Vietnamese Consumers Insight 2016

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Giving Vietnamese consumers what they want and your business success.

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Vietnamese Consumers Insight 2016

  1. 1. March 2015 GIVING VIETNAMESE CONSUMERS WHAT THEY WANT THE NEED FOR SPEED
  2. 2. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 2 DO YOU HAVE THE RIGHT OFFER? • Our lifestyles are changing • Working adults are strapped for time • Students need a place to hang out • Males and females shop differently • CVS and minimarts for HCMC • Minimarts for Hanoi • CVS threatens Traditional grocery; minimart fast- replacing wet markets • Food & Beverages reign in CVS • Fresh and value-for- money winning in minimarts
  3. 3. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 3 Shaping your business for tomorrow WHAT is the new Vietnam convenience offer WHERE is the convenience footprint in Vietnam WHO is the Vietnamese consumer CONVENIENCE IN VIETNAM TODAY
  4. 4. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 4 WHO is the Vietnamese consumer
  5. 5. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 5 4 BIG CONSUMER TRENDS IT’S ALL ABOUT ME CONNECT ME TO THE WORLD I’M ON THE MOVE I HAVE THE POWER TO BUY
  6. 6. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 6 20302013 Asia will be the home of 3 BILLION middle class The projected middle class in Latin America is 313 MILLION The middle class in Africa and the Middle East is projected to DOUBLE ASIA IS GETTING RICHER WITH PURCHASING POWER FOR THE FIRST TIME Sources: Nielsen Analysis, Boston Consulting Group Vietnam’s middle class set to DOUBLE BY 2020 (2014 to 2020) 12M to 33M
  7. 7. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 7 Income is relative across countries 17% 20% 16% 15% 22% 44% 33% 59% 20% 15% 17% 37% 46% 42% 35% 52% 35% 33% Singapore Malaysia China Thailand India Philippines Vietnam Indonesia Asia Less than $5,000 $5,000 - $19,999 17% 14% 13% 20% 25% 14% 10% 35% 17% 49% 38% 56% 37% 44% 31% 34% 31% 47% 34% 48% 31% 42% 31% 55% 55% 34% 36% Singapore Malaysia China Thailand India Philippines Vietnam Indonesia Asia I've been able to spend freely I've been able to live comfortably, and bought some things just because I liked them I've only had enough money for shelter, food and basics ANNUAL INCOME SPENDING FLEXIBILITY …AND VIETNAM IS PART OF THIS STORY Sources: Nielsen Global Survey
  8. 8. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 8 57% population below 35 years old YOUNG POPULATION Sources: Data results of the Viet Nam Household Living Standards Survey 2012 – VN GSO Statistical Yearbook of Vietnam 2013 – VN GSO Vietnam Urbanization Review 2011 – World Bank Nielsen Vietnam Pocket Book ALL SET TO SOAR HIGH LABOR FORCE 13% increase in labor force participation HIGHER INCOME 44% increase in monthly income per capita (2010 vs. 2012) MORE EXPENDITURE 32% growth in monthly total consumption expenditure per capita (2010 vs. 2012) SMALLER HOUSEHOLD SIZE From 4.44 to 3.85 people/ household (2002 vs. 2012) URBANISATION 30% urbanisation rate with 3.4% growth rate per year QUALITY 73% willing to pay more for higher quality 39% considering health as top concern in life HEALTH MORE EDUCATED 1.6 times more college/ university graduates (2006 vs. 2012)
  9. 9. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 9 WITH HOUSEHOLDS SHRINKING, NEW OPPORTUNITIES ARISE Source: Viet Nam Household Living Standards Survey 2012 – VN GSO 4.4 3.8 SMALLER PACKAGING SHOPPING MISSIONS NOT FORMATS ON-THE-GO LIFESTYLE VN AVG # IN HH 20152000 future
  10. 10. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 10 MEET 4 KEY CONVENIENCE SHOPPERS IN VIETNAM STUDENT FIRST JOBBER WORKING MOM 23% 18% 16% HOUSEWIFE 9% Source: Nielsen Vietnam Convenience Store Study
