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How digital influences how we shop around the world - Aug 2012 (Nielsen)
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How digital influences how we shop around the world - Aug 2012 (Nielsen)
1. August 2012How Digital InfluencesHow We ShopAround the World
Copyright © 2012 The Nielsen Company. 2• Online shopping intentions for food and beverage categoriesincreased 44% in two years• 6-in-10 global respondents used the Internet for grocery shopping research• Nearly half (49%)of respondents purchased a product online• Globally, 46% used social media to help make purchase decisions• 37% purchased from online-only stores most frequentlyDigital’s influence ongrocery shopping is on the riseOne-third of the world’s population isonline, an increase of 528 percent over thepast 10 years*. While Internet penetrationrates vary by geographic region; NorthAmerica (79%), Australia/Oceania (68%),Europe (61%), Latin America (40%),Middle East (36%), Asia (26%) and Africa(14%), they continue to climb steadily—especially in the developing countries ofthe world.Connected devices, such as computers,mobile phones and tablets have becomea way of life for many, but shoppers aredigitally engaged to varying degreesdepending on the products they buy.While e-commerce activity for someconsumer-packaged goods (CPG)products—especially perishable categorieswhere freshness counts—may not beas transformative as other non-CPGindustries such as books, music andtravel, online grocery purchasing power isgrowing. In this report, Nielsen analyzeshow shoppers use online connecteddevices (computers, mobile phones andtablets) to aid or even complete theirhousehold grocery shopping.What types of online activitiesdo consumers engage inmost? How much time isspent on these activities?What are future spendingintentions, which websitesare preferred, and whatpayment methods arefavored? New findings froma Nielsen online survey ofrespondents from 56 countriesaround the world provideinsight into digital influences ongrocery shopping behavior. This reportoffers considerations for marketersand guiding principles to help buildsuccessful online strategies.About the Survey and Methodology* InternetWorld Stats – www.internetworld stats.com/stats.htmThe findings in this study are based on respondents with online access. While an online survey methodology allows fortremendous scale and global reach, it is limited in that it provides a perspective only on the habits of existing Internet users,not total populations. Results may therefore, among other possibilities, over-report online usage. Additionally, responses areonly indicative of respondents’ beliefs about their own online usage, rather than actual metered data.
Copyright © 2012 The Nielsen Company. 3While non-CPG (consumer-packagedgoods) products reported the highestpenetration for digital shoppingintentions, with apparel, books, traveland consumer electronics rising to thetop of the list, the level of influencefor CPG-related products is growing.Intentions to buy food and beverages viaonline sources increased 44 percent intwo years.More than one-quarter (26%) of globalrespondents said they planned topurchase food and beverage productsvia an online connected device in thenext three to six months—a jump from18 percent reported in 2010. Skin careand cosmetics also increased from22 percent to 25 percent in the latestsurvey.One-in-five global respondents said theyplanned to purchase electronic booksand digital newspaper and magazinesubscriptions, a new category addedto the Nielsen Global Survey in 2012.The online purchase intent of hardcopy books and physical subscriptionsdeclined from 44 percent in 2010to 33 percent this year. Categorieswith growing global purchase intentinclude computer/game software (+18percentage points), entertainmenttickets (+10), computer/game hardware(+6), video/music production (+5), cars/motorcycle and accessories (+4), andapparel/accessories/shoes/jewelry (+1).While online shopping delivers keyattributes shoppers demand, suchas convenience, value and choice,the Internet, and more specificallye-commerce, will be successful tovarying degrees of impact on CPGdepending on the category. For CPGcategories, shoppers are more likely toadopt an omni-channel approach, whereonline shopping becomes a supplementto traditional brick-and-mortar retailing.Online grocery purchase power is growingWhat categories of products do you plan to purchase on any connecteddevice in the next 3 to 6 months?Source: Nielsen Global Survey of Digital’s Influence on Grocery Shopping, Q1 2012Global AverageTravel Service Reservation(Flight /Train / Ship /Car)Entertainment Tickets(Movie / Performance / Exhibition / Game, etc.)Computer / Game SoftwareMobile Phone *(Including accessory)Food & BeverageComputer/GameHardware & PeripheralSkin Care /CosmeticsVideo/Music Publication(CD,VCD, DVD)eBooks/Digital Newspaperor Magazine Subscription*Car/Motorcycleand AccessoryBooks/Newspaper/Magazine(hardcopy / physical subscription)Apparel/Accessory/Shoes / Jewelry3736334430323020291126261825192522231820117N/AN/AQ1 2012 Q1 2010*Category added in 2012
