NEW W E A LT H, NEW WORLD HOW AND WHY WE SHOP AROUND THE GLOBE JULY 2013 Copyright © 2013 The Nielsen Company 1 2 NEW WEALTH, NEW WORLD CONTENTS Introduction / Survey Methodology........................................ 5 SECTION I: LIFEST YLE VALUES AND SHOPPING SENTIMENTS. . ....................................... 5 Core values align, women’s roles differ................................... 6 The changing wave of wealth................................................ 8 The allure of a good promotion........................................... 10 Knowledge is power.......................................................... 12 Can desire to protect the environment convert to action?............14 SECTION II: CATEGORY PURCHASE CRITERIA, LOYALT Y AND TOP SOURCES FOR INFORMATION ........... 16 Health & Beauty.............................................................. 17 Food & Beverage............................................................ 20 Mobile Phones and Personal Electronics................................23 Non-FMCG................................................................... 25 SECTION III: THE POWER OF THE IN-STORE EXPERIENCE .............................. 29 Copyright © 2013 The Nielsen Company 3 4 NEW WEALTH, NEW WORLD THE IMPACT OF CULTURE ON CONSUMER BEHAVIOR Appreciate the similarities, embrace the differences. With seven billion people living in the world, new findings from a Nielsen global survey revealed that when it comes to core fundamental lifestyle values centered on family, education or religious aspirations, we are more alike than we are different. However, what drives our shopping preferences can vary considerably depending on where we live. A one-size-fits-all approach doesn’t work; understanding the habits and diverse needs of consumers around the world is critical for success in today’s shrinking world. The Nielsen Global Survey of Consumer Shopping Behavior included more than 29,000 online respondents in 58 countries. The findings shine a light on how consumers shop and what drives category purchasing. They revealed, for example, that more respondents in Asia-Pacific shopped impulsively and were attracted to designer brands than in any other region. Latin Americans were intensely brand-loyal and well-informed shoppers. North American and European shoppers were largely driven by price and Middle East/Africa respondents were environmentally savvy and influenced by professionals. Economic realities and the growing disposable wealth of consumers in growth markets were clear factors in the results, which surveyed respondents with Internet access. In growth markets in particular, respondents were voracious consumers, often exceeding the global average when it came to early adoption, affinity for aspirational brands, researching and deal sensitivity. Conversely, respondents in the developed regions of the world were often most skeptical, driven by price and least likely to be influenced by others. Copyright © 2013 The Nielsen Company 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 about purchasing habits are based on claimed behavior, rather than actual metered data. 5 SECTION I CORE VALUES ALIGNED, WOMEN’S ROLES DIFFERED Spending quality time with families was most important among 80 percent of all respondents. More than three-quarters also agreed that family planning was essential (77%), women should have influence regarding important issues in the household (76%) and attaining a higher education was critical (78%). There was less global alignment, however, on the notion that a woman’s most important role was a housewife and/or mother, with respondents in Middle East/Africa (62%) and Asia-Pacific (53%) exceeding the global average of 43 percent. Fewer than one-third of North Americans (30%) and Europeans (31%) felt the same. Globally, more men (46%) than women (39%) believed the most important role for women is housewife