Malaysia’s Generation Z is the generation that grew up with the internet for all of their lives. They make up 26% of Malaysia’s population and have unique characteristics that set them apart from the Millenials and Baby Boomers, particularly in the way they consume content and relate to brands.
With Southeast Asia’s (SEA) consumer goods market valued at almost US$100 billion, it is rapidly becoming a choice destination for growth opportunities. In 2018 alone, SEA registered sales value growth of +3.4% as compared to 2017, and this growth is nearly double of that for the previous year.
In the final quarter of 2018, Vietnam continued to be placed among the most optimistic countries globally. It is ranked 4th in the world for having the most positive consumers with Consumer Confidence Index of 122 percentage points (pp) after India, Philippines and Indonesia.
Amidst shifting consumer and market landscapes, supermarkets continue to be the major retail player with grocery sales proving to be indispensable. Last year, supermarkets and hypermarkets contributed to 68.4% of retail sales share, setting a solid retail footprint. This is according to Nielsen’s 2019 Shopper Trends report, which examines grocery retail trends and changing shopping patterns, attitudes and behaviour.
There are fewer opportunities to convert a shopper to a sale while in-store. Retailers and manufacturers need to think very deeply about how to best influence each shopping experience to maximise the potential of a sale.
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.
In Q4 2018, Malaysia's FMCG market grew by 4.9%. This growth did not come easily as companies had to work hard to find pockets of untapped growth. To unlock this potential, companies must answer two questions: Where to grow? And how to grow?
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.
Parents everywhere invest in countless resources to provide for their babies’ needs - from the type of milk fed to the brand of diapers purchased. As parents are often willing to spend on quality, these little consumers are providing big market opportunities.
The fish and seafood category is well-positioned to be a premium protein offer for Australian consumers. In the 52 weeks ending 8 September 2018, more than nine-in-ten (94%) Aussie households purchased some type of fish or seafood. These households spent an average of $167 split across 16 shopping occasions in the last 12 months.
Consumer trust is crucial for e-commerce growth. Trust includes many aspects for shoppers to feel comfortable in selecting the crucial “add to basket” button. For example, shoppers need to be sure they are purchasing genuine products, that what they purchased will arrive safely on time and in good condition, and that the payment is secure.
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.
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.
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.
Fast-moving consumer goods (FMCG) e-commerce has seen recent success in many markets around the globe on the heels of new investments in technology, start-up ventures and innovation in business models. Nielsen’s Future Opportunities in FMCG E-commerce study examines the e-commerce landscape in 34 markets around the globe, influenced by foundational, macro-economic, social and supply growth drivers.
E-commerce is becoming an important factor in further driving fast-moving consumer goods (FMCG) growth across major markets globally. View our webinar to explore the framework of 10 key drivers for e-commerce success and which combination of drivers are importance based on their respective markets.
Consumers around the globe are feeling stretched due to changes in lifestyle, challenging working hours and longer commutes. Hyperconnectivity, rapid urbanisation and changes in households are influencing buying decisions of global consumers.
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.
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.
Australian manufacturers and retailers are investing an exceptional amount of time and money executing promotions on a regular basis - with the hope that both parties will benefit from a maximum return on their investment. The reality is, however, that this outcome is rarely ever achieved.
While sales of fast-moving consumer goods (FMCG) in some developed markets saw signs of softness, opportunities for growth are still readily available if you know where to look. Manufacturers with global reach should focus on emerging markets, which have consistently performed two to four times better from a sales perspective than their developed market counterparts in recent history.
This month, all eyes will be on the U.K. market as a sugar tax on drinks goes into effect there, encouraging consumers through price to reduce their sugar consumption. No doubt the Australian Federal Government will be watching, as they consider a ‘sugar tax’ here in Australia.
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.
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.
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.
In this webinar, we explored the market drivers and nuances, latest consumer behaviours and fundamental factors behind the future of e-commerce to help you understand what it takes to win the battle of the online basket.
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?
The dynamic economic environment across Asia continues to create both prosperity and stagnation among FMCG markets in Asia. While the region is diverse, what works in one market will not necessarily work in all.
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?
What are some of the biggest technological influences that will cause the largest impact to consumers, products, industry and society? Are consumers, retailers and suppliers ready for technology trends that will dominate the way we work, live and play in the next 5 years?
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.
2016 has been a momentous year on the world stage with Britain voting to exit the European Union and Donald Trump winning the United States election. There have been major upheavals in the Asia Pacific too – literally in New Zealand and Japan with damaging earthquakes, but also a political scandal in South Korea, the passing away of Thailand’s King Bhumibol, and unexpected currency reforms announced in India. We are living in uncertain times where disruption is becoming the new norm.
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.