  11. 11. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 11 CONVENIENCE STORES SUPER/HYPER TRADITIONAL GROCERY WET MARKET UNDER 24 YEAR OLDS 58% 27% 20% 16% WHITE COLLARED/PROFESSIO NAL 36% 26% 20% 21% STUDENT 23% 11% 6% 4% THE SHIFT STARTS WITH STUDENTS AND PROFESSIONALS Source: Nielsen Shopper Trend – Vietnam 2014 Base: All shoppers HCM and HN (n=1000) Demographic questions (Age, Occupation) N.B. Sample size for minimarts are too small to be displayed
  12. 12. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 12 WHAT STUDENTS WANT….. NEW DAY START! 9am–12pm 12–2pm 5–9 pm 2–5pm Source: Observations/website Khanh and Dat Enjoy frozen soft drinks + cool teas during their short breaks QUICK FIX Rice and fruit juice from the store are as good as those made at home NOURISHMENT Light food such as instant noodles to sustain vitality till end of day RECHARGE ENERGY Sweet foods such as ice cream and soft drinks to keep energy levels up RELAX Chill out with buddies on the way to school… 5–9am HEALTHY KICK OFF Buy sandwiches and fruit juices to get ready for a long, active day
  13. 13. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 13 HOW WORKING FEMALES SHOP…… NEW DAY START! 5–9am 9am–12pm 12–2pm 5–9 pm 2–5pm Source: Observations/website Hoa HEALTHY KICK OFF She enjoys a fresh juice from the CVS situated at her office QUICK FIX For lunch, she goes for the hot pot/rice at the CVS NOURISHMENT brings her kids to school… MEAL PREPARATION minimart On the way home, Hoa passes by a minimart to pick up fresh vegetable and meat In the evening, she drops by at the nearby minimart for shampoo, detergent, yogurt and snacks for her children FILL-IN NECESSITIES minimart On the way to school, Hoa stops at the CVS next door to buy bread-and- milk combo for the children
  14. 14. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 14 WHAT CONVENIENCE MEANS TO WORKING MALES…. NEW DAY START! 5–9am 9am–12pm 12–2pm 5–9 pm 2–5pm Source: Observations/website Long QUICK KICK OFF REVITALISE NOURISHMENT rushing to work… UNWIND FILL-IN NECESSITIES He grabs bread and RTD tea and rushes to the office where he eats at his desk Enjoys a hot coffee to stay alert Replenishes at mid day with Vietnamese rice and frozen soft drink Drinks some cool tea to wash away the hectic morning Picks up personal care items running low such as toothpaste, deodorant…all ready for a new dynamic day
  15. 15. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 16 Source: Nielsen Global Survey of Consumers Shopper Behavior 2013 Males are more likely to shop in convenience than females EMBRACE CONVENIENCE OF BUYING ONLINE FAST FOOD IS ON THE GO FRESH AND FREQUENT of shoppers like to shop every day to provide fresh and healthy food for their families 30% 23% CONVENIENT OFFERING LOCATION IS MOST IMPORTANT Consumers in Thailand find location as most important In Philippines 1 in 5 eat fast food at least once a week 37% of Asian consumers will buy groceries online HEALTHY SHOPPING IS TOP OF MIND will pay more for foods that promote healthiness 57% 84% 51% 2014 ASIAN CONSUMERS ON THE GO What’s important to them and how they shop
  16. 16. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 17 7.4 0.9 3.1 1 5 1.7 4.8 5.3 HYPER/SUPER PERSONAL CARE CVS ONLINE 2008 2013 During the past 6 years, Chinese shoppers have cut their Hypermarket trips by 30% Source: Nielsen Shopper Trend 2013 – average trips per month -32% Vs. 2008 Trips +89% Vs. 2008 Trips +55% Vs. 2008 Trips +430% Vs. 2008 Trips CONVENIENCE IN CHINA
  17. 17. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 18 NEXT UP: E-CONVENIENCE? Hours per week Consumers in Asia Pacific are among the most connected in the world Source: Survey of Internet users Nielsen Cross Platform report VIETNAM 15.5
