The global financial crisis has brought into sharper focus the long-term shift in economic power towards the developing world. Global consumer product companies are embracing this underlying trend and the mantra of reaching the next one billion customers in emerging markets. To help companies turn their ambitions into reality, we've conducted a research project to understand the differences in shopping behaviour around the world. The research also highlights some of the issues western consumer product companies and grocers should consider, before launching in developing markets. Study: The study consisted of 5,375 consumers in the UK, US, Brazil, China, India and Nigeria. All questions were asked through a survey taken via the mobile Internet and we used our own panel of respondents. Key considerations for developing markets: In developing markets people are more inclined to use public transport or walk, therefore smaller sized products and low cost basket sizes will have more appeal. Local brands and stores should not be underestimated - shopkeepers are the gatekeepers and even the best conceived consumer strategies need their support to succeed. Setting up shop in close proximity to where people live is a critical success factor, as is having access to a local distribution network. To give the data a human perspective we also asked respondents to take a picture on their mobile of their main grocery store, the transportation they use to get to the store and their grocery shopping. The images provide a stark contrast in lifestyles around the world.

1. Grocery shopping in developing markets
Countries include: UK,US, Brazil, China, India and Nigeria
March 2012

2. Background summary to the research
The Developing Market Opportunity:
The global financial crisis has brought into sharper focus the long-term shift in economic power towards the
developing world. Global consumer product companies are embracing this underlying economic trend, and the
mantra of reaching the next one billion customers in emerging markets has been widely adopted.
Turning ambition into reality in developing markets, however is not always straightforward. Emerging markets
require a different focus and recognition so a one size fits all strategy is not appropriate.
Case Study:
In India P&G’s Gillette brand historically focused on selling their lower end razors, but the vast majority of men
still shaved with double-edge razors, a century-old technology that tends to cause far more cuts. The fact that
Gillette's global products failed to address billions of emerging markets' low-income consumers, wasn't seen as a
problem as long as growth in core markets was robust, but recently they have had to reverse this decision.
P&G sent a team to India to conduct ethnographic research and observe consumer behaviour. This clean-slate
needs assessment yielded key insights about how the Indian male shaver differed from his western counterpart.
He was typically far more price-sensitive, but critically he also shaved himself in a completely different way.
P&G leveraged these insights to develop a new shaving tool to meet the specific needs of the Indian consumer.
They also built a fully Indian tailored business model and now have over 50% market share in India.
Source: P&G case study: Harvard Business Review April 2012

3. On Device Research Grocery Shopping Case Study:
Whilst ethnographic studies can yield in-depth insights they can also be very expensive and time
consuming. However as developing markets are heavy users of mobiles, these devices can be also be
used as research tools for understanding behaviour and results are returned very quickly.
To understand shopping behaviour around the world and highlight some of the issues western consumer
product companies and grocers should consider before launching in developing markets, we conducted a
small scale research study using the mobile research methodology and our own panel of respondents.
Methodology:
We asked 5,375 consumers in the UK, US, Brazil, China, India and Nigeria a series of questions about
their grocery shopping habits and behaviour, through a survey taken via the mobile Internet
We also asked respondents to take a picture on their mobile of the store they carry out their main
shopping, the transportation they use to get to the store and their grocery shopping and send it to us.
The images provide a stark contrast in lifestyles and provides an interesting insight into people’s lives.

4. Summary
Where they shop - In developed markets people mainly use supermarkets to carry out their main
grocery shopping, in developing markets however, people use their local market or local store.
Business Impact: In developing markets local brands and stores should not be underestimated. Having
a good relationship with local shop keepers is critical because even the best conceived consumer
strategies need the shopkeepers’ support to succeed – basically you need to make it worthwhile for
them to stock your product.
They are also likely to have low-cost supply chains that are hard to match, so understanding the local
conditions and ways of doing business is important.
Why they shop - The store being in close proximity to people’s home is the main reason why people
choose to shop in a particular grocery store.
Business Impact: In developing markets the concept of going to out of town discount stores is not a
reality, so setting up shop in close proximity to where people live is key, as is tapping into a good
distribution network – for many setting up in emerging market countries, access to a distribution
network is a critical success factor.
For example, when L’Oréal first entered China, it followed a strategy of buying Chinese brands to
leverage the good relationships those brands enjoyed with local retailers. This then provided a
platform for L’Oréal’s Paris brand to penetrate the market.
Source: L’Oréal case study: Ernest Young Emerging Markets Report Q4 2010

