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shopper trends
Shopper Trends 2012Romania
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shopper trendsCopyright © 2012 The Nielsen Company. Confidential and proprietary.
• ShopperTrends unveils the important
factors for developing retailer
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• By asking what consumers do, know
and think about retailers, we find out
what are the influencers in
choosing the stores.
• The findings from ShopperTrends are
widely used by retailers to shape
their growth strategies
ShopperTrends- study available in over 50 countries
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shopper trendsCopyright © 2012 The Nielsen Company. Confidential and proprietary.
Research Methodology in RomaniaNielsen | Winning Brands
� Target respondents
� Sampling
� Interview Methodology
� Sample size and
structure
� Data collection period
Main household products shoppers* (main grocery shoppers and key influencers for household monthly shopping), aged 18-65 years
Random selection with quotas for age and gender
The sample is representative on national level for the urban population in large cities (above 200.000 inhabitants) and in medium cities (between 50,000 and 200,000 inhabitants).
Face-to-face home interviews
1.200 respondents
- 300 interviews in Bucharest
- 100 interviews in every of the following cities: Iasi, Cluj Napoca, Timisoara, Constanta, Brasov, Ploiesti
- 60 interviews in every of the following cities: Arad, Tg. Mures, Rm.Valcea, Piatra Neamt, Targoviste
October - November 2011
*Main Shopper: The person in the household who is mostly responsible for most of the food, grocery, and personal care shopping.
**Key Influencer: The person in the household who is not most often doing the household shopping, but who frequently buy food, grocery and personal
care items for the household or actively participate in the decision-making.
shopper trends
Market Context
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shopper trendsCopyright © 2012 The Nielsen Company. Confidential and proprietary.
Market Context - Summary• After 2 years of significant and continuous decrease in consumers' confidence, Romanians recorded
their first rebound explained by a slightly better view on their personal income and shaped also by a better perception on their readiness for buying things. Both better perceptions are due to improved income levels - average salary increase was in November higher with 8% vs. last year, income growth rate increased 5 times at the end of 2011 versus 2010 (from 1.3% to 8.7%), while inflation significantly decreased (from 7.96% in December 2010 to 3.14% in December 2011). At the same time, the end of the year was positively influencing consumers willingness to spend more... 'moving' the Consumer Confidence Index back to a little higher position than in Q4 2010 (CCI of 54). However, the overall Romanian consumers' confidence remains conservative, lower than European and global average, as only one quarter of the consumers have positive perceptions on their financial state, in an environment of increasing prices and political confrontations.
• In 2011 the perception about the increase of food prices is even stronger than in 2010. More than 4 in 5 shoppers consider that food prices are increasing in Romania
• Smaller traditional trade formats continue to struggle through 2011, being more and more affected by the ascension of the modern trade sector.
• The modern trade sector continued its growth both in terms of shopper engagement and revenue but also when it came to network development, as more than 100 new stores opened their doors during the past year.
• While in 2010 the growth engine was represented by supermarkets, discounters are making a powerful comeback taking the lead with more than 60 new openings in 2011.
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shopper trendsCopyright © 2012 The Nielsen Company. Confidential and proprietary.
Nielsen Consumer Confidence Index - Europe
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shopper trendsCopyright © 2012 The Nielsen Company. Confidential and proprietary.
In 2011 income levels improved – the average salary increase was in November higher with 8% vs. 2010, income growth rate increased 5 times at the end of 2011 vs. 2010 (from 1.3% to 8.7%), while inflation significantly decreased (from 7.96% in December 2010 to 3.14% in December 2011).
Inflation
Evolution of Net Wages
*In October as compared to October 2010
Source: INS
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shopper trendsCopyright © 2012 The Nielsen Company. Confidential and proprietary.
Perceived dynamic of food prices
In 2011 the perception about the increase of food prices is even stronger than in 2010. More than 4 in 5 shoppers consider that food prices are increasing in Romania.
Base: All respondents 2011 (n=1200) 2010 (n=1200)Significantly higher at 95% confidence level
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shopper trendsCopyright © 2012 The Nielsen Company. Confidential and proprietary.
Shoppers reaction to Food prices rising
Base: All respondents who perceived food prices as growing (n=1019)
More than half of the shoppers who consider that food prices have increased resorted to buying only the essential products and giving up high price products in order to meet their budget.
Significantly more women (30%) declare
be more active in looking for special
offers than men (24%)
shopper trends
Shopping Behavior
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shopper trendsCopyright © 2012 The Nielsen Company. Confidential and proprietary.
