eor for india retail forum bindu sethi

8/7/2019 EOR for India Retail forum bindu sethi

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Eye on Asia - Retail

Shopper Confessions that reveal 10 eye-sights which willchange the way Asian marketers look at retail


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Methodology Overview

ShopnographyTM:

Pre & Post shop-alongs.

Understand purchase decisions and therole of in-store influences through

accompanied shopping trips.

Qualitative

Qualitative++Quantitative

Quantitative

Online/ in-home interviews

China, Japan, Australia, Korea Online

India, Vietnam, Malaysia, Indonesia In-home

8 Key Markets

India, Vietnam, China, Japan,Malaysia, Australia, Korea &

Indonesia

8 Key Markets

India, Vietnam, China, Japan,Malaysia, Australia, Korea &

Indonesia

3 Priority Markets

India, China & Malaysia

3 Priority Markets

India, China & Malaysia


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Selected Shopper Profiles

Aged 18 24 Single or married

without children

Young Singles & Couples

Single or married Kids between4 12 years old

Mums with Kids 4 12 yrs

Key Focus on


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Covered Channels

Hypermarkets/Supermarkets

Pharmacies/Drugstores

Provision Shops/Mom & Pop Stores


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Explored Categories

Supplements

Vitamin/Energy Drinks/Heath Supplements

TreatmentsAntiseptic Cream/LiquidsAnalgesic/Painkillers Indigestion Remedies

Medicated Skin Treatment

Rubs/Balms

Petroleum JelliesCough Lozenges/SweetsBandages & Dressings

OTC Supplements & Treatments

Food

Cereal

Beverages Milk Health Food Drinks Fruit Beverages

Cultured Milk Drinks

Yoghurt Drinks

Not covered in Pharmacies due to low

availability in certain markets

Health Food & Drinks

Hair Care Skin Care (Facial Care) Oral Care

Body Care Cosmetics

Beauty

Biscuits Crisps & Chips Chocolate Products

Candies & Sweets Chewing Gum

Bakery Snack Products

Not covered in Pharmacies due to low

availability in certain markets

Snacks


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Tracing the shoppers Purchase Decision Journey

Eye on Asia Retail

Takes a close look at the Asian

shoppers Purchase DecisionJourney to understand:

Attitudes and behaviour acrossdifferent countries and shopping

channels

Their needs, motivations andaspirations while shopping forspecific categories

Role of in-store communications

Need

Purchase

Pre-PLANNINGPre-PLANNING1

CHOOSING a StoreCHOOSING a Store2

WALKING into theStore

WALKING into theStore3

VISITING the AISLEVISITING the AISLE4

Getting the BRAND inthe BASKET

Getting the BRAND inthe BASKET5


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1. Its not a store. Its a school.


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2. Two-thirds of final purchase choices are

made in-store.


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3. We dontlisten to whatthe consumer

REALLY wants


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4. 59% of all purchase decisions are made beforeentering the store and these are NOT driven by

brand equity


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5. People dont like shopping with their kids


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6. Advice is appreciated as long as the

staffs approach is non-intrusive


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7. Asian shoppers visit stores not just for productsbut also for the experience.


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Indians claim tospend an average

of 30% more thantheir budgeted

amount each timeon non shopping

list items.

8. The shopping budget is in the brands hand


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9. Almost half of the promotions donein-store are wasted


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10. Consumers only like promotions that make

them feel like a heroes


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THE

EYE

-SIGHTS


2. Two-thirds of final purchase choices are made in-store.

3. We dont listen to what the consumer REALLY wants

4. 59% of all purchase decisions are made before entering the store andthese are NOT driven by brand equity


6. Advice is appreciated as long as the staffs approach is non-intrusive

7. Asian shoppers visit stores not just for products but also for theexperience.

8. The shopping budget is in the brands hand

9. Almost half of the promotions done in-store are wasted

10. Consumers only like promotions that make them feel like a heroes


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KNOWLEDGE IS THE FOOD OF THE SOUL

Plato, Greek philosopher


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CONFESSIONS

I get to test, to taste, to ask, tofind out more.

