TURNING INDIA INSIDE OUT
Adrian Terron, Executive Director, Nielsen India, Nielsen Retail & Shopper Team
May 2013
ADDITIONAL $3 BILLION USD FMCG SALES BY 2015
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Driven by 2 segments
L.I.V.E.
F.T.M.T.S
LOW-INCOME VALUE
EXPLORER
FIRST-TIME MODERN
TRADE SHOPPER
2
L.I.V.E
LOW INCOME VALUE EXPLORER
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
INCOME
UP TO RS 72,000
SOCIAL CLASS
SEC E
SIZE
10M + URBAN HHs
L.I.V.E. CONSUMERS
Source: NSS 2009-2010 + Nielsen Estimates
4
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
ADDING +$1 BILLION USD FMCG SALES BY 2015
EVERY 6TH URBAN
HOUSEHOLD IS
“L.I.V.E”
SPEND $2.4B USD
ON FMCG
SPEND GROWS
50% TO $3.5B
USD
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MORE CONFIDENT THAN SINGAPOREANS!
Consumer Confidence Index
105
100
101
97
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
95
94
90
85
87
80
US
SINGAPORE
MIDDLE INDIA
L.I.V.E.
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Copyright ©2012 The Nielsen Company. Confidential and proprietary.
GROWING & EXPLORING
1 IN 2
SAW INCOME
INCREASE IN 2012
1 IN 4
EXPECT INCOME
TO RISE IN 2013
1 IN 2
SWITCHED FROM
UNBRANDED TO
BRANDED
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DREAMING & DARING
2 IN 3
COLOR TV & MOBILE
PHONES
1 IN 4
SEND KIDS TO
ENGLISH SCHOOL
1 IN 5
ASPIRE TO HAVE A
COOLER IN 2014
BELIEVE CHILDREN WILL HAVE BETTER FINANCIAL STABILITY
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SENSITIZED TO HEALTH… NOT SOLUTIONIZED
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CAN’T AFFORD TO GET SICK, STILL EXPLORING HOW TO STAY WELL
1 IN 2
NOT CONFIDENT
MANAGING FAMILY
MEDICAL EXPENSES
2 IN 3
NOT INSURED
AWARE OF IMPORTANCE OF SURROUNDINGS, WATER, SANITATION, & INFECTIOUS DISEASE
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YET TO FORM HABITS
+$1 BILLION FMCG SALES POTENTIAL INFLUENCED IN-STORE
20%
IMPULSE PUCHASES
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
43%
GROCERY
SHOPPING
REMINDED PURCHASES
PLANNED PURCHASES
37%
2 IN 5 SHOPPERS WILLING TO TRY NEW THINGS
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NOT MODERN TRADE SHY
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1 IN 2 HAVE VISITED
MODERN TRADE
SPENT CLOSE TO 5% OF HH
BUDGET AT MODERN TRADE
5% OF MODERN TRADE
SALES MADE BY LOW
INCOME SHOPPERS
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TACKLE INFLATION THROUGH VOLUME GAME
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Bulk Packs
Lower Price
Lesser Quantity
32%
58%
63%
12
AN UNCOMMON SENSE
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
PERCEPTION
REALITY
LOW CONSUMER CONFIDENCE
MORE CONFIDENT THAN MIDDLE INDIA
PLAN THEIR PURCHASES
INDULGE IN IMPULSE
MODERN TRADE SHY
$120 MM USD TRADE SPEND IN MT
13
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Placeholder for video on L.I.V.E.
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F.T.M.T.S
FIRST TIME MODERN TRADE SHOPPER
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ADDING ~$1 BILLION USD FMCG SALES BY 2015
EVERY 4TH
MODERN TRADE
SHOPPER IS
FTMTS
SPENDS $280M
USD AT MODERN
TRADE
SPEND @
MODERN TRADE
GROWS +300% TO
$1BN + USD
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SIZEABLE, INCLUSIVE & GROWING
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1 IN 3
FROM SEC C; MIDDLE
SEGMENT SHOPPERS
35% OF FAST MOVING
CONSUMER GOOD SPEND IS
AT MODERN TRADE
FIRS TTIME SHOPPER
SEGMENTGROWING BY 15%
EACH YEAR
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EVEN PLANNED PURCHASES SEE SUPERSIZING
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
+$100 MILLION FMCG SALES POTENTIAL INFLUENCED IN-STORE
60%
GROCERY
SHOPPING
40%
IMPULSE PUCHASES
PLANNED PURCHASES
2 IN 5 SHOPPERS BOUGHT MORE THAN PLANNED
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Copyright ©2012 The Nielsen Company. Confidential and proprietary.
EMPHASIZE PULL TO ENSURE SUSTAINABILITY
PULL
PUSH
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AN UNCOMMON SENSE
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
PERCEPTION
REALITY
F.T.M.T.S buys same brand as purchased
at Kirana
1 in 2 switch brands
Range is about more of more
Range has different meanings across
categories
Personal care category purchases are
planned
2 in 5 shoppers purchase on impulse
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Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Placeholder for video on F.T.M.T.S.
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KEY RECOMMENDATIONS
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
WINNING WITH L.I.V.E
1
BUILD A BOND NOW
Communicate brand benefits at point of sale to help L.I.V.E upgrade to
branded products
2
WELLNESS WORKS
Address L.I.V.E health needs to capitalize on their desire for well being
3
BIGGER CAN BE BETTER
Help L.I.V.E. tackle inflation through bulk packs
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Copyright ©2012 The Nielsen Company. Confidential and proprietary.
WINNING WITH F.T.M.T.S
1
ENLIGHTEN ME
Drive continuity through new products and
premium-ization without impacting ease of spotting
2
SUPERSIZE ME
Redefine ‘range’ for your category to facilitate either large packs or multipack purchases
3
INSPIRE ME
Give me reasons to be your brand ambassador
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