TAPPING INTO THE
UNCOMMON INSIGHTS
OF CONSUMER’S
MIND
Yongyut Ongwattanapat
July 2013
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
AGENDA
1) Retail & Trade Sector Development
2) Understanding consumer trends
3) Smartphones & Me
4) Key takeaways
2
RETAIL & TRADE SECTOR
DEVELOPMENT
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
REGIONAL SUMMARY – Q1 2013
Fast Moving Consumer Goods market dynamics
4
CVS SHOW FASTEST GROWTH
CVS is the fastest growing trade sector whereas both super/hypermarket and traditional trade lose
share.
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
FMCG Value Share of Trade (Thailand)
FMCG Value % Growth YA
Source: Retail Index!
5
EXPANSION OF MEDIUM AND SMALL
FORMATS
Retail channels continue to rapidly expand, with Convenience stores leading
the way
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Hypermarket
+18%! +7%! +5%! +4%!
Source: Nielsen Census
+7%! 1%!
Supermarket &
Personal Care
+14%! +3%! +6%! +13%! +14%! 2%!
Convenience Store
+7%! +5%! +11%! +12%! +15%! 2%!
6
CONVENIENCE STORES EXPAND
CONTINUOUSLY
Convenience stores continue their rapid expansion, notably Tesco Lotus
Express and 7-Eleven
Q1’13 vs. Q4’12
Number of Stores
1600
6829
1400
5763
5256
1071
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
400
+5%
755
568
400
11 12
Q4'08
Jiffy
Mini Big C
7-Eleven
Source: Nielsen Retail Index
+7%
5500
4500
562
503
473
200
0
1142
4710
800
600
6500
6287
1200
1000
6995
7500
+2%
11 20
Q4'09
616
615
673
644
784
580
826
562
559
3500
-3%
2500
1500
+31%
55
111
15
51
Q4'10
Q4'11
Tesco Lotus Express
Familymart
128
127
Q4'12
159
130
500
+25%
-500
Q1'13
Tops Daily
108Shop
7
SUPERMARKET ALSO SHOWED FAST
EXPANSION
Tesco Lotus Talad became leader in number of store
YTD May’13 vs. Q4’12
Number of Stores
+6%
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
+0%
+0%
+17%
-8%
Source: Nielsen Retail Index
8
RAPID EXPANSION FOUND IN UPCOUNTRY
Especially from Tesco Lotus
CVS (GBKK)
3500
705
605
505
405
305
2218
336
309
2432
325
314
2589
347
332
2759
2939
3000
367
345
105
11
8
16
11
35
15
58
48
99
69
500
Mini
600
500
300
Big C
0Tops
200
100
Daily
0
2824
3995
738
248
232
91
4
7-11
4000
3500
Tesco
Express
3000
2500
388
Q4'08
Supermarket (GBKK)
669
4500
2492
400
Q4'08 Q4'09 Q4'10 Q4'11 Q4'12 Q1'13
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
3528
3174
700
1000
113
69
3890
800
Tesco Express
404 2000
404 FamilyMart
1500
205
5
900
7-11
3000
2500
402
388
CVS (UPC)
1000
148
284
396
422
1500
328
1000
212
4
20
53
3
Q4'09
Q4'10
Q4'11
2000
FamilyMart
59
28
Q4'12
61
46
Tops
500
Daily
0 Mini Big C
Q1'13
Supermarket (UPC)
Tops excl. Daily
Tesco Talad
Max Valu
Tesco Talad
Big C Market
Source: Nielsen Retail Index
Tops excl. Daily
Big C Market
9
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
RETAIL TREND TO KEEP AN EYE ON
Grocery Online
Gas Station stores
Promotion scheme
Innovative method to
shop Grocery Online
New store format
inside Gas Station to
satisfy consumer
convenience lifestyle
Retailers applied
innovative promotion
scheme
10
GROCERY ONLINE – WEBSITE
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Convenient channel to shop grocery online. Yet, there is still challenge in converting
shopper into online shopping
3%
SH Shopper visit
retailer website*
Source:* Shopper Trend 2013
10%
Of those visit
website buy
grocery online*
11
New
GROCERY ONLINE - MOBILE