or mother, but the majority of both genders agreed that women should have influence in matters pertaining to the household (women 82% vs. men 71%). Religion was an important guiding source for decision making among 71 percent of Middle East/Africa respondents, which far exceeded the global average of 32 percent. DID YOU KNOW? FAMILY TIES STRONG TRADITIONAL VALUES ARE FOUND IN PAKISTAN, COLOMBIA, VENEZUEL A, INDIA, EASTERN EUROPE, AND ITALY 6 NEW WEALTH, NEW WORLD LIFEST YLE VALUES | PERCENT WHO SOMEWHAT/STRONGLY AGREE GLOBAL AVERAGE ASIA-PACIFIC EUROPE MIDDLE EAST /AFRICA LATIN AMERICA NORTH AMERICA Quality time with family is most important 80 81 76 76 88 76 59 60 Traditional values are very important 62 70 69 69 77 Family planning is important 71 80 73 89 70 76 74 75 76 Women should have influence on important household issues 43 Most important role for women is wife/mother 31 32 Religion is important guiding source 20 53 62 34 30 34 34 71 38 78 Higher education is important 68 23 24 24 12 80 80 77 Secondary education is good enough 84 78 91 35 22 Source: Nielsen Global Survey of Consumer Shopping Behavior, Q3 2012 Copyright © 2013 The Nielsen Company 7 THE CHANGING WAVE OF WEALTH With about one-third of global respondents often buying things they did not need and trying products earlier than others, impulsive spenders and early adopters were in the minority in all regions. But online respondents in Asia-Pacific and Middle-East/Africa exceeded the global average for both impulsive spending (AP 40% / MEA 39%) and early adoption (AP 45% / MEA 43%). Countries at the top of the list included growth markets, such as China, India, and Indonesia, where discretionary income is rising and consumption is expanding beyond the basics. Similarly, when it came to brand image, six out of 10 online respondents in Asia-Pacific were willing to pay extra for designer products (61%), exceeding the global average by 17 percentage points. The affinity for buying famous brands was also highest among online respondents in Asia-Pacific (55%) and Middle East/Africa (56%) markets, exceeding the global average of 47 percent. While consumers with Internet access TOP 5 COUNTRIES SOMEWHAT/STRONGLY AGREE TO THE STATEMENTS BELOW I OFTEN BUY THINGS I DO NOT NEED IMPULSIVELY 52% THAILAND 48% INDIA 44% CHINA 42% EGYPT 42% SAUDI ARABIA I PREFER TO PURCHASE AND TRY PRODUCTS EARLIER THAN OTHER PEOPLE 56% INDIA 53% CHINA 46% INDONESIA 46% EGYPT 46% SAUDI ARABIA Source: Nielsen Global Survey of Consumer Shopping Behavior, Q3 2012 8 NEW WEALTH, NEW WORLD typically skew to a more affluent and younger demographic, these respondents nevertheless represent the rising income and upward mobility of these developing-market consumers. Quality counts everywhere. More than three-quarters (78%) of global respondents said quality was the most important concern, with Latin America (83%) and Asia-Pacific (82%) respondents exceeding the global average. DID YOU KNOW? ASPIRATIONAL INTENTIONS INDIANS AND CHINESE ARE AMONG MOST IMPULSIVE AND BRAND IMAGE-DRIVEN SHOPPERS I AM WILLING TO PAY MORE FOR DESIGNER PRODUCTS THAN FOR THOSE WITH THE SAME FUNCTIONS 74% CHINA 59% INDIA 58% BRAZIL 56% VIETNAM 52% SOUTH KOREA I LIKE TO BUY PRODUCTS OF FAMOUS BRANDS 74% INDIA 74% ROMANIA 73% VIETNAM 62% CHINA 62% PAKISTAN Source: Nielsen Global Survey of Consumer Shopping Behavior, Q3 2012 Copyright © 2013 The Nielsen Company 9 THE ALLURE OF A GOOD PROMOTION Economic realities prevailed around the world, and overall, there was global alignment on attitudes about the need for deals and promotions. Price was the most important concern among 65 percent of global respondents. Six out of 10 were aware of promotions and discounts (59%) and believed products with free gifts were good incentives (58%). With the exception of Greece, developing countries (in a balanced representation of the regions) comprised the list of countries that responded