27%
44%
39%
21%
34%
34%
1%
1%
Base: All respondents (n=1200)
7%
30%
28%
44%
47%
13%
13%
7%
1%
5%
1%
3%
Daily
Weekly
Every 2 weeks
Every month
Less Often
2 to 3 time a week
Weekly
Every 2 weeks
Every month
Less often
Frequency of Main grocery shopping Frequency of Top Up/Intermediate Grocery Shopping
More shoppers do their main grocery shopping weekly in 2011 than in 2010. However the frequency of top up/intermediate grocery shopping is almost unchanged.
2011
2010
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shopper trendsCopyright © 2012 The Nielsen Company. Confidential and proprietary.
24% 25% 26%
55% 56% 56%
19% 19%21%
Nov 2009 Nov 2010 Nov 2011
I seldom try new things - I find it is farbetter to know what you want ratherthan risk buying something that maynot work out
I sometimes buy new brands orproducts - but usually stick to myfavourites
I love trying new things - I'm always onthe lookout for new brands andproducts
Adoptiveness
2011 did not bring any changes in the level of adoptiveness displayed by Romanian
shoppers, as they continue to have a more reserved approach in general.
Base: All respondents (n=1200)
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shopper trendsCopyright © 2012 The Nielsen Company. Confidential and proprietary.
94%
91%
84%
82%
80%
80%
79%
77%
76%
66%
65%
64%
61%
59%
50%
45%
6%
9%
16%
18%
20%
20%
21%
24%
24%
35%
36%
36%
39%
41%
50%
55%
I a lw a ys p re fe r to sh o p in a w e ll o rg a n ize d g ro c e ry sto re w ith a p le a sa n t
a mb ie n c e
I re a lly e n jo y d o in g th e g ro c e ry h o u se h o ld sh o p p in g
I u su a lly p la n w h a t I w a n t to b u y b e fo re I sh o p fo r g ro c e rie s
I c a re a b o u t q u a lity a n d I a m w illin g to p a y mo re fo r q u a lity p ro d u c ts
I lik e to ta k e my time a n d b ro w se a ll p a rts o f th e sto re
I a lw a ys ta k e a d v a n ta g e o f a sp e c ia l o ffe r o r d e a l to sto c k u p o n my
e v e ryd a y g ro c e ry ite ms
I u su a lly ma k e a p o in t o f lo o k in g a t c irc u la rs a n d c lip c o u p o n s o n g ro c e ry
p ro d u c ts
A lth o u g h I p la n w h a t I w a n t to b u y b e fo re h a n d , I u su a lly e n d u p b u yin g
a d d itio n a l g ro c e ry ite ms o n c e in -sto re
I u su a lly c o mp a re th e p ric e s o f sto re b ra n d s w ith le a d in g b ra n d s to d e c id e
if th e y a re w o rth b u yin g
A n yth in g th a t sa v e s me time is w o rth p a yin g e xtra fo r
Wh e n sh o p p in g fo r g ro c e rie s, c u sto me r se rv ic e is v e ry imp o rta n t to me
I ma k e a re a l p o in t o f b u yin g h e a lth y o p tio n s
I h a v e a stric t b u d g e t fo r h o u se h o ld g ro c e rie s a n d o n ly b u y th e g ro c e ry
ite ms th a t I n e e d
I ma k e a re a l p o in t o f b u yin g p ro d u c ts th a t a re frie n d ly to th e e n v iro n me n t
I g o to a lo t o f e ffo rt to b u y my g ro c e rie s a t th e lo w e st p ric e s
I u su a lly stic k to my p la n w h e n g ro c e ry sh o p p in g
Yes
No
I always prefer to shop in a well organized grocery store with a pleasant ambience
I usually stick to my plan when grocery shopping
I go to a lot of effort to buy my groceries at the lowest prices
I make a real point of buying products that are friendly to the environment
I have a strict budget for household groceries and only buy the grocery items that I need
I make a real point of buying healthy options
Anything that saves me time is worth paying extra for
I usually compare the prices of store brands with leading brands to decide if they are worth buying
Although I plan beforehand, I usually end up buying additional grocery items once in-store
I always take advantage of a special offer or deal to stock up on my everyday grocery items
I like to take my time and browse all parts of the store
I care about quality and I am willing to pay more for quality products
I usually plan what I want to buy before I shop for groceries
I really enjoy doing the grocery household shopping
Base: All respondents (n=1200)
Attitude towards buying grocery products
When shopping for groceries, customer service is very important to me
I usually make a point of looking at circulars and clip coupons on grocery products
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shopper trendsCopyright © 2012 The Nielsen Company. Confidential and proprietary.
