Depuis quelques mois, nous entendons parler de reprise économique… Du point de vue du consommateur, la crise est-elle aussi terminée? Comment nos concitoyens arbitrent-ils aujourd’hui leurs budgets? Quelles sont leurs intentions de dépenses dans les achats courants et les loisirs en 2010? Les marques gardent-elles toujours une place de choix dans le cœur des consommateurs? Pour les fabricants de produits de grande consommation, quels clients présentent les meilleures perspectives de développement à court terme?

1. How does the post-recession consumer reviewhispurchasing intentions? 1st July 2010

2. Contents Is the crisisbehind us ? Nothingwilleverbe as before ! Purchasing intentions in 2010 Do A-brands stillresist ? All men are equal… What about consumers ? Whatdoestoday’sshopperexpect ? Conclusions

3. Is the crisis behind us ?

4. More positivefeelings ? National universe ; 18-54 years ; May 2009 & March 2010

5. Less money worries ? Obligation to give up the extras Wespend a lot of money to enjoyourselves Without opinion Ends of months are hard We are doingverywell Without opinion No possible savings We put quite a lot of money aside Without opinion National universe; 18-54 years ; May 2009 & March 2010

6. Nothingwilleverbe as before !

7. Experts and observersagree…

8. We’ll live in a new business landscape !

9. It’s now trendy to befrugal & thrifty ! Currentpurchases Attitudes 2010 – Top 3 Leisureactivities & equipment Attitudes 2010 – Top 3 National universe ; 18-54 years ; May 2009 & March 2010

10. Purchasing intentions

11. FastMovingConsumersGoods

12. FMCG : expenses are notirreducible ! FOOD DRINKS decreasingexpenditures stable expenditures increasingexpenditures don’t know National universe ; 18-54 years ; May 2009 & March 2010 ; buying intentions

13. FMCG : expenses are notirreducible ! HOUSECARE HYGIENE & BEAUTY decreasingexpenditures stable expenditures increasingexpenditures don’t know National universe ; 18-54 years ; May 2009 & March 2010 ; buying intentions

14. Leisure

15. Let’s go, butwithless money ! The mostoptimistic intentions ! Trips & Holidays 81% 78% 86% 79% +10% -8% -4% Restaurant 87% 82% 92% 82% -6% +12% -10% Total customers New customers Don’t know Decreasing budget Equal budget Increasing budget National universe ; 18-54 years ; May 2009 & March 2010

16. More necessarythanitappears ! Reality goes far beyond the intentions ! Time out 70% 61% 79% 66% -13% +29% -16% National universe ; 18-54 years ; May 2009 & March 2010

17. Crisis, always crisis! And whatabout me? Largestincreasebetween 2009 & 2008 ! Sport 62% 56% 74% 64% -9% +31% -14% Relaxation & well-being 54% 46% 67% 54% -16% +45% -19% Total customers New customers Don’t know Decreasing budget Equal budget Increasing budget National universe ; 18-54 years ; May 2009 & March 2010

18. Personalequipment

19. No more place in mywardrobe, anyway ! A large part of decreasing budgets ! Clothes 99% 98% 99% 97% -1% +1% -2% National universe ; 18-54 years ; May 2009 & March 2010

20. Temptation is strong… Reality goes far beyond the intentions ! PC, games, … 82% 73% 87% 76% +20% -13% -11% Audio & hi-fi 74% 66% 84% 70% -12% +27% -17% Total customers New customers Don’t know Decreasing budget Equal budget Increasing budget National universe ; 18-54 years ; May 2009 & March 2010

21. Householdequipment

22. Home sweet home… The mostoptimistic intentions ! Home 86% 83% 89% 82% +7% -8% -3% Garden 76% 71% 79% 71% -6% +12% -10% Total customers New customers Don’t know Decreasing budget Equal budget Increasing budget National universe ; 18-54 years ; May 2009 & March 2010

23. The dog is man’s best friend ! The greateststability ! Pets 60% 55% 62% 59% -8% +11% -4% National universe ; 18-54 years ; May 2009 & March 2010

24. Notexpected breakdowns ? Reality goes far beyond the intentions ! Small appliances 74% 67% 85% 73% +27% -14% -10% Bigappliances 59% 55% 76% 63% +38% -6% -16% Total customers New customers Don’t know Decreasing budget Equal budget Increasing budget National universe ; 18-54 years ; May 2009 & March 2010