Copyright © 2012 The Nielsen Company. 4Whether checking a price or readinga consumer review, when it comes togrocery shopping, more than six-in-10global respondents (61%) said theInternet was their go-to-source forconducting research and just under half(49%) said they purchased a productonline.But research is just one of the many onlineactivities respondents around the worldsaid they engaged in when thinking aboutgrocery shopping. Forty-five percentused the Internet to get informationabout a product, 43 percent searched fordeals, 33 percent read a grocery retailer’spromotional circular/flyer, 33 percentlooked for coupons, 26 percent browsed amanufacturer website,18 percent providedfeedback through social media, and 11percent used a digital shopping list.A comparison of how shoppers acrossthe world used the Internet as a groceryshopping resource revealed that while therank-order list of favored activities wasrelatively consistent from region to region,rates of usage varied considerably. WhileInternet penetration rates are highest inNorth America, usage levels across manyactivities in that region were among thelowest reported. Conversely, online usagerates for many activities in Asia-Pacificwere among the highest.Specifically, using the Internet to conductresearch (70%), compare prices (48%),and provide feedback through socialmedia (26%) was most prevalent in Asia-Pacific countries. Latin Americans werethe most active deal seekers (64%) andmanufacturer website browsers (41%).And more North Americans looked forcoupons online (43%) than respondents inany other region.In more Internet-developed regions of theworld, the research suggests a flatteningof online activity levels as usage becomesmore common place. In areas whereadoption is in the early phases, there isgreater experimentation.Online usage for grocery shopping activities variesThinking about household grocery shopping, which of the followingactivities have you done in the last month on any online connected device?Source: Nielsen Global Survey of Digital’s Influence on Grocery Shopping, Q1 201210 20 30 40 50 60 7010 20 30 40 50 60 70Conduct research online(for example, checked price,read a consumer review)Purchase aproduct onlineRead a grocery retailerscircular/ﬂyer onlineLook for coupons from an onlinecoupon siteCompare prices for a groceryproduct onlineLook up productinformation onlineBrowse a manufacturers websitefor a grocery categoryProvide feedback about a grocerycategory through social media(wrote a review, blogged)Use a digital shopping listLook fordeals onlineGlobal Average Asia-Paciﬁc Europe Middle East/Africa Latin America North America
Copyright © 2012 The Nielsen Company. 5When it comes to finding a resource forinformation about grocery shopping-related activities, nearly half (47%) ofglobal respondents spent more than 25percent of their total research time ona connected device. And nearly one-in-four (23%) spent more than half theirresearch time on the Internet. More NorthAmericans dedicated the greatest amountof research time online compared to theother regions - 18 percent claimed theyconducted more than 75 percent of theirresearch digitally.For those who said they used the Internetfor grocery shopping-related activities, themajority of global respondents connectedonline either weekly or monthly. Aboutone-third logged on daily to conductresearch (37%), provide feedback viasocial media (33%), look for deals (31%)and search for product information (31%).While the prevalence of using socialmedia to provide feedback on groceryproducts is still relatively low (globalaverage is 18%), for those who are activeparticipants, many connect regularly—33percent on a daily basis and 45 percentweekly. In a world where consumershave increasing influence on brandperception through social media andratings and reviews, authentic responsesand generating advocacy is critical.Marketers need to encourage feedbackand provide specialized experiences thatincrease engagement and