Corporate responsibility and sustainability strategies can take many different forms depending on the individual retail sector, but one thing is clear: consumers are using their spending power to influence the change they want to see on environmental issues.
The online grocery sector in Australia has shown strong growth as the level of trust, ease and willingness to purchase increases among online shoppers. When looking at countries that have shown the biggest percentage increase in online shoppers for fresh groceries over the past year, Australia ranked fifth.
My experience with the orange pack of biscuits is typical of how shoppers interact with product packs. Packs catch the shopper’s attention at the “Zeroth moment of truth”—when the shopper is in front of a screen. They then catch the shopper’s attention in front of the shelf—that’s the “first moment of truth”—where most purchase decisions are made.
Fast-moving consumer goods and GDP growth in Q4 2018 was strongest in Asia-Pacific, and consumers in the region feel the best globally about their financial well-being. Comparatively, only 37% of consumers in Europe believe their conditions have improved over the past five years.
The Australian grocery sector continues to wade through a prolonged period of low growth. There are still opportunities to turn this around, however, by tapping into growing consumer demand for items on both ends of the price spectrum - value and premium.
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.
Now more than ever, brands are “taking stands”—challenging the status quo, and their competitors. It’s a popular phrase, and an evolving idea in today’s social and political moment, not to mention over the past decade as corporate responsibility and sustainability has risen in prominence to the C-suite and beyond.
Online grocery, which currently accounts for 3%-4% of total grocery sales in New Zealand, continues to drive growth, and we expect that growth to accelerate in 2019 as retailers meet rising consumer demand with the continued rollout of their e-commerce programmes.
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.
It’s rational that shoppers would be willing to pay more for a product that is of a higher demonstrated quality or value, but there is also a more subjective component that factors into many shoppers’ ideas of what premium means.
Christmas is an important time of year for the alcohol industry in the U.K., as off-trade alcohol sales over the 12 weeks of Christmas account for around a sixth of all Christmas fast-moving consumer goods (FMCG) sales and a third of total annual off-trade alcohol sales.
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.
One of the biggest is that small start-ups are generating 53% of the growth and cutting into the share of established manufacturers. And so FMCG manufacturers of all sizes are looking to the successful start-ups for inspiration on how to be more agile, but is it that simple?
Households who purchased for the first time accounted for 21.6% of Australian online grocery growth for the year ending 6 October 2018. Compared to the rest of the population, these new online buyers are more likely to spend on health and beauty products and pet supplies online.
To do it right, companies need to invest in truly understanding their consumers and embed sustainability into their brand’s foundation. Authenticity comes through the end-to-end integration of sustainability into your processes and complete transparency with consumers along the way.
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.
Seasonality has a huge impact on OTC sales performance, and although it varies by category, 60% of sales are subject to this. We, of course, associate summer with hay fever and allergies; however, lots of other categories also enjoy the seasonal uplifts that come with summer.
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.
A recent Nielsen article found that New Zealand grocery shoppers are some of the most promotionally-driven in the developed world. Almost six in every ten dollars spent on groceries in the supermarket channel are sold on promotion. The estimated retail sales value of discounts applied to products that generate little incremental sales was almost half a billion dollars. For specialist liquor stores, this number is around $160 Million annually.
Competing in the beverage categories is a tough business. Shelf space is limited; shoppers buy beverages for various needs and motivations; and they are faced with an abundance of choice. Keeping a close eye on consumer needs, as well as on the performance of like-categories, can avert falling behind in the beverage game.
Generally speaking, global conditions for the FMCG industry remained positive in second-quarter 2018. Some regions showed significant growth promise, while others showed a slight pullback from gains earlier in the year. With many markets experiencing notable increases in GDP growth, conditions were favorable for manufacturers and retailers.
Affluence, a calculation based on income, number of children and household size reveals a lot about purchasing power. But how does affluence affect how many vegetables Australians eat? Can Australian shoppers reach their “two and five a day” on any budget?
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.
Protein - a compound that builds and repairs muscle tissue - is driving a health food craze sweeping the globe. With demand and interest increasing, the opportunity for manufacturers to boast their products’ protein content and drive growth is large.
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.
Convenience retailers and Manufacturers have a huge opportunity to tap into the needs of time-poor, health conscious shoppers in New Zealand. To realise this opportunity, we need to know what these shoppers’ motivations are. Are they aspiring to be healthy, or are they truly healthy people?
From a global perspective, conditions and prospects for the remainder of the year appear largely positive. In Q1, confidence grew across Western Europe, economic recovery in Latin America looks promising in key markets, FMCG sales in North America performed well, and growing disposable incomes across Asia-Pacific are having an effect beyond the immediate region.
A hot summer has sparked a rise in sales for both beer and wine in New Zealand. Over the 16 weeks to 25 February 2018, beer generated almost $379.3 million in sales across supermarkets and liquor stores - an increase of 6.3% ($21.3 million) on last summer.
