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 in the second quarter of 2017 has risen three index points since the close of last year.
New Zealanders love to read. Around 1.9 million Kiwis aged over 10 say they read a book every week – the second most popular leisure activity after walking. In 2016 alone, Nielsen BookScan revealed that 4.9 million books were sold in New Zealand for a total value of $114.2 million.
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.
Australians love seafood. And while most of us already purchase seafood, there is still an opportunity to encourage more consumption, and grow the category further with innovation that caters to consumers’ evolving needs and tastes.
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.
When it comes to personal banking and our interactions with the ‘Big 4’ banks, research by Nielsen and Commercial Radio Australia, using Nielsen Consumer & Media View, reveals that 69% of Australian radio listeners say they are very or quite satisfied with their main financial institution (MFI); while 6% say they are not very or not at all satisfied.
Australians are voracious consumers of broadcast TV and other video, and they have a growing array of options by which to access this content - anywhere, anytime. The first edition of the Australian Video Viewing Report – from Regional TAM, OzTAM and Nielsen – shows video viewing behaviour continues to shift with growing content, device and platform choices.
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.
Marketing teams strive to show how their smarts and silver deliver Return on Investment (ROI). Some global brands are looking for efficiencies by centralising marketing teams and exploring the merits of wider Pacific campaigns - so how alike are we to our Aussie neighbours and what are the differences to watch out for?
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.
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.
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?
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?
Nine million Australians say they have travelled domestically in the past six months or internationally in the past 12 months. But are all travellers the same? Using Nielsen research, we identified six distinct types of Australian travellers and looked at how best to reach and engage each group.
Ethnic-Australians’ spend on FMCG retailing is growing at a faster rate than their Australian-born counterparts. In the next five years, this important group of consumers will contribute a total of $18.7 billion (or 28%) in sales for the grocery sector. This represents an increase of $4.4 billion in incremental revenue, with Asian-born consumers making up 57% of this growth.
After a long day spent on a sunny beach, there isn’t a meal quite as perfect as fish and chips. This time-honoured, classic fried feast is synonymous with summertime in Australia. Research from Nielsen’s Consumer & Media View (CMV) survey shows that almost a third (32%) of Australians aged over 14 years old have claimed to have eaten or bought fish and chips in the past six months, with consumption peaking during the warmer months (October to February).
For the sports industry, one challenge stands above all others. How, in a truly multimedia environment, can sponsorships be accurately measured to provide a true picture of value generated for rights holders and brands?
Global sports are thriving, but media consumption is changing before our eyes. And as the media world grapples with these issues, so too must the sports industry. But these challenges aren’t the only obstacles facing the sports realm.
Measuring an ad’s ability to communicate trust is a tricky business: perceptions of trust can be non-conscious, formed almost immediately and biased by subtle factors. Given these nuances, explicit research methods aren’t sufficient.
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%.
Nielsen Digital Ratings (Monthly) data revealed 11.2 million Australians visited online content related to the sports category via any device during the month of March 2017, up 8% compared to February 2017.
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.
When it comes to dining out or feasting on fast food, New Zealanders are certainly not afraid to try something different. Nielsen research shows that 1.4 million Kiwis eat Thai food and the number of consumers that have eaten it in the past month has increased by 17%.
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.
Australians are willing to take to the seas with more than half (55%) considering going on a cruise. Strong growth in advertising spend from cruise operators is driving consumer enthusiasm, but questions have been raised as to whether Sydney’s infrastructure can support demand. If tour operators pull Australian ports from their routes, the current trend in advertising growth could face a sudden change in course.
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.
Whether it be a domestic getaway or a long-haul international holiday, over 2 million New Zealanders have travelled in the past year and 3 million intend to travel over the next 12 months. Our love of travel has translated into strong sales for travel and holiday guide books.
Today, 393,000 Kiwis aged over 15 wear a device on their wrist that can do more than tell the time. A status symbol, motivational fitness piece and functional gadget all in one, these smart devices are attached to their owners 24/7, providing new ways for brands to connect with consumers.
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.
In an age where consumers say they are increasingly health aware, New Zealanders still regularly indulge in fast food. Research from Nielsen’s Consumer and Media Insights (CMI) survey reveals that in the past month, as many as 80% of New Zealanders ate fast food. Fish and Chips continues to be our fast favourite, with 1.7 million Kiwis eating it in the last month - an increase of 11% over two years.
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.
China, with its huge population and increasing affluence, is a very lucrative market for companies and brands in the Pacific. The Demand Institute, projects that consumers in China will spend $56 trillion over the next decade, with a largely young, affluent, connected consumer base with disposable incomes leading the charge.
Australians are voracious consumers of broadcast TV and other video, and they have a growing array of options by which to access content. However, while viewing patterns continue to change as consumers embrace connected devices – most viewing still goes to broadcast TV channel content watched in the home.
Over the next decade, the New Zealand population will undergo some profound shifts. Larger households, ethnic diversity, ageing consumers, increased device usage and growing concern about the environment, will all need to be factored into future marketing and advertising planning for companies and brands. And this is especially true for energy retailers.
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.
This summer’s record-breaking heatwave stretched Australia’s energy supplies to unprecedented levels; intensifying consumers’ concerns about rising energy prices. In an attempt to reduce climbing power bills as many as 10% of Australians (or 1.4 million) aged over 18 plan to switch electricity retailers in the next two months.
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.
Dubbed the social media generation, the ‘me’ generation and even the lazy generation, Millennials (aged 18-34yrs) have been given a bad wrap. This generation, however, is growing up; and while they haven’t quite established themselves, their purchasing power is increasing at an exponential rate.
With global sponsorship spend forecast to reach over $62 billion in 2017 and global media rights spend expected to hit $45 billion, the top-line metrics remain positive. This report detail what we regard as the 10 major commercial trends in sports.
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.
A publisher’s website frames the conversation between brands and consumers. This context is powerful and can have a meaningful impact on a brand’s campaign performance. A study conducted by Nielsen revealed that the context of the carsales website, positively shifted brand metrics for automotive brands, to increase active recommendation by 50%.
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.
Unique audiences visiting the Netflix website or app via a desktop/laptop, smartphone or tablet have increased by 48% when comparing Digital December 2016 ratings data to December the prior year. A majority of this year-on-year growth was driven by increased access via smartphone (+82%).
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.
Australian homes have more screens, channel and platform choices than ever before. These choices deliver greater opportunities to watch television and other video, and together affect the time consumers spend with various devices.
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.
With mortgage rates at an all-time low, many Australian consumers still plan on buying a home – despite rising house prices. In the next 12 months, over 1.7 million Australians intend to buy a property and 79% of this group listen to commercial radio each week.
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, Australian 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 $2billion 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.
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.
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.
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.
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.
Many inroads have been made in recent years into the use of big data sources. And with the imminent arrival of supermarket customer card data to New Zealand there will even more available. So what data is best placed to help you?
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.