  18. 18. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 19 WHAT WE KNOW: CONVENIENCE MEANS DIFFERENT THINGS TO DIFFERENT SEGMENTS AGE WEALTH HOUSEHOLD SIZE LOCATION EDUCATION ACCESS TO TECHNOLOGY ACCESS TO PRODUCTS MILLENNIALS LOW INCOME SINGLE UNIT RURAL LOW LIMITED SILVER TIDE TRADITIONAL/ MODERN TRADE MILLIONAIRES FAMILY UNIT URBAN HIGH 24/7 E-COMMERCE
  19. 19. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 20 WHERE is the convenience footprint in Vietnam
  20. 20. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 21 CONVENIENCE FOOTPRINT IN ASIA IS EXPLODING X = Growth since 2004 Source: Nielsen Retail Census 2.7 X 2 X 2 X 1.4 X 3 X 3 X 1.5 X CHINA KOREA THAILAND TAIWAN MALAYSIA PHILIPPINES SINGAPORE Number of Stores In 2014
  21. 21. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 22 147 863 304 130 428 116 12 321 98 259 1082 300 236 523 112 17 421 89 348 1452 313 326 547 100 15 602 94 CVS Minimart Super/Hyper market CVS Minimart Super/Hyper market CVS Minimart Super/Hyper market URBAN HCMC HANOI 2012 2013 2014 Number of Modern Trade stores in Vietnam Source: Nielsen Retail Establishment Survey (RES) SLOWLY BUT SURELY, VIETNAM TOO
  22. 22. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 23 Chain MM Independent MM Chain CVS 24/7Fixed hours Source: Observation/ website A LOOK AT CONVENIENCE FORMATS IN VIETNAM
  23. 23. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 24 REGIONALIZED APPROACH IS A MUST Clear-cut distinction between CVS and MM in HCMC but blurred in Hanoi HCMC IMPULSE SOLUTION FRESH FOOD EVERYDAY ALL-IN-ONE SOLUTION FOR EVERYDAY NEEDS ALL-IN-ONE SOLUTION FOR GROCERY NEEDS CVS MINIMART HANOI
  24. 24. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 26 Source: Nielsen Shopper Trend – Vietnam 2012 and 2014 - Which of these types of stores have you visited in the past 7 days? - On average, how often would you shop at the following type of store? - Which of these types of stores would be the one where you normally buy most of your food and grocery items? SHIFT FROM TRADITIONAL TO MODERN TRADE WHERE DO CONSUMERS SHOP? (%) HOW OFTEN DO THEY SHOP? (AVERAGE PER MONTH) CHANNEL SPENT MOST IN? (%) 2012 2014 2012 2014 2013 2014 WET MARKETS 90 85 23.2 22.4 53 47 TRADITIONAL GROCERY 81 64 10.8 8.6 11 7 SUPERMARKETS 62 60 3.0 2.8 34 40 CONVENIENCE STORES 5 11 2.1 3.6 1 2 PERSONAL CARE 11 9 0.8 0.9 MINIMARTS - 4 - 2.7 COSMETIC SHOPS 6 4 0.7 1.1 CASH AND CARRY 4 3 0.8 0.9 DEPARTMENT STORES 3 1 0.6 0.6
  25. 25. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 27 FREQUENT VISITORS (Visiting at least 2–3x/ week) OCCASSIONAL VISITORS (Visiting less than 2–3x/ week) Source: Nielsen Study at CVS/MM 2015 – Quantitative How often do you visit each of the following channels? CONVENIENCE STORES MINIMARTS 81% VISIT TRADITIONAL GROCERY SHOPS 85% VISIT WET MARKETS 65% VISIT TRADITIONAL GROCERY SHOPS 67% VISIT WET MARKETS TRADITIONAL GROCERIES AND WET MARKETS ON ALERT
  26. 26. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 28Source: Nielsen Study at CVS/MM 2015 – Qualitative SUPER/HYPERM ARKET TRADITIONAL GROCERY MARKET STALL STREET VENDORS EATERY QUICK SERVICE RESTAURRANT CAFÉ TEASHOP STREETSIDE HAWKER TRADITIONAL GROCERY TEASHOP CAFÉ On premise On the go Stock-up/Fill-inDaily shop WET MARKET TRADTIONAL GROCERY Depending on Shopper Mission….. POTENTIAL THREAT TO OTHER CHANNELS TOO
  27. 27. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 29 86% Source: Nielsen Study at CVS/MM 2015 – Quantitative What items did you buy today? TODAY, FOOD AND BEVERAGE IS DRIVING CVS SALES buy either food or beverage 51% of food buyers also buy beverage items 62% of beverage buyers also buy food items