most strongly in favor of receiving free gifts. While more than half of respondents in Latin America (68%), Asia-Pacific (57%), and Middle East/Africa (51%) were especially interested to buy products promoted in the store, only 31 percent of North Americans and 43 percent of Europeans felt the same way. ASIA-PACIFIC EUROPE MIDDLE EAST /AFRICA LATIN AMERICA TOP COUNTRIES PRODUCTS WITH FREE GIFTS ARE MORE ATTRACTIVE TO BUY* 77% 75% 74% 72% 72% 71% | | | | | | Philippines Vietnam Greece Turkey Peru Romania 69% 69% 68% 68% 68% | | | | | Poland Pakistan India Malaysia Colombia I AM ESPECIALLY INTERESTED TO BUY PRODUCTS PROMOTED IN THE STORE* 76% 74% 74% 73% 72% | | | | | Italy Israel Peru Brazil Russia 69% 67% 65% 65% | | | | Ukraine Thailand Vietnam Spain *Percent survey respondents that SOMEWHAT/STRONGLY AGREE 10 NEW WEALTH, NEW WORLD DID YOU KNOW? WE LIKE OUR FREEBIES FILIPINOS, GREEKS AND VIETNAMESE ARE MOST ATTRACTED TO PRODUCTS WITH FREE GIFTS DEAL SENSITIVIT Y | PERCENT WHO SOMEWHAT/STRONGLY AGREE GLOBAL AVERAGE ASIA-PACIFIC EUROPE MIDDLE EAST /AFRICA LATIN AMERICA NORTH AMERICA 51 I buy on promotion in-store 43 57 51 68 31 65 65 65 64 Price is most important concern 64 58 52 Free gifts are attractive 57 60 60 59 I am aware of promotions/discounts I price compare with my mobile phone 54 34 18 23 67 59 65 61 61 61 45 36 28 Source: Nielsen Global Survey of Consumer Shopping Behavior, Q3 2012 Copyright © 2013 The Nielsen Company 11 KNOWLEDGE IS POWER The expression “know before you go” resonated strongly around the world, with more than half of global respondents collecting information, sampling, and asking for advice before shopping. Latin American respondents showed the most affinity to shop around, have preferred brands in mind before shopping, and sample first before making a purchase. North American respondents put the least trust in products recommended by professionals (35%) or other’s influence (25%). Conversely, Middle East/Africa and Latin American respondents relied most on the advice of professionals. DID YOU KNOW? IN THE KNOW MORE THAN 80% OF POLISH, THAI, BRAZILIAN, FILIPINO, VENEZUEL AN, PERUVIAN, SPANISH AND MEXICAN RESPONDENTS SHOP AROUND FOR BEST DEALS 12 NEW WEALTH, NEW WORLD SHOPPING RESEARCHERS | PERCENT WHO SOMEWHAT/STRONGLY AGREE GLOBAL AVERAGE ASIA-PACIFIC EUROPE MIDDLE EAST /AFRICA LATIN AMERICA NORTH AMERICA 63 I collect information before shopping 51 71 65 66 51 68 I shop around before purchasing 60 70 70 82 63 67 I have preferred brands before buying 64 63 69 71 65 54 I sample first before buying 51 56 60 47 52 I trust products recommended by professionals I buy because of others’ influence 45 63 56 64 64 35 35 25 25 30 44 44 58 I plan for the future 65 49 66 50 50 I research financial products before choosing 66 62 68 69 69 75 Source: Nielsen Global Survey of Consumer Shopping Behavior, Q3 2012 Copyright © 2013 The Nielsen Company 13 CAN DESIRE TO PROTECT THE ENVIRONMENT CONVERT TO ACTION? When it comes to environmental-friendly actions, such as buying eco-responsible products regardless of price or reducing our carbon footprint to save energy, North Americans were the least eco-minded compared with the rest of the world. Conversely, respondents in AsiaPacific, Latin America and Middle East/Africa were the most receptive to making an ecological difference. ENVIRONMENTALLY-MINDED CONSUMERS SAVE ENERGY/ REDUCE CARBON FOOTPRINT 58% 64% BUY ENVIRONMENTAL FRIENDLY PRODUCTS REGARDLESS OF PRICE GLOBAL AVERAGE 46% 55% ASIA-PACIFIC 49% 57% 67% 43% EUROPE 37% MIDDLE EAST/ AFRICA 51% LATIN AMERICA 46% NORTH AMERICA 30% Source: Nielsen Global Survey of Consumer Shopping Behavior, Q3 2012 14 NEW WEALTH, NEW WORLD While the availability to buy environmentally-friendly products in the developing regions of the world may be inhibitors to convert attitudes into action, the survey results suggest a clear desire and willingness to do the right