Cosmetics Innovation Forum 2014 @ Simba

2. The shopper is a consumer who has begun the process of
shopping, starting with the first thought about purchasing an
item, all the way through to the selection of that item.
DEFINITION
Shopper n.

3. Using
productPost-Tail
® Purchase
Moment
Retail
Pre-Tail
®
Hyper/Supermarket/CVS
SHOPPERCONTINUUM
®

4. 3LENSMODEL
INTERSECTION OF
BRANDING & SELLING
®
®

5. OURMETHODOLOGY
INTERSECTION OF
BRANDING & SELLING
12 INTERVIEWS + 913 QUESTIONNAIRES
305 Beijing + 303 Chengdu + 305 Shanghai
7 INTERVIEWS13 INTERVIEWS
CEOs + CMOs Marketing Directors
®

6. CHALLENGES?

7. …He demands more personalized attention
he expects brands to communicate with him,
to have something to say that will be
meaningful to him.
CHINA’S TOP TIER CITY SHOPPERS
ARE PLAYING HARD TO GET
“Big brand logos are no longer enough for consumers in
China’s key cities. They are looking for stronger, deeper
relationships with brands. They have higher incomes and
greater needs; they are more demanding and want
brands to bring them new experiences.”
Nick Lai, Head of Shopper Marketing – UNILEVER

8. CHALLENGE#1
INTERSECTION OF
BRANDING & SELLING

9. BE RELEVANT OR BE FORGOTTEN
CHANGE COMES FAST
The pace of change is so fast in this
environment that there is a continuous flow of
new products and promotions
Andrew Yang, Associated Merketing Director
Pepsi Co
“Times have changed. In the past, it was so easy to
engage with our customers, but today you can be forgotten
in less than a week if one of your competitors launches a
big campaign. That’s why we are always looking for in-
store excitement.

10. CHALLENGE#2
INTERSECTION OF
BRANDING & SELLING

11. …replaced by increasingly blurred lines
between the offline world of stores and the
online world of product information and
availability, reviews and discussions.
THE LINEAR SHOPPING JOURNEY
HAS DISAPPEARED
The Shopper journey is becoming more complex in China
than it is in other countries There is a multiplication of
touch points and retailers have to find a way to capture
all of them if they don’t want to lose their shoppers.
Bertrand Albin, Private label Director – AUCHAN, RT MART

12. CHALLENGE#3
UNDERSTANDING
SHOPPER ARCHETYPES

13. 4 ARCHETYPES

15. ARCHETYPES

16. EXPERIENCE LOVER
FEMALE
MARRIED + KIDS
30s – EARLY 40s
SPENDING PER TRIP: RMB 87 [vs. RMB 79]
VALUE OF THE SEGMENT: RMB 12.5 BILLION
CHECK OUT
TIME SPENT PER TRIP: MIN 37 [vs. MIN 32]
I am very picky about the in-
store experience. It should be
a multisensory satisfaction.

17. HOW TO ENGAGE THEM
Using product
Post-Tail
® Purchase
Moment
Retail
Pre-Tail
®
Hyper/Supermarket/CVS

18. HOW TO ENGAGE THEM
WHAT
• Create an instore added value experience to enhance the brand relevancy in
people’s life
HOW
• Think about the ultimate service
TO DO
• Generate in-store experiences by using online as a spring board

19. SHISHEIDO- JAPAN
• Shopper Marketing strategy: Create Brand preference by upgrading the intore
brand experience.
CLOSEUP
Online Offline Instore

20. SHISHEIDO- JAPAN
• Shopper Marketing strategy: Create Brand preference by upgrading the intore
brand experience.
CLOSEUP
Instore Offline Online

21. ARCHETYPES

22. PRECISION PLANNER
FEMALE + MALE
18 – 35yo
SPENDING PER TRIP: RMB 75 [vs. RMB 79]
VALUE OF THE SEGMENT: RMB 10.73 BILLION
CHECK OUT
TIME SPENT PER TRIP: MIN 31 [vs. MIN 32]
I prefer retailers with refined
brand choices instead of a large
number. I believe the quality of
a shopping experience should
go beyond the product.

