copyright © 2011 the nielsen company. … rules of shopper...more indian consumers buying more in...
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The Changing Rules of Shopper Marketing Winning in India
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
The strategist’s shopping list
How far has the Indian shopper come?
How has she changed?
Where is she headed next?
0
2,000
4,000
6,000
8,000
10,000
12,000
60 38 6 9
136 162 209
849
514
304 295
0
100
200
300
400 500
600
700
800
900
1,000
Indonesia Philip pines
India China Malaysia Korea Taiwan Singapore HK Vietnam Thailand
FMCG retailing poised for rapid expansion
Number of grocery stores per million population Retail Store Density Analysis
Modern Trade Traditional Trade
Source: Nielsen, Asia Grocery Trends Study
22
37 36 34 34
63 74
11
38 43 46 53
64
86 94
5
Modern trade also set to surge
+50% +140% +1000% +130% +120% +140% +340% * *
10 year % change in Modern Trade store numbers
Share of Trade for Modern Trade Outlets
Source: Nielsen Retail Tracking
Philippines Thailand Malaysia China Korea Taiwan Indo Vietnam India
2009 2000
More Indian consumers buying more in modern trade
Modern Trade Growth Across SEC Spectrum Modern Trade Growth in Key Categories
FMCG Growth Rate: MAT June 2011 (versus YAG) MT Contribution to Total Sales
Traditional Trade
18%
Modern Trade
31% 34%
42% 43% 47% 54%
All Air Freshners
Liquid Toilet Soap
Packaged Rice
Breakfast Cereals
Floor Cleaners
Indian FMCG spend in modern trade to grow from $1.8B today to $5B in 2015
MT Contribution to Total FMCG Sales Metros >20% MT Contribution
17%
9% 6%
17 Metros Urban All India
22% 23% 25% 26% 27% 29%
40%
49%
Vizag Hyderabad Mumbai Coimbatore Vijayawada Kochi Bangalore Chennai
Source: Nielsen Retail Tracking
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
The strategist’s shopping list
How far has the Indian shopper come?
How has she changed?
Where is she headed next?
Large format growth leading Indian consumer to experiment and explore
Source: Nielsen Retail Measurement
Frequency of Visiting Hypermarkets
1.5 1.9 1.8 2.3
2.9 3.1
6.5 6.8
1.4 1.6 1.8 2.1 2.4 3.1
5.4 5.8
Singapore Indonesia Malaysia Thailand Korea India China Taiwan
2010 2008
Based on Urban Shoppers Only in Key Cities
Retail exploration and shopper infidelity
* Per Month, for FMCG Needs Source: 2011 Nielsen Shopper Trends
% Shoppers “Experimenting” % Shoppers Shopping > 2 Stores*
New store exploration 35%
31%
2011 2010
36%
20%
2011 2010
Indian consumer increasingly enticed by deals
% Shoppers “Promotions RARELY Change my Brand Choice” % Shoppers “Actively Seeking Promotions”
14
19
2011 2010
39
30
2011 2010
Source: 2011 Nielsen Shopper Trends
Greater awareness driving growth of private labels Reasons to Shop at Hyper / Super Markets Private Label Share in Modern Trade
16%
38%
21%
36%
Lower Price Better Discounts / Promos
Hyper markets Super markets
24.5%
13.6%
8.6% 6.8% 6.7% 3.6% 3.3% 1.7% 0.8%
Hong Kong
Australia NZ Singapore Taiwan Indonesia China India Thailand
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
The strategist’s shopping list
How far has the Indian shopper come?
How has she changed?
Where is she headed next?
Convenience, credit and relationships
% Shoppers Visiting in Last Month
84% 92% 97%
36%
Local Kirana / Grocer
Hyper / Super Market
Local Butcher / Fishmarket
Fresh Vegetable
Mkt
Despite Retail Exploration, Kirana to Remain Important
Source: 2011 Nielsen Shopper Trends
Highly Likely Quite Likely Neither Likely Nor Unlikely Quite Unlikely Highly Unlikely
Flexible retailing in future for digital consumers
Source: Nielsen Global Online Survey
7
7
10
10
10 10 28 33 19
Order online and use drivethru pick up 13 27 30 20
Order online and pick up inside the store 22 34 20 15
Use handheld store scanner to scan products as you shop 27 32 24 10
100
Order online and pick up curbside outside the store
Order online and delivered home 31 36 17 10
0 10 20 30 40 50 60 70 80 90 %
Consumer conversations will influence consumption
Source: NM Incite
9%
E Shops 67%
Deal Websites 24%
Travel Websites
Share of Voice
Indian consumers will nearly triple their FMCG spend in modern retail outlets from $1.8B today to $5B in 2015
Spending on Private Labels will increase from $100M to $500M by 2015
Shoppers will gravitate to specialty formats as part of their retail repertoire
The connected, social networking consumer will fuel ecommerce in varied, unpredictable forms
Shoppers will continue to patronize traditional outlets, but will use new formats to revisit their loyalty
Indian consumers will nearly triple their FMCG spend in modern retail outlets from $1.8B today to $5B in 2015
Spending on Private Labels will increase from $100M to $500M by 2015
Shoppers will gravitate to specialty formats as part of their retail repertoire
The connected, social networking consumer will fuel ecommerce in varied, unpredictable forms
Shoppers will continue to patronize traditional outlets, but will use new formats to revisit their loyalty
Tomorrow’s consumer unraveled