Food & Beverage Innovation Forum 2014 @ Simba

2. INSIDE THE MIND
OF CHINESE SHOPPERS
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3. UNDERSTANDING
HOW CHINESE SHOPPERS
REALLY BUY
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4. ≠
A Shopper is defined by the process that takes place between
that first thought the consumer has about purchasing an item,
all the way through the selection of that item.
Shopper n.
shopper
consumer
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5. Shopper
continuum
Using
productPost-Tail
® Purchase
Moment
Retail
Pre-Tail
®
Supermarket
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6. Top tier cities
FMCG
Shanghai Beijing Chengdu
Food&Beverage Home Care Personal Care
.
.
.
3DIMENSIONS
Shopper + Retailer + Brand
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7. Top tier cities
FMCG
Shanghai Beijing Chengdu
Food&Beverage Home Care Personal Care
.
.
.
3DIMENSIONS
Shopper + Retailer + Brand
W
H
Y
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8. Top tier cities
Shanghai Beijing Chengdu
.
.
.
?
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First-tier cities economic growth
slows
to 18-month low in first-quarter
2014.
“ “
REUTERS

9. Top tier cities
?
Food&Beverage Home Care Personal Care
FMCG
SALES GROWTH Y-O-Y -- FMCG
10.4
6.1
Q1-2013
Q1-2014

10. Top tier cities
?
Shopper + Retailer + Brand
3 DIMENSIONS
SHOPPER
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11. Top tier cities
?
Shopper + Retailer + Brand
3 DIMENSIONS
SHOPPER
8 INTERVIEWS
CMOs & Brand managers
5 INTERVIEWS
CEOs & Shopper Expert
12 INTERVIEWS
Beijing + Chengdu + Shanghai
913 QUESTIONNAIRES
305 Beijing + 303 Chengdu + 305 Shanghai
+
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12. 4
Shopper Archetypes
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13. 27%
21%27%
25%
EFFICIENCY ADDICT
1
3
EXPERIENCE LOVER
4
STRATEGIC SAVER
2
EAGLE-EYE SHOPPER
SEGMENT SIZE
WITHIN OUR
SAMPLE
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14. 14
EXPERIENCE LOVER EAGLE-EYE SHOPPER
EFFICIENCY
ADDICT
STRATEGIC SAVER
KEYVALUELOOKSFOR
DECISION
MAKING
ATTITUDE
Leisure and
Enjoyment
Expertise and
Information
Value and getting
the best deal
Efficiency in time
and money
Willing explore and can
be impulsive
Discerning, detail
orientated and cautious
Validating the price and
value from comparison,
optimizing different
choices
Quick and efficient,
mainly done before
coming to the store
In-store experience –
browsing the aisles,
searching for promotions
and exploring the variety
Pleasant store
environment
Higher quality products
Familiar layouts and
stores
The lowest price
Saving money, even if
they have to travel
In-store assistance to
find the best value
Getting in and out of the
store quickly
1
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15. 15
EXPERIENCE LOVER EAGLE-EYE SHOPPER
EFFICIENCY
ADDICT
STRATEGIC SAVER
KEYVALUELOOKSFOR
DECISION
MAKING
ATTITUDE
Leisure and
Enjoyment
Expertise and
Information
Value and getting
the best deal
Efficiency in time
and money
Willing explore and can
be impulsive
Discerning, detail
orientated and cautious
Validating the price and
value from comparison,
optimizing different
choices
Quick and efficient,
mainly done before
coming to the store
In-store experience –
browsing the aisles,
searching for promotions
and exploring the variety
Pleasant store
environment
Higher quality products
Familiar layouts and
stores
The lowest price
Saving money, even if
they have to travel
In-store assistance to
find the best value
Getting in and out of the
store quickly
2
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16. 16
EXPERIENCE LOVER EAGLE-EYE SHOPPER
EFFICIENCY
ADDICT
STRATEGIC SAVER
KEYVALUELOOKSFOR
DECISION
MAKING
ATTITUDE
Leisure and
Enjoyment
Expertise and
Information
Value and getting
the best deal
Efficiency in time
and money
Willing explore and can
be impulsive
Discerning, detail
orientated and cautious
Validating the price and
value from comparison,
optimizing different
choices
Quick and efficient,
mainly done before
coming to the store
In-store experience –
browsing the aisles,
searching for promotions
and exploring the variety
Pleasant store
environment
Higher quality products
Familiar layouts and
stores
The lowest price
Saving money, even if
they have to travel
In-store assistance to
find the best value
Getting in and out of the
store quickly
3
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17. 17
EXPERIENCE LOVER EAGLE-EYE SHOPPER
EFFICIENCY
ADDICT
STRATEGIC SAVER
KEYVALUELOOKSFOR
DECISION
MAKING
ATTITUDE
Leisure and
Enjoyment
Expertise and
Information
Value and getting
the best deal
Efficiency in time
and money
Willing explore and can
be impulsive
Discerning, detail
orientated and cautious
Validating the price and
value from comparison,
optimizing different
choices
Quick and efficient,
mainly done before
coming to the store
In-store experience –
browsing the aisles,