thing. Manufacturers and retailers who get the price and distribution equation right in these developing markets will have an eager audience at-the-ready. The findings also suggest that there is more work to be done on the education front to better inform consumers about the benefits of conservation. TOP COUNTRIES I CHOOSE MORE ENVIRONMENTAL PRODUCTS EVEN THOUGH THE PRICE IS HIGHER* 71% 71% 68% 63% 62% India Vietnam Turkey Ukraine Indonesia 62% 60% 58% 58% 58% Thailand Russia China Philippines Egypt IN ORDER TO SAVE ENERGY AND REDUCE MY CARBON FOOTPRINT, I CHANGE MY LIFEST YLE* 76% 74% 72% 71% 71% Thailand 70% Mexico 69% Indonesia 68% Vietnam68% Colombia 67% South Korea China Philippines Peru Venezuela *Percent survey respondents that SOMEWHAT/STRONGLY AGREE DID YOU KNOW? GOING GREEN THAIS, INDONESIANS, VIETNAMESE, FILIPINOS AND CHINESE ARE ECO-MINDED AND WILLING TO PAY Copyright © 2013 The Nielsen Company 15 SECTION II CUTTING THROUGH THE CLUTTER IN A WORLD OF CHOICE Fragmentation is everywhere, and we are bombarded with choice. From thousands of fast-moving consumer goods to dozens of retail channels to the expanding and evolving list of traditional and non-traditional sources for information, cutting through the clutter is where we find and fulfill unmet needs. Nielsen reviewed seven purchasing criteria: packaging design, price, function, advertisement, brand, quality and place of production to uncover which of these product attributes resonated most strongly with consumers when making a purchase decision. The survey also asked which major sources respondents used when searching for productrelated information. Nielsen evaluated health and beauty, food and beverage, mobile/personal electronics and non-FMCG categories. The study also gauged whether respondents were loyal to 17 various food, beverage and health/beauty categories to uncover areas of opportunity. The next pages provide a roadmap by industry to help you better reach consumers by offering the product attributes that drive purchase behavior and by communicating in the places where they are actively searching for product information. DID YOU KNOW? BRAND IS KING BRAND IS A TOP PRIORIT Y WHEN INDIANS SHOP FOR COSMETICS, SKIN/ PERSONAL CARE, ELECTRONICS, MOBILE PHONES AND CARS 16 NEW WEALTH, NEW WORLD HEALTH AND BEAUT Y DESIRES AND DIFFERENCES For health, beauty and personal care products, price, quality and function were the most important purchase criteria. But the emphasis placed on these attributes showed distinct differences by region, yet strong consistency within region. For Asia-Pacific respondents, function was selected most as the main criteria when buying cosmetics/skin care, personal care, health care/ medicine categories, followed by quality and price. In North America and Europe, price was paramount. Latin American respondents put the strongest emphasis on quality. In Middle East/Africa, brand was a key consideration for cosmetics and skin care, price was important for personal care purchasing intentions and quality was a main factor for health care/medicine purchase decisions. On the loyalty front, consumers were devoted to their favorite shampoo brand, with half of global respondents seldom switching to another brand. Sixty-one percent of Latin Americans and 57 percent of North Americans were faithful to their deodorant brands, which exceeded the global average by 20 percentage points. Roughly one-quarter of global respondents were committed to their favorite cosmetic (25%) and facial cleanser (23%) brands. Overall, TV reigned supreme as an influential source to obtain productrelated information for health and beauty categories. The Internet and instore sources were also important. For medical and health care advice, friends and family were strong guiding sources for roughly one-fifth of respondents around the world. DID YOU KNOW? LOOK GOOD, FEEL GREAT PRICE IS A KEY FACTOR WHEN BUYING