I can take my time to slowly readthe information, to make sure that Iget what I want. I can also compareall the products before deciding. Indian shopper

All the products are here, so I cancompare and learn more about

this type of product. Comparing isreally easy here. Chinese shopper


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D

ISCO

VERIES

Comparison is not just aboutprice alone. Asians are closely

looking at product specifics and

other product information.

Shoppers need to feelsmarter when making

a choice.


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D

ISC

O

V

ER

IES

60% of Indian shoppers are spending an average of 25minutes in store; browsing and comparing brands

Base: India respondents

I selected my product quickly

just grabbed it and went

I spent a bit of time

comparing products before I

made my decision

I spent a lot of time browsingmany products before I made

my decision

LEVEL OF BROWSING CATEGORY


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Information drives choice.


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In stores, Asian shoppers are always looking toincrease their brand knowledge

Base: All Respondents% Top 2 Box Agree

I was actively searching for the best promo

I was actively looking for demos and advice

before I made the purchase

I was on the look-out for new and different

products when I was browsing

I was looking out for information in the store tohelp me make my purchase

Hyper/ Supermarkets Pharmacies Provision ShopsOverall Asia

Developed

Emerging

D

ISCO

VERIES


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HEALTH SUPPLEMENTS/ MEDICAL TREATMENTS BEAUTY

HEALTH/ NUTRITION FOODS & DRINKS SNACKS

Indians take time to seek information about beautyproducts because of higher usage-stakes

D

ISCO

V

ERIES


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IMPLICA

TIONS

THE STORE ACTS AS A MEDIA CHANNEL FORINFORMATION

This is an opportunity for marketers to make available

information which consumers will use at the point of decisionmaking.

Different from mass media which brings the brand into theconsideration set.


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2. Two-thirds of final purchase choices are

made in-store.


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When I see something newoffered by another brand, I try it. Chinese shopper

I keep a brand in mind but I buy

the brand that gives me value asthis would help my familys kitty. Indian shopper

I look around the store for what

intrigues me viasamples/posters. And if they seembetter, then I will purchase that. Japanese shopper

CONFE

SSIONS


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9 7 3

3939

35

52 5563

Asia Asia Asia (Emerging Markets)

YES - I know exactly whatbrand I wanted to buy

YES - Had more than onebrand in mind, but waited

to make f inal decision atdisplay

NO - Didnt know at allwhat brand I wanted until I

saw the display

Base: All Respondents (Asia Level)

LEVEL OF BRAND PRE-PLANNING

LEVEL OF CATEGORY PLANNING

Hyper/Supermarkets Pharmacies Provision Shops

Before entering the store 52 64 66

After entering the store 48 36 34

D

ISCO

V

ERIES

73% 65% 59%Total % choicesmade in-store

Two-thirds of final purchase choices are made

in-store, more so in Hypermarkets/Supermarkets


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D

ISCO

VERIE

S

Before entering the store 79 86 84

After entering the store 21 14 16

Total %

LEVEL OF BRAND PRE-PLANNING

34 33 29

Indians are more sure than Asians about the brands theywant to buy


Yes I knew exactly whatbrand I wanted to buy

Yes I had more than onebrand in mind, but was

waiting to make the final

decision at the display

No I didnt know at all

what brand I wanted until Isaw the display



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This behavior is also true for high involvement categorieslike OTC & Beauty

35% shoppers confessed tobuying an OTC branddespite not having it on theirshopping lists.

At what stage did you decide to buy or lookat the section in the store?

D

ISCO

V

ERIES


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The factors that influence choice

Main Reason

Total Reasons

OTC Supplements &

Treatments Beauty Health Food & Drinks Snacks

Base: All Categories * Overall Level (All 3 Channels Combined) (Total Asia)

PURCHASE DECISION HIERARCHY

Shopper choice is based on more than brands; product specifics, price

play an important roleD

ISCO

V

ERIES

n


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IMPLICATIONS

Brands need to keep their consumers hooked with constant

information and innovative ideas/engagement

The choice factors differ within categories

EVEN PREFERRED BRANDS ARE CONSTANTLY VULNERABLE


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3. We dontlisten to whatthe consumer

REALLY wants


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Asians spend an average of 37 minutes in-store