searching for promotions
and exploring the variety
Pleasant store
environment
Higher quality products
Familiar layouts and
stores
The lowest price
Saving money, even if
they have to travel
In-store assistance to
find the best value
Getting in and out of the
store quickly
4
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18. 18
EXPERIENCE LOVER EAGLE-EYE SHOPPER
EFFICIENCY
ADDICT
STRATEGIC SAVER
MORE EXPERIENTIAL MORE RATIONAL
KEYVALUELOOKSFOR
DECISION
MAKING
ATTITUDE
Leisure and
Enjoyment
Expertise and
Information
Value and getting
the best deal
Efficiency in time
and money
Willing explore and can
be impulsive
Discerning, detail
orientated and cautious
Validating the price and
value from comparison,
optimizing different
choices
Quick and efficient,
mainly done before
coming to the store
In-store experience –
browsing the aisles,
searching for promotions
and exploring the variety
Pleasant store
environment
Higher quality products
Familiar layouts and
stores
The lowest price
Saving money, even if
they have to travel
In-store assistance to
find the best value
Getting in and out of the
store quickly
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19. EXPERIENCE LOVER
I am very picky about the in-
store experience. It should be a
multisensory satisfaction.
Wu, 32 y/o, Shanghai
1
FEMALE
MARRIED + KIDS
30s – 40s
87 RMB(per trip)
CARREFOUR
WATSONS
(early)
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20. 20
• Themed Promotions like
body-wash festival
• Product trials – chance
to experience the product
• Clean and bright shelves,
clear product displays,
spaces in between shelves
• In-store media can grab
their attention: music &
TV screens
• Newly launched products
with unique packaging
(e.g. Kisses chocolate)
While the majority of their purchases are
planned, Experience Lovers are more likely
than the total to make impulse purchases
48% OF PURCHASES
ARE ON IMPULSE
(compared to 42% of total)
1
EXPERIENCE LOVER
THEY LOOK FOR…
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21. Lv, Chengdu
EAGLE-EYE SHOPPER 2
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
MALE + FEMALE
HIGH INCOME
18–35yo
75 RMB(per trip)
CARREFOUR
ITO YOKADO(Chengdu)
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22. 22
• Intuitive store layout to
find the brands they’re
looking for
• Always stick with same
brands
• Don’t buy new brands to
save money
• Know what they want and
where to find it
• Willing to pay more for
higher quality
• (Brand loyalty is esp. high
in packaged f&b)
Eagle-eye Shoppers are the most brand
loyal, and are more likely to plan out
the brand they want to purchase
2
EAGLE-EYE SHOPPER
THEY LOOK FOR…
64% PLAN THE BRAND THEY WANT TO
PURCHASE
(COMPARED TO 51% OF TOTAL)
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23. STRATEGIC SAVER 3
MALE
MARRIED + KIDS
LOW INCOME
76 RMB(per trip)
AUCHAN
HAO JIAXIANG
E-COMMERCE
I am very rationale and pragma
tic when it comes to shopping. I pursue
value for money so getting a balance
between different factors is important
for consideration
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24. 24
• Price Comparison:
Validating the price and
value from comparisons
• Deal Hunting: Optimizing
different choices and
digging for the best deals
• Balance personal needs and
family needs as they are
equally important
3
STRATEGIC SAVER
THEY LOOK FOR…
45% plan the price range
they will look for
(compared to 39% of total)
Only 43% plan the brand
they will look for
(compared to 51% of total)
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25. Deng, 32, Chengdu
EFFICIENCY ADDICT 4
I expect the shopping experience to
be quick and easy, so I can be
efficient and move to the checkout
fast.
MALE + FEMALE
SINGLE + DINKS
25–35yo
78 RMB(per trip)
CARREFOUR
WALMART
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26. 26
• Overall in-store journey is
a routine and a necessary
task for them
• Not willing to spend too
much time on the entire
process
• Suffers from standing a
long line when checking out
• Occasionally stops by large
promotions
• Convenience is more
important than saving money
3
STRATEGIC SAVER
THEY LOOK FOR…
62% plan their purchases
before going in store
(compared to 58% of total)
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27. EXPERIENCE
LOVER
EAGLE-EYE
SHOPPER
SHANGHAI RMB 15.1 billion RMB 12.9 billion RMB 11.9 billion RMB 10 billion
BEIJING RMB 13.5 billion RMB 11.6 billion RMB 10.7 billion RMB 9 billion
CHENGDU RMB 9 billion RMB 7.7 billion RMB 7.1 billion RMB 6 billion
EFFICIENCY
ADDICT
STRATEGIC
SAVER
VALUE SIZE OF SEGMENTS BY CITY (*PROJECTED & ANNUALIZED)
THE MORE EXPERIENTIAL SEGMENTS ARE NO LONGER NICHE – THEY ARE HIGH VALUE SIZE
MORE EXPERIENTIAL MORE RATIONAL
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28. ?
COMMON BEHAVIOR
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29. 29
42%
58%
Impulse buy
Planned purchase
Total Packaged
food &
drink
Personal care
items
Household
goods