  28. 28. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 30 EXPERIENCE CONVENIENCE IMMEDIATE DELAYED IMMEDIATE CONSUMPTION IS KEY TRIGGER IN CVS Source: Nielsen Study at CVS/MM 2015 – Quantitative and Qualitative What best describes your main purpose of this shopping trip? Which shopping channel(s) fit with the following statement? KEY NEED STATES Specific functional and emotional benefit • Meal preparation • Necessity fill-in • Good service from staff 85% • Fresh everyday 22% Daily shop/fill-in: 14% • Quick Fix • Quick to get in and out 82% • Clear store layout to find products 82% • Long operating hours: 86% Urgency: 6%• Pick me up • Recharge • Stock availability assurance 46% • Quick billing 78% On-the-go and just-in- time meals: 47% • Unwind/Relaxation/Self-indulgence • Fun time together/Family bonding • Fun time together 66% • Joy and relaxation 64% • Neat and clean environment 92% On premise: 26%
  29. 29. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 31 EXPERIENCE CONVENIENCE Source: Nielsen Study at CVS/MM 2015 – Quantitative and Qualitative What best describes your main purpose of this shopping trip? Which shopping channel(s) fit with the following statement? KEY NEED STATES Specific functional and emotional benefit • Meal preparation • Necessity fill-in • Good service from staff 90% • Fresh everyday 53% Daily shop/fill-in: 55% • Quick Fix • Quick to get in and out 81% • Clear store layout to find products 90% • Long operating hours: 85% Urgency: 13%• Pick me up • Recharge • Stock availability assurance 48% • Quick billing 79% On-the-go and Just-in- time meals: 19% Home stocking and consumption • Freedom to browse 93% • Quality assurance 71% • Wide assortment 74% Stock up: 9% DAILY SHOPPING NEED IS THE REASON FOR MMS IMMEDIATE DELAYED
  30. 30. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 32 WHAT is the FUTURE of the convenience offer
  31. 31. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 33 ENORMOUS OPPORTUNITY IN VIETNAM What is the right offer in each area? Number of People per Convenience Store Convenience stores are now truly convenient in many countries 1,835 2,300 5,261 5,556 7,040 7,300 21,000 37,000 69,000 KOREA TAIWAN HK THAILAND MALAYSIA SINGAP… CHINA PHILIPPI… VIETNAM Source: Nielsen Retail Census (% OF POPULATION)
  32. 32. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 34 EARLY SENTIMENTS: AGGRESSIVE AND AMBITIOUS "Citimart’s strategy will not only stop at supermarket but also open small-format stores, minimart to explore all market segments.” Ms. Nguyễn Thị Ánh Hòa Investors of Citimart “Vingroup with a plan to develop 100 supermarkets, 1000 convenience stores till 2017, aims to create jobs for 20000 Vietnamese labour ” Mr. Lê Khắc Hiệp Vice President of Vingroup “Co.op Foods target to open 30 stores till the end of this year (2011) and open 150 stores moare up to 2015” Ms. Nguyễn Thị Tuyết Hoa Deputy Director of Saigon Co.op “Up to now, Vietnam only had 400 stores. Meanwhile, with population of 60 millions, Thailand has 10.000 (convenience) stores; Japan has up to 50.000 stores for 130 mil people. Therefore, my forecast is Vietnamese market size will be bigger than Thais and in ten years times, number of (convenience) stores can reach to 15.000 nationwide” Mr. Kigure Takehiko CEO of FamilyMart Source: Nielsen Study at CVS/MM 2015 – Qualitative “We have invested in the channel 2 years now. CVS chains are doing successfully by recruiting the youth as their shoppers. Vietnamese youngsters catching up quickly with this new trend is quite surprising. While independent minimarts, the transition between traditional trade and modern stores, are impacting super/hypermarkets” MT manager A multinational FMCG company RETAILERS MANUFACTURERS
  33. 33. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 35 SUPER/ HYPER TRADITIONAL GROCERY WET MARKET + + + - + + - + + - - + - - - - + + GAP BETWEEN CONVENIENCE RETAILING V.S. OTHER CHANNELS CONVENIENCE WILL DRIVE MODERN TRADE % agree with imagery statements CONVENIENCE ASSORTMENT ASSURANCE FRESHNESS PRICING JOY/ EXPERIENCE +: ADVANTAGE -: DISADVANTAGE Source: Nielsen Study at CVS/MM 2015 – Quantitative Which shopping channel(s) fit with the following statement?