SKINCARE/COSMETICS FOR RESPONDENTS IN 35 OF 58 COUNTRIES Copyright © 2013 The Nielsen Company 17 HEALTH & BEAUT Y CATEGORIES COSMETICS & SKIN CARE ASIAPACIFIC EUROPE MIDDLE EAST / AFRICA L ATIN AMERICA NORTH AMERICA 33% Brand 22% Price 20% Quality 32% Quality 27% Price 22% Function/ Brand 36% Price 23% Quality 20% Function/Brand 28% TV 19% In-Store 18% Internet 33% TV 39% In-Store 25% Internet/ Magazine 24% TV 22% Internet 22% In-Store MIDDLE EAST / AFRICA L ATIN AMERICA NORTH AMERICA 25% Price 22% Brand 22% Quality 34% Quality 33% Price 25% Function 29% Price 26% Function 25% Quality 26% TV 18% In-Store 17% Magazine 36% TV 29% In-Store 25% Internet 25% TV 24% Internet 21% In-Store TOP 3 PURCHASE CRITERIA 1 2 3 34% Function 25% Quality 24% Price 33% Price 30% Quality 21% Function TOP 3 SOURCES FOR INFORMATION 1 2 3 35% TV 34% Internet 24% In-Store 26% In-Store 24% TV 23% Internet PERSONAL CARE ASIAPACIFIC EUROPE TOP 3 PURCHASE CRITERIA 1 2 3 35% Function 25% Price 23% Quality 39% Price 32% Quality 26% Function TOP 3 SOURCES FOR INFORMATION 1 2 3 30% Internet 30% TV 22% In-Store 26% In-Store 24% TV 22% Internet Source: Nielsen Global Survey of Consumer Shopping Behavior, Q3 2012 18 NEW WEALTH, NEW WORLD HEALTH CARE / MEDICINE ASIAPACIFIC EUROPE MIDDLE EAST / AFRICA L ATIN AMERICA NORTH AMERICA 30% Quality 25% Function 18% Brand 42% Quality 32% Function 26% Price 43% Price 29% Quality 27% Function 21% TV 18% Internet 17% Friends/Family 29% TV 31% Internet 27% Friends/Family 22% TV 26% Internet 19% Friends/Family TOP 3 PURCHASE CRITERIA 1 2 3 38% Quality 33% Function 28% Price 43% Function 37% Quality 21% Price TOP 3 SOURCES FOR INFORMATION 1 2 3 29% TV 28% Internet 25% Friends/Family 25% Internet 20% Friends/Family 18% TV WHICH CATEGORIES DO YOU ALWAYS USE A PARTICUL AR BRAND AND SELDOM CHANGE? Percent respondents in each region ASIA-PACIFIC EUROPE Shampoo 50 48 Deodorant 23 Cosmetics 25 25 Facial Cleanser 27 19 Disposable Contact Lens MIDDLE EAST /AFRICA 15 45 8 8 6 56 39 24 22 18 54 61 31 LATIN AMERICA NORTH AMERICA 50 57 23 22 13 Source: Nielsen Global Survey of Consumer Shopping Behavior, Q3 2012 Copyright © 2013 The Nielsen Company 19 FOOD AND BEVERAGES SERVED UP TASTE AND QUALIT Y Not surprisingly, taste was an influential purchasing criteria when making food and beverage purchases. While quality and price were also key factors when making a purchase decision across all regions, quality took precedence over price among a greater percentage of respondents in Latin America, Asia-Pacific and Middle East/Africa markets, and price was the priority for more North Americans and Europeans. In-store promotion tactics resonated strongly in Europe and North America. TV was the most often cited go-to-vehicle for product information in Latin America, Asia-Pacific and Middle East/Africa. Friends and family were persuasive for about one-fifth of global respondents. On the loyalty front, the findings revealed that when it came to coffee, consumers were committed to their favored brand. Half of respondents in Latin America (52%) and Europe (50%) reported loyalty to their preferred brand of coffee. DID YOU KNOW? A FEELING OF ALLEGIANCE ALL OVER THE WORLD, WE LOVE OUR FAVORITE BRAND OF COFFEE, MILK, YOGURT AND DRINK 20 NEW WEALTH, NEW WORLD More than one-third of global respondents (36%) were loyal to milk/soy milk brands, with Latin Americans (43%) and North Americans (38%) most dedicated. Forty percent of Latin Americans were also devoted to their preferred yogurt brand (exceeding the global average by 17 percentage points), and 44 percent of Middle East/Africa respondents were loyal to their favored drink brand. North Americans showed the strongest devotion to condiments (27%) and soups (25%), compared with the other regions. More than one-third of respondents in Latin America (39%) and AsiaPacific (37%) found TV to be the most influential source to obtain food and beverage