Despite inflationary heat affecting many of our wallets, fresh foods continue to maintain healthy sales contributions at retail. In fact, fresh foods can comprise between 30-60 percent of total food, grocery and personal care expenses on average, depending on country and type of fresh product. Let’s face it, fresh foods are high-traffic volume boosters. They are a staple to a healthy diet, and we shop for fresh foods often.
New findings from the Nielsen Global Survey of Fresh Foods reveal how much fresh foods we consume, where we shop for fresh products and why we shop these preferred retail channels. By combining global survey research with Nielsen sales information collected from around the world, we unearth insights that re-define retail strategies to bolster sales in both the perimeter and center store aisles. The Shopper Trends Survey findings are based on a global study, covering 54 markets across 58 countries, with a total sample size of 87,000 respondents.
How the Mobile Consumer Connects Around the Globe
Mobile phones have reached a critical mass around the world, serving as constant companions for consumers regardless of demographics or geography. But how we engage with mobile devices and content varies depending on who and where you are. We took a closer look at these differences in a new report, The Mobile Consumer: A Global Snapshot, and found that while mobile usage is becoming increasingly ubiquitous around the world, usage differs significantly by market and demographic groups.
The report examines mobile consumer behavior, device preference and usage in Australia, Brazil, China, India, Italy, Russia, South Korea, Turkey, the U.K. and the U.S.
Device preference is evolving, as smartphone penetration continues to grow in most markets, especially in developed markets with widespread 3G/4G access. In the U.S. and South Korea, for example, smartphone owners now make up the majority of mobile consumers. And in many markets this increased penetration is being led by a new generation of young adults eager to embrace smartphone technology. Comparatively, in growing economies like India and Turkey, a growing group of mobile phone users prefer feature phones over other device options (80% and 61%, respectively).
Trying to decide on a new product to buy? Help is just a few clicks away.
According to a Nielsen global survey, the Internet is an important influence on consumers interested in buying new products in categories like electronics (81%), appliances (77%), books (70%) and music (69%). The trend is catching on in consumption categories too—such as food and beverages (62%), personal hygiene (62%), personal health/over-the-counter medicines (61%) and hair care (60%)—with respondents in Asia-Pacific, Latin America and Middle East/Africa most engaged in online decision-making. More than half of all global respondents consider the Internet important when it comes to purchasing new clothing (69%) and cars (68%).
A little brand loyalty goes a long way. More than half (60%) of consumers around the world with Internet access prefer to buy new products from a familiar brand than switch to a new brand, according to a new global study from Nielsen.
“Innovating products within established brands that consumers trust can be a powerful strategy,” said Rob Wengel, senior vice president, Nielsen Innovation Analytics. “Marketers and retailers can deliver successful new products for existing brands by ensuring they uncover unmet consumer needs, communicate with clarity, deliver distinct product innovations, and execute an optimal marketing strategy.”
The findings are from the Nielsen Global Survey of New Product Purchase Sentiment, which surveyed more than 29,000 respondents with Internet access from 58 countries.
Getting What You Pay For
While brand familiarity is important, half of global respondents say they’d be willing to try a new brand: consumers in the Middle East/Africa and North America were the most enthusiastic (57%), followed by Europe (56%), Latin America (47%) and Asia-Pacific (45%).
Value, variety and proof-of-concept resonate most with consumers worldwide when they consider buying new products. Sixty-three percent say they like when manufacturers offer new product options, but 60 percent wait for a product to build a track record before buying it. Brand isn’t everything, however, especially when a store brand or value option will deliver the same benefit for less money. Sixty-four percent of global respondents say they’d buy a store brand or value option, and 45 percent agree that a tight economy makes them cautious about trying a new product. Cost is less of a factor for some, however, as four out of 10 (39%) say they’re willing to pay a premium price to stay loyal to a favorite brand.
From stats and scores to game footage, sports are a big player in mobile content. According to Nielsen’s 2012 Year in Sports report, nearly 60 percent of smartphone and tablet owners accessed sports content on their device at least once a day between January to September 2012. Twelve percent of smartphone owners and 10 percent of tablet owners did so more than three times a day.
While sports content comes in many shapes and forms, sports fans typically pay most attention to the latest scores and stats. Among owners of multiple connected devices, smartphones and laptops were the preferred device for checking sports scores (16%, respectively), followed by Internet-enabled TV sets (12%) and tablets (9%).
Hat tip: PW
Exploring the Consumer Media Universe
From televisions and smartphones to tablets and game consoles, Americans are consuming content on every device under the sun— the latest versions of which will be on display this week at the 2013 International Consumer Electronics Show in Las Vegas.
