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LIFESTYLE CHANGES IMPROVE THE NEED OF CONVENIENCE FOR CONSUMERS

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Media contact: Mila Lubis, Phone: +62 8551082304, Email: [email protected]

LIFESTYLE CHANGES IMPROVE THE NEED OF CONVENIENCE FOR CONSUMERS

Jakarta, 20 August, 2018 – Consumers globally show an increasing demand for convenient solutions that can help to simplify their lives, and this greatly affects their consumption and shopping habits, according to a recent Nielsen report.

The Nielsen Quest for Convenience Report, which explores changes in global consumer needs, highlights the rapidly growing demand for comfort in various countries around the world. More than a quarter of global consumers say they are looking for products that make their lives easier (27%) and comfortable to use (26%).

This report further also reveals that there are six factors that encourage increased consumer needs for comfort, and these six factors are consistently seen globally, namely:

  • Urbanization

  • Shrinking household sizes

  • Crowded urban transport

  • Evolving gender roles

  • Generational needs

  • Increasing uptake of technology

These driving factors and the increasing demand for products and solutions that can help simplify lifestyle certainly have an impact on the industry, particularly the FMCG industry, including in Indonesia.

Nutritious Snacks Become an Alternative for Breakfast for Indonesian Consumers

The density of urban transportation levels is one of the factors that drives 33 percent of Indonesian online consumers choose to use food delivery services. With the growth of restaurant or food delivery services reaching 6 percent, this figure is higher than the average of countries in Asia Pacific that only grew 3 percent.

Transportation density which tends to occur in the early hours of daily activities in the morning, makes 87 percent of Indonesian online consumers choose to have breakfast at home. Even 69 percent of respondents choose to consume snacks as their alternative breakfast, by choosing snacks that satisfy hunger (80%) or that contain their daily nutrient needs (80%) in the morning.

The shopping experience for consumers is currently driven by the evolution of the retail, e-commerce and omnichannel facilities. 61% of Indonesian online consumers say they feel that shopping for daily necessities is a routine homework, and they try to spend the least amount of time doing it. 58 percent of consumers said they would choose a retail store with a location that was convenient for them, and 48 percent chose a store that has an organized layout that makes it easy to shop

The store that makes consumers easy to get in and get out quickly (44%) and a store that has short checkout lines/fast checkout (44%) It is also another reason consumers choose to shop at certain retail stores.

On the other hand, the format of a small retail store format is expanding its footprints. In Indonesia, the index of the number of minimarket stores has increased by 115 in 2017 compared to the previous two years. Smaller store formats often have the advantage of proximity, and are increasingly well placed to optimize various types of products and services that meet the needs of local buyers, making minimarket revenues also grow by 6.4%.

Consumers are Comfortable to Shop for Fashion and Travel Products Online

Mobile devices and digital platforms also shape consumer experience, and change engagement from brands and products to consumers. Three quarters (74%) of Indonesian online consumers say that they enjoy the freedom of being connected anytime, anywhere; and 63 percent of consumers stated that having a mobile device connected to the internet made their lives better. This connectivity prevalence provides many connecting points for FMCG companies to interact with consumers.

59 percent of Indonesian consumers said they use mobile devices to compare prices when they are going to shop, 57 percent use it to view product-related information, while 49 percent use it to look for coupons or promotions when shopping online. Indonesian consumers more often make online purchases to buy products related to Fashion (63%) and Travel-related products (63%).

All offline formats need to reconsider their relevance and role, including the option of using digital devices in stores and ensuring that additional services with technological developments really meet consumer needs. Convenience for consumers is an overall experience that includes consumption, shopping and experiences to produce convenience, usability and simplicity.

”Convenience means different things to different consumers, depending on their circumstances, culture, location, market maturity and access to technology. It is about relieving the burden of routine tasks to give back time to consumers, so they can do what they value the most,” said Budy Gounawan, Executive Director Nielsen Indonesia. “Retailer and Manufacturer of FMCG companies need to offer solutions that address the growing need for convenience. FMCG players need to adapt to circumstances and provide integrated shopping experiences that allow consumers the freedom of greater choice of solutions that meet their needs.”

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ABOUT THE NIELSEN QUEST FOR CONVENIENCE REPORT

The Nielsen Quest for Convenience report looks at changing consumer needs around the world, specifically focusing on factors driving consumers’ increasing need for convenience, such as high density urban living, increasing commuting times and changing roles in our society. Around the globe, consumers need and look for different types of convenience – whether simplicity, time saving or suitability. The report combines global perspectives, regional deep dives, and a number market highlights to compare and contrast interesting and noteworthy differences in convenience trends around the world.

About Nielsen

Nielsen Holdings plc (NYSE: NLSN) is a global measurement and data analytics company that provides the most complete and trusted view available of consumers and markets worldwide. Our approach marries proprietary Nielsen data with other data sources to help clients around the world understand what’s happening now, what’s happening next, and how to best act on this knowledge. For more than 90 years Nielsen has provided data and analytics based on scientific rigor and innovation, continually developing new ways to answer the most important questions facing the media, advertising, retail and fast-moving consumer goods industries. An S&P 500 company, Nielsen has operations in over 100 countries, covering more than 90% of the world’s population. For more information, visit www.nielsen.com.

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