Gender
Age by gender
60% 40%
Females Males
Base: All respondents (n=1200)
Shoppers’ Profile
Significantly higher at 95% confidence level
The proportion of men and women shoppers remained almost unchanged from 2010. However, when it comes to the age splits within each gender, it seems that in 2011 males aged 25 to 34 were more involved in the shopping decisions than in the previous year.
2010 59% 41%
2010 18% 33% 34% 15%
2010 20% 29% 34% 18%
shopper trends
Price & Promotions
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shopper trendsCopyright © 2012 The Nielsen Company. Confidential and proprietary.
Preferred Promotions
Price reduction is by far the best preferred promotion by shoppers who declare to be influenced by promotions.
Base: All respondents who declare to be influenced by promotions (n=922)
59
28
4
4
14
38
18
10
3
7
3
8
9
11
22
23
4
2
20
3
1
2
1
1
6
Price off
Buy one get one free
Buying one product and getting another
different product for free
Get an extra quantity (20-25%) for the same
price
Instant prizes
Opportunity to collect points
Competition entry into prize draw
Pack of 4 / 6 / 8… with a special price per
unit
Finding presents inside the pack
1st preference 2nd 3rd
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shopper trendsCopyright © 2012 The Nielsen Company. Confidential and proprietary.
Price Awareness
Romanian shoppers declare to be quite aware of the prices for the items they buy regularly. About 3 in 5 declare to know the prices for most if not for all the prices for the items bought regularly.
Base: All respondents (n=1200)
8% 7% 8%
32% 31% 33%
38% 40%44%
23% 21%16%
Nov 2009 Nov 2010 Nov-11
Know all the prices of itemsbought regularly
Know prices of most itemsand notice when pricechanges
Don’t know all prices but donotice when prices change
Don’t know or notice prices
shopper trends
Private Labels
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shopper trendsCopyright © 2012 The Nielsen Company. Confidential and proprietary.
The perception of the quality of the store is even more reflected in the perception of the quality of the Private Labels in 2011 than in 2010. Almost 3 in 4 respondents
agree that the better the store the better the PL is going to be.
Base: All respondents aware of PL (n = 1067)
63
64
66
68
66
58
54
54
52
72
71
68
65
63
60
59
55
55
Generally, the better the store the better the Private Label is
going to be
I usually compare the price of Private Labels with leading brands
to decide if it is worth buying
Private Labels may be cheaper but overall manufacturer branded
products are better value for money
Private Label packs look just as good as manufacturer branded
products
Private Label quality is generally just as good as the quality of
leading brands
I feel better about buying manufacturer branded products for my
family rather than Private Labels
I think Private Label are for those with serious tight budget
I don't know enough about Private Labels to consider buying
them instead of my usual brands
If someone buys a lot of Private Labels, I think they made the
smart choice
% Agree 2010 (Nov) % Agree 2011 (Nov)
+
Significantly different compared to Nov 2010
+
PL brands are considered as…
shopper trends
Store Selection &Spending on Grocery
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shopper trendsCopyright © 2012 The Nielsen Company. Confidential and proprietary.
Where do people spend the majority of their grocery budget?
2010 2011
22%
50%
21%
55%
Supermarkets
Hypermarkets
2009
19%
53%
Slightly increasing in importance, people continued to spend the majority of their grocery budget in Hypermarkets.
Base: All respondents (2009 n=1200, 2010 n=1200 , 2011 n= 1200)
4% 2%Cash & Carry 5%
18% 17%Discounters 16%
6% 3%Traditional 6%
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shopper trendsCopyright © 2012 The Nielsen Company. Confidential and proprietary.
45
2
43
21
1011
65
334
2
4
2
20
9
11
65
32
45
2
43
18
10
65
32
11
HypermarketSupermarket Cash &
Carry
Discounter Petrol
station
Bakery Kiosk Traditional
Grocery
Open
market
Vegetable
vendor
Butcher Modern
Pharmacy
2009 (Nov) 2010 (Nov) 2011 (Nov)
In 2011, the visiting frequency for hypermarkets and supermarkets increased slightly, showing signs of market improvement, while the traditional trade struggled to maintain the same rhythm as in previous years.
Large Modern Trade
SCALE: Once a day (30) – Once a week (4) – Less often than once a week (0,5)
Base: All respondents ( Nov 2009 n=1200, Nov 2010 n=1200, Nov 2011 n=1200)
Average Frequency of Visits per Month
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