OverallAsia

Australia Japan Korea China India Indonesia Vietnam Malaysia

52 35 39 65 65 36 83 49 64

Hypermarkets/ Supermarkets

Pharmacies

Provision Stores

Average Time In-Store

(in minutes)

Base: All Respondents

OverallAsia

Australia Japan Korea China India Indonesia Vietnam Malaysia

25 18 19 21 27 18 57 20 27

OverallAsia

China India Indonesia Vietnam Malaysia

23 27 20 33 18 22

But what do they spend time on

DISC

OV

ERIES


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Different strokes for different folks!Indians prefer on-pack information

Chinese like trial packsIndonesians read leaflets/brochures

Malays and Vietnamese enjoy product demos!

OverallAsia Australia Japan Korea China India Indonesia Vietnam Malaysia

Trial packs 16 14 22 14 39 2 6 15 12

Product demonstration/ being able to try the product 13 6 7 20 13 2 4 21 21

Leaflets/ brochures about products 12 10 7 14 14 6 35 6 19

Information on the product packaging 11 15 3 9 1 36 10 10 7Signs and posters giving product information 9 10 22 6 7 6 18 5 5

New/ special display 7 10 14 6 5 2 7 4 5

Advice from friends and family I shop with 6 2 5 8 7 14 9 3 4

In-store TV demonstrating product benefits 6 2 3 2 3 8 1 20 9

Advice from salesperson/ staff 5 1 2 9 2 12 3 6 2

Advice from healthcare professional 3 2 0 1 3 9 2 1 5

Information from pre-store research (e.g. online, catalogue) 3 4 1 6 4 0 0 1 0

Advice from storekeeper 1 0 0 1 2 4 2 4 0Games, contests, and interactive events 1 1 2 1 0 0 2 5 0

Advice from Beautician 0 1 0 0 0 0 0 0 0

MOST HELPFUL IN-STORE COMMS

MOST HELPFUL IN-STORE COMMS

Hypermarkes/Supermarkets Across Markets

DISCO

V

ERIES


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1

1

3

8

6

9

4

1

9

11

12

13

13

0

2

2

12

5

12

3

2

11

8

12

10

14

Advice from Beautician

Games, contests, and interactive events

Information from pre-store research

Advice from storekeeper

New/ special display

In-store TV demonstrating product benefits

Advice from friends and family I shop with

Advice from salesperson/ staff

Advice from healthcare professional

Signs and posters giving product information

Product demonstration

Information on the product packaging

Leaflets/ brochures about products

Trial packs

Different engagement strategies for premium and regular products:

1

2

5

7

7

10

5

2

8

12

11

10

15

1

3

2

11

5

7

4

2

21

8

9

13

10














Trial packs


Health/ Nutrition Foods &

Drinks Snacks

MOST HELPFUL IN-STORE COMMS: Regular Products

Premium Products

For example; a specialist MFD needs to educate with information while a flavourlaunch would excite the palate with trial packs

DISCO

V

ERIES


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1

1

4

3

6

6

8

7

4

10

11

10

12

14

5

1

7

3

8

7

7

7

5

11

8

6

10

13














Trial packs

Expert advice is more important for premium medical

products while trial packs work for regular beautyproducts

Regular Products

Premium Products

2

2

3

5

6

7

7

8

8

9

11

12

14

0

4

3

9

3

8

5

13

11

6

7

11

10














Trial packs


MOST HELPFUL IN-STORE COMMS:

REGULAR VS PREMIUM PRODUCTS

Health Supplements/

Medical Treatments Beauty

DISCO

V

ERIES


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IMPLICATIONS

THERE IS A SCIENCE BEHIND EFFECTIVE RETAILENGAGEMENT

Depending upon the country /category the brand can choose themost effective means of engagement for itself

For example, expert advice adds value to medical and health

categories and information posters work for brands in the regular

beauty products range


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Not just 10 eye-sights. But 20 more to go.

Not just a communication plan. But a retail plan.

Not just learnings. But winning strategies.