According to Nielsen’s new U.S. Consumer Usage Report 2012, nearly 120 million people within television homes own four or more TV sets, and 16 percent of television homes own a tablet. Smartphone owners officially make up the majority of mobile subscribers, as 56 percent owned a smartphone as of Q3 2012. Additionally, the number of social media users continues to increase across all platforms as consumers use social networking as a vehicle to navigate the ever-expanding media universe.
If Congress and the President can’t reach an agreement on the federal budget by the end of the year, the simultaneous increase in taxes and cuts to entitlement programs will send the U.S. over a so-called “fiscal cliff” at the start of 2013. The effects of such an occurrence will be stark and sweeping, and a distinct and cohesive group of wealthy Americans that has emerged in recent years is preparing for austerity and risk aversion. Given the potential impact the fiscal cliff may have on this group, coined as the Mass Affluent in a recent Nielsen report, many have educated themselves on the subject and taken their opinions to the Web to opine on this rapidly evolving drama.
The Mass Affluent, which now account for 11 percent of all U.S. households, generally believe the expiring tax measures, commensurate rate hikes and expected volatility in the marketplace associated with the fiscal cliff will have notable financial repercussions for them.
In preparation, this group may be modifying their financial portfolios and investment strategies–tactics that may shift preferences for financial products and services.
When it comes to devices, kids’ holiday wish lists are simple this year. The most-wanted gifts are predominantly from one company—Apple. According to a recent Nielsen study, Apple’s popularity leading up to the holiday season continues a trend seen over the last couple of years, with American kids aged 6-12 generally more interested in the latest iOS offerings than other consumer electronics and gaming devices.
Approximately half the children surveyed expressed interest in the full-sized iPad (up from 44% last year), and 36 percent in the new iPad Mini. The iPod Touch and iPhone are also coveted devices among these young consumers (36% and 33%, respectively). Kids are also likely to ask for dedicated gaming hardware this holiday, with 39 percent excited to own Nintendo’s just-released console offering, Wii U, and 29 percent indicating they want a device from that company’s portable DS family. Microsoft’s Xbox 360 and Sony’s PlayStation 3 also proved appealing, with approximately one-quarter of kids 6-12 saying they want these high definition consoles.
Secret Scrooges: Holiday Shoppers, Beware Rogue Online Retailers
With Black Friday and Cyber Monday right around the corner, the U.S. holiday shopping season is set to officially kick off in just a few days and many consumers will be looking online to find the best deals for gifts on their shopping lists. But the hunt for holiday shopping deals can have a “bah humbug” side: about one in five bargain-hunting, online shoppers in the U.S. and Europe has mistakenly shopped counterfeit goods online. Nielsen collaborated with MarkMonitor– an online brand protection company–on their new MarkMonitor Shopping Report, released today, and found that many consumers shopping for knock-offs may only be looking for the best deals on legitimate products.
An analysis of anonymized panelists’ search terms and referral traffic to rogue websites shows that for every shopper searching for counterfeit goods on the web, 20 more were merely bargain hunters looking up the best deals, using terms like “discount” and “clearance.” As consumers surf for bargains, counterfeit goods sold at steep discounts may not be as easily distinguishable from end-of-season sales across the web. And if a deal seems too good to be true, it probably is. Many websites selling counterfeit goods can look legitimate – even using official product images.
In fact, consumers visiting sites that sell counterfeit goods are demographically similar to those visiting trusted online retailers, further demonstrating that consumers may not be able to distinguish between legitimate and black-market, online retailers. An anonymized demographic analysis of Nielsen’s permissioned panel showed that online shoppers who browse rogue sites are nearly identical to visitors to more mainstream retailers.
The Asian-American market represents a significant growth opportunity for the nation’s businesses that sell goods and services. Asian-American consumers provide growth opportunity to businesses by appealing to a consumer base that is growing, affluent, well-educated, technologically savvy and has a tremendous buying power that continues to soar.
With a 51-percent increase in population since 2000, Asian-Americans are experiencing the highest growth rate of any multicultural segment, slightly outpacing the Hispanic population. Asian-Americans represent an exciting growth opportunity for businesses, with a $718 billion in buying power that is expected to reach $1 trillion in just five years (equal to the 18th largest economy in the world).
Over the past decade, the Asian-American population has grown at double-digit rates in 49 out of the 50 states. In fact, a dozen states have counties that have seen growth rates of over 200 percent. Not only are Asian-Americans the fastest growing segment, many are also affluent and educated. The Asian-American household median income is 28 percent higher than the total U.S. median in 2012. For marketers trying to reach affluent consumers, it is important to note that 28 percent of Asian-American households have annual incomes greater than $100,000, compared to 18 percent of total U.S. households. In addition to being affluent, they are also well-educated. Fifty percent of Asian-Americans 25 years and older have a Bachelor’s degree, compared to 28 percent of the total population.
