Brands spend heavily on in-store activations because two of every three shoppers in South Asia make their brand purchase decisions only once they are in the store. However, measurement of in-store execution exclusively by investments made yield inaccurate results. This is because as much as 60% of these invested budgets don’t get deployed as planned. Explore the need to monitor aspects of in-store activation that deliver a more complete picture, including range and assortment, visibility and placement, and equipment and support.
In a predominantly Traditional Trade market, government policies like demonetisation and the introduction of the Goods and Services Tax structure, have given a fresh impetus to Modern Trade by speeding up the adoption of digital payments. The size of the Modern Trade market for FMCG categories that Nielsen tracks, is INR 41,416 crore for MAT August 2018, a substantial growth of 22% from a year ago.
While online has been growing as a channel in several developed markets in recent years, it’s broadening in scope, and is fast becoming a popular shopping destination for consumers around the world, particularly those looking to purchase premium products, as these platforms are able to attract shoppers and generate sales by providing exclusive product ranges and compelling deals.
As companies look to break into new markets, they must understand that each market demands its own approach. In burgeoning sustainability markets, however, natural and organic are paving the way for more detailed and specific claims.
The next frontier for growth in the Indian beauty industry may well be hair care. The size of the hair care segment is now INR 22,500 crore and rising, with sub segments like colourants and conditioners leading the growth. This edition of Featured Insights explores the trends in the hair care segment including the increasing focus of male consumers on hair care, rural and urban dynamics, and particular areas that are driving disproportionate growth. It also delves into potential avenues of expansion for the hair care industry in the near future.
Looking for a better lifestyle, consumers are searching for options that are healthier for them and for their homes. The good news is that companies can be benevolent and bankable if they understand the intricacies of these forces and react accordingly.
Nearly 80% of the value growth clocked by FMCG industry in the Q3 quarter was volume driven (13.4%).
Rural markets continued to grow faster (20%) in the quarter; urban India also had a good run with 14.5% value growth.
A new era of sustainability is rising and it’s touching every corner of the world. Consumers in markets big and small are increasingly motivated to be more environmentally conscious and are exercising their power and voice through the products they buy. But why do these shifts feel so urgent?
With rising consumer uptake across e-commerce categories, online FMCG growth is accelerating across the globe. In fact, we estimate that online FMCG growth will accelerate four times faster growth than offline sales in the next five years.
This report looks at the changing FMCG e-commerce landscape in eight markets (Colombia, New Zealand, Norway, Poland, Portugal, Taiwan, Thailand, United Arab Emirates), influenced by 10 key drivers, along with deep insights for each of these markets.
A slight drop in consumer sentiment in the second quarter was reflected in a slight pullback in spending in certain markets, as skepticism about the future had some consumers feeling as though their free cash would be better served in savings rather than on discretionary purchases.
Demonetisation woes and uncertainties around GST had created short-term stress on retail stock levels that witnessed around five per cent decline during each of the two events. With the passage of time, retail stock levels have bounced back and they now stand at 10% higher level from p re-demonetisation period.
Convenience isn’t just about store formats, products or packaging. And it means more than the latest technologies or new engagement strategies. Rather, it’s about every encounter, interaction and action that can help fulfill consumers’ growing demand for efficiency.
Shortcuts and automation are top of mind as consumer chase ways to overcome everyday obstacles to effortless living. For FMCG companies, the task at hand involves adapting and enhancing their solutions to do more than keep pace—they’ll need to stay ahead of the pace.
If you can’t see it, it must not be there, right? In the FMCG market, this couldn’t be farther from the truth. That’s because every category has a certain concentration of brands that aren’t top of mind for many, but they have the ability to shift the overall landscape if conditions are right.
The Net Promoter Score (NPS) is a customer satisfaction assessment tool that’s gained considerable attention. It identifies whether a customer would actively recommend a brand, making it a tool that can gauge if a product will do well through customer loyalty. The popular tool comes with its pros and cons.
There are about 10 million FMCG retail stores across formats in India today. Of these, companies reach only about two million directly, making manufacturers largely dependent on indirect wholesale distribution.
One consumer product category that shows promise is snack foods. A rare global growth story, snacks are satisfying consumer cravings around the world—in fact, the snacking business grew US$3.4 billion globally in 2017.
There’s a new retail revolution underway, and it’s going to affect the global food industry in ways the market hasn’t seen before. The revolution comes at the hand of store-branded products, which continue to gain share across all major geographies.