  34. 34. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 36Source: Nielsen Study at CVS/MM 2015 – Qualitative MORE THAN 1 DEFINITION OF CONVENIENCE….. PRIVACY Free to browse without disturbance ACCESSIBLE Just one step from home/school/office Easy browsing – Quick billing QUICK AND EASY AVAILABILITY Long opening hours, esp. for fresh food Ready-to-eat And Ready-to-cook READILY MADE ALL IN ONE One place for all solution
  35. 35. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 37 DIFFERENT FOLKS, DIFFERENT PATHS OF PURCHASE Vietnam IMPULSE DECISION BIG SPEND FREQUENT VISIT MORE F&B OPPORTUNITY EXPECTATION TOWARDS PRODUCT PLANNED DECISION SMALL SPEND OCCASIONAL LESS F&B OPPORTUNITY EXPECTATION TOWARDS SERVICES More F&B, especially RTE More services (Promotions/ Loyalty program/Free delivery) HIGH ON VISITING CVS HIGH ON VISITING MM EXPERIENCE NEED CONVENIENCE NEED STUDENT FIRST JOBBER WORKING MOM HOUSEWIFE Source: Nielsen Vietnam Convenience Store Study
  36. 36. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 38 WHAT’S THE WINNING STRATEGY? CRITICAL SUCCESS FACTORS
  37. 37. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 39 FOOD ON THE GO EXTENDED SERVICES AND HOURS COMPETITVE PRICING HIGH QUALITY WIDE PRODUCT CHOICE SPEED OF SERVICE FRESH PERSONAL LOCAL CHANNEL FORMATS ARE STARTING TO BLUR Consumer need for convenience is common link
  38. 38. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 40 HOW DO YOU DIFFERENTIATE AND GROW IN THIS COMPETITIVE MARKET? NEW CONVENIENCE FOOD ON THE GO FRESH COMPETITIVE PRICING EXTENDED SERVICES AND HOURS
  39. 39. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 41 CONVENIENCE PROVIDING SOCIAL MEETING PLACES IN SINGAPORE Competing directly with Quick Serve Restaurants and Coffee Shops in all markets Source: Observations/websites
  40. 40. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 42 Upgraded 2nd generation ibon Printing/Scan event tickets/transportation tickets besides household bill payment Provide tablet in sitting area Customer can access to 7-Net to shop more In-store media Sports/TV commercials INNOVATIVE IN-STORE EXPERIENCES ALREADY HERE Source: Observations/websites
  41. 41. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 43 IN-STORE DECORATION BY CVS CVS WITH BIGGER SIZE DIFFERENTIATE WITH STYLE OR SIZE….. Source: Observations/websites
  42. 42. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 44 Providing convenience in “fresh” INDIVIDUAL FRUIT AND VEGETABLES READY-TO-COOK INGREDIENTS CONVENIENCE MOVING INTO FRESH IN TAIWAN Source: Observations/websites Catering to the everyday needs of small households
  43. 43. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 45Source: Nielsen Consumer Confidence Index Q4’14 RESPONDING TO INCREASING DEMANDS OF HEALTH-CONSCIOUS CONSUMERS THE #1 VIETNAMESE CONCERN READY TO DRINK MILK/YOGHURT CHEESE HEALTHY BEVERAGES TRADITIONAL SNACKS PRE-CUT FRESH FRUITS
  44. 44. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 46 OPPORTUNITY FOR PRIVATE LABEL TO GROW Quality and assortment gaining importance…… Hot-selling imported snack (of some countries) Local favorite drink/snack Imported product (electronic devices, personal care) New tea drink Frozen food Source: Observations/websites
  45. 45. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 47 Shoppers increasingly expect Convenience + Low Prices INCREASED FOCUS ON MEETING SHOPPERS’ NEED FOR VALUE IN TAIWAN Source: Observations/websites SEASONAL PROMOTION: on RTD and RTE by theme/activity TOTAL STORE PROMOTION: Gain points when you spend > $60 PAY BILLS AND GET COUPONS BUNDLE PROMOTION: Meal + drink
