Nielsen has uncovered seven common trade promotion mistakes that contribute to the current state of the industry. Very few manufacturers and retailers overcome the aggregated effect of these mistakes, derailing their pricing and promotion strategy.
Africa’s vast potential is the stuff of investors’ dreams, but capitalizing on that opportunity is less about identifying or quantifying prospects and more about execution stemming from knowledge, insights and data to enable on-the-ground success.
Backed by improving global consumer confidence, many regions are seeing improved conditions for businesses and the fast-moving consumer goods industry. Here, we’ll look at trends in a few select countries.
In contrast to the ongoing market challenges facing global fast-moving consumer goods (FMCG) manufacturers and retailers, consumers are in better spirits than they were at the end of 2016. In fact, global consumer confidence has risen three index points since the close of last year.
Has the traditional planning process become obsolete? Many signs within the industry point to “yes.” So in order to succeed today, companies need to move to a new form of adaptive planning that is responsive to continuous market change.
Your kid tore his favorite pair of jeans and you need to know if your local store will be open after work so you can pick up a replacement pair. If only you had a personal shopper who could find out what time the store closes.
FMCG success today is now dependent on quality product images, solid SEO and prominent placement on e-tailer websites—far more so than simply having an abundant quantity or variety on the shelf at the local store.
Most brands and marketers are aware that traditional marketing and engagement strategies will no longer generate the success they did just a few years ago. But many have yet to carve a path toward growth amid an increasingly digitized market where choice is overly abundant and every smartphone is a sales register.
While unexpected by many, the Amazon-Whole Foods linkage highlights just how profoundly consumer expectations are changing with regard to food and beverage shopping—and will continue to do so moving forward.
Unbeknownst to most consumers, tremendous thought goes into developing even the most commonplace products. As a result, product development in the FMCG industry is anything but fast-moving. But what if algorithms could help streamline the process and the outcomes?
As retailers ramp up their health and wellness offerings, and the lines between channels blurs, it’s interesting to think about the role that drug stores will play in an increasingly crowded, wellness-oriented marketplace.
It’s no surprise that more and more items are being outfitted with built-in connectivity. Consumers’ adoption of internet-enabled devices isn’t a given, however, and it’s worth exploring why acceptance has been so fragmented across categories—as well as what the industry can do to accelerate usage.
How many things can you say for certain that you're paying attention to, or even seeing, at any given moment? Our brains just aren’t good at recalling the kinds of details marketers need to evaluate their efforts in a complex world. That’s where the right neuroscience tools can help.
Companies striving for “leaner, bigger, better” innovations require realistic marketing inputs and an accurate forecast to identify their most promising initiatives. Proving that “consumers love it” without a realistic volumetric assessment simply isn’t enough.
Unconstrained by physical walls, e-commerce retailers offer a huge inventory of products in endless aisles. Unfortunately, our physical world product coding processes can’t scale to e-commerce: they’re too costly and too slow.
In addition to being hyper connected and digitally driven, Millennials are focused on personal experiences. And for many, those experiences happen away from home. Notably, Millennials are very interested in travel—and shopping along their journeys.
In addition to being hyper connected and digitally driven, Millennials are focused on personal experiences. And for many, those experiences happen away from home. Notably, Millennials are very interested in travel. In fact, they travel more than any other generation, including Baby Boomers.
The premium sector is growing globally, and as it turns out, it isn’t ritzy categories like diamonds and champagne that are topping the charts. Rather, global consumers are most often willing to trade up for everyday consumables.
In the coming decades, machine learning will transform work as we know it. And unlike previous revolutions, which primarily affected blue-collar workers, the smart machine revolution has white-collar workers in its sights.
Around the world, consumers are looking for a taste of the good life. And it’s not just those who are wealthy. Sales of products in the “premium” tier are growing at a rapid pace. In fact, the growth of the premium sector in many markets is outpacing total growth for many fast-moving consumer goods categories.
This study identifies the attributes consumers are looking for in premium product offerings, and reveals the underlying sentiment behind the reasons for purchase. We explore what “premium” means to consumers, and we identify the categories for which they’re most willing to pay a higher price.