The traditional channels and your traditional consumer will most likely not be where your growth will come from in the next few years. Despite facing the lowest growth environment we have had in decades, the opportunity for growth is there if we think small.
We expect lifestyle, the “little and often” trend, technology and location to be four of the key influencers on shopper’s behaviour in 2018, which, if executed well, will be true foot traffic drivers for c-store retailers.
Over the past 12 months, fresh salad sales have soared compared with the previous year, up 10.6% in dollar sales in Australia. Examples of fresh salad include serving size lettuce bags and premade salad mixes.
We love our carrots, with 94% of Australian households purchasing this staple every year. While most shoppers purchase standard carrots, some are also purchasing specialty carrots, giving consumers more reasons to buy the category and creating new pockets of growth.
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.
2017 was a good year for global consumers, with consumer confidence ending the year at a near-record level. Notably, 51 markets finished the year with higher confidence than they did in 2016, and the gains were bigger than 2 points in 46 markets.
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.
Consumers today have access to a wider array of products than ever before thanks to globalisation and connectivity. So when it comes to country of origin, just how much does being a 'local' or 'global' brand influence the purchasing behaviour of consumers in Australia and New Zealand?
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.
When it comes to alcoholic beverages, Baby Boomers (Australians aged 55+) are a segment not to be ignored. Compared with the overall Australian 18+ population, this important demographic segment certainly enjoy a drink, with more than two-thirds saying they have consumed an alcoholic beverage in the past month, compared to just over half of Millennials (aged 18-34) and 64% of Gen X (aged 35-54).
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.
With summer just around the corner Down Under, you’d think Australians would be gravitating toward healthful diets packed with fresh fruits and vegetables. Last year, however, total consumption of fresh produce actually declined.
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.
Authentic Italian grocery brands are growing in popularity. In some categories, products made in Italy have enjoyed strong sales gains over the past year driven by a rise in the number of Australian shoppers spending more on these brands. Despite this, category share for these brands is still relatively low - highlighting significant opportunities for expansion.
The market for dairy products is highly saturated, and driving new growth can prove challenging. However, Nielsen research shows that consumers who purchase cheese on a weekly basis have a very distinct profile and appealing to this group of cheese lovers could uncover new growth opportunities.
On-the-go Kiwi consumers want their meals to be quick and convenient. Over the past year we’ve seen big increases in those who eat on the run (+22%) and buy take-away food to eat at home (+25%). For those with limited time, meal kits and prepared meals are proving to be invaluable.
In the lead up to Father’s Day this year, partners and children across the country will no doubt be racking their brains to pick the perfect gift for dad. Nielsen research reveals that millennial dads (aged 18-34) are a particularly different breed of dad compared to their older counterparts, with lifestyle and aspirations of this age group having evolved notably over the past few years.
Nielsen’s latest consumer confidence results for the second quarter of 2017 reveals Australian and New Zealand consumers paint a very different picture of their future outlook. New Zealand continues to ride its wave of positivity with a consumer confidence score of 103, the highest it has been in nine years. Australia, on the other hand, recorded a consumer confidence score of 89 - well below the global average of 104.
Advertising campaigns that resonate in the minds of consumers are hard to find. Encouragingly, understanding frequency - the number of times consumers see a campaign - has a demonstrated impact on resonance, and can ensure brands maximise their digital spend.
Australians love seafood. And while most of us already purchase seafood, there is still an opportunity to encourage more consumption, and grow the category further with innovation that caters to consumers’ evolving needs and tastes.
For on-the-go Aussie consumers with limited time between the end of the workday and dinner time, food boxes and prepared meals are invaluable. Delivered directly to households, food box meal kits include portioned ingredients and easy to follow instructions, allowing consumers to skip extensive meal preparation and dive right into creating their meals.
FMCG success today is now dependent on quality product images, solid SEO and prominent placement on e-tailer websites—far more so than simply having an abundant quantity or variety on the shelf at the local store.
Marketing teams strive to show how their smarts and silver deliver Return on Investment (ROI). Some global brands are looking for efficiencies by centralising marketing teams and exploring the merits of wider Pacific campaigns - so how alike are we to our Aussie neighbours and what are the differences to watch out for?
While unexpected by many, the Amazon-Whole Foods linkage highlights just how profoundly consumer expectations are changing with regard to food and beverage shopping—and will continue to do so moving forward.
Premium purchases are not just made in glamorous, luxury product categories. In the Pacific, it is the grocery sector that has the most premium potential. Consumers are trading-up everyday products in their shopping trolleys; and marketers can capitalise on premiumisation trends and consumers’ willingness to consider a higher price tag in key categories.
Unbeknownst to most consumers, tremendous thought goes into developing even the most commonplace products. As a result, product development in the FMCG industry is anything but fast-moving. But what if algorithms could help streamline the process and the outcomes?
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?
