With summer just around the corner, many of us should be focused on ditching winter comfort foods in exchange for a better, more healthful diet packed with fresh fruits and vegetables. However, Nielsen data reveals that last summer, this assumption did not necessarily hold true. While total dollar sales for fresh fruits last summer versus the previous year, the amount of fruits and vegetables Australians actually consumed declined slightly.
More consumers are using product information and labels on food packaging, nutrition and fitness to meet personal health goals. Fusing Nielsen data with nutritional information from The George Institute reveals the positive impact the Health Star Rating is having on brands in particular categories.
The news that Amazon is coming to Australian shores has the local retailing community set for something of a shake-up; and the pharmacy sector is not immune to the imminent disruption. In January 2017, 38% of Australians were aware of a potential Amazon launch, this increased to 47% by March 2017.
Thanks to globalization and connectivity, consumers around the world have access to a wider array of products than ever. So how much weight does the “made in” moniker carry when it comes to purchase motivation?
We’ve been talking about health and wellness for years. There are two critical forces at play that are shifting this topic from niche to mainstream: increasingly complex needs and massive digital engagement.
Global FMCG retail is pegged at $4 trillion today, growing at a rate of just 4%, with signs of continuing sluggish performance in developed markets. On the other hand, total retail e-commerce is predicted to grow by 20% (combined annual growth rate) to become a $4 trillion market by 2020.
As the e-commerce channel expands, the future success of brands will be significantly affected by how successful they are online. As increasingly time poor consumers seek convenience and on-the-go purchases, online sales of FMCG will gain more importance.
We’ve gotten used to emphasizing the divide between digital and physical, but it’s quickly disappearing: when digital data about the physical world is comprehensive, real-time and freely available, the physical and digital augment each other.
Authentic Italian grocery brands are growing in popularity. In some categories, products made in Italy have enjoyed strong sales gains over the past year driven by a rise in the number of Australian shoppers spending more on these brands. Despite this, category share for these brands is still relatively low - highlighting significant opportunities for expansion.
When testing innovations, it’s risky to ask consumers to compare a new concept against an actual product that they currently purchase. This unbalances the entire evaluation by setting up an unfair comparison.
The world is increasingly complex, instrumented and virtual. There’s vast amounts of information about consumers and the factors that influence their behavior that simply didn’t exist in the data warehouse era. Here, we take a closer look at how all this data will affect retail when it comes together with recent technology trends.
Beyond in-store clinics and the traditional health care aisle of the store, a handful of departments should be top of mind for drug store retailers where more multicultural dollars are spent in comparison to non-Hispanic whites.
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.
The market for dairy products is highly saturated, and driving new growth can prove challenging. However, Nielsen research shows that consumers who purchase cheese on a weekly basis have a very distinct profile and appealing to this group of cheese lovers could uncover new growth opportunities.
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.
On-the-go Kiwi consumers want their meals to be quick and convenient. Over the past year we’ve seen big increases in those who eat on the run (+22%) and buy take-away food to eat at home (+25%). For those with limited time, meal kits and prepared meals are proving to be invaluable.
For a long time, no one outside IT showed much interest in APIs, but MIT research shows that the most successful digital companies make above-average investments in APIs; these companies know that APIs are fundamental to their strategic success. Why do they think that?
Nielsen’s latest consumer confidence results for the second quarter of 2017 reveals Australian and New Zealand consumers paint a very different picture of their future outlook. New Zealand continues to ride its wave of positivity with a consumer confidence score of 103, the highest it has been in nine years. Australia, on the other hand, recorded a consumer confidence score of 89 - well below the global average of 104.
With the advancements in big data, advertisers know more about consumers than ever before. And yet, they’re still challenged with how to drive the greatest return for their marketing budgets. And we all know what happens when executives don’t see the ROI they’re expecting—they cut budgets.
Millennials (aged 18 to 34) are less likely to drink than their elders. As such, Millennials pose a challenge to alcohol marketers because of the range of factors that influence their drinking choices.
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.
Unless you’ve been hiding under a rock for the last couple of years, you’re seeing the FMCG industry transform right in front of our eyes. That’s scary, but equally exciting. So here are three things big FMCG marketers need to do to win as the industry evolves.
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.
Winter and spring 2016 was one of the wettest periods Australia has seen for a number of years. The rainy weather also triggered a rise in allergy and hayfever remedies which increased by 3.3% on last year’s allergy season.
Advertising campaigns that resonate in the minds of consumers are hard to find. Encouragingly, understanding frequency - the number of times consumers see a campaign - has a demonstrated impact on resonance, and can ensure brands maximise their digital spend.
For on-the-go Aussie consumers with limited time between the end of the workday and dinner time, food boxes and prepared meals are invaluable. Delivered directly to households, food box meal kits include portioned ingredients and easy to follow instructions, allowing consumers to skip extensive meal preparation and dive right into creating their meals.
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.
Premium purchases are not just made in glamorous, luxury product categories. In the Pacific, it is the grocery sector that has the most premium potential. Consumers are trading-up everyday products in their shopping trolleys; and marketers can capitalise on premiumisation trends and consumers’ willingness to consider a higher price tag in key categories.
The variety and increasing scale of data, as well as the scope of activity it is meant to inform, demands a solution that goes well beyond a simple enterprise data warehouse. So what might that more robust solution look like?
