In 2018 the insurance sector spent nearly $79 million in New Zealand on advertising to reach potential insurance buyers. Whether it is car, contents, house, life, medical, travel or other insurance, 2,861,000 New Zealanders aged 20+ hold at least one insurance policy.
While the 2018 census data isn’t due for release until 2019, marketers should be prepared to answer two key questions - “are we adjusting to the changing needs of our target market? and how do we acquire new customers that are gaining relevance in NZ?”
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.
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 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.
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.
As manufacturers and retailers seek to capitalize on the opportunity of e-commerce, they need to understand consumers’ online usage, behaviour and habits, as well as what’s driving e-commerce adoption.
E-commerce is a tremendous growth opportunity for the Australian grocery sector. While currently only representing 3.8% of dollar sales for the grocery channel, online has grown by more than 30% over the past year and is expected to contribute up to 30% of total grocery growth by 2020. The number of online shoppers has also increased to nearly 30% of the population (up from 18% in 2017) as more Australian consumers become accustomed to anywhere, anytime shopping.
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.
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.
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.
Online New Zealanders now spend close to half a standard working week (18 hours) getting their digital fix, up from 15 hours in 2015. Accessing the internet from a mobile device is now well and truly commonplace for nearly 8 in 10 (78%) online Kiwis- up from 65% in 2015.
Australian manufacturers need to think hard about where and how they are going to place their bets in 2018. We are a market that has collectively become accustomed to high growth. At the turn of the century (2000-2009), the industry enjoyed 6-7% dollar growth; while this decade recorded 3-4% average growth. Today, we are facing a different reality. In 2017, grocery dollar growth hit 1.3% - the lowest in two decades.
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.
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?
The news that Amazon is coming to Australian shores has the local retailing community set for something of a shake-up; and the pharmacy sector is not immune to the imminent disruption. In January 2017, 38% of Australians were aware of a potential Amazon launch, this increased to 47% by March 2017.
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.
As the e-commerce channel expands, the future success of brands will be significantly affected by how successful they are online. As increasingly time poor consumers seek convenience and on-the-go purchases, online sales of FMCG will gain more importance.
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.
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.
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.
Nine million Australians say they have travelled domestically in the past six months or internationally in the past 12 months. But are all travellers the same? Using Nielsen research, we identified six distinct types of Australian travellers and looked at how best to reach and engage each group.
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.
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.
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.
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.
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.
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.
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 $2billion of incremental sales into the Australian grocery industry over the next five years.
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.