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Thank You


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4. 59% of all purchase decisions are made beforeentering the store and these are NOT driven by

brand equity


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I save and carefully select the

coupons so that I can get themaximum discount - Vietnam

I always check the store

catalogue for new products Australia, China and Malaysia

I look in the paper for thosebig discount ads India

CONFESSIONS


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Choice begins before entering the store; brands need to be

present in the right place

DISCOVERIES


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IMPLICA

TIONS

INDIAN RETAIL HAS AN OPPORTUNITY TO EXTEND BEYONDTHE PHYSICAL SPACE

Discount coupons and store catalogues are methods effective inother Asian countries and hitherto not present in India


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My kids will pull to the toysection and we will waste a lotof timethere Malaysia

I feel stressed when myhusband & kids come alongas I cant

focus IndiaCONFESSIONS

54% Indians prefer shopping alone


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Shopping accompaniment TOTAL AUSTRALIA CHINA JAPAN KOREA India Indonesia Vietnam Malaysia

Alone 41 38 32 48 28 54 16 51 48

Spouse/ Partner 37 25 49 24 32 37 39 43 51

Other adults (17-24 years) 14 9 18 6 17 6 16 19 25Other adults (25-54 years) 20 8 29 17 31 7 22 23 16

Other adults (54+ years) 7 3 9 8 10 1 0 16 4

Child(ren) 0-3 years 5 8 2 10 4 0 6 10 3

Child(ren) 4-7 years 16 14 19 15 14 8 33 13 19

Child(ren) 8-12 years 13 16 8 18 12 9 18 3 19

Child(ren) 13-16 years 4 8 0 5 3 1 0 1 9

DISCOVERIES

54% Indians prefer shopping alone


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Walk in as a family BUT Shop & browse alone !

Shopping alone has merits relating to

freedom and self enjoyment Though he comes with me, when we

get to the super, he would go

somewhere else to buy his stuff and it is

good this way. Gives me more time to

comfortably shop

Indian Shopper


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IMPLICA

TIONS

RETAIL STORES CAN MAKE SHOPPERS MORE EFFECTIVE

There is an opportunity for kids brands to create play-sections andtherefore create empathy with the mother


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6. Advice is appreciated as long as thestaffs approach is non-intrusive


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Marcus Tullius Cicero; Roman Philosopher

Advice is judged by results,not by intentions


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CONFES

SIONS

Asian shoppers prefer to make

their own choices, reassured bythe fact that assistance is around

if they need it.


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DISCO

V

ERIES

Over 77% of shoppers seek assurance rather than invasive

assistants

1611 12

2124

27

5853

52

5 13 8

Asia Asia Asia (Emerging)

I actively seek advice

I prefer to make my own choices

but will ask if I need anyinformation

I dont tend to seek advice but am

open if approached

I dont tend to seek advice and do

not want to be approached

Hypermarkets/Supermarkets Pharmacies Provision ShopsLEVEL OF ADVICESEEKING


65% of Indian shoppers seek assurance rather than invasive assistants


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In ProvisionShops, advice from the shop owner

sought only when

Preferred products are not available

I usually take whatever the storekeeper suggests if my preferredbrand is not available.

- Indian shopper

The information about the product

is different

Health supplements are alwaysconfusing and I ask the promoterabout the goodness before

deciding to buy.

Chinese shopper

Source: Qualitative

DISCO

V

ERIES


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MOST HELPFUL IN-STORE COMMUNICATIONS: REGULAR VS PREMIUM PRODUCTS

D

ISCO

V

ERIES

HEALTH SUPPLEMENTS/MEDICAL TREATMENTS

Regular products

Premium products

BEAUTY

While advice is key for Indians; packaging is as important



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India:

Expert guidance is sought.

Advisors wear a white uniform, whichmakes them look more professional.Thus, shoppers feel comfortableasking for information.

The small spaces in pharmaciesmake browsing inconvenient, so

shoppers depend on store assistants

to get what they want.

DISC

OV

ERIES

In Pharmacies, advice is more sought after in

emerging markets than developed ones


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IMPLICA

TIONS

AT THE CRITICAL PURCHASE MOMENT, THE STORE KEEPERIS THE BRAND AMBASSADOR

For shop assistants, visibility is key they should be therewhen the customer needs to ask questions.


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7. Asian shoppers visit stores not just for productsbut also for the experience.


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CONFES

SIONS

I enjoy shopping. You can seedifferent things in the market.