Consumers are faced with a dizzying array of retailers vying for their attention, and a retail loyalty program can be a determining factor for where they decide to shop. In fact, 72% of global respondents agree that, all other factors equal, they’ll buy from a retailer with a loyalty program over one without.
When it comes to the most-valued loyalty-program benefits, monetary incentives top the list in every region. However, creating meaningful differentiation requires offering more than generic deals, and thinking beyond monetary perks can help brands stand out.
Most new product launches are “small” or “sustaining” innovations, which include the many, many brand extensions that large companies launch year after year. These launches are absolutely essential for growing existing brands and defending shelf space.
Global consumers, by and large, have more shopping choices at their disposal than ever before. For retailers, differentiating your brand in such a crowded space is critical. A retail loyalty program can be an effective way to create competitive advantage by reducing customers’ likelihood to switch stores.
Done well, loyalty programs can help drive more frequent visits and heavier purchasing. More than seven in 10 global respondents (72%) agree that, all other factors equal, they’ll buy from a retailer with a loyalty program over one without.
While the third quarter of 2016 saw considerable economic diversity across the markets measured by Nielsen’s Global Survey, consumer confidence in the U.S. remained on solid footing with a score of 106, despite a decline of seven points from the second quarter.
Retail players have long believed that large-format stores will eventually take over the landscape, but today’s reality disproves the “bigger is always better” myth. Although large stores still account for 51% of global sales, smaller channels are growing sales up to eight times as fast their larger counterparts.
Third-quarter 2016 global consumer confidence remained stable at 99, up one point from the second quarter and unchanged from third-quarter 2015. Country-level scores, however, varied dramatically throughout the regions, reflecting considerable economic diversity around the world.
Third-quarter global consumer confidence increased one point from the second quarter to 99. Country-level scores, however, varied dramatically throughout the regions, reflecting considerable economic diversity around the world.
Health and wellness have become increasingly important for consumers around the world, including the Gulf Cooperation Council. In fact, health and wellness has been a top priority for consumers in the region for several years now.
Most of the customer data companies gather about innovation is structured to show correlations rather than causations. Yet after decades of watching great companies do poorly at innovation, we’ve come to the conclusion that the focus on correlation is taking firms in the wrong direction.
What causes a consumer to pull a product into their lives? Simply put, we bring a product into our lives because it meets a need or desire. That’s the crux of Jobs Theory: doing a job that needs to be done.
Among global respondents, 74% say they appreciate the freedom of being connected anywhere, anytime, and 70% strongly or somewhat agree that their mobile device has made their life better. This constant connectivity has not only changed the way we keep in touch, but also the way we shop, bank and pay for goods and services.
Grabbing a bite to eat outside of the house is a weekly occurrence for almost half of global respondents, but are we stopping to savor our entrees or eating grub on the go? As it turns out, we’re doing quite a bit of both.
We’ve become so accustomed to our fast-paced lifestyles that it’s even crept its way into how we consume food. This is especially the case when you look at breakfast. So what does the future of the most important meal of the day look like?
While today’s consumers certainly scrutinize the foods that fill their pantries, they aren’t just eating at home. In fact, eating out isn’t just for special occasions; it’s a way of life for nearly half of global respondents.
Brands armed with new products have always rushed to be first to market, as first movers often establish a stronghold that can be difficult for later entrants to break into. But being “first mover” at the expense of being “best mover” can often lead brands to competitive disadvantage.
The ins-and-outs of what a healthy diet looks like may vary somewhat around the world, but simplicity resonates globally. While there is some variation across regions, the story stays the same: Artificial is out, many of us avoid food with long lists of ingredients and consumers are intent on removing the bad and adding the good.
Nielsen Sports' latest report examines not only the rising interest in para-sports and the Paralympics, its growing status as a media product and how the Games already works for partners, but also notes the opportunity it provides to change attitudes – and, critically, what that might mean for current and future para-sports sponsors.
As a consumer group, Millennials are just starting to flex their spending power, which will grow significantly in the coming years. While they’re years from fully establishing themselves, they’re already having a marked impact on the global consumer landscape.
Nearly two-thirds of global respondents say they follow a diet that limits or prohibits consumption of some foods or ingredients. Taking a closer look, a majority of global respondents say that when it comes to ingredient trends, a back-to-basics mind-set, focused on simple ingredients and fewer artificial or processed foods, is a priority.