  46. 46. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 48 TOTAL STORE PROMOTION A MUST-DO TO INCREASE BASKET SIZE IN VIETNAM Provides everyday needs, and diversify promotion mechanism Source: Observations/website SEASONAL PROMOTION: on food and beverage by theme/activities BUNDLE PROMOTION: Meal + drink TOTAL STORE PROMOTION: Get discounts/gifts by paying bills OTHER CREATIVE PROMOTIONS
  47. 47. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 49 • Spend $3 at any 7-Eleven store to get a stamp • Get one figurine at $3.90 with 8 stamps or redeem one figure with 24 stamps • Cheers LinkPoints Issuance: Every $1=2points • Min Purchase $10 at Cheers / Esso Cheers, $20 at FairPrice Xpress • Cheers LinkPoints Redemption: All purchases RETAILERS THEME MECHANISM • Free registration • 1st purchase over 30.000 VND , shoppers got gift from B’s mart LOYALTY PROGRAMS WILL GROW IN IMPORTANCE Source: Observations/website
  48. 48. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 50 BUYING BEYOND TRADITIONAL IMPULSE ITEMS CONVENIENCE – BEYOND AN IMPULSE DESTINATION In Thailand 79% 13 OF URBAN SHOPPERS SHOPPED IN CONVENIENCE IN THE LAST WEEK TRIPS/MTH 6% MORE EXPENSIVE THAN HYPER IN THAILAND, CONVENIENCE IS ONLY IN OTHER COUNTRIES, E.G. SINGAPORE, IT’S UP TO 30% MORE EXPENSIVE MAKING 19% OF THAI SHOPPER VISITS TO CVS FOR EVERYDAY NEEDS Sources: Nielsen Shopper Trends and Retail Measurement Services
  49. 49. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 51 PROVIDING SERVICES THAT MAKE LIFE EASIER IN KOREA Increasing shopper spend and frequency POSTAL SERVICE MOBILE PHONE GIFT CARD ATM TAX PAYMENT LOTTERY PAYMENT SERVICE TICKET PICK-UP RTE /FRESH Source: Observations/website
  50. 50. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 52 CONVENIENCE OF THE FUTURE: MORE THAN FMCG ฿ PAYMENT SERVICE FRESH FOOD READY-TO-EAT DINE-IN LOYALTY PROGRAMME TICKET PICK-UP GAS STATION ATM WIFI Source: Observations/website From bill payment to having a hot meal, more services are being added…..
  51. 51. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 53 MAKING SHOPPERS’ LIVES TRULY CONVENIENT A day in the life of a shopper around CVS Small sized vegetables Get coupons by paying bills in CVS NEW DAY START! 08:45 am 12:30 pm 13:30 pm 18:00 pm 21:00 pm Freshly brewed coffee 15:30 pm 19:30 pm Late night snack Pre-cut fruit Pre-cooked home meals Rice Lunchbox Meal Bundle Promotion: Meal+ Drink ATM Pick up theatre tickets Source: Observations/website
  52. 52. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 54 FAST BECOMING AN ENABLER TO BUSY LIVES A hangout venue for young shoppers A time saver for working females A convenient location for working males MORE THAN JUST A CONVENIENCE STORE
  53. 53. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 55 CONVENIENCE IS MOVING BEYOND A STORE FRONT EATING ON THE GO SOCIALISING WEEKLY SHOP INNOVATE BEYOND CPG SHOPPING ON THE GO PRICING AND RANGING TO RIVAL SUPERS EASE OF ACCESS FRESH FOOD ARE YOU READY TO EVOLVE?
  54. 54. Copyright©2015TheNielsenCompany.Confidentialandproprietary. 56 THE FUTURE OF CONVENIENCE Move beyond the big cities to capitalise on consumer purchasing power Convenience is not a store format – it’s a consumer need Digitalise your offering to be truly convenient, anywhere, any time

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