Indian shopper

Its de-stressing as you get to

forget about work and enjoy yourown time strolling around in theshopping mall.

Malaysian shopper


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D

ISC

OVERIE

S

This isnt just true for hyper-markets & super-markets

Asians love experience-

shopping; where-ever itmay be

While shopping for

products consumers arealso buying fun,

relaxation, new news and

adventure



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In Hypermarkets/Supermarkets, the novelty of experiences

makes shopper moods more positive in China and Indonesia, ascompared to developed markets like Japan and Australia

Overall Australia Japan Korea China India Indonesia Vietnam Malaysia

Positives (NETT) 85 64 74 86 94 98 97 94 86Fun 48 14 49 56 42 71 68 59 42

Relaxed 39 39 19 35 59 26 80 25 57

Happy 38 25 16 21 53 70 81 32 42

Excited 23 12 7 21 40 31 37 32 17

Open to something

new 23 15 25 30 29 17 33 16 21

Adventurous 22 10 3 24 40 69 18 1 11

Negatives (NETT) 20 26 12 25 15 19 17 18 23

Monotonous 8 11 2 9 6 5 5 5 20

Rushed 6 11 6 9 5 2 3 4 2

Confused 5 1 3 10 4 4 10 7 4

Bored 4 6 0 3 7 4 3 2 3

Irritated 3 3 1 2 2 9 6 4 0


MOODS IN STORE

Hypermarkets/Supermarkets Across Markets


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Provision Shops are not far behind; Indians find theexperience adventurous

Overall China India Indonesia Vietnam Malaysia

Positives (NETT) 86 91 99 93 74 76

Fun 48 48 63 50 49 32

Relaxed 42 56 39 70 6 52

Happy 45 48 65 66 17 38

Excited 25 30 30 33 22 12

Open to something

new 20 20 20 34 8 25

Adventurous 27 35 68 13 2 6

Negatives (NETT) 27 22 24 26 28 32

Monotonous 12 11 4 6 9 25

Rushed 8 11 5 10 5 10Confused 5 2 6 14 8 2

Bored 4 2 4 4 8 3

Irritated 4 2 9 4 5 0


MOODS IN STORE

Provision Shops Across Markets


65/86

For emerging markets, promotions and the in-storeenvironment are the key traffic drivers


Hyper/Supermarkets Pharmacies Provision Stores

Overall AsiaDeveloped

Emerging

STORE DRIVERS

(TOTAL)


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IMPLICA

TIONS

CONSUMERS REMEMBER BRANDS THAT MAKE THEM FEELSPECIAL

Consumers are looking out for experiences andbrands need to create them

Hypermarkets/Supermarkets have the bestopportunities to engage with shoppers, especially inemerging markets


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If there are anything else that is

interesting, I may spend a little

more even provided it is of good

value. India

I do not much care about

how much I spend in theWatsons, since I enjoy theshopping experiences and I

dont think it will cost muchmoney there. Single

China

CONFES

SIONS


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Indians claim to spend anaverage of 30% more than

their budgeted amounteach time on non

shopping list items.

Budgets are based on arough ceiling (based on

the amount spent onregular trips)

China average : RMB100

200

Malaysia average : RM100

200

35% of the categories are planned for only after entering the


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store


LEVEL OF CATEGORY PRE-

PLANNING DISCOV

ERIES


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IMPLICA

TIONS

BRANDS CAN MAKE THEIR WAY INTO THECONSIDERATION SET DEPENDING ON THEIR IN-STORE

STRATEGIES

The retail channel deserves to be treated as abrand-development channel in its own right


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9. Almost half of the promotions donein-store are wasted


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CONFES

SIONS

I avoid brands that give me freegifts of their cheaper stuff. Nosincerity. Malaysian shopper

I dont look for promotionsbecause most of my shopping isroutine.- Indian shopper

62% of Asian shoppers do not buy products on


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And how much of an influence did the

promotion have on your decision to

purchase?

Referring to the products you

bought in this category, were they

on promotion?