While sales of fast-moving consumer goods in some traditionally successful markets like the U.S. saw signs of softness in early 2017, opportunities for growth are still readily available if you know where to look.
There’s a new retail revolution underway, and it’s going to affect the global food industry in ways the market hasn’t seen before. The revolution comes at the hand of store-branded products, which continue to gain share across all major geographies around the globe.
For a decade, emerging markets have ignited the global economy, contributing more than 80% to its economic expansion. Today, these markets consistently perform a remarkable three to four times better than their developed market counterparts in the FMCG industry.
The most difficult questions facing growing businesses today include the identification of high potential markets for distribution. What is making the effort increasingly complex is the changing dynamics of people, lifestyles, aspirations and location; not to mention the costs involved in covering the massive rural landmass.
In these times, when every waking moment is potentially shareable on social media, beauty does seem to be skin deep. The desire to constantly look well-groomed is expanding the beauty market, beyond the conventional boundaries of age, gender, geography and town class.
Backed by rising consumer confidence and optimism, many of the world’s economies are experiencing degrees of positive momentum. In some cases, that momentum is strong; in others, it’s subtle, but still worth noting.
While most Indian households don’t have the financial means to indulge in eating out, the story is markedly different in urban centres. A sizeable number of Indians living in cities spend significant amounts on eating out.
Thanks to globalization and connectivity, consumers around the world have access to a wider array of products than ever. So how much weight does the “made in” moniker carry when it comes to purchase motivation?
This edition focuses on how stock levels and consumer prices have actually panned out in comparison to expectations, as well as the extent to which, retailers have understood, adapted and created opportunities around this new tax regime.
Global FMCG retail is pegged at $4 trillion today, growing at a rate of just 4%, with signs of continuing sluggish performance in developed markets. On the other hand, total retail e-commerce is predicted to grow by 20% (combined annual growth rate) to become a $4 trillion market by 2020.
The world is increasingly complex, instrumented and virtual. There’s vast amounts of information about consumers and the factors that influence their behavior that simply didn’t exist in the data warehouse era. Here, we take a closer look at how all this data will affect retail when it comes together with recent technology trends.
Consumers are getting increasingly experimental and aspirational, and the outcome
on FMCG is the growing popularity of small pack sizes. Despite a minor setback
during demonetisation, small packs continue to sustain and even drive growth for
several brands. Earlier thought to be a rural phenomenon, consumers in metro cities
are now as enthusiastic about small SKUs. This issue of Featured Insights explores
why small packs are such a big hit with consumers and how brands can explore the
opportunities and get their strategy right.
The variety and increasing scale of data, as well as the scope of activity it is meant to inform, demands a solution that goes well beyond a simple enterprise data warehouse. So what might that more robust solution look like?
Indian consumers of personal care products are increasingly showing a distinct leaning towards natural offerings. This is driven by a strong belief in the goodness of ancient Indian wisdom. Shoppers are now seeking brands that can offer fundamental solutions, and products that are safe for both consumers as well as the environment. This issue of Featured Insights looks into how the ‘naturals’ trend is reflecting on the personal care industry, and the opportunities that the future holds.
As the media landscape gets increasingly fragmented, arriving at the right marketing mix is becoming more and more challenging. See how brands can optimise their marketing mix strategies by evaluating the historical relationship between marketing spends and business performance in a structured model.
Festivals have always been a shopper’s delight in terms of deals and offers. However, today consumers are not limiting their enthusiasm to festive seasons alone. See how retailers in India have created ‘Big Events’ to ensure there is consumption throughout the year.
The premium sector is growing globally, and as it turns out, it isn’t ritzy categories like diamonds and champagne that are topping the charts. Rather, global consumers are most often willing to trade up for everyday consumables.
Around the world, consumers are looking for a taste of the good life. And it’s not just those who are wealthy. Sales of products in the “premium” tier are growing at a rapid pace. In fact, the growth of the premium sector in many markets is outpacing total growth for many fast-moving consumer goods categories.
This study identifies the attributes consumers are looking for in premium product offerings, and reveals the underlying sentiment behind the reasons for purchase. We explore what “premium” means to consumers, and we identify the categories for which they’re most willing to pay a higher price.
Consumers are faced with a dizzying array of retailers vying for their attention, and a retail loyalty program can be a determining factor for where they decide to shop. In fact, 72% of global respondents agree that, all other factors equal, they’ll buy from a retailer with a loyalty program over one without.