information, compared with 30 percent in Middle East/ Africa, 28 percent in North America and 22 percent in Europe. In-store tactics resonated strongly among 37 percent of Europeans and Latin Americans and 30 percent of North Americans. Roughly one-fifth of respondents relied on family and friends for advice about buying food and beverages. FOOD & BEVERAGE CATEGORIES FOOD & BEVERAGES ASIAPACIFIC EUROPE MIDDLE EAST / AFRICA L ATIN AMERICA NORTH AMERICA 51% Taste 27% Quality 22% Price 43% Taste 36% Quality 30% Price 62% Taste 46% Price 21% Quality 30% TV 26% In-Store 19% Friends/Family 39% TV 30% In-Store 37% In-Store 28% TV 21% Friends/Family 20% Internet/ Friends/Family TOP 3 PURCHASE CRITERIA 1 2 3 49% Taste 34% Quality 30% Price 55% Taste 41% Price 32% Quality TOP 3 SOURCES FOR INFORMATION 1 2 3 37% TV 25% Internet 21% Friends/Family 37% In-Store 22% TV 20% Friends/Family Source: Nielsen Global Survey of Consumer Shopping Behavior, Q3 2012 Copyright © 2013 The Nielsen Company 21 WHICH CATEGORIES DO YOU ALWAYS USE A PARTICUL AR BRAND AND SELDOM CHANGE? Percent respondents in each region ASIA-PACIFIC EUROPE MIDDLE EAST /AFRICA Coffee 33 50 Milk/Soy Milk 35 Drinks 30 Yogurt Cereal 18 24 12 Snacks Soup 13 8 9 38 41 26 23 18 27 14 11 13 26 15 16 21 15 36 39 34 17 24 18 14 18 10 16 44 31 29 8 18 9 16 17 43 40 NORTH AMERICA 52 37 31 17 19 Condiments Chewing Gum and Confectionary 16 29 Instant Noodles Frozen Foods 36 30 Over-the-Counter Medicines 38 34 16 LATIN AMERICA 20 17 18 25 Source: Nielsen Global Survey of Consumer Shopping Behavior, Q3 2012 22 NEW WEALTH, NEW WORLD COST, NOT BRAND NAME, RESONATED STRONGEST FOR MOBILE PHONES When purchasing a mobile phone, cost was more influential in decision making than the brand name among 44 percent of North Americans (vs. 20% for brand), 42 percent of Europeans (vs. 26% for brand), and 35 percent of Latin Americans (vs. 31% for brand). In Middle East/Africa, price and brand were equally influential among one-third (32%) of respondents. Asia-Pacific respondents bucked the trend as 38 percent of respondents selected function as the most important purchasing criteria, followed by price (35%) and then brand (29%). For personal electronics, price was selected most as the leading purchase factor in all regions except Asia-Pacific, where function took priority. Brand was a significant purchase criterion among roughly onequarter of respondents globally. The Internet was the source most often cited as the best place to gain product information for both mobile phones and personal electronics products, followed by TV and in-store. DID YOU KNOW? FUNCTION OVER FINANCE MORE SOUTH KOREANS, JAPANESE AND CHINESE CHOOSE FUNCTION OVER PRICE FOR MOBILES Copyright © 2013 The Nielsen Company 23 MOBILE / PERSONAL ELECTRONICS MOBILE PHONES ASIAPACIFIC EUROPE MIDDLE EAST / AFRICA L ATIN AMERICA NORTH AMERICA 32% Brand 32% Price 25% Design 35% Price 31% Brand 27% Function 44% Price 26% Function 20% Brand 35% Internet 28% TV 18% Friends/Family 45% Internet 37% TV 26% In-Store 36% Internet 23% TV 17% In-Store Friends/Family MIDDLE EAST / AFRICA L ATIN AMERICA NORTH AMERICA 29% Price 28% Brand 17% Function 36% Price 25% Brand 25% Function 47% Price 24% Function 24% Brand 31% Internet 29% TV 18% In-Store 42% Internet 37% TV 27% In-Store 42% Internet 27% TV 18% In-Store TOP 3 PURCHASE CRITERIA 1 2 3 38% Function 35% Price 29% Brand 42% Price 26% Brand 26% Function TOP 3 SOURCES FOR INFORMATION 1 2 3 48% Internet 30% TV 24% In-Store 46% Internet 22% TV 20% In-Store PERSONAL ELECTRONICS ASIAPACIFIC EUROPE TOP 3 PURCHASE CRITERIA 1 2 3 40% Function 34% Price 26% Brand 44% Price 25% Function 23% Brand TOP 3 SOURCES FOR INFORMATION 1 2 3 48% Internet 33% TV 23% In-Store 46% Internet 24% TV 20% In-Store Source: Nielsen Global Survey of Consumer Shopping Behavior, Q3 2012 24 NEW WEALTH, NEW WORLD TOP ATTRIBUTES FOR SELECTING NON-FMCG PRODUCTS DIFFERED