Growing a brand isn’t easy, especially for those in in crowded categories. But even the most established categories change over time, and even categories that appear stable may be one critical innovation away from awarding one brand a significant long-term advantage.
Consumers around the world are increasingly focused on clean eating and the benefits of eating more healthfully, with 70% of global respondents saying they actively make dietary choices to help prevent health conditions such as obesity, diabetes, high cholesterol and hypertension.
The changing economic landscape in the GCC is pressuring the job market, which is affecting consumers’ disposable incomes and overall sentiment levels. Nielsen monitors the shift in consumer behavior in the current climate and its implications for the CPG sector, while identifying way for you to win in this challenging retail environment.
The UAE and KSA have experienced significant change over the last few years. Current global economic conditions, oil price fluctuations, decreased tourism activity, an unstable real estate market in the UAE, and higher defense spending in KSA over the last year have all pressured the growth rate of the region’s CPG segment.
For many companies, cost reduction efforts become an endless downward spiral. As soon as one cost reduction program is completed, it’s followed by another. It’s a dangerous cycle, but it’s one we know how to break.
Global consumer confidence held steady in the second quarter of 2016 at 98, an index score that was flat from the first quarter and two points higher than a year earlier. North America was the only region to sustain growth momentum in the second quarter, demonstrating a three-point increase in confidence to 111.
Global consumer confidence remained stable in the first quarter and below the optimism baseline score of 100, edging up one index point to 98. The score reflected mixed confidence levels reported in every region.
In modern retail, the use of promotions has slowly escalated to become a now-standard practice that has resulted in a shared reliance among retailers and manufacturers, but decent returns are increasingly hard to generate. So knowing which categories are more or less sensitive to pricing changes is essential for driving growth.
A core element in increasing share of wallet is understanding and responding to local consumer needs. It makes sense then, that differentiation from your competition could be an important way to build a competitive advantage. So what are consumers looking for?
Modern retail has long been guided by a powerful premise: the bigger, the better. But the retail landscape is shifting, and this mantra no longer holds true in all cases. This report explores the pain and pleasure points in global consumers' shopping experiences.
Modern retail has long been guided by a powerful premise: the bigger, the better. Retailers, consumers and suppliers all benefited from economies of scale, but over the past 10 to 15 years, the retail store model has evolved. So how can retailers stay ahead in the rapidly changing landscape?
Marketers often think of “earned” media as asymmetric marketing opportunities—they’re cheap and fast, which make them quite easy for smaller brands to exploit. But the power of earned media as an asymmetric strategy is more appearance than reality.
Consumer confidence showed a downward trend in Q1 2016 in some countries that are reliant on oil production. In particular, confidence in the UAE and Saudi Arabia remained above the optimism baseline, but declined from the previous quarter.
Mature brands will find themselves in a broader range of situations than new ones. When it becomes clear that your established brand needs investment to grow your circle of buyers, how do you know which path will work best for you?
Global consumer confidence remained stable in the first quarter and below the optimism baseline score of 100, edging up one index point to 98. The score reflected mixed confidence levels reported in every region.
When asked to pick the attributes they seek when purchasing all-purpose cleaners, 40% around the world say they want environmentally friendly benefits and nearly as many (36%) say they don’t want harsh chemicals.
When it comes to choosing specific products, do consumers prefer global brands or local ones? The answer depends primarily on the category, and there is a surprising amount of agreement across regions.
When it comes to cleaning products, it should come as little surprise that efficacy tops the list of most important attributes that consumers around the world seek out when selecting household cleaners.
As multinational companies continue to expand into new markets, often providing access to a greater range of products for local consumers, are local companies getting lost in the shuffle? Not necessarily so. In fact, many local companies are thriving.
Many consumers appear to have strong preferences about the origin of the products they buy, but how important is this attribute really when they consider a purchase? How does it stack up against other selection factors?
Typically, small teams build concepts, get qualitative or quantitative feedback, refine concepts, collect another round of feedback, and so on, until they arrive at a “winning” concept. This technique works well, but it suffers from one major drawback: It often produces ideas that are good enough but not the best.
No matter where you live or who you are, dirt and grime are inescapable facts of life. As such, we all need to clean—and we spend a significant amount of time keeping our homes and clothes clean and fresh.
