOSS DOMeSTIC prODuCT
$878.2 bIllIon
COnSuMerCOnFIDenCeInDeX -Q2 2013
perCenT lIVInGCOMFOrTaBly
124
inFl
aTio
na
ry
TiM
Es
*
*
FaST MOVInG COnSuMer GOODS lanDSCape
% SaleS
MODERN TRADE
TRADITIONAL TRADE
*
26 THE MiddlE Class | sTaTE of Mind or sHarE of WallET?
66%
34%
laTin aMEriCa spoTligHT
MeXico
43%
bEsT-bET CaTEgoriEs:
• Loose, unpackaged,
unbranded cereals
• Fresh or frozen fruits and
vegetables
• Canned fruits and
vegetables
bEsT-bET rETailErs:
• De-Stocking/Clearance Stores
• Outlet Stores
• Fresh Food/Farmers Markets
Top aCTions TakEn:
• Purchase only sale price items
• Stock up on regular use items
when they are on sale
• Purchase larger pack sizes
TOTal pOpulaTIOn
116,220,947
MeDIan aGe
27.7
9% Increasing
Trips
8%Increasing
Dollars Per Trip
ShOppInG DurInG InFlaTIOnary TIMeS
GrOSS DOMeSTIC prODuCT
$1.177 trIllIon
COnSuMerCOnFIDenCeInDeX -Q2 2013
perCenT lIVInGCOMFOrTaBly
84
inFl
aTio
na
ry
TiM
Es
*
*
FaST MOVInG COnSuMer GOODS lanDSCape
% SaleS
MODERN TRADE
TRADITIONAL TRADE
*
27THE MiddlE Class | sTaTE of Mind or sHarE of WallET? Copyright © 2013 The nielsen Company
EasTErn EuropE spoTligHT
Poland
21%
bEsT-bET CaTEgoriEs:
• Dairy
• Packaged foods (coffee,
pasta, etc.)
• Loose, unpackaged,
unbranded cereals
bEsT-bET rETailErs:
• De-Stocking/Clearance Stores
• Discount/Dollar Stores
• Hypermarkets/Mass
Merchandisers
Top aCTions TakEn:
• Stock up on regular use items
when they are on sale
• Purchase only sale price items
• Purchase larger pack sizes
53%
47%
TOTal pOpulaTIOn
38,383,809
MeDIan aGe
39.1
2% Increasing
Trips
3%Increasing
Dollars Per Trip
ShOppInG DurInG InFlaTIOnary TIMeS
GrOSS DOMeSTIC prODuCT
$487.7 bIllIon
COnSuMerCOnFIDenCeInDeX -Q2 2013
perCenT lIVInGCOMFOrTaBly 63
inFl
aTio
na
ry
TiM
Es
*
*
FaST MOVInG COnSuMer GOODS lanDSCape
% SaleS
MODERN TRADE
TRADITIONAL TRADE
*
28 THE MiddlE Class | sTaTE of Mind or sHarE of WallET?
99%
1%
norTH aMEriCan spoTligHT
canada
51%
bEsT-bET CaTEgoriEs:
• Loose, unpackaged,
unbranded cereals
• Fresh or frozen fruits and
vegetables
• Canned fruits and
vegetables
bEsT-bET rETailErs:
• Discount/Dollar Stores
• De-Stocking/Clearance Stores
• Warehouse Club Stores
Top aCTions TakEn:
• Stock up on regular use items
when they are on sale
• Purchase only sale price items
• Look for deals online
TOTal pOpulaTIOn
34,568,211
MeDIan aGe
41.5
3% Increasing
Trips
9%Increasing
Dollars Per Trip
ShOppInG DurInG InFlaTIOnary TIMeS
GrOSS DOMeSTIC prODuCT
$1.819 trIllIon
COnSuMerCOnFIDenCeInDeX -Q2 2013
perCenT lIVInGCOMFOrTaBly
98
inFl
aTio
na
ry
TiM
Es
*
*
FaST MOVInG COnSuMer GOODS lanDSCape
% SaleS
MODERN TRADE
TRADITIONAL TRADE
*
29THE MiddlE Class | sTaTE of Mind or sHarE of WallET? Copyright © 2013 The nielsen Company
MiddlE EasTErn spoTligHT
united arab eMirateS
43%
bEsT-bET CaTEgoriEs:
• Fresh or frozen fruits and
vegetables
• Canned fruits and
vegetables
• Loose, unpackaged,
unbranded cereals
bEsT-bET rETailErs:
• Discount/Dollar Stores
• De-Stocking/Clearance Stores
• Hypermarkets/Mass
Merchandisers
Top aCTions TakEn:
• Stock up on regular use items
when they are on sale
• Purchase only sale price items
• Purchase larger pack sizes
72%
27%
TOTal pOpulaTIOn
5,473,972
MeDIan aGe
30.3
8% Increasing
Trips
14%Increasing
Dollars Per Trip
ShOppInG DurInG InFlaTIOnary TIMeS
GrOSS DOMeSTIC prODuCT
$358.9 bIllIon
COnSuMerCOnFIDenCeInDeX -Q2 2013
perCenT lIVInGCOMFOrTaBly
107
inFl
aTio
na
ry
TiM
Es
*
*
FaST MOVInG COnSuMer GOODS lanDSCape
% SaleS
MODERN TRADE
TRADITIONAL TRADE
*
30 THE MiddlE Class | sTaTE of Mind or sHarE of WallET?
Argentina 66%
Australia 89%
Austria 80%
Belgium 81%
Brazil 46%
Bulgaria 51%
Canada 83%
Chile 59%
China 40%
Colombia 60%
Croatia 71%
Czech Republic 73%
Denmark 90%
Egypt 36%
Estonia 78%
Finland 89%
France 80%
Germany 83%
Greece 53%
Hong Kong 75%
Hungary 65%
India 11%
Indonesia 22%
Ireland 77%
Israel 70%
Italy 58%
Japan 80%
Latvia 72%
Lithuania 65%
Malaysia 61%
Mexico 37%
Netherlands 93%
New Zealand 88%
Norway 97%
Pakistan 15%
Peru 37%
Philippines 32%
Poland 65%
Portugal 55%
Romania 44%
Russia 48%
Saudi Arabia 49%
Singapore 75%
Slovakia 79%
South Africa 17%
South Korea 83%
Spain 67%
Sweden 93%
Switzerland 82%
Taiwan 75%
Thailand 30%
Turkey 46%
United Arab
Emirates 71%
United Kingdom 84%
Ukraine 34%
United States 78%
Venezuela 41%
Vietnam 34%
about the nIelSen global Survey
The Nielsen Global Survey of Inflation Impact was conducted between
February 18 and March 8, 2013, and polled more than 29,000 consumers
in 58 countries throughout Asia-Pacific, Europe, Latin America, the
Middle East, Africa and North America. The sample has quotas based
on age and sex for each country based on their Internet users, and
is weighted to be representative of Internet consumers and has a
maximum margin of error of ±0.6%. This Nielsen survey is based on the
behavior of respondents with online access only. Internet penetration
rates vary by country. Nielsen uses a minimum reporting standard of
60 percent Internet penetration or 10M online population for survey
inclusion. The Nielsen Global Survey, which includes the Global
Consumer Confidence Survey, was established in 2005.
Internet PenetratIon
Source: Internet World Stats, June 30, 2012
31THE MiddlE Class | sTaTE of Mind or sHarE of WallET? Copyright © 2013 The nielsen Company
about nIelSen Nielsen Holdings N.V. (NYSE: NLSN) is a global information and
measurement company with leading market positions in marketing
and consumer information, television and other media measurement,
online intelligence and mobile measurement. Nielsen has a presence in
approximately 100 countries, with headquarters in New York, USA and
Diemen, the Netherlands.
For more information, visit www.nielsen.com.
Copyright © October 2013 The Nielsen Company. All rights reserved.
Nielsen and the Nielsen logo are trademarks or registered trademarks
of CZT/ACN Trademarks, L.L.C. Other product and service names are
trademarks or registered trademarks of their respective companies.
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32 THE MiddlE Class | sTaTE of Mind or sHarE of WallET?