Ethnic-Australians’ spend on FMCG retailing is growing at a faster rate than their Australian-born counterparts. In the next five years, this important group of consumers will contribute a total of $18.7 billion (or 28%) in sales for the grocery sector. This represents an increase of $4.4 billion in incremental revenue, with Asian-born consumers making up 57% of this growth.
Innovations in the U.S. liquor market are creating new avenues for growth; and there are a number of key trends that New Zealand can learn from to boost local liquor sales. Danny Brager, Senior Vice President of Nielsen’s Beverage and Alcohol Practice presents the latest Beer, Wine, Cider and Spirits trends.
You’ve heard it a million times – you need to eat more vegetables, particularly your greens. In Australia, this adage appears to be ringing true. Nielsen Homescan data showed that volume sales for Asian vegetables jumped by 22% versus the previous year, while dollar sales jumped by 17%.
Over the past year, growth in the pharmacy channel has moderated substantially - to just below 1%. However, strong performance in other, smaller pockets of the store - including infant formula and cosmetics - signals positive future growth prospects in pharmacy.
When it comes to dining out or feasting on fast food, New Zealanders are certainly not afraid to try something different. Nielsen research shows that 1.4 million Kiwis eat Thai food and the number of consumers that have eaten it in the past month has increased by 17%.
Australians are willing to take to the seas with more than half (55%) considering going on a cruise. Strong growth in advertising spend from cruise operators is driving consumer enthusiasm, but questions have been raised as to whether Sydney’s infrastructure can support demand. If tour operators pull Australian ports from their routes, the current trend in advertising growth could face a sudden change in course.
Amazon’s expansion into the Australian market is expected to launch by the end of 2018. Three-in-five Australian shoppers are looking forward to buying from the (soon to be local) online retail powerhouse.
Aussie consumers are still bananas for bananas. It is the nation’s most popular fruit. Nine-in-10 Australian households purchased bananas in the year ending 24 February 2017 and total volume sales grew by 7.5% during this period.
Australians are big fans of the humble, yet versatile, cauliflower. In 2016, dollar sales for cauliflower increased by 12% on the previous year - and while this was partly driven by higher prices - consumption also continued to grow at a steady pace, with volume sales up by 2% on 2015.
China, with its huge population and increasing affluence, is a very lucrative market for companies and brands in the Pacific. The Demand Institute, projects that consumers in China will spend $56 trillion over the next decade, with a largely young, affluent, connected consumer base with disposable incomes leading the charge.
As we head into the winter months, Australians aren’t slowing down on purchasing their favourite frozen dessert, ice cream. The category has experienced diverse product innovation and creativity, with a broader range of products now available to consumers.
It’s no secret that consumers are increasingly connected online, both in-and-out-of the home. In fact, eight-in-10 Australians now own a smartphone, and six-in-10 use this device to connect daily. Whether they are grocery shopping, watching sport, studying, commuting to work or connecting with friends - these activities are no longer purely offline experiences.
New Zealand consumer confidence index reached 103 in the fourth quarter of 2016 – the highest score in nine years (since Q3 2007 where it reached 115). The index represents a two point increase from Q3 2016 and a four point increase on a year ago (Q4 2015).
Online retailing giant, Amazon, is set to shake things up in the Australian retail jungle when it launches in September 2017; with talks of it offering a completely new grocery shopping experience in the way it integrates physical stores with online ordering.
Whether it is driven by lactose intolerance, allergies, veganism, the paleo diet, or just general health and wellbeing, it appears New Zealanders are exploring emerging alternatives to traditional white milk.
December 2016 will be remembered as one of the hottest festive periods on recent record in Australia. However, grocery sales during this peak period remained cool, with just 1% growth in dollars spent during the four-week period ending 31 December 2016 compared with the same period in 2015 - well below the annual growth rate for total grocery.
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, 56% of Australians and 57% of New Zealanders say that they’ll buy from a retailer with a loyalty program over one without.
Grocery e-commerce, while still small in Australia, represents a major opportunity for retailers. Nielsen Homescan reveals that the average basket size of an online shopper is close to $100 - more than double that of the average basket shopped in a physical store.
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.
In recent years, retailers have increased their efforts in maximising the opportunities particular events and holidays can bring. In pharmacy, however, much of the channel seasonality appears to be driven by factors such as weather.
While grocery e-commerce is still relatively small in Australia - accounting for just over 2% of total grocery sales - it is growing seven times faster than the total market. We predict that online consumer spending will inject up to $2 billion of incremental sales into the Australian grocery industry over the next five years.
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.
The avocado industry has unlocked eye-popping growth in a mature category—without breakthrough innovation. Instead, avocados have grown their share of our wallets (and stomachs!) simply through significant and sustained investment in marketing and promotion.
Where growth is being driven (or declining) from can vary considerably by retailer and understanding the differences can help improve your category’s performance. Taking the craft beer boom as an example, we see how different market dynamics can be between banners.