62% of Asian shoppers do not buy products on

promotion. Among those who do, 40% are notinfluenced by the promotion D

I

SCO

V

ERIES


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Consumers like promotions but they will not buy unlessconvinced

65 61 60 62

35 39 40 38

Health

supplements/

medical

treatments

Beauty Health/ nutrition

foods & drinks

Snacks

Yes

No

43 38 41 39

57 62 60 61

I bought the product because it was on promotion

I would have bought the product anyway even if it wasnt on promotion


BOUGHT ON PROMO?

WAS PROMO A DRIVER

FOR PURCHASE?

DISCOV

ERIES

Over 50% of shoppers in emerging markets dont look for


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Over 50% of shoppers in emerging markets don t look for

promotions as they buy the same brand every time

If a well-known brand is often on promo,

I tend to doubt its quality

I dont look for promos as I prefer to buy the

same brands and products all the time

I dont look for promos as I find that with

promos the shelves are often empty


Overall AsiaDeveloped

Emerging

Base: All Respondents % Agree

VIEWS ON PROMOTIONS

DI

SCOV

ERIES

In OTC Supplements/Treatments and Beauty,


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pp / y,

having frequent promotions harms brand equity

OTC Supplements &Treatments Beauty

Health Food &Drinks Snacks


VIEWS ON PROMOTIONS DI

SCOV

ERIES

Indians & Indonesians dont look for Vietnamese and


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Indians & Indonesians don t look for

promotions because they buy the samebrands everytime

Vietnamese and

Malaysians tend to distrustbrands which are on

promotion oftenDI

SCOV

ERIES

Indians may seem like loyalists; but the exploding beauty


79/86

BOUGHT ON PROMO?

WAS PROMO A DRIVER

FOR PURCHASE?

category proves that given incentive they are willing to switch


DI

SCOV

ERIES


80/86

In India, promotions that offer free packs makeconsumers feel like they are over-indulging

Because shoppers are more focused on buyinga specific pack size and brand

DI

SCO

V

ERIES


81/86

IMPLICA

TIONS

CONSUMERS NEED TO BE CONVINCED THAT THEPROMOTION IS FOR THEIR BENEFIT AND NOT THE

MARKETERS

Choose quality over quantity

Promotions should be positioned to create a

feeling of profitability for consumers, not simply toreward shoppers


82/86

10. Consumers only like promotions that makethem feel like a heroes


83/86

I feel like its a victory when I

see how much Ive saved

Consumers feel proud when they

shop within budget and that candictate shopping behavior in

emerging markets

CONFESSIONS

20% discount on price the most attractive promotion for all Asiansexcept India


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PromoTOTA

LAUSTRALI

ACHINA JAPAN KOREA India Indonesia Vietnam Malaysia

20% price discount 16 21 13 25 15 8 18 15 16

20% extra product free for the regular price 7 3 5 4 5 8 5 11 10

Buy two packs get one free 9 10 7 5 9 10 11 10 11

Buy one and get a different product free 8 7 11 5 15 5 8 9 3Free gifts 5 5 8 2 5 3 8 4 6

Coupons cut out from newspaper/magazine and get discount

1 0 3 2 1 1 0 1 1

Competition/ contest 0 1 0 0 0 0 0 0 0

None of the above 3 2 1 2 1 16 0 1 3

Actually 20% is only about 60 sens, but

by saying that you think it is a lot -Malaysia

Buy two get one free a sure winner in India!Specially true for F&B and Snacks


85/86

Promo TOTALHEALTH SUPPLEMENTS/MEDICAL TREATMENTS

BEAUTYHEALTH/

NUTRITION FOODS& DRINKS

SNACKS

20% price discount 16 18 14 15 15

20% extra product free for the regular price 16 19 18 11 11

Buy two packs get one free 19 15 18 21 25

Buy one and get a different product free 11 7 10 18 10

Free gifts 6 5 5 6 6

Coupons cut out from newspaper/magazine and get discount

1 1 2 2 0

Competition/ contest 1 1 1 1 0

None of the above 32 34 32 25 33

It is a good price for something that I had

wanted to buy anyway. So I feel niceabout it India

DISCOV

ERIES


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IMPLICA

TIONS

CONSUMERS NEED TO FEEL AS IF THEY HAVEEARNED/DISCOVERED A DEAL FOR THEM TO BE

INTERESTED IN PROMOTIONS

eor for india retail forum bindu sethi

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