5. Summary
Transportation - People in developed markets are more likely to use a car to get to their grocery store,
however in developing markets they are more inclined to use public transport or walk.
Business Impact: If people in developing markets are walking or using bicycles to get to grocery
stores, then they are not going to be able to carry large volumes, therefore tempting discount offers
of multiple product buys that are popular in developed markets will not work. So smaller product sizes
is important and this can also help to reduce the cost of items.
Switching - The location of the grocery store and low prices are the two main factors that would
encourage people to switch stores across all markets.
Business Impact: To get people to switch in developing markets you have to bring your products to
them, by placing them in central locations.
Going in at lower price points is also appealing for shoppers. Many in developing markets will get paid
weekly as opposed to monthly, so they are less likely to carry out a big monthly shop which is
common in developed markets - buying more often and at lower price points will be their strategy.

6. Where they shop - In developed markets people mainly use supermarkets
to carry out their main grocery shopping, in developing markets however
people use their local market or local store in their neighbourhood.
What type of store do you mainly shop at to buy groceries for
yourself and your family?
70% UK US Brazil China India Nigeria
60%
50%
40%
30%
20%
10%
0%
Supermarkets/Hypermarkets Discount Stores / Mass Local market Local store
Merchants
Source: n=5375 Countries: UK, US, Brazil, India, China and Nigeria
January 2013

7. Why they shop - The store being in close proximity to people’s home is
the main reason why people choose to shop in a particular grocery
store. Variety of products is also important in Brazil & China
Why do you carry out your main shopping at this particular store?
70%
60%
UK US Brazil China India Nigeria
50%
40%
30%
20%
10%
0%
It’s a close Low prices Good Favourite Many different Advertising
distance to promotions/ products are products to
home discounts available choose from
Source: n=5375 Countries: UK, US, Brazil, India, China and Nigeria
January 2013

8. Where people shop around the world
Local Store in India Supermarket in US Local Store in Nigeria
Local Store in Brazil
Supermarket in UK Nigeria China

9. Where people shop around the world
Supermarket in Nigeria
Supermarket in Brazil Supermarket in UK
Supermarket in US Local store in Nigeria Supermarket in US

10. Transportation - People in developed markets are more likely to
use a car to get to their grocery store, however in developing
markets they are more inclined to use public transport or walk.
If you (or someone in your household) goes grocery shopping,
what is the most common way to get there?
80%
70% UK US Brazil China India Nigeria
60%
50%
40%
30%
20%
10%
0%
Private vehicle/car Public transport bus Walk Taxi Bicycle
Source: n=5375 Countries: UK, US, Brazil, India, China and Nigeria
January 2013

11. If you use a car for shopping you’re more likely to shop in a
supermarket, where as if you walk or use a bicycle as your mode
of transport for shopping, you’re more likely to shop locally.
Type of store vs transportation used to get to store
60%
Supermarkets/Hypermarkets Local store Local market
50%
40%
30%
20%
10%
0%
Private vehicle/car Public transport bus Taxi Walk Bicycle
Transport used to go grocery shopping
Source: n=5375 Countries: UK, US, Brazil, India, China and Nigeria
January 2013

12. Transportation used to go grocery shopping
Bike in Nigeria Car in US Car in UK Bike in Nigeria
Public transport Nigeria Motorcycle in India Car in US
Public transport UK
Car in US

13. Switching - The location of the grocery store and low prices are
the two main factors that would encourage people to switch
stores across all markets. Advertising places a minimal part.
What would tempt you to switch to another store?
UK US Brazil China India Nigeria
70%
60%
50%
40%
30%
20%
10%
0%
It’s closer to Low prices Good On the route Many Favourite Advertising
home promotions/ from work to different products are
discounts home products to available
choose from
Source: n=5375 Countries: UK, US, Brazil, India, China and Nigeria
January 2013

14. Grocery shopping around the world
Grocery Shopping in Brazil Grocery Shopping in US Shopping in China
Shopping in Nigeria Grocery Shopping in US Grocery Shopping in Nigeria

15. Grocery shopping around the world
Grocery Shopping in Nigeria
Grocery Shopping in UK Grocery Shopping in US
Grocery Shopping in Nigeria
Grocery Shopping in UK Grocery Shopping in US

