ethnic opportunity – if only i knew…

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May 2013 ETHNIC OPPORTUNITY IF ONLY I KNEW… CANADIAN GROCER CONFERENCE

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Ethnic opportunity – If only I knew…. Canadian Grocer Conference. May 2013. Something’s in the air…. or. “If only I knew…”. “I found out…”. 3) Global Insights. 1) What’s happening?. 2) How ethnic shops. 4) Homescan Panel (Canada). 3) Global Insights. 1) What’s happening?. - PowerPoint PPT Presentation

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Page 1: Ethnic opportunity – If only I knew…

May 2013

ETHNIC OPPORTUNITY – IF ONLY I KNEW…

CANADIAN GROCER CONFERENCE

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SOMETHING’S IN THE AIR…

or

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“I FOUND OUT…”

1) What’s happening?

4) Homescan Panel (Canada)

“IF ONLY I KNEW…”

2) How ethnic shops

3) Global Insights

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1) What’s happening?

2) How ethnic shops

4) Homescan Panel (Canada)

3) Global Insights

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VISIBLE MINORITIES WILL DOUBLE WHILE CAUCASIANS WILL ONLY GROW 10%

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Source: Statistics Canada 2010 Medium Growth (Reference scenario), 2011 Immigration & Ethno-cultural Diversity in Canada

VM6.3 Mil

Caucasians26.5 Mil

2011 VM12.8 Mil

Caucasians29.2 Mil

More than

Double!

10% Growth

2031

What’s happening?

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RECENT IMMIGRANTS MOSTLY FROM ASIA2

Source: Statistics Canada 2011 Immigration & Ethno-cultural Diversity in Canada

What’s happening?

13%

10%

10%

4%3%

3%3%2%2%

2%

All Others47%

PhilippinesChinaIndiaUnited StatesPakistanUnited KingdomIranSouth KoreaColombiaMexico

Top 10 Countries

New Immigrants (2006 to 2011)

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0%

50%

100%

150%

200%

250%

300%

- 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000

South Asian3.6M

Chinese2.7M

Black1.8M

Arab930K

Population (2006)

= Forecasted size in 2031

Filipino1.0M

Latam733K

~Gro

wth

Rat

e by

203

1

SE Asian449K

West Asian523K

Korean 407K

Other489K

Japanese142K

GROWTH RATES ARE STAGGERING…

The Big 37.3 M

Source: Statistics Canada, 2010

3

What’s happening?

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NEW IMMIGRANTS LIKE TO RESIDE IN FOUR PROVINCES4

43%

5%2%12%16% 19%

% of new immigrants (2006-2011) settling into each province

What’s happening?

1%

1%

Source: Statistics Canada 2011 Immigration & Ethno-cultural Diversity in Canada

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VM WILL BRING AN ADDITIONAL $5 BIL TO CDN MANUFACTURERS BY 2017

Source: Statistics Canada, 2010; Homescan data, 2012

2013 2014 2015 2016 20176.2

6.6

7.0

6.3M

7.1MVisible Minorities in Canada

Year

Cana

dian

s (M

illio

ns)

19% of Cdn Pop

21% of Cdn Pop

$29.5B $34.2B

~800k increase

$4.7B incremental

What’s happening?

5

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1) What’s happening?

2) How ethnic shops

4) Homescan Panel (Canada)

3) Global Insights

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2X as likely to buy food for today’s

meal

5X as likely to do

quick trips

Shoppers in Asia are … How ethnic shops

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ASIAN CONSUMERS COMPARTMENTALIZE THEIR PURCHASES

How ethnic shops

1) Ethnic Store

2) Traditional Banner

90%Of

Chinese Cdns

Source: PanelViews Omnibus October 2012 Base: n=6201

80%Of S.Asian

Cdns

Manufacturers: Listing decisions – Presence in ethnic bannersRetailers: Capture more $ into your banner

“How many stores do you typically visit to find all/most of the items on your shopping list on a routine planned shopping trip?”

Asian Shopping

2 or more stores

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ASIAN CONSUMERS VIEW GROCERY SHOPPING AS FUN, FAMILY TIME

How ethnic shops

More likely to have entire

family (3 generations)

on shopping expeditions

56%Asian shoppers actively seek a demo in-store before buying

Treat as weekend Excursion

Multiple decision makers | Fun, interactive store environment | Sampling Organics

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ASIAN COUNTRIES HAVE GREATER BELIEF THAT ORGANIC FOODS EQUALS INCREASED SAFETY IN FOOD

Canada China India Phillipines0%

50%

100%

29%

53%

70%

81%

Organics are Safer

Source: Nielsen Global Online Survey Q1 2011

How ethnic shops

Organic strategy

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1) What’s happening?

2) How ethnic shops

4) Homescan Panel (Canada)

3) Global Insights

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LEVERAGING OUR GLOBAL NETWORK, WE GAINED A BETTER UNDERSTANDING OF HIGH GROWTH CATEGORIES

Global Insights

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TOP 50 HIGHEST GROWTH CATEGORIES

Global Insights

Canada China India* Philippines0%

20%

40%

60%

80%

100%

6% 20% 15%12%

50%

14%15%

38%

18%

22% 12%

16%

10%

28% 42%24%

10%

BabyBeautyCandyDrinkFoodHealthHouseholdPetOther

* India - Top 26 categoriesSource: Nielsen Canada, China, India, Philippines

China

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Global Insights

CHINA’S HIGHEST GROWTH CATEGORIES

China Growth (%)

Functional Drink 40%

Asia Traditional Drink 32%

Beauty ProductsChina Growth (%)