When it comes to the most-valued loyalty-program benefits, monetary incentives top the list in every region. However, creating meaningful differentiation requires offering more than generic deals, and thinking beyond monetary perks can help brands stand out.
Global consumers, by and large, have more shopping choices at their disposal than ever before. For retailers, differentiating your brand in such a crowded space is critical. A retail loyalty program can be an effective way to create competitive advantage by reducing customers’ likelihood to switch stores.
Done well, loyalty programs can help drive more frequent visits and heavier purchasing. More than seven in 10 global respondents (72%) agree that, all other factors equal, they’ll buy from a retailer with a loyalty program over one without.
Retail players have long believed that large-format stores will eventually take over the landscape, but today’s reality disproves the “bigger is always better” myth. Although large stores still account for 51% of global sales, smaller channels are growing sales up to eight times as fast their larger counterparts.
Among global respondents, 74% say they appreciate the freedom of being connected anywhere, anytime, and 70% strongly or somewhat agree that their mobile device has made their life better. This constant connectivity has not only changed the way we keep in touch, but also the way we shop, bank and pay for goods and services.
Grabbing a bite to eat outside of the house is a weekly occurrence for almost half of global respondents, but are we stopping to savor our entrees or eating grub on the go? As it turns out, we’re doing quite a bit of both.
While today’s consumers certainly scrutinize the foods that fill their pantries, they aren’t just eating at home. In fact, eating out isn’t just for special occasions; it’s a way of life for nearly half of global respondents.
The ins-and-outs of what a healthy diet looks like may vary somewhat around the world, but simplicity resonates globally. While there is some variation across regions, the story stays the same: Artificial is out, many of us avoid food with long lists of ingredients and consumers are intent on removing the bad and adding the good.
Nearly two-thirds of global respondents say they follow a diet that limits or prohibits consumption of some foods or ingredients. Taking a closer look, a majority of global respondents say that when it comes to ingredient trends, a back-to-basics mind-set, focused on simple ingredients and fewer artificial or processed foods, is a priority.
While Global multinational companies dominate the Indian FMCG market, there are many homegrown companies that have made it big as well. Read on to find out what differentiates the basic strategies and core strengths of these Global MNCs and Local Giants and what consumers are saying about their brands.
Consumers around the world are increasingly focused on clean eating and the benefits of eating more healthfully, with 70% of global respondents saying they actively make dietary choices to help prevent health conditions such as obesity, diabetes, high cholesterol and hypertension.
A combination of factors including a significant rise in lifestyle diseases and the resulting surge in awareness and desire to 'live healthy', has resulted in the health and wellness foods segment growing in double digits. Learn more about the health conscious Indian and the potential of the health and wellness market in India.
As the telecom industry evolves at a dizzying speed, the crucial differentiator between operators may well be the strength of their relationship with channel partners or distributors. These distributors have access to vital and real time consumer trends that could prove to be invaluable for telcos. Read on to understand why savvy operators need to work on these synergies to win in the market.
In modern retail, the use of promotions has slowly escalated to become a now-standard practice that has resulted in a shared reliance among retailers and manufacturers, but decent returns are increasingly hard to generate. So knowing which categories are more or less sensitive to pricing changes is essential for driving growth.
A core element in increasing share of wallet is understanding and responding to local consumer needs. It makes sense then, that differentiation from your competition could be an important way to build a competitive advantage. So what are consumers looking for?
Modern retail has long been guided by a powerful premise: the bigger, the better. But the retail landscape is shifting, and this mantra no longer holds true in all cases. This report explores the pain and pleasure points in global consumers' shopping experiences.
Modern retail has long been guided by a powerful premise: the bigger, the better. Retailers, consumers and suppliers all benefited from economies of scale, but over the past 10 to 15 years, the retail store model has evolved. So how can retailers stay ahead in the rapidly changing landscape?
When it comes to choosing specific products, do consumers prefer global brands or local ones? The answer depends primarily on the category, and there is a surprising amount of agreement across regions.
As multinational companies continue to expand into new markets, often providing access to a greater range of products for local consumers, are local companies getting lost in the shuffle? Not necessarily so. In fact, many local companies are thriving.
No matter where you live or who you are, dirt and grime are inescapable facts of life. As such, we all need to clean—and we spend a significant amount of time keeping our homes and clothes clean and fresh.
Benjamin Franklin said the only things certain in life are death and taxes. Perhaps we should add dirt to the list. So who’s doing the cleaning, what solutions do they use and how often are they freshening up their homes and clothes?