16. Purchasing, Frequency & Spend

17. Brazil & Nigeria
Brazil:
Purchasing - 43% of females make the grocery purchasing decisions in the house, with 40% sharing in
the decision making. 53% shop for 4+ people, 47% buy grocery shopping for 1-3 people
Frequency - 27% go grocery shopping daily, with 38% visiting at least twice a week
Spend - 34% spend over R$100+ on their weekly grocery shop with 26% spending R$61 – R$100
Nigeria:
Purchasing - 37% of females make the grocery purchasing decisions in the house, with 34% sharing in
the decision making. 59% buy grocery shopping for 1-3 people, 41% shop for 4+ people
Frequency - 24% go grocery shopping daily, with 48% visiting at least twice a week
Spend - 43% spend over N150+ on their weekly grocery shop

18. China & US
China:
Purchasing - 43% of females make the grocery purchasing decisions in the house, with 33% sharing in
the decision making. 85% buy grocery shopping for 1-3 people
Frequency - 21% go grocery shopping daily, with 62% visiting at least twice a week
Spend - 31% spend between 71-150 yuan on their weekly grocery shop with 37% spending 151+ yuan
US:
Purchasing - 62% of females make the grocery purchasing decisions in the house, with 29% sharing in
the decision making. 47% buy grocery shopping for 1-3 people and 49% buy for 4-9 people
Frequency - 17% go grocery shopping daily, 26% visit 2-3 times a week
Spend - 22% spend under $50 on their weekly grocery shop with 51% spending $51-$100

19. India & UK
India:
Purchasing - 54% of females make the grocery purchasing decisions in the house, with 29% sharing
in the decision making. 56% buy grocery shopping for 1-3 people and 37% buy for 4-9 people
Frequency - 24% go grocery shopping daily, 49% visit at least twice a week
Spend - 44% spend under Rs200 on their weekly grocery shop with 24% spending Rs201 – Rs500
UK:
Purchasing - 63% of females make the shopping or grocery purchasing decisions in the house, with
28% sharing in the decision making. 53% buy grocery shopping for 1-3 people and 39% buy for 4-9
people
Frequency - 24% go grocery shopping daily, 50% visit at least twice a week
Spend - 36% spend under £50 on their weekly grocery shop with 35% spending £51-£80

20. Summary
Where they shop - In developed markets people mainly use supermarkets to carry out their main
grocery shopping, in developing markets however, people use their local market or local store.
Business Impact: In developing markets local brands and stores should not be underestimated. Having
a good relationship with local shop keepers is critical because even the best conceived consumer
strategies need the shopkeepers’ support to succeed – basically you need to make it worthwhile for
them to stock your product.
They are also likely to have low-cost supply chains that are hard to match, so understanding the local
conditions and ways of doing business is important.
Why they shop - The store being in close proximity to people’s home is the main reason why people
choose to shop in a particular grocery store.
Business Impact: In developing markets the concept of going to out of town discount stores is not a
reality, so setting up shop in close proximity to where people live is key, as is tapping into a good
distribution network – for many setting up in emerging market countries, access to a distribution
network is a critical success factor.
For example, when L’Oréal first entered China, it followed a strategy of buying Chinese brands to
leverage the good relationships those brands enjoyed with local retailers. This then provided a
platform for L’Oréal’s Paris brand to penetrate the market.
Source: L’Oréal case study: Ernest Young Emerging Markets Report Q4 2010

21. Summary
Transportation - People in developed markets are more likely to use a car to get to their grocery store,
however in developing markets they are more inclined to use public transport or walk.
Business Impact: If people in developing markets are walking or using bicycles to get to grocery
stores, then they are not going to be able to carry large volumes, therefore tempting discount offers
of multiple product buys that are popular in developed markets will not work. So smaller product sizes
is important and this can also help to reduce the cost of items.
Switching - The location of the grocery store and low prices are the two main factors that would
encourage people to switch stores across all markets.
Business Impact: To get people to switch in developing markets you have to bring your products to
them, by placing them in central locations.
Going in at lower price points is also appealing for shoppers. Many in developing markets will get paid
weekly as opposed to monthly, so they are less likely to carry out a big monthly shop which is
common in developed markets - buying more often and at lower price points will be their strategy.

22. Want to ask your own research
questions? Contact us today:
Sarah Quinn
sarah@ondeviceresearch.com
@ondevice
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24. On Device Research uses
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access to consumer
opinions at any time, place
or country

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