23. HOW TO ENGAGE THEM
Using product
Post-Tail
® Purchase
Moment
Retail
Pre-Tail
®

24. HOW TO ENGAGE THEM
WHAT
• Create a full digital ecosystem of the brand to showcase all the product premium
characteristics and ingredients.
HOW
• Identify all the different touchpoints between the brand and the consumers
TO DO
• Focus on the pre-tail stage

25. CLOSEUP ESTEE LAUDER , FRANCE
SHOPPER MARKETING STRATEGY:
Focus on the pre-tail stage by creating a full
digital ecosystem of the brand to showcase
all the product premium characteristics and
ingredients.

26. ARCHETYPES

27. TIME SAVER
MALE + FEMALE
SINGLE + DINKS
25yo – 35yo
SPENDING PER TRIP: RMB 78 [vs. RMB 79]
VALUE OF THE SEGMENT: RMB 9.9 BILLION
CHECK OUT
TIME SPENT PER TRIP: MIN 28 [vs. MIN 32]
I expect the shopping
experience to be quick and
easy, so I can be efficient and
move to the checkout fast.

28. HOW TO ENGAGE THEM
Using product
Post-Tail
® Purchase
Moment
Retail
Pre-Tail
®

29. CLOSEUP
SHOPPER MARKETING STRATEGY:
Provide useful in-store guidance by helping shoppers optimize their shopping journey and their
purchase.
THINK DIRTY , Mobile App - USA
Users can scan a product in
question, and immediately
learn if it is “clean” or “dirty.”
If deemed dirty, the app will
offer similar and safe
alternatives to buy instead.
The app can also be used to
raid your own bathroom
closet and get rid of old
products that could be
unsafe.

30. ARCHETYPES

31. STRATEGIC SPENDER
CHECK OUT
MALE
MARRIED + KIDS
LOW INCOME
SPENDING PER TRIP: RMB 76 [vs. RMB 79]
VALUE OF THE SEGMENT: RMB 8.3 BILLION
CHECK OUT
TIME SPENT PER TRIP: MIN 31 [vs. MIN 32]
I am very rationale and pragmatic
when it comes to shopping.
I pursue value for money so getting
a balance between different factors
is important for consideration.

32. HOW TO ENGAGE THEM
Using product
Post-Tail
® Purchase
Moment
Retail
Pre-Tail
®

33. THE AXE EFFECT– UNILEVER, UKCLOSEUP
Shopper Marketing strategy:
Create an emotional reward (much more valuable than a
purely transactional one)
An app that rewards each product purchase by
giving advice to young men trying to seduce their
classmates.
JUST IN TIME
RELEVANCY
BRAND DNA
PURCHASE DRIVER
+
+
+

34. ARCHETYPES

35. KEY
RECOMMENDATIONS

36. KEYRECOMMENDATION#1
A digital shopper
An offline shopper
Just a shopper.

37. KEYRECOMMENDATION#2
Create Seamless Experience
Many brands need to rethink their marketing structure, to align
with the fluid behavior of the O2O (Online to Offline) shopper.
• Create a shopper steering comitee (mix of sales, marketing and digital)
• Focus on a shopper story first
• Define “bridge-builders” in your organisation

38. KEYRECOMMENDATION#3
Partner With Retailers.
The checkout has a wealth of information that needs to be
collected. When retailers and brands collaborate, they can
deliver targeted brand content that connects with consumers
Leverage retailers CRM programs

39. RETAILERS
DATAS
BRAND
CONTENT
+

40. KEYRECOMMENDATION#4
Connect with Shoppers’
lives (and be on time!)
If we want to build stronger relationships with this new
generation of tech-savvy consumers, the content must be so
relevant and compelling that it becomes a part of their lives –
anywhere and anytime.

41. NIVEA BABY, BRAZIL

42. Know you shopper
Partner with retailers
Connect with people’s lives
No digital shopper. No offline shopper.
Just a shopper.
Leverage retailers CRM programs
Create shoppertainment
Go beyond media

43. THANK YOU