25. Do A-brands stillresist ?

26. Globally, the highestpreference rate ! Amongst 40 registered FMCG categories % A-brands « Dove, Dreft, Danone,etc » % Private labels « Delhaize, 365 (Delhaize), Cora, Carrefour, Everyday (Colruyt) » % White products « Numéro 1 (Carrefour) or brands by Aldi, Lidl, Leader Price… that are not A-brands» National universe ; PRP 18-54 years ; base = total users ; average 40 FMCG categories ; May 2009 & March 2010

27. Sectors : the biggestchallenges ? 2008 2009 Preference rate of A-brands  2010 Evolution 2010 vs 2008 63% 61% 60% 54% 54% 50% 83% 80% 79% 67% 64% 63% 62% 62% 59% 59% 57% 56% 59% 56% 58% National universe ; PRP 18-54 years ; base = total users ; May 2009 & March 2010 ; evolution in points 2010 vs 2008

28. How do the FMCG categoriesbehave ? 1st quintile -7.8% 2nd quintile -4.2% 3rd quintile -1.9% 4th quintile +1.2% 5th quintile +4.8% Milk Deep-frozenfood & readymeals Cheese Coffee Stillmineral water Oil & butter Washingproducts Toilet tissue & kitchen roll Cannedfood Toothpaste & buccal hygiene Specialbeers Cereals Shampoo Fruit juice Soda Hairproducts Pilsbeer Tissues Jam Cola drinks Stainremover Soap & gel Chips Face care products Yoghourt Householdproducts Sugarcandy Dressings Energy drinks Probiotic drinks Candy bars Vitamins & mineralsaltproducts Washing up products WC products Deodorant Biscuits Ice-cream Ready desserts Chocolate Body care products 49.2% 63.4% 63.9% 61.6% 55.7% Preference rate of A-brands National universe ; PRP 18-54 years ; base = total users ; May 2009 & March 2010 ; evolution in points 2010 vs 2009

29. All men are equal… What about consumers ?

30. What is the profile map made of ? We are doingverywell Wespend a lot … to enjoyourselves We put quite a lot of money aside Similar budget Currentpurchases: food, drinks, housecare, hygiene & beauty Leisure : trips & holidays, restaurant, time out, sport, relaxation & well-being Personalequip: clothes, PC & games, Telecom, Audio & hi-fi Householdequip: bigappliances, smallappliances, home, garden, pets I thinkseveral times beforespending… 2. I try to put money aside for harder times 3. I fear for the future Currentpurchases : I’mcarefulwithmyexpenses Leisure : I save on the extras Average for 40 FMCG categories March 2010

31. Transposition intoaffinity index 100 Buying intentions = similarexpenses National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010

32. Households : someobvious observations… 100 Buying intentions = similarexpenses National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010

33. Households : someobvious observations… 100 Buying intentions = similarexpenses National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010

34. Households : someobvious observations… 100 Buying intentions = similarexpenses National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010

35. Households : someobvious observations… 100 Buying intentions = similarexpenses National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010

36. Households : someobvious observations… 100 Buying intentions = similarexpenses National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010

37. Households : someobvious observations… 100 Buying intentions = similarexpenses National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010

38. Households : do not explaineverything… 100 Buying intentions = similarexpenses National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010

39. Social groups : completelydifferentconsumers ! 100 Buying intentions = similarexpenses National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010

40. SG 1-4 : more ‘good’ spendings in FMCG SG 1-4 SG 5-8 % similarexpenditures Food Housecare Drinks Hygiene Food Drinks Housecare Hygiene % preference rate of A-brands National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010

41. Socialgroups : focus onfood Total 18-54 years Social groups 1-4 Social groups 5-8 % decreasingexpenditures % stable expenditures % increasingexpenditures % don’t know National universe; 18-54 years ; May 2009 & March 2010

42. SG 1-4 : more ‘entrusting’ in the intentions + 8% GS 1-4 Example : time out 76% 68% 84% 73% + 1% GS 5-8 60% 52% 69% 53% Total customers New customers Don’t know Decreasing budget Equal budget Increasing budget National universe ; 18-54 years ; May 2009 & March 2010

43. SG 1-4 : smaller decreasing budgets GS 1-4 Example : clothes 99% 98% 99% 98% GS 5-8 97% 96% 97% 95% 35% 46% Total customers New customers Don’t know Decreasing budget Equal budget Increasing budget National universe ; 18-54 years ; May 2009 & March 2010