Cash is no longer the king! The phenomenon of mobile payment apps has been quick to catch on with the number of end-users ballooning. Take a look at how mobile payment apps have gone on to become a mainstay in our lives, the extent of their reach, and usage.
Online shopping is growing around the world, but is this affecting how people are shopping in physical stores? Consumers aren’t simply “showrooming”—browsing in store and then going online in search of the lowest-cost option. They’re also “webrooming”—researching online and buying in stores.
While connected commerce is still largely a domestic affair, cross-border ecommerce is a growing phenomenon. Shoppers are increasingly looking outside their country’s borders, as more than half of online respondents in the study who made an online purchase in the past six months say they bought from an overseas retailer.
Identify early indicators of a slowdown and recovery in the Indian FMCG market, using a predictive model that’s capable of reading the signs by studying consumer sentiment and selected macro-economic indicators.
To better understand how younger respondents view the importance of dietary considerations, we asked six Millennials from different parts of the globe to explain how their eating habits differ from those of their parents.
With e-tailing coming of age, our numbers show that as much as 60% of consumers in developing markets are willing to use digital retailing options. Here's a look into the motivations of the online shopper and the trends that will help e-commerce brands stay ahead.
For both baby food and diaper brands, 70% of global respondents say they have switched brands. Their reasons for switching baby food, however, are somewhat different than their reasons for switching diapers.
When it comes to learning about which diapers are best, 44% of global respondents go direct to the people they know and trust for recommendations, which is the top source of information in every region.
Nielsen’s African Prospects Indicator provides existing and potential investors in Africa with comprehensive insights across an extensive range of indicators, culminating in an unambiguous ranking of Sub-Saharan African countries.
When it comes to keeping babies comfortable and clean, diapers are a top priority for parents—and one for which they spare no expense. In fact, Nielsen estimates diaper sales around the world will exceed $29 billion in 2015.
Becoming a parent can be a daunting endeavor, full of many “firsts.” But before first words and steps, come first foods. So who do new parents turn to most for advice about the best baby food/formula to buy for the first time? While friends and family rank highest, consumers don’t just rely on their circles for guidance.
Understand what the intrinsic characteristics of a great innovation in the Indian marketplace ought to be and take a deeper look at the key characteristics that brands and marketers must not ignore when it comes to creating breakthrough innovation.
From the pureed food on spoons to the formula in bottles, you’d be hard pressed to find a parent who didn’t want the best for their baby. And they're willing to spend for it. But for baby care manufacturers, there’s plenty at stake in the battle for baby bucks.
Recognizing winning opportunities and getting your on-ground execution right can create powerful results—and that’s what the path to performance is all about. See what the right levers of effective sales execution are that will help you drive your in-store performance.
As the media landscape evolves, so too do the sources consumers use to find out about new products. Globally, shoppers' reliance on earned media is growing while their attention toward some paid media sources are declining.
Long regarded as India’s consumption outback with low levels of disposable income and spend propensity, consumer aspiration and awareness, marketers have traditionally deprioritised certain markets within the country. But these state clusters of Madhya Pradesh and Chhattisgarh, Bihar and Jharkhand, and Orissa, show the potential to drive disproportionate growth in India’s fast moving consumer goods industry.
Brand building can be costly and time consuming, so the ability to grow via line extensions—the use of an established product brand for a new item in the same category–can be extremely advantageous. In fact, line extensions are approximately three to four times more common than “new manufacturer” and “new brand” launches combined.
When it comes to taking a risk on a new product purchase, why do consumers choose one product over another? What needs and desires drive new product purchasing, and which attributes are most influential in the path to purchase?
Despite evidence that the rise of digital shopping has become an influential factor in the changing retail landscape, consumer shopping channel preferences continue to shift. A review of sales trends for select FMCG around the world reveal that when it comes to trade channel importance, there is no single answer that’s right for all.
There are successful innovations and then there are breakthrough innovations. In its second edition, the India Breakthrough Innovation Report 2015 celebrates 23 brands that smartly used innovation as a catalyst of growth during the tough times of 2012-2013 and managed to stay ahead of the curve. Read on to find out who our winners are, their success stories and what you can learn from them.
Imagine a grocery store where you can receive personal recommendations and offers the moment you step in the store, where checkout takes seconds and you can pay for groceries without ever taking out your wallet. Sound far-fetched? It’s closer than you think.
Imagine a grocery store where you can receive personal recommendations and offers the moment you step in store, your checkout takes seconds and you can pay for groceries without ever taking out your wallet. Sound far-fetched? It’s closer than you think.