Price weighed heavily in the purchase decisions among most respondents for household products (things you use around the home, such as cleaning supplies), home appliances and cars. Roughly one-infour global respondents selected brand as the most important factor when buying a car and design was influential for one-in-five respondents in all regions except Asia-Pacific, where function was most important among one-quarter of respondents. For clothes and shoes, design was the most important purchase factor for half (49%) of Asia-Pacific respondents—the highest percent globally, followed by price (37%). Price was the most influential criteria for 56 percent of North Americans, 48 percent of Europeans and 44 percent of Latin Americans, followed by design, which was instrumental for roughly one-third of respondents. In Middle East/Africa, design and price were important among an equal 35 percent of respondents, respectively. The Internet was the prominent go-to source for home appliances and cars, followed closely by TV. In-store was the leading place to get information for clothing and shoes, followed by the Internet. TV was most influential for household products. DID YOU KNOW? STAYING IN ST YLE CLOTHING/SHOE DESIGN WINS OVER PRICE OR BRAND FOR THAIS, TAIWANESE, VIETNAMESE, RUSSIANS, TURKS, EGYPTIANS, PAKISTANIS, SAUDIS, COLOMBIANS AND PERUVIANS Copyright © 2013 The Nielsen Company 25 NON-FAST-MOVING CONSUMER GOODS CATEGORIES HOUSEHOLD PRODUCTS ASIAPACIFIC EUROPE MIDDLE EAST / AFRICA L ATIN AMERICA NORTH AMERICA 32% Price 22% Quality 20% Function 43% Price 29% Quality 27% Function 51% Price 30% Function 21% Quality 29% TV 20% In-Store 17% Internet 43% TV 33% In-Store 26% Internet 30% TV 25% In-Store 23% Internet MIDDLE EAST / AFRICA L ATIN AMERICA NORTH AMERICA 32% Price 27% Brand 17% Function 40% Price 27% Brand 24% Function 46% Price 24% Function 21% Brand 42% Internet 34% TV 23% In-Store 40% TV 32% Internet 32% In-Store 34% Internet 24% TV 22% In-Store TOP 3 PURCHASE CRITERIA 1 2 3 48% Price 30% Function 25% Quality 36% Price 34% Function 26% Quality TOP 3 SOURCES FOR INFORMATION 1 2 3 32% TV/Internet 29% In-Store 19% Friends/Family 29% In-Store 25% TV/Internet 16% Friends/Family HOME APPLIANCES ASIAPACIFIC EUROPE TOP 3 PURCHASE CRITERIA 1 2 3 41% Function 33% Price 26% Brand 45% Price 27% Function 24% Brand TOP 3 SOURCES FOR INFORMATION 1 2 3 39% Internet 38% TV 30% In-Store 39% Internet 25% TV 30% In-Store Source: Nielsen Global Survey of Consumer Shopping Behavior, Q3 2012 26 NEW WEALTH, NEW WORLD NON-FAST-MOVING CONSUMER GOODS CATEGORIES CARS ASIAPACIFIC EUROPE MIDDLE EAST / AFRICA L ATIN AMERICA NORTH AMERICA 32% Price 24% Brand 18% Design 31% Price 30% Brand 21% Design 47% Price 25% Brand 20% Design 25% Internet 23% TV 18% Friends/Family 36% TV 34% Intermet 24% In-Store 37% Internet 32% TV 18% Friends/Family MIDDLE EAST / AFRICA L ATIN AMERICA NORTH AMERICA 27% Price 25% Design 12% Brand/Quality 28% Design 25% Price 13% Quality 35% Price 25% Design 13% Quality 24% Other 19% In-Store 17% TV/Magazine 29% In-Store 23% Internet 23% Other 24% In-Store 23% Internet 23% Other TOP 3 PURCHASE CRITERIA 1 2 3 32% Price 25% Brand 25% Function 40% Price 27% Brand 19% Design TOP 3 SOURCES FOR INFORMATION 1 2 3 40% Internet 36% TV 20% Friends/Family 38% Internet 25% TV 17% Friends/Family JEWELRY ASIAPACIFIC EUROPE TOP 3 PURCHASE CRITERIA 1 2 3 39% Design 28% Price 16% Brand/Quality 32% Design 31% Price 10% Quality TOP 3 SOURCES FOR INFORMATION 1 2 3 30% Internet 29% In-Store 24% TV 27% Other 25% In-Store 23% Internet Source: Nielsen Global Survey of Consumer Shopping Behavior, Q3 2012 Copyright © 2013 The Nielsen Company 27 NON-FAST-MOVING CONSUMER GOODS CATEGORIES CLOTHING ASIAPACIFIC EUROPE MIDDLE EAST / AFRICA L ATIN AMERICA NORTH AMERICA 35% Design/Price 23% Brand 17% Quality 44% Price 37% Design 24% Quality 56% Price 32% Design 19% Quality/Function 29% In-Store 