Benjamin Franklin said the only things certain in life are death and taxes. Perhaps we should add dirt to the list. So who’s doing the cleaning, what solutions do they use and how often are they freshening up their homes and clothes?
Once we’ve covered our essential living expenses, how do we spend the money left over? Whether we stash our spare cash for retirement, invest it to try and make more, or purchase new products, strategies differ around the world.
Global consumer confidence ended 2015 on a subdued note as the index declined two points from the third quarter to 97—the same score as the start of the year. Europe was the only region to show consistent confidence improvements throughout the year across all three indicators (job prospects, personal finances and intentions to buy).
As connected commerce continues to gain momentum globally, it’s increasingly important that retailers make online shopping as simple as a routine trip to the store, even if they’re browsing from the other side of the globe—and offering the right method of payment is critical.
CPG companies are looking for growth. But high growth in developing markets is no longer making up for slow growth in developed markets. In such an environment, it’s tempting to consider raising prices. But should you?
While connected commerce is still largely a domestic affair, cross-border ecommerce is a growing phenomenon. Shoppers are increasingly looking outside their country’s borders, as more than half of online respondents in the study who made an online purchase in the past six months say they bought from an overseas retailer.
In a recent survey, Nielsen asked corporate leaders and the general public to describe the current state of corporate social responsibility. The gap in perceptions between the two groups is striking. So what’s driving the gap?
The convenience offering in Asia is more relevant now than ever. But convenience stores of the future will be more than a place to pick up a beverage or quick meal. Convenience will become a way of life, and the convenience store will be a physical delivery point for an array of needs driven by the click of a mouse.
With young consumers starting families and older consumers heading for retirement, it’s common knowledge that lifestyles differ depending on our age. And in today’s world of changing technology, the stereotypical gaps between the ages can seem even larger. But which stereotypes are really the truth and which are just perception? Are we really so different or do “we” have in fact a great deal in common?
Our outlook on life is often shared with others who have similar traits—and age is no exception. But many of today’s consumers are bucking yesterday’s preconceived generational notions. In fact, many older people are embracing a more technology-driven world, and sizeable numbers of younger people are turning to more traditional values.
Depending on our age, our approach to something as simple as getting up-to-date news or eating out can be drastically different. But today’s consumers are bucking yesterday’s preconceived generational notions.
Third-quarter consumer confidence declined in eight of 14 countries in the Asia-Pacific region for an overall score of 106, a regional decline of one index point from the previous quarter. Australia and South Korea each showed the biggest quarterly confidence increases in the region, while confidence declined in Taiwan, Malaysia, Hong Kong, China and Japan.
Our perception about personal finances is one factor that contributes to our confidence in the economy, which can impact our willingness to spend and save. Mirroring the rise in global consumer confidence in the third quarter, immediate spending intentions also increased, rising to 43%, up from a low of 30% in 2008 during the Great Recession.
Global consumer confidence increased three index points in the third quarter to 99. Optimistic sentiment for job prospects, personal finances and spending intentions increased in nearly half of all measured markets, but uneven growth continues around the world as confidence stabilizes or grows in many advanced economies and declines in many emerging markets.
Global consumer confidence increased three index points in the third quarter to 99, the highest level since 2006, and optimistic sentiment for job prospects, personal finances and spending intentions increased in nearly half of all measured markets.
In 1990, 57% of Southeast Asia was in poverty and access to daily necessities one could afford was not to be taken for granted. Today, so much has changed that a new niche at the high end of the affordability spectrum has emerged to fan the aspirations of consumers – premiumization.
As concerns about the environment and corporate sustainability continue to build momentum around the world, understanding the connection between sentiment and purchasing actions has never been more important. Have companies risen to meet consumer expectations?
Many FMCG sales teams in emerging markets are lacking in knowledge about the traditional trade landscape. And if you don’t know the where, what and how of your market, how likely is your strategy to be successful?
For both baby food and diaper brands, 70% of global respondents say they have switched brands. Their reasons for switching baby food, however, are somewhat different than their reasons for switching diapers.
When it comes to learning about which diapers are best, 44% of global respondents go direct to the people they know and trust for recommendations, which is the top source of information in every region.