Press Room

Online Sales of Premium Products Surging Around The World

{“order”:3,”name”:”pubdate”,”attributes”:{“hidePublishDate”:”true”,”jcr:mixinTypes”:”[cq:LiveRelationship]”,”sling:resourceType”:”nielsenglobal/components/content/publishdate”},”children”:null}

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

Indonesia Consumer Willing to Pay More for Personal Electronic Premium Product

Jakarta, April 16, 2019 – Online is becoming a popular shopping destination for consumers around the world looking to purchase premium products. Exclusive product ranges and compelling deals are generating sales from local and overseas e-retailers, according to a new report by global measurement company, Nielsen.

Nielsen’s Changing Consumer Prosperity study, which reveals consumers’ purchasing behaviour and spends toward premium product categories, found that increasingly consumers across the globe are going online to local e-retailers for premium products (45% in 2018, up 6ppts vs 2016), and almost one quarter of consumers are buying premium products from overseas e-retailers (24%, up 5ppts vs 2016). Physical stores continue to generate sales from three in five consumers (60%) locally. Meanwhile, 15% of consumers say they travel overseas to buy premium products, with the most typical reasons being personal experience and in-store attention.

Consumers in India, Turkey and Indonesia (72%, 66% and 58% respectively) are the most likely to shop online locally for premium products, while consumers in Hong Kong (38%), Croatia (36%) and Serbia (36%) markets are the most inclined to travel overseas to shop for premium goods. See Chart 1, Chart 2 and Chart 3.

The key attributes that consumers around the world say they are seeking in premium products are Superior Quality (56%), Performance (51%), Design (43%), Experience (42%) and Brand (42%). Notably, around two in five consumers (41%) are willing to pay more for Organic and All Natural Ingredients. Similarly, consumers are willing to pay more for Sustainable (38%) and Socially Responsible (30%) products.

According to the Nielsen report, the top product categories where consumers are most willing to buy premium items include Personal Electronics (42%), Apparel (40%), Cosmetics (31%) and proteins such as Dairy and Meat (30% and 29% respectively).

Consumers rated peer recommendations as the most influential factor in their trial of new premium products. Close to half of consumers (46%) said Recommendations and Encouragement by friends and family influenced their decision to try out new premium products, followed by Product Research (36%), Online Advertising (32%), Television Advertising (31%) and In-Store Advertising (25%).

The study also shows that Indonesian online consumers are willing to pay more for premium products in the Personal Electronics category (computers, cellphones, tablets, reading devices, etc.) as much as 63 percent, Apparel product categories such as Clothes/Shoes (41%), Cars (37% ), Jewelry (34%) and Cosmetics (32%). See Chart 4.

It was also found that half (50%) Indonesian consumers are still considering recommendations from their colleagues or family as the most influential factor in their trial of new premium products. While each of the 45 percent of consumers claimed that Online Advertising and Research were other factors that influenced their decision to try out new premium products. See Chart 5

“The habit of conducting research – which is mostly done by browsing the internet – before buying a product, is done more by Indonesian consumers compared with other markets in Asia Pacific. Similar goes with the influence of online advertising. It shows that the impact of online channels to the shopping behavior of Indonesian  consumers is increasing.” said RusdySumantri, Consumer Insight Director, Nielsen Indonesia. “Premium product producers must be smart in utilizing online channels to attract their consumers.”

Chart 1. Online Premium Product Purchasing, Local Online Retailers (Top 10 Markets)

Source: Nielsen Global Premiumization Study 2018

Chart 2. Online Premium Product Purchasing, Overseas Online Retailers (Top 10 Markets)

Source: Nielsen Global Premiumization Study 2018

Chart 3. Consumers Travelling Overseas to Shop In-Store for Premium Products (Top 10 Markets)

Source: Nielsen Global Premiumization Study 2018

Chart 4.  Premium Consumer Spending – Top Five Categories

Source: Nielsen Global Premiumization Study 2018

Chart 5.  Premium Product Info

 

Read in Bahasa Indonesia

*****

A message for Journalists and Editors:

●     Nielsen highly recommends journalists and editors to include a brief explanation of Nielsen methodology into the article, whenever referring to Nielsen data as the source of information.

●     To avoid any possible inaccuracy in using Nielsen data as reference, please do not hesitate to contact the above person for clarification.

●     Nielsen has the Right of Reply for any inaccuracy of Nielsen data usage in the article.

ABOUT THE NIELSEN CHANGING CONSUMER PROSPERITY

The Nielsen Changing Consumer Prosperity report presents consumers’ sentiment towards their financial situations, their purchasing behavior and impact on spending over time. It reveals consumer spending dynamics by regions covering 64 markets, including the top categories consumers are spending more on, along with top categories where consumers are willing to pay a premium. The insights will assist retailers and manufacturers in understanding consumer attitude in future spending and positioning products based on the opportunities that lie in premium and value segments in FMCG.

ABOUT NIELSEN SURVEY

The Global Survey is an Internet survey that takes about 30 minutes to complete. The sample is sourced from external sample providers. The sample includes Internet users who agreed to participate in this survey and has quotas based on age and sex for each country. It is weighted to be representative of Internet consumers by country. These quotas are reviewed at a country level by Data Science. This Nielsen survey is based on the behavior of respondents with online access only. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60% Internet penetration or 10 million online population for survey inclusion.

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.

 

# # #