Base: Total products purchased (1535)
B5c. Before coming to the store today had you planned to purchase this item?
 Less with this category
Avg. with this category
 More with this category
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30. 30
4%
19%
31%
37%
39%
51%
None of the above, only the
item
I knew the function I wanted to
purchase
I knew the packaging size I
wanted to purchase
I knew the flavor/type I wanted
to purchase
I knew the price range I wanted
to buy
I knew the brand I wanted to
purchase
Extent of planning
Base: Planned purchases (894)
B5d. What aspects of this item had you planned? (Multiple selection)
B5e. (Only for those who selected yes to B5c) Did you purchase the exact item you had planned to purchase?
DIDYOU PURCHASE
ACCORDINGTO PLAN?
YES: 93%
NO: 7%
STICK TO
THE PLAN
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31. ¥65¥86
PLANNED
SHOPPING TRIP
UNPLANNED
SHOPPING TRIP
Base: All respondents (913)
B3a. In total, how much did you spend on this shopping trip?
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32. CHECK OUT CHINA Vol1 -TBWA
?

33. HOW ARE THOSE
SHOPPER ARCHETYPES IMPACTING
YOUR MARKETING PLAN?
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34. HOW SHOULD THOSE
SHOPPER ARCHETYPES IMPACT
YOUR MARKETING PLAN?
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Using
productPost-Tail
® Purchase
Moment
Retail
Pre-Tail
®
Supermarket

35. shopper@tbwa.com
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