Nielsen and Tmall New Product Innovation Center recently announced the omni-channel strategic cooperation, which will integrate Tmall's online data for new products with Nielsen's industry-leading offline retail data analysis insights to further deepen the omni-channel integration trend in the overall market.
The cooperation will provide retailers and brand owners with more panoramic and accurate new product information and data support to enable them make right business decisions. The cooperation is an alliance between two giants, as Alibaba is the largest B2B, C2C platform, and Nielsen has 70% data coverage in the FMCG industry with more than 500 retail business partners. By integrating data from both sides, this solution can offer users real up-to-date omnichannel new products insights.
The FMCG industry is undergoing changes, and innovation is the key to drive sales growth. The high rate of new products launch failure is a major pain point for FMCG manufacturers.
Nielsen data shows that only one out of every 10 new products can be successful in the market. Nearly two-thirds of new products will have a significant sales decline in the second year after debuting.
“Everyone knows that it is easier for companies to promote old products than those new products. Regardless of the size of a company, the success rate of new products is getting lower and lower, and the cycle of new product is getting shorter in the Internet age, many categories have not been recognized before they were eliminated by competitors, which has greatly increased the difficulty of making new products and increased the risk for franchisers to sell new products. The lack of sufficient insight of the market is easy to cause inaccurate product positioning, “said Tommy Hong, vice president of Nielsen China.
"In the face of the ever-changing market environment, an important factor in determining the survival and development of the company in the future is to continuously introduce more powerful new products. The cooperation between Nielsen and Tmall New Product Innovation Center will have a positive impact on the development of China's retail industry."
In addition to the omni-channel cooperation, the two parties will also launch an all-channel new product big data index called " Zhi Xin Compass", which will monthly display the latest product sales performance in the omnichannel market. It will help brands track new product trends in a timely manner, as well as monitoring and evaluating marketing results, and capture market trends. It also provides a strong backing for the product launch and subsequent new product development.
The index is released monthly, covering online and offline channels and mainstream FMCG categories. It provides a wealth of multi-dimensional analysis for products displayed in the index, including channel data (whether a product is sold well online or offline), regional data, consumer portraits (depending on Tmall’s rich big data resources), etc.