With popularity of Smartphone, Shopping through mobile phone is another
opportunity for retailers to grasp
Smartphone usage
per day
280 MINS
MINS
TTI
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
MINS
150 MINS
APPLICATION
216 MINS
• Source: India, Indonesia, Thailand Smartphone ODM Panel
SMARTPHONE FRIENDLY WEB PAGE
12
STORE DEVELOPMENT - GAS STATION
FOCUS
New store format inside Gas Station to satisfy consumer convenience lifestyle
Tops Daily
Mini Big C
Gas Station Store
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Visit Frequency
Jiffy Super Fresh Market
Source: Shopper Trend 2013
13
PROMOTION SCHEME
Ease of participation
Instant Win
One prize fit all
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Amplify thru Social
Media
Every 100 Baht Purchase at Tesco
Lotus Express, shoppers can SMS
receipt number to get a chance to win
- 50 Cash Voucher (Daily)
- 1 Million Baht Gold (Weekly)
14
CASE STUDY – RTD TEA MARKET
Integrated promotion together with social media drive consumption of RTD Tea
market
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Ease of participation
Send Cap Code
Instant Win
Announce price daily/hourly
One prize fit all
1 million Baht worth Gold
Amplify thru Social Media
5.1 Like*
million+
1.5
Like**
million+
* Ichitan + Tan Passakornnatee (As of May 2013) , ** Oishi News Station + Oishi Drink Station (As of May 2013)
15
RECENT CAMPAIGNS WERE WELL
RESPONDED BY MASS
New high penetration from lower and middle income household whilst upper
income ones did not had as much reaction
%Cumulative Penetration
TH Urban, 104wks ending Mar13
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Japan Tour+
Summer
Gold
Car/Gold
Sweepstakes Sweepstakes
4 wks ending…!
Source: Nielsen Homescan!
16
CAMPAIGN TRIGGERS MASSIVE ONLINE
BUZZ
During RTD Tea promotion campaign, it can draw more search for the brands
Send SMS
Send SMS
(Free of Charge)
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
(Free of Charge)
Japan
Tour
Source: Google Trend
Gold/Car
Sweepstak
e
Gold
Sweepstak
e
17
A YEAR OF RETAIL MERGERS &
ACQUISITIONS
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Retail giants are on the move
108 Shop and
Lawson join forces
Central Retail Group
buys Family Mart
Saha enters into a joint
venture agreement with
Lawson
CRC Group adds
Family Mart to its
portfolio of retail
businesses
CPALL takes over
wholesaler giant
Makro
CPALL returns to
wholesale market with
Makro acquisition
18
BUILDING ON A
NEW RETAIL FOUNDATION
FIXED MODEL
• Brick & Mortar
• Set Pricing
• Supply Economy
• Boundaries
• Traditional Media
BUILDING ON A
NEW RETAIL FOUNDATION
FLEXIBLE MODEL
• Varied Distribution Points
• Negotiated Pricing
• Demand Economy
• Boundless
• Traditional & New Media
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
RETAIL SUCCESS IS NO LONGER
LINEAR…..
AUDIENCE
STORE
SALES
21
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
IT IS INTERCONNECTED
ONLINE
SHOPPING
INFLUENCERS
SOCIAL
MEDIA
STORE
ONLINE
SALES
APP
CROSSPLATFORM
E-COMMERCE
AUDIENCE
TABLET
MOBILE
22
UNDERSTANDING
CONSUMER TRENDS
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
BUSY LIFESTYLE :
DEMAND FOR MORE CONVENIENCE
• Eat-in retail store format
% of women in the adult labour force
Vietnam
48
France
47
UK
46
Thailand
46
China
45
42
Japan
Korea
• Rising trend of disposable
41
38
Indonesia
Malaysia
packaging e.g multi-purpose tissue,
36
cup water, etc.