20% TV 19% Friends/Family 45% In-Store 26% Internet 25% TV 29% In-store 26% Internet 20% TV TOP 3 PURCHASE CRITERIA 1 2 3 49% Design 37% Price 21% Brand/Quality 48% Price 37% Design 22% Quality TOP 3 SOURCES FOR INFORMATION 1 2 3 39% Internet 36% In-Store 24% TV 37% In-Store 28% Internet 15% Magazine Source: Nielsen Global Survey of Consumer Shopping Behavior, Q3 2012 28 NEW WEALTH, NEW WORLD SECTION III THE POWER OF THE IN-STORE EXPERIENCE When shopping for groceries, the overwhelming majority of consumers around the world planned their shopping trips by using a shopping list and comparing prices. Globally, 84 percent of respondents used a shopping list on at least a few trips and 88 percent compared prices. Almost two-thirds (63%) of North Americans relied on a shopping list for most trips, exceeding the global average of 49 percent. When in store, consumers actively looked for deals, with roughly threequarters of respondents using a promotional leaflet/flyer (78%), or coupon (71%), and purchasing from end-aisle displays (74%) on at least some shopping trips. North Americans were the most active and regular coupon users with 88 percent of respondents using them on shopping trips. DID YOU KNOW? IN-STORE SAVERS IN-STORE PRODUCT PROMOTIONS APPEAL MOST TO ITALIANS, ISRAELIS, RUSSIANS, BRAZILIANS AND PERUVIANS Copyright © 2013 The Nielsen Company 29 FREQUENCY WHILE GROCERY SHOPPING MOST TRIPS SOME TRIPS NO TRIPS USE A SHOPPING LIST 35% 49% GLOBAL AVERAGE 40% ASIA-PACIFIC 40% 20% 55% EUROPE 33% 49% MIDDLE EAST / AFRICA 12% 16% 56% LATIN AMERICA 63% NORTH AMERICA 12% 35% 16% 29% 15% 28% 9% COMPARE UNIT PRICES 37% 51% GLOBAL AVERAGE 46% ASIA-PACIFIC 39% 15% 57% EUROPE 35% 51% MIDDLE EAST / AFRICA 12% 36% 56% LATIN AMERICA 46% 33% 55% NORTH AMERICA 12% 35% 8% 13% 11% 10% USE THE STORE PROMOTIONAL LEAFLET/FLYER ASIA-PACIFIC 28% 12% 45% 28% NORTH AMERICA 23% 48% 34% MIDDLE EAST / AFRICA 22% 49% 33% EUROPE LATIN AMERICA 46% 46% 32% GLOBAL AVERAGE 22% 42% 47% 19% 30% 35% 18% Source: Nielsen Global Survey of Consumer Shopping Behavior, Q3 2012 30 NEW WEALTH, NEW WORLD FREQUENCY WHILE GROCERY SHOPPING MOST TRIPS SOME TRIPS NO TRIPS USE COUPONS GLOBAL AVERAGE 25% ASIA-PACIFIC 25% 46% 48% 19% EUROPE 12% 29% 41% 11% LATIN AMERICA 27% 52% 17% MIDDLE EAST / AFRICA 29% 42% 28% 61% 44% NORTH AMERICA 44% 13% PURCHASE FROM END-AISLE DISPL AYS 19% GLOBAL AVERAGE 21% ASIA-PACIFIC EUROPE NORTH AMERICA 51% 27% 60% 21% 12% 46% 26% 17% MIDDLE EAST / AFRICA LATIN AMERICA 55% 14% 23% 51% 28% 48% 20% 38% 67% 13% 46% Source: Nielsen Global Survey of Consumer Shopping Behavior, Q3 2012 Copyright © 2013 The Nielsen Company 31 ABOUT THE NIELSEN GLOBAL SURVEY The Nielsen Global Survey of Consumer Shopping Behavior was conducted between August 10 and September 7, 2012, and polled more than 29,000 online 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 Index, was established in 2005. INTERNET PENETRATION Argentina Australia Austria Belgium Brazil Bulgaria Canada Chile China Colombia Croatia Czech Republic Denmark Egypt Estonia Finland France Germany Greece Hong Kong Hungary India Indonesia Ireland Israel Italy Japan Latvia Lithuania 66% 89% 80% 81% 46% 51% 83% 59% 40% 60% 71% 73% 90% 36% 78% 89% 80% 83% 53% 75% 65% 11% 22% 77% 70% 58% 80% 72% 65% Malaysia Mexico Netherlands New Zealand Norway Pakistan Peru Philippines Poland Portugal Romania Russia Saudi Arabia Singapore Slovakia South Africa South Korea Spain Sweden Switzerland Taiwan Thailand Turkey 61% 37% 93% 88% 97% 15% 37% 32% 65% 55% 44% 48% 49% 75% 79% 17% 83% 67% 93% 82% 75% 30% 46% United Arab Emirates 71% United Kingdom 84% Ukraine 34% United States 78% Venezuela 41% Vietnam 34% Source: Internet World Stats, June 30, 2012 32 NEW WEALTH, NEW WORLD 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 © June 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. 13/6584 Copyright © 2013 The Nielsen Company 33 34 NEW WEALTH, NEW WORLD