build a two-wayrelationship with the brand.Online is the timely resource for researchHow often have you used a connected device(PC, mobile phone, tablet, etc.) for each of the followingSource: Nielsen Global Survey of Digital’s Influence on Grocery Shopping, Q1 2012Global AveragePercent of total researchtime conducted on anonline connected device forgrocery shopping activities16%47%37%48%43%9%23%54%23%21%48%31%19%52%29%21%56%23%20%49%31%25%51%24%23%45%33%27%51%23%Conduct research onlinePurchase a product onlineRead a grocery retailers circular/ﬂyer onlineLook for deals onlineLook for coupons from an online coupon siteCompare prices for a grocery product onlineLook up product information onlineBrowse a manufacturers website for a grocery categoryProvide feedback about a grocery category through social mediaUse a digital shopping listDaily Weekly Monthlyleast timemost timeNORTHAMERICALATINAMERICAMIDDLE EAST/AFRICAEUROPEASIA-PACIFIC11%11%59%19%12%7%54%27%14%8%54%25%18%44%19%20%50%12%25%13%GLOBALAVERAGE13%10%53%24%< 25% 26% - 50%51% - 75% 76% - 100%19%_
Copyright © 2012 The Nielsen Company. 6The influence of social media on purchasedecisions is growing across all regions,albeit at varying levels. Globally, 46percent of respondents said they usedsocial media outlets to help makepurchase decisions, a rise of threepercentage points from 2010. NorthAmericans were the least reliant on socialmedia at 21 percent, but have increasedtheir dependency by seven points.Asia-Pacific respondents were the mostactive social media users to aid purchasedecisions at 63 percent, an increase from60 percent two years ago.Middle Eastern/African respondentsincreased their dependency on socialmedia the most, rising 10 percentagepoints to 50 percent in 2011. Forty-fourpercent of Latin American respondentsand 32 percent of European onlineusers relied on social media tohelp make purchase decisions, anincrease of five and two points,respectively.Social media can play animportant role in levelingthe playing field among thecompetition, allowing smallerbrands to compete. Encouragesatisfied customers to useonline ratings and reviews toshare positive experiences, but it isa two-way communication mediumand marketers must engage in thedialogue in order to stay in control.Social media’s influence is risingI use social media sites to help me make purchase decisionsSource: Nielsen Global Survey of Online Shopping, Q3 2011 and Q1 201046%43%GLOBALAVERAGE21%14%NORTHAMERICA44%49%LATINAMERICA50%40%MIDDLE EAST/AFRICA32%30%EUROPE63%60%ASIA-PACIFIC2011 2010
Copyright © 2012 The Nielsen Company. 7Thirty-seven percent of globalrespondents said they most frequentlypurchase from online-only stores—anincrease from 34 percent in 2010. Twenty-two percent preferred sites that alsohave traditional brick and mortar stores,17 percent favored sites that allow youto select products from many differentonline stores and 11 percent chose sitesthat also sell products through catalogs orover the phone.For sites that are connected with physicalstore locations, Latin Americans andNorth Americans reported the greatestpreference at 34 percent and 30percent, respectively. And while NorthAmericans reported a nine-point dropsince 2010 in their preference for shopsthat are exclusively online, Asia-Pacificrespondents reported the opposite trend,with a nine point increase for shoppingthese online-only websites. Both regionsreported usage of online-only websites at40 percent.When it comes to paying for onlinepurchases, one-third (32%) ofrespondents around the world said theymost often paid for purchases using acredit card. One-fourth (24%) preferredthe ease of using PayPal, 14 percent usedOnline shopping preferences and paymentscash on delivery, 12 percent chose directdebit from a checking or bank account and10 percent utilized a debit card.Latin Americans were the most prolificcredit card users for online purchases, asmore than half (51%) used this method.Middle Eastern/African respondentswere most reliant on direct debit fromchecking/bank accounts, as one-in-fourutilized this payment system. NorthAmericans primarily use one of threeprimary methods; credit cards (34%),debit cards (25%) and PayPal (24%).What kind of websites do you purchase from most frequently when shopping online?Source: Nielsen Global Survey of Online Shopping, Q3 2011 and Q1 2010Latin AmericaNorth AmericaEuropeAsia-PaciﬁcMiddle East/ AfricaGlobal Average40%31%38%39%19%20%24%21%40%49%37%34%ONLINE-ONLY WEBSITESLatin AmericaNorth AmericaEuropeAsia-PaciﬁcMiddle East/ AfricaGlobal Average16%19%23%21%34%34%10%10%30%17%22%20%BRICK & MORTAR STORE WEBSITESLatin AmericaNorth AmericaEuropeAsia-PaciﬁcMiddle East/ AfricaGlobal Average11%10%10%11%6%8%8%9%13%13%10%8%CATALOG/PHONE-ORDER WEBSITES2011 2010Latin AmericaNorth AmericaEuropeAsia-PaciﬁcMiddle East/ AfricaGlobal Average26%10%13%17%17%11%14%5%7%17%20%30%MULTIPLE ONLINE STORE WEBSITES