E -commerce solutions fulfill shopper needs in ways that brick-and-mortar channels cannot match. As a result, digital shopping has transformed entire industries, such as music, books and travel. A new report from Nielsen examines the impact of digital on Consumer Packaged Goods (CPG) and seeks to lay out key principles for marketing success in a world where digital is the new standard.
Are clicks destined to replace bricks in the consumer packaged goods (CPG) industry? E-commerce in CPG has undoubtedly grown at an impressive rate and is estimated to continue to grow at 25 percent through 2015. However, it only represented two percent of sales in 2011, despite being the fastest growing channel.
“For CPG products, online shopping will not completely replace trips to stores anytime soon. However, digital will continue to play an increasingly important role. Manufacturers and retailers will benefit from examining both the marketing and the sales/e-commerce opportunity afforded by digital,” said Nikhil Sharma, Vice President, Consumer & Shopper Analytics at Nielsen. “In an industry with modest growth like packaged goods, e-commerce will likely grow at the expense of more traditional channels, and may be a risk to some businesses unless appropriately addressed.”
“The keys to success in the digital shopping environment is understanding shopper needs, how a product category gets shopped and the digital touch-points that influence shoppers’ decisions along the path to purchase,” said Jeanne Danubio, Senior Vice President, Consumer & Shopper Analytics at Nielsen. “We have identified two barriers and two enablers that translate into convenience, choice, and price-value for a shopper.”
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When it comes to retail, no channel has more than convenience – and the U.S. convenience industry remains on a roll. More than 8,100 convenience stores (C-stores) have been added nationwide since 2005, bringing the total to 148,764. In fact, there are more C-stores than warehouse clubs, supercenters, dollar stores, supermarkets and drug stores combined.
In addition to store count, revenue is up for C-stores as well. Year-over-year sales in the U.S. grew 4.9 percent in the 52-week period ending August 4, 2012, compared to 3.7 percent growth for the marketplace overall. C-store drive-thrus are also on the rise, making most store items including grocery staples such as bread, eggs and cereal available through the window of the car.
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Finding ways for a product to succeed in a beleaguered marketplace takes a mix of pragmatism and creative genius. And the winners of the 2012 Nielsen Breakthrough Innovation Award did just that. In contrast to innovation awards focused on one-year wonders, the Nielsen Breakthrough Innovation Award honors new products that succeed on multiple dimensions over multiple years.
Nielsen analyzed more than 11,000 new products in the U.S. between 2008 and 2010 to find the 2012 winners. Of the products evaluated, only 34 products met award criteria. These products totaled less than 0.5% of all new product introductions during the period.
The study revealed that there are no easy formulas on the road to successful innovation, and many common pitfalls. Of the product launches that didn’t meet award criteria, one trap many companies fell into was losing sight of consumer needs. Often– to save time and money, attract a certain demographic group, or respond to competitors in the market– new product teams added features that consumers don’t value, or shifted product focus away from what made the original concept a fresh, viable solution.
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Lower-income households represent a high growth opportunity sector for retailers and manufacturers. Over the next ten years, more people will move into the lower-income group, which is expected to grow twice as fast as total households. Over the next ten years, the total number of households in the U.S. is expected to grow by eight percent; however, households closer to the poverty level will grow twice as fast, at 17 percent. To better understand consumers across the economic spectrum, Nielsen conducted an analysis of media usage and purchasing behaviors. Results revealed dramatic differences in the media consumption patterns and delivery platforms across income levels. The same differential was found in CPG shopping behavior, alongside notable similarities in some categories.
The Cross-Platform Report: How and Where Content is Watched
According to the latest Nielsen Cross-Platform Report, Americans spend nearly 35 hours per week watching video across screens, and close to another five hours using the Internet on a computer. Consumers are not turning off their devices, and there is no doubt that they are faced with more choices in terms of how they watch video content. Shifts in the distribution of time spent across all screens and devices demonstrate that more consumers are taking advantage of their increased ability to determine what, how and where they view content.
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Eight-five percent of respondents to a Nielsen global online survey say that rising food prices are impacting their choice of grocery purchases, with more than half (52%) stating higher prices are a major influence. But price is not the only consideration that weighs heavily on the minds of consumers when shopping for groceries. Health factors, product availability and in-store services are also important considerations.New findings from a Nielsen online survey of respondents from 56 countries around the world provide insights into how 16 various factors have impacted grocery purchases in the last year. Manufacturers and retailers armed with this knowledge can fine-tune strategies to better align with what matters most to consumers—and what does not.
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