Internet-related platforms are four of the top nine sources used for new product discovery
23% of Generation Z and 21% of Millennial respondents want more premium-priced new items
New York, NY – June 23, 2015 – A new Nielsen Global Survey on new product innovation finds consumers in developing markets to be the most inclined to try new products. More than half of respondents in Asia-Pacific (69%), Africa/Middle East (57%) and Latin America (56%) say they purchased a new product during their last grocery shopping trip, compared with 44% of European and 31% of North American respondents.
The study found that nine of the 11 markets with the highest percentage of early adopters (based on new product purchase sentiment) are developing countries: Brazil (39%), Peru (30%), Israel (30%), Colombia (28%), India (28%), Latvia (28%), South Africa (28%), Bulgaria (27%), Serbia (27%), Croatia (26%) and Romania (26%).
“Developing countries can be attractive markets for new product expansion efforts due to their younger demographic composition, rising middle class population and strong appetite for ‘affordable luxuries,’” said Rob Wengel, senior vice president and managing director of Nielsen Innovation in the U.S. “But developing-market consumer needs, standards and expectations can vary dramatically from those in more mature markets, and finding the right mix takes a market-by-market approach.”
BRAND COMPETTION IS INTENSE GLOBALLY
Brand competition is intense and shelves are crowded. The vast majority of new product introductions are taken out of distribution before the end of their launch year. “New product failure rates are extremely high, but success is no fluke,” said Johan Sjöstrand, senior vice president and managing director of Nielsen Innovation in Europe. “Success is not simply the result of luck or even genius. Rather, successful product launches are the culmination of organizational focus and commitment to product development, creative marketing, smart leadership and, above all else, an in-depth understanding of what drives consumer preferences.”
HOW DO CONSUMERS DISCOVER NEW PRODUCTS?
The most commonly used source to learn about new products is reliance on friends and family, cited by 56% of global respondents, followed by viewing TV ads (52%), seeing it in a store (48%) and using active Internet search (44%). In fact, Internet-related platforms are four of the top nine sources cited for new product discovery: social media postings (26%), Internet ads (26%), and brand/manufacturer web pages (25%) are the other three sources. Receiving a free sample (31%) and newspaper/magazines (27%) are the other top sources cited.
While the top list of sources combine a mix of paid, owned and earned media options, reliance on social media showed the largest increase, rising 11 percentage points from 2012. Social media usage for new product discovery is particularly high in Africa/Middle East (34%) and Latin America (31%), compared to 20% of European and 22% of North America respondents.
NEW PRODUCTS ARE NOT JUST FOR THE YOUNG
While the youngest respondents are more likely to say they purchased a new product during their last grocery shopping trip than their older counterparts, those categorized as ‘early adopters’ only show a slight age bias.
Globally, a few new product attributes resonate particularly strong across all age groups. Affordability (23%), convenience (22%), brand recognition (21%) and novelty (20%) were top reasons for purchase. When it comes to the types of products consumers wish were on the market but are not readily available, affordability (43%) and convenience (27%) again top the list, followed by health and wellness (28%) and environmentally friendly (26%) attributes.
“Early adopters aren’t just younger consumers,” said Taddy Hall, senior vice president, Nielsen Innovation in the U.S. “Consumers of all ages are looking for products that make their lives better, and all can be passionate advocates if they find a product that fills a need. While Millennials are garnering a fair amount of recent time and attention, consider casting the net wider, and do not lose site of the needs across all age segments.”
Generationally, there are some interesting differences to note. Roughly half of Baby Boomer (ages 50-64) and Silent Generation (ages 65+) respondents say they wish more products were available at affordable prices, compared with 43% of Generation Z (ages 15-20), 40% of Millennial (ages 21-34) and 42% of Generation X (ages 35-49) respondents. Conversely, a greater percentage of Generation Z (23%) and Millennial (21%) respondents wish more premium items were available on the market than Generation X (16%), Baby Boomer (14%) and Silent Generation (7%) respondents.
ABOUT THE NIELSEN GLOBAL RETAIL FORMAT PREFERENCES SURVEY
The Nielsen Global New Product Innovation Survey polled 30,000 online respondents in 60 countries to understand consumer attitudes and sentiments about the drivers behind new product purchase intent. For the purposes of this study, we define a new product as any item a consumer has never purchased in the past. The study uncovers the reasons for making a new product purchase, identifies the types of products consumers want but can’t find, and details the sources consumers use to learn about them.
Nielsen N.V. (NYSE: NLSN) is a global performance management company that provides a comprehensive understanding of what consumers Watch and Buy. Nielsen’s Watch segment provides media and advertising clients with Total Audience measurement services across all devices where content—video, audio and text—is consumed. The Buy segment offers consumer packaged goods manufacturers and retailers the industry’s only global view of retail performance measurement. By integrating information from its Watch and Buy segments and other data sources, Nielsen provides its clients with both world-class measurement as well as analytics that help improve performance. Nielsen, an S&P 500 company, has operations in over 100 countries that cover more than 90% of the world’s population. For more information, visit www.nielsen.com.
Andrew McCaskill 347.331.5725 email@example.com