25
India
0
10
20
30
40
50
60
• Retailer home delivery service
Source: IGD Research, UN Statistics Division
24
% of population 65+ years old
40
Adult diapers
35
Denture care
Adult Milk
30
% of population
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
AGEING POPULATION
25
20
15
10
5
0
2000 2005 2010 2015 2020 2025 2030 2035 2040
Year
China
Thailand
South Korea
Vietnam
Japan
Indonesia
Source: IGD Research
25
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
GROWING SINGLE PERSON HOUSEHOLDS
Single % of female population China
Around 1995
Around 2005
Single % of female population South
Korea
Around 1995
Latest
100
100
80
80
60
60
40
40
20
20
0
0
20-24
25-29
Source: IGD Research
30-34
35-39
20-24
25-29
Around 2005
30-34
Latest
35-39
• Delayed marriage especially with female employment
• Steady source of income w/o family responsibility hence more potential spend on discretionary items e.g. electronics
• More spending on health and medical services, beauty & personal care products
• Rise in demand for packaged and single-portion foods
26
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
RISE IN MIDDLE CLASS POPULATION
5.3 trillion US$ in new consumption
27
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
In the next 20 years these markets will see a rising middle
class wanting to upgrade. In some markets substantial
affluent groups will also emerge
Population Distribution By Income– Current and
Projected
Indonesia
Thailand
High
High
High
Middle
High
Income
Definitions
High
> 10 $ p
capita per
day
Middle
Middle
Middle
Low
Low
Low
Low
Middle
4$-<10$ p
capita per
day
Low
<4$ per
capita per
day
India
China
High
Middle
High
High
High
Middle
Middle
Middle
Low
Low
Low
Source: ADB Key indicators Report 2010, Nielsen Research, Economist
Low
28
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
…WHICH TRANSLATES INTO GROWTH IN
PREMIUM SEGMENT…
Growth in price
segments (SEA)
(2012)
29
SMARTPHONES & ME
FORMAT EVOLUTION
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
TO CORNER
STORES
BIG BOX
TO VIRTUAL
STORES
TO ONLINE
TO SMART
PHONES
31
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
SMARTPHONES LEAD THE WAY IN ASIA
32
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
CONSUMERS ARE BREAKING OLD HABITS
33
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
AND THE WAY THEY INTERACT WITH
SMARTPHONES
34
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
CONSUMERS IN SOUTH EAST ASIA USE
SMARTPHONES FOR CONNECTING AND
CHATTING
User control calls for targeted and relevant content
35
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
THAI CONSUMERS ARE HIGHLY ENGAGED
Higher engagement with online properties and apps creates a captive
audience
that can be targeted individually
*Male : 46 mins, Female : 80 mins
36
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
LINE DOMINATES
Monitor emerging Chat Apps.
Would creating own Chatapp or acquiring an emerging app the option?
37
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
KEY TAKEAWAYS
RETAIL TRENDS
• Growth observed through store expansion of CVS and Supermarkets
UPC
• Key retail trends driven mainly by online, G-stores and innovative
promotions (Ease of participation, Instant Winning, Social Media)
• M&A boosting up higher competition level
• Retail is no longer linear – need to build connectivity around
consumers
CONSUMER
• Companies need to adapt strategies based on changing consumer
trends:
Demand for convenience
Ageing population
Growing single person households
Rise in the Middle Class population  Premiumization
SMARTPHONES & ME
• World has become smaller and connected than ever before
• What can we do to leverage this trend?
38
THANK YOU
FOR YOUR TIME!
FOR MORE INFORMATION ON
HOW NIELSEN CAN HELP YOU
PLEASE CONTACT:
Yongyut Ongwattanapat
Director, Retail Measurement Services
 yongyut.ongwattanapat@nielsen.com
 +66 2674-6246!