44. Whatdoestoday’sshopperexpect ?

45. Somestrategiesanalysed in Fact… To preserve the purchasing power To show oneselfskilled and/or responsible To provide satisfaction and pleasure

46. 1. PRICEsensitivity I do not pay attention to in-store promotions I always look for products in promotion UP in 2010 (53% in 2009) I have neither the time nor the desire to collect coupons & participate… I collect coupons & participate to contest actions (48% in 2009) I look as much as possible for cheaperproducts I’mverycriticaltowards cheap productsbecause… (38% in 2009) without opinion National universe ; PRP 18-54 years ; May 2009 & March 2010

47. A-brands, PRICEsensitivity and loyalty promo purchase & cheapest shop Price hunters No promo purchase, no cheapest shop Price unsensitive National universe ; base = total PRP 18-54 years ; average 40 FMCG categories ; March 2010

48. A-brands, PRICEsensitivity and loyalty 8% Price hunters (19% loyal) 10% Price unsensitive (24% loyal) National universe ; base = total PRP 18-54 years ; average 40 FMCG categories ; March 2010

49. A-brands, PRICEsensitivity and loyalty Brand lovers 67% « price sensitive » Loyal brand lovers 76% « price sensitive » National universe ; base = total PRP 18-54 years ; average 40 FMCG categories ; March 2010

50. PRICEsensitivity at the point of sale ! Main cause for unplannedpurchases : « I’mattracted by an in-store promotion » Total = 72% National universe ; PRP 18-54 years ; May 2009

51. 2. PRODUCTattractivity I’mvery attentive to the composition of products I buyproductswithoutlookingattheir composition in detail I am ready to pay more for products recommended for health The consumption of products « good for health » isonly a sellling argument I am attracted by “amazing” products (ingredients, new form of packaging, etc) I especiallypay attention to the practical aspects of the products without opinion National universe ; PRP 18-54 years ; May 2009 & March 2010

52. PRODUCTattractivity at the point of sale ! Frequentreason for unplannedpurchases : « I’mattracted by a new variety, a new taste, a new packaging, etc. » Total = 36% National universe ; PRP 18-54 years ; May 2009

53. 3. BRANDpromises I’mready to pay more for durable products Durable developmentisonly a fashionphenomenon DOWN in 2010 (40% in 2009) I prefer to buy A-brands becausethey have more know-how & experience in the manufacture of products I’mequally confident about the privatelabels’expertise in the manufacture of products I’mready to pay more for productsfromsociallyresponsible … I’m not sensitive to the manufacturers’ reputation in terms of social responsibility DOWN in 2010 (33% in 2009) I prefer to buy A-brands becausetheyinvest in product innovation I’m not particularlyinterested in everything new National universe ; PRP 18-54 years ; May 2009 & March 2010

54. Brands’ strategiesoverview Price sensitivity (general) A-brands & pricesensitivity Product attractivity Brand’s promises 100 National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010

55. SG 1-4 : more inclined to consume ! Price sensitivity (general) 100 SG 1-4 SG 5-8 National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010

56. SG 1-4 : more inclined to consume ! Price sensitivity (general) A-brands & pricesensitivity 100 SG 1-4 SG 5-8 National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010

57. SG 1-4 : more inclined to consume ! Price sensitivity (general) A-brands & pricesensitivity Product attractivity 100 SG 1-4 SG 5-8 National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010

58. SG 1-4 : more inclined to consume ! Price sensitivity (general) A-brands & pricesensitivity Product attractivity Brand’s promises 100 SG 1-4 SG 5-8 National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010

59. Quality is more essentialthan ever ! Currentpurchases Equipment National universe ; 18-54 years ; March 2010

60. Word of mouthorpersonalexperience ? I don’tbother people withmy good or badexperiences of products I recommend the productsthat I findvery good & disadvisethose… I oftenlisten to the advice of mypeers for the choice of a brand According to mypersonalexperience, I’mused to decide by myself about the brand I’mgoing to buy without opinion National universe ; PRP 18-54 years ; March 2010

61. Conclusions

62. Crisisled to a change New standards Belgianshoppers & A-brands The love story continues… But loyaltyis more fragile… Let us beoptimistic ! Gap between intentions & final expenditures Consumerswithfinancialmeans & convictions The gap does not have to grow ! Let us talk to the right target … with the right words Conclusions