Innovations in the U.S. liquor market are creating new avenues for growth; and there are a number of key trends that New Zealand can learn from to boost local liquor sales. Danny Brager, Senior Vice President of Nielsen’s Beverage and Alcohol Practice presents the latest Beer, Wine, Cider and Spirits trends.
You’ve heard it a million times – you need to eat more vegetables, particularly your greens. In Australia, this adage appears to be ringing true. Nielsen Homescan data showed that volume sales for Asian vegetables jumped by 22% versus the previous year, while dollar sales jumped by 17%.
Over the past year, growth in the pharmacy channel has moderated substantially - to just below 1%. However, strong performance in other, smaller pockets of the store - including infant formula and cosmetics - signals positive future growth prospects in pharmacy.
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.
Amazon’s expansion into the Australian market is expected to launch by the end of 2018. Three-in-five Australian shoppers are looking forward to buying from the (soon to be local) online retail powerhouse.
Aussie consumers are still bananas for bananas. It is the nation’s most popular fruit. Nine-in-10 Australian households purchased bananas in the year ending 24 February 2017 and total volume sales grew by 7.5% during this period.
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.
Australians are big fans of the humble, yet versatile, cauliflower. In 2016, dollar sales for cauliflower increased by 12% on the previous year - and while this was partly driven by higher prices - consumption also continued to grow at a steady pace, with volume sales up by 2% on 2015.
As we head into the winter months, Australians aren’t slowing down on purchasing their favourite frozen dessert, ice cream. The category has experienced diverse product innovation and creativity, with a broader range of products now available to consumers.
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.
It’s no secret that consumers are increasingly connected online, both in-and-out-of the home. In fact, eight-in-10 Australians now own a smartphone, and six-in-10 use this device to connect daily. Whether they are grocery shopping, watching sport, studying, commuting to work or connecting with friends - these activities are no longer purely offline experiences.
Two-thirds (63%) of Australia’s digital advertising inventory across all devices is now bought through programmatic or ad network services, according to 2016 data from Pathmatics and Nielsen. The data is collected from digital creatives and ad technology tags found in 2,000 websites visited by Australians across desktop, mobile and tablet browsers.
New Zealand consumer confidence index reached 103 in the fourth quarter of 2016 – the highest score in nine years (since Q3 2007 where it reached 115). The index represents a two point increase from Q3 2016 and a four point increase on a year ago (Q4 2015).
Global consumer confidence increased modestly in 2016, a time of great political and economic change around the world, rising three points between the first and fourth quarters to 101. Confidence scores finished the year more strongly than they began in every region except Africa/Middle East.
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.
Online retailing giant, Amazon, is set to shake things up in the Australian retail jungle when it launches in September 2017; with talks of it offering a completely new grocery shopping experience in the way it integrates physical stores with online ordering.
Whether it is driven by lactose intolerance, allergies, veganism, the paleo diet, or just general health and wellbeing, it appears New Zealanders are exploring emerging alternatives to traditional white milk.
December 2016 will be remembered as one of the hottest festive periods on recent record in Australia. However, grocery sales during this peak period remained cool, with just 1% growth in dollars spent during the four-week period ending 31 December 2016 compared with the same period in 2015 - well below the annual growth rate for total grocery.
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, 56% of Australians and 57% of New Zealanders say that they’ll buy from a retailer with a loyalty program over one without.
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.
The use of digital channels is gaining traction in the shopping realm for New Zealand consumers. This Christmas it's expected that a record 1.1 million people will be purchasing festive season items via the internet.
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.
Grocery e-commerce, while still small in Australia, represents a major opportunity for retailers. Nielsen Homescan reveals that the average basket size of an online shopper is close to $100 - more than double that of the average basket shopped in a physical store.
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.
In recent years, retailers have increased their efforts in maximising the opportunities particular events and holidays can bring. In pharmacy, however, much of the channel seasonality appears to be driven by factors such as weather.
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.
While grocery e-commerce is still relatively small in Australia - accounting for just over 2% of total grocery sales - it is growing seven times faster than the total market. We predict that online consumer spending will inject up to $2 billion of incremental sales into the Australian grocery industry over the next five years.
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.
The avocado industry has unlocked eye-popping growth in a mature category—without breakthrough innovation. Instead, avocados have grown their share of our wallets (and stomachs!) simply through significant and sustained investment in marketing and promotion.
Where growth is being driven (or declining) from can vary considerably by retailer and understanding the differences can help improve your category’s performance. Taking the craft beer boom as an example, we see how different market dynamics can be between banners.
When it comes to staying healthy, consumers are all too aware of how the foods we eat can affect our overall health. Almost a quarter (24%) of Australian consumers follow a diet that limits the consumption of sugar, while 44% say they avoid sugar as an ingredient.
The New Zealand consumer confidence index reached 101 in Q3 2016 – the highest score since Q1 2015. In the latest online survey, the three key drivers of New Zealand’s confidence all increased from the previous 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.
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.
As consumers take the fight against obesity and chronic disease into their own hands, many are eliminating ingredients that concern them from their daily diet. Across the Pacific, consumers are adopting a back-to-basics mindset where a focus on simple ingredients and fewer artificial or processed foods is a priority.
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.
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.