In the past, private label Christmas pudding would have been unheard of. But look around supermarkets and liquor stores today and you see gourmet hams, award-winning wine and high grade vintage cheeses all sporting a house brand or exclusive brand label.
The days of modest and cheap private label products have passed and consumer support for store brands is increasing both globally and locally.
Online shopping makes it simple for consumers to browse and buy with just a click – anywhere, anytime. In the lead up to this year’s silly season, we are seeing more and more consumers buying online, driving a notable jump in audience numbers for some of Australia’s biggest online retail stores.
The market potential of the ALDI brand in Australia is subject to increasing scrutiny by the supermarket market majors and independents, pure online grocery players, suppliers, investors, property landlords, regulators and consumers! With such a long list of interested parties it’s worth understanding the reasons for ALDI’s success to date, and look at how it might evolve its current merchandise offer and proposition to maintain growth.
Sales of over-the-counter (OTC) pharmacy products is now a $5 billion industry in Australia – growing at a healthy five percent over the past 12 months. The latest quarter, which included the winter season, delivered even stronger growth. Notable sales increases for the vitamins and supplements, cough, cold and flu, and cosmetic skin categories are fuelling positive market performance.
Eating between meals is almost unanimously widespread. Research from The Nielsen Global Survey on Snacking has revealed that 96 percent of Australians say they regularly consume snack foods. And while Aussies’ healthy habits do prevail overall - it's only by a slim margin. The concerning number of Australians who regularly skip meals in favour of snacks presents an opportunity for manufacturers to step in and offer busy consumers nutritious and portable meal alternatives.
According to Nielsen’s corporate social responsibility survey, three in five Australian consumers think more highly of a company that supports worthy causes and over half feel increased loyalty to that brand. You’d be hard pressed to find an Australian who said he or she didn’t care. But does care convert to action when it comes to buying decisions?
A recent Nielsen shopper study on the top 50 selling grocery products revealed that bananas are the most popular household purchase with 93 percent of Australian households purchasing an average of 19 kg of the tropical fruit every year.
What if you discover your market share has been stagnant for 30 years, and you need to do something drastic to build the business and therefore profits? This was the challenge Farmers Mutual Group (FMG) faced in New Zealand. The rural insurance provider had been applying the same tactics and keeping clients for many years. But it wasn’t growing, and didn’t know what current customers thought of them….if in fact customers cared at all!
Mondelēz, Carat and Nielsen set out to do things differently during a recent Market Mix Modelling project with the Cadbury brand. The three players came together to flip the equation and put the consumer at the heart of the analysis with impressive results.
According to Nielsen’s consumer confidence survey results for the second quarter of 2014, the rising cost of utility bills is the biggest concern for Australians over the next six months – higher than any other nation in the world.
Finding ways to grow sales has never been tougher. A handful of companies, however, are still finding growth opportunities within their existing customer bases. By identifying their ‘Super Consumers’ – those consumers that spend a lot and engage a lot, companies are tailoring their marketing and sales efforts to boost incremental sales.
A brand’s performance can vary dramatically by retailer. Given that 99 percent of Australian shoppers have shopped in both major grocery retailers in the past 12 months, it boils down to the major retailers’ commercial imperatives and category priorities driving the variation in brand ranking.
Kiwis have well and truly embraced internet shopping. There are now 1.9 million New Zealanders shopping online, 56 percent of the total online population. The number of people shopping online increased by over 100,000, growth of 6.1 percent in the last year. It’s a trend that will continue to grow and with this, online shopping spend will increase substantially.
Securing the weekly grocery shop has never been more difficult with Aussie shoppers willing to shop across multiple retailers to complete their shopping list. Analysis using Nielsen's Homescan shopper panel shows 64 percent of shoppers visited more than one of the four major retailer chains in the same week.
The average Australian healthcare customer is almost 150 times more likely to be shopping with a headache or feeling ill, than not. As a result, price is often not a key consideration while in store – it comes down to other triggers such as efficiency, helpful/friendly staff and value.
The housing sector is hot with housing “churn” increasing and house prices rising. March 2014 credit data from APRA (Australian Prudential Regulation Authority) and the RBA (Reserve Bank of Australia) shows housing credit growth is up by 5.9 percent calendar YTD, driven by investor and owner occupied housing credit growth.
There are a number of key areas that industries still need to address to meet the expectations and needs of elderly consumers. The Nielsen Ageing Report highlights the opportunity that retailers, manufacturers and service providers have to ease the concerns of this growing demographic, by offering conveniences to make their lives easier.
Consumer confidence in Australia (89 points) declined six index points in Q1 2014, the lowest score on record since Nielsen began measuring consumer confidence in 2005. More than two in five Australians (44%) felt mired in recession - up from 31 percent in fourth quarter of 2013.
New findings from the Nielsen Global Survey of Automotive Demand reveal that Australia represents a large growth opportunity for the automotive industry with almost three in five (58%) online Australians planning on buying a new or used car in the next two years.
If you’re a retailer, chances are that nine in 10 (89%) of your consumers purchased a product online last year. Six in 10 online Australians now use a combination of both online and traditional retail stores as part of their product research or purchase process. These ‘new retail’ behaviours are emerging as digital and physical retail stores converge.
Despite the recent ‘price wars’ we have witnessed across the major Australian supermarket chains, Nielsen research shows that around four in five (78%) consumers still believe grocery prices have increased. Over time, this perception has influenced the way shoppers’ respond to promotions and marketing – resulting in fewer items in their basket.
While 2013 may have appeared to be the year of cider, it was also the year packaged beer quietly returned to value growth for the first time since 2009. The campaign push by the industry to “drink less, drink better” has certainly appeared to work – Aussies are now consuming less beer, but spending more on the category.
Shopper research highlights that what shoppers say does not necessarily equal what they do, as 99 percent of their behaviour is subconscious. Observing and demystifying what consumers are really feeling, and translating this to what they are doing in store, was a key focus for a recent effort between Nielsen’s Shopper team and Wrigley – one of the largest manufacturers retailing at the front of store.
Private label products now account for one in every five supermarket dollars spent in Australia – its share almost doubling over the past eight years. While much of this growth can be attributed to ALDI’s entry into the market in 2001; the other major retailers have made a concerted effort to push their premium private label ranges to compete head-to-head with leading brands.