Toner 42%Facial Mask 40%Skin Moisturizer 27%Facial Cleanser 26%

ConfectioneryChina Growth (%)

Loose Pack Confectionery 26%

Confectionary chocolate 24%

Full brand confectionery candy 22%

Beverages

IndiaSource: Nielsen China

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Global Insights

INDIA’S HIGHEST GROWTH CATEGORIES

HABAIndia Growth (%)

Hair oils 23%

Skin creams 22%

Hair dyes 21%Toilet soaps 21%Sanitary napkins 20%

Food ProductsIndia Growth

(%)Milk foods 27%

Salty snacks 27%

Palm olein refined oil 20%

Beverages 20%

PhilippinesSource: Nielsen India

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Global Insights

PHILIPPINES’ HIGHEST GROWTH CATEGORIES

CoffeePhilippines Growth (%)

Instant Coffee Mix 50%Roasted Coffee 34%RTD- Coffee 14%

Milk ProductsPhilippines Growth (%)

Yogurt 21%Cultured Milk 16%

Philippines Growth (%)

Liquid Soap 17%

Hair Treatment 15%

HABA

Source: Nielsen Philippines

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1) What’s happening?

2) How ethnic shops

4) Homescan Panel (Canada)

3) Global Insights

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WE KNOW WHAT CHINESE AND SOUTH ASIAN CANADIANS ARE PURCHASING…

Homescan Panel

• What did you buy?

• Was it on sale?

• Where did you buy it?

Chinese Over-index

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CHINESE OVER INDEX ON DRIED GRAINS, REFRIGERATED DRINKS, NOODLES, & BEAUTY PRODUCTS

Homescan Panel

Source: Nielsen Ethnic Action Package (Syndicated)

2X

Manufacturers: Product innovation / expansion?Retailers: What are you stocking in your stores?

• Vegetables / Grains Dried

• Pasta/Noodles/ Instant light lunches

• Refrigerated Drinks1.5X• Face care

• Skin care preparation

• Interdental products1.5X

($/buyer index)

Deals

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Overall0%

20%

40%

60%

25% 28%

19% 18%

36%

55%

36%33%

% of expenditure on deal (By category)General Pop Chinese

Categories

% o

f Exp

endi

ture

pu

rcha

sed

on d

eal

A HIGHER % OF CHINESE SPEND ARE ON DEALS – 36% COMPARED TO 25% FOR GEN POP

Homescan Panel

Source: Nielsen Homescan Data (Jan - Dec 2012)

Deal sensitivity to your category?

Blades / Razors

Dry Bread(breadsticks, crispbread,

croutons, etc.)

Gum

Where?

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CHINESE LOVE ETHNIC GROCERS & WAREHOUSE CLUBS

Homescan Panel

Source: Nielsen Ethnic Action Package (Syndicated)

2XMore likely to shop at

3X More likely to shop at ‘Remaining Grocery’

Manufacturers: Where are your products listed? Retailers: Where are your customers shopping? S Asians

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SOUTH ASIANS OVER INDEX ON PREPARED FOODS, GRAINS, & MILK PRODUCTS

Homescan Panel

Source: Nielsen Ethnic Action Package (Syndicated)

2.5X

Manufacturers: Product innovation / expansion?Retailers: What are you stocking in your stores?

• All Other Prepared Foods (e.g. specialty eastern food, pancake, batter mixes)

• Vegetables / Grains Dried1.9X• Cooking Oils & Spray• Milk• Yogurt1.5X

($/buyer index)

Where

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SOUTH ASIANS LOVE DISCOUNT BANNERS AND DRUG STORES

Homescan Panel

Source: Nielsen Ethnic Action Package (Syndicated)

3X More likely to shop at

2X More likely to shop at

Manufacturers: Where are your products listed? Retailers: Where are your customers shopping?

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5 KEY THINGS TO THINK ABOUT…

Page 29: Ethnic opportunity – If only I knew…

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VISIBLE MINORITIES ARE CHANGING THE CANADIAN LANDSCAPE…

Source: Statistic Canada, 2010

1921 1931 1941 1951 1961 1971 1981 1991 1996 2001 2006 2011 2017 20310

5

10

15

20

25

30

35

% o

f Pop

ulati

on th

at is

a V

isibl

e M

inor

ity

1 in 20

1 in 6

1 in 3

1

5 Key Things

Led by S. Asians & Chinese$5 B/yr

Opportunity by 2017

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THE WAY THEY SHOP IS DIFFERENT FROM MAINSTREAM CONSUMERS… 2

5 Key Things

1) Ethnic Store

2) Traditional Banner

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INTERNATIONAL TRENDS CAN GIVE US AN INDICATION ABOUT AREAS OF GROWTH3

5 Key Things

BeautyConfectioneryBeverages

HABAMilk foodsSalty snacks

CoffeeHABAMilk Products

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UNDERSTANDING CHINESE & SOUTH ASIAN CANADIANS IS AN ONGOING PROCESS4

5 Key Things

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THE OPPORTUNITY IS IN YOUR HANDS… DEVELOP AN ETHNIC STRATEGY NOW!5

5 Key Things

TRACK – Do you track performance on ethnic initiatives?

KNOW - Do you know this consumer?

TEST – Have you piloted a new initiative?

WANT – Is your company aligned?

SIZE - Have you quantified the opportunity?

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ONLY THE TIP OF THE ICEBERG!

Bernice CheungEthnic Practice Area Lead(905) 943-8593 | (416) [email protected]

Thank you!