Influenced by several factors, the Fast Moving Consumer Goods (FMCG) industry in Vietnam is indeed ‘fast moving’. We have been asked by many key market players which factors influence this industry and how can manufacturers expect it to change so that they can develop their own strategies and approach to catch the growth opportunities and win?
Amidst steadily rising reports that Asia is on the cusp of an obesity epidemic and growing speculation among the healthcare community that general health and wellness in Asia over the coming years is on a concerning trajectory, Asian consumers are becoming more conscious of their food choices and many say they are concerned about their weight.
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.
The 2016 report is the second edition of the Nielsen Southeast Asia Breakthrough Innovation Report. The report looks at new products launched in more than 160 product categories, representing 71% of annual fast-moving consumer goods (FMCG) sales across Indonesia, Thailand, Philippines, Vietnam and Malaysia.
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.
Asia Pacific continues to shine on most companies’ radar when looking for growth opportunities thanks to its combination of large populations with increasing spending capacity and optimistic consumer sentiment. Across Asia Pacific, four markets boast GDP growth at greater than 5% (China, India, Philippines and Vietnam) and six markets are enjoying higher GDP growth in 2016 than last year (Australia, Indonesia, South Korea, New Zealand, Philippines and Thailand).
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.
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.
With more than 1.3 million traditional trade stores in Vietnam, getting products into stores and in front of the consumer can be a big challenge for manufacturers. In fact, until recently, many manufacturers had shifted their focus away from the traditional trade channel in Vietnam, opting instead to set their sights on the expanding modern trade format.
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.
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.
In Vietnam, traditional grocery rules both in store numbers and sales contribution. The challenge to get your products into stores can be incredibly difficult but we discover 5 insights you need to know about tranditional trade channel in Vietnam to win both retailers and shoppers.
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?
Over the past decade or so, as multinational organisations tackled challenges such as increasing competition, financial crises, and slow growth in developed markets, many increasingly looked to emerging regions such as Asia as a source of growth. Nowhere was this trend more evident than the FMCG sector.
Asia Pacific business leaders predict that by 2020 business models will look significantly different to today, and few believe their organisations are prepared to deal with the rapid pace of change taking place in today’s business environment, according to a new report released today by global measurement company, Nielsen.
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.
Capturing a part of the $56 trillion in consumer spending that The Demand Institute projects will take place in China over the next decade will depend on deep insight into the country’s highly varied urban landscape. And that business insight requires more than simply understanding a given city’s current economic status.
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.
Australia’s love affair with coffee and our fanatical café culture has been long been documented. Even at home, coffee is clearly still our drug of choice. In Australian supermarkets, coffee is worth $234 million - up by 13% on the previous year. For a mature category in a low growth grocery environment, this increase in sales is remarkable.
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.
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.
Why is baby care a big market for little consumers in Asia Pacific? What are the drivers in developing markets fuelling the global baby food and diapers sale growth? What are the trends in the Asia Pacific baby food and diaper market? What’s at stake and how can baby care manufacturers succeed?
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.
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?
Consumers have a strong appetite for innovation. They’re increasingly demanding and expect more choice than ever before. Around the world, more than six-in-10 respondents say they like when manufacturers offer new products, and more than half say they purchased a new product during their last grocery-shopping trip.
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.
Nielsen's Regan Leggett shares his views on some of the key factors shaping ASEAN's emerging cities and rural areas, such as cross-border trading, demographic shifts, changing consumer lifestyles, and access to infrastructure and technology.
Rapidly shifting consumer lifestyles and preferences have seen the continued rise in the popularity of modern trade stores in most Southeast Asian countries and growing willingness to adopt digital shopping channels.
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.
Close to two thirds of ASEAN’s urban population (62.6%) is forecast to reside in cities and urban centres of under 500,000 by 2025, according to a new Nielsen report. Increasing business activity, cross-border trading and demographic shifts are some of the key forces driving population growth in the region’s smaller cities, emerging towns and rural areas, which are considered the ‘sleeping giants’ of the next decade.
Less than two in every one hundred new products launched in Southeast Asia meet key innovation success criteria for distinctiveness, relevance and endurance, according to new research and analysis undertaken by Nielsen.
People who are more informed, engaged and active when it comes to social and business issues around the world are increasingly inquisitive and knowledgeable about the companies they choose to buy from. In fact, there are signs that they’ve never been more interested in the reputation of companies they do business with.
Half of consumers around the world say they’re actively trying to lose weight, and 75% of them plan to achieve that goal by changing their diet. But the road to good health isn’t always paved with good intentions. So do desires materialize where it counts—at the point of sale?
Health and wellness are hot topics around the globe, and they have been for years. Despite the immense amount of attention devoted to the topic, however, the obesity rate is high—and rising. The good news, however, is that consumers around the world are taking steps to take charge of their health.