Copyright © 2012 The Nielsen Company. 8Shopper marketing tactics are changingand there are several ways to growpositive engagement levels. Whethercustomizing the message for the shopper,more narrowly segmenting shoppers,or delivering more ‘authentic’ messagesin brand communications, savvy digitalstrategies must help personalize andintegrate value-added content to improvethe user experience.First, focus on the right shopper. Noteveryone is going to use digital. Nielsenresearch finds that one-of-four CPGshoppers are considered ‘Trendsetters’.These are generally shoppers that loveto keep ahead, try new things and tellothers about them. They are typicallyyounger compared to other segments,have children in the household and are abit more affluent compared to the generalpopulation.Second, engage shoppers with the rightmessage. ‘Trendsetters’ tend to bemore digitally engaged, but that is stilldependent on what they are buying.Determine what activities are importantto core shoppers and customize theoffering. If shoppers are more deal-centric, provide coupon promotions.Third, connect with shoppers via theright medium. An increasinglycomplex landscape providesconsumers with a wide arrayof choices. Marketers need tofocus on the medium thatprovides the best return oninvestment. Think aboutproduct usage and devisestrategies that speak tothe needs of consumers.Pair mobility with needand create apps that, forexample, make it easier tocreate a shopping list, refillprescriptions or navigate a store.Whether the platform is online,mobile, social or in-store, prioritize themedium based on the impact it drives andthe feasibility of deploying it. Digital canbe complex, but rewarding if done right.Strategies for how to win with digitalAn increasing complex landscape provides consumers with a wide array of choicesSearching forcouponsReading aFlyer/ CircularLookingfor DealsWebsiteE-CircularEmailsPrintable CouponsDigital MagazinesSearch/Display AdsMobile CouponText MessageMobile AppsReviewsSocial MediaKiosksQR / Bar CodesSOCIALIN-STOREMOBILEONLINEWeigh impact vs. feasibility of tactics to optimize digital platformSample Strategy
9ArgentinaAustraliaAustriaBelgiumBrazilCanadaChinaChileColombiaCroatiaCzech RepublicDenmarkEgyptEstoniaFinlandFranceGermanyGreeceHong KongHungaryIndiaIndonesiaIrelandIsraelItalyJapanLatviaLithuaniaMalaysiaMexicoNetherlandsNew ZealandNorwayPakistanPeruPhilippinesPolandPortugalRomaniaRussiaSaudi ArabiaSingaporeSouth AfricaSouth KoreaSpainSwedenSwitzerlandTaiwanThailandTurkeyUnited Arab EmiratesUnited KingdomUkraineUnited StatesVenezuelaVietnamAbout the Nielsen Global SurveyThe Nielsen Global Survey of Digital’sInfluence on Grocery Shopping wasconducted February 10–27, 2012 andpolled more than 28,000 consumers in56 countries throughout Asia-Pacific,Europe, Latin America, the Middle East,Africa and North America. The socialmedia, online payment and websiteinsights are based on the Q3 2011 GlobalSurvey. The sample has quotas based onage and sex for each country based ontheir Internet users, and is weighted tobe representative of Internet consumersand has a maximum margin of error of±0.6%. This Nielsen survey is based onthe behavior of respondents with onlineaccess only. Internet penetration ratesvary by country. Nielsen uses a minimumreporting standard of 60 percent Internetpenetration or 10M online populationfor survey inclusion. The Nielsen GlobalSurvey, which includes the GlobalConsumer Confidence Survey, wasestablished in 2005.About NielsenNielsen Holdings N.V. (NYSE: NLSN) isa global information and measurementcompany with leading market positionsin marketing and consumer information,television and other media measurement,online intelligence, mobile measurement,trade shows and related properties.Nielsen has a presence in approximately100 countries, with headquarters in NewYork, USA and Diemen, the NetherlandsFor more information, visitwww.nielsen.comCountries in this studyCopyright © 2012The Nielsen Company. All rights reserved. Nielsen and the Nielsen logo aretrademarks or registered trademarks of CZT/ACNTrademarks, L.L.C. Other product and servicenames are trademarks or registered trademarks of their respective companies. 12/5301
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