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How digital influences how we shop around the world
1.
August 2012 How Digital
Influences How We Shop Around the World
2.
Digital’s influence on
grocery shopping is on the rise • Online shopping intentions for food and beverage categories increased 44% in two years • 6-in-10 global respondents used the Internet for grocery shopping research • Nearly half (49%)of respondents purchased a product online • Globally, 46% used social media to help make purchase decisions • 37% purchased from online-only stores most frequently One-third of the world’s population is growing. In this report, Nielsen analyzes online, an increase of 528 percent over the how shoppers use online connected past 10 years*. While Internet penetration devices (computers, mobile phones and rates vary by geographic region; North tablets) to aid or even complete their America (79%), Australia/Oceania (68%), household grocery shopping. Europe (61%), Latin America (40%), What types of online activities Middle East (36%), Asia (26%) and Africa do consumers engage in (14%), they continue to climb steadily— most? How much time is especially in the developing countries of spent on these activities? the world. What are future spending Connected devices, such as computers, intentions, which websites mobile phones and tablets have become are preferred, and what a way of life for many, but shoppers are payment methods are digitally engaged to varying degrees favored? New findings from depending on the products they buy. a Nielsen online survey of While e-commerce activity for some respondents from 56 countries consumer-packaged goods (CPG) around the world provide products—especially perishable categories insight into digital influences on where freshness counts—may not be grocery shopping behavior. This report as transformative as other non-CPG offers considerations for marketers industries such as books, music and and guiding principles to help build travel, online grocery purchasing power is successful online strategies. About the Survey and Methodology The findings in this study are based on respondents with online access. While an online survey methodology allows for tremendous scale and global reach, it is limited in that it provides a perspective only on the habits of existing Internet users, not total populations. Results may therefore, among other possibilities, over-report online usage. Additionally, responses are only indicative of respondents’ beliefs about their own online usage, rather than actual metered data. * Internet World Stats – www.internetworld stats.com/stats.htm Copyright © 2012 The Nielsen Company. 2
3.
Online grocery purchase
power is growing While non-CPG (consumer-packaged What categories of products do you plan to purchase on any connected goods) products reported the highest device in the next 3 to 6 months? penetration for digital shopping Global Average intentions, with apparel, books, travel and consumer electronics rising to the top of the list, the level of influence Q1 2012 Q1 2010 for CPG-related products is growing. Intentions to buy food and beverages via 37 online sources increased 44 percent in Apparel/Accessory/ two years. Shoes / Jewelry 36 More than one-quarter (26%) of global respondents said they planned to Books/Newspaper/Magazine 33 purchase food and beverage products (hardcopy / physical subscription) 44 via an online connected device in the next three to six months—a jump from 30 18 percent reported in 2010. Skin care Travel Service Reservation (Flight / Train / Ship /Car) 32 and cosmetics also increased from 22 percent to 25 percent in the latest survey. 30 Entertainment Tickets (Movie / Performance / Exhibition / Game, etc.) 20 One-in-five global respondents said they planned to purchase electronic books and digital newspaper and magazine 29 Computer / Game Software subscriptions, a new category added 11 to the Nielsen Global Survey in 2012. The online purchase intent of hard 26 copy books and physical subscriptions Mobile Phone * (Including accessory) N/A declined from 44 percent in 2010 to 33 percent this year. Categories with growing global purchase intent 26 Food & Beverage include computer/game software (+18 18 percentage points), entertainment tickets (+10), computer/game hardware 25 (+6), video/music production (+5), cars/ Computer/Game Hardware & Peripheral motorcycle and accessories (+4), and 19 apparel/accessories/shoes/jewelry (+1). 25 While online shopping delivers key Skin Care /Cosmetics attributes shoppers demand, such 22 as convenience, value and choice, the Internet, and more specifically Video/Music Publication 23 e-commerce, will be successful to (CD, VCD, DVD) 18 varying degrees of impact on CPG depending on the category. For CPG 20 categories, shoppers are more likely to eBooks/Digital Newspaper or Magazine Subscription* N/A adopt an omni-channel approach, where online shopping becomes a supplement to traditional brick-and-mortar retailing. 11 Car/Motorcycle and Accessory 7 *Category added in 2012 Source: Nielsen Global Survey of Digital’s Influence on Grocery Shopping, Q1 2012 Copyright © 2012 The Nielsen Company. 3
4.
Online usage for
grocery shopping activities varies Whether checking a price or reading Thinking about household grocery shopping, which of the following a consumer review, when it comes to activities have you done in the last month on any online connected device? grocery shopping, more than six-in-10 global respondents (61%) said the Internet was their go-to-source for conducting research and just under half Global Average Asia-Pacific Europe Middle East/Africa Latin America North America (49%) said they purchased a product online. But research is just one of the many online 10 20 30 40 50 60 70 activities respondents around the world said they engaged in when thinking about Conduct research online grocery shopping. Forty-five percent (for example, checked price, used the Internet to get information read a consumer review) about a product, 43 percent searched for deals, 33 percent read a grocery retailer’s Purchase a promotional circular/flyer, 33 percent product online looked for coupons, 26 percent browsed a manufacturer website,18 percent provided feedback through social media, and 11 Read a grocery retailer's percent used a digital shopping list. circular/flyer online A comparison of how shoppers across the world used the Internet as a grocery Look for shopping resource revealed that while the deals online rank-order list of favored activities was relatively consistent from region to region, rates of usage varied considerably. While Look for coupons from an online Internet penetration rates are highest in coupon site North America, usage levels across many activities in that region were among the Compare prices for a grocery lowest reported. Conversely, online usage product online rates for many activities in Asia-Pacific were among the highest. Specifically, using the Internet to conduct Look up product research (70%), compare prices (48%), information online and provide feedback through social media (26%) was most prevalent in Asia- Browse a manufacturer's website Pacific countries. Latin Americans were for a grocery category the most active deal seekers (64%) and manufacturer website browsers (41%). And more North Americans looked for Provide feedback about a grocery coupons online (43%) than respondents in category through social media any other region. (wrote a review, blogged) In more Internet-developed regions of the world, the research suggests a flattening Use a digital shopping list of online activity levels as usage becomes more common place. In areas where adoption is in the early phases, there is 10 20 30 40 50 60 70 greater experimentation. Source: Nielsen Global Survey of Digital’s Influence on Grocery Shopping, Q1 2012 Copyright © 2012 The Nielsen Company. 4
5.
Online is the
timely resource for research When it comes to finding a resource for research (37%), provide feedback via Percent of total research information about grocery shopping- social media (33%), look for deals (31%) time conducted on an related activities, nearly half (47%) of and search for product information (31%). online connected device for global respondents spent more than 25 grocery shopping activities While the prevalence of using social percent of their total research time on media to provide feedback on grocery a connected device. And nearly one-in- < 25% _ 26% - 50% products is still relatively low (global four (23%) spent more than half their 51% - 75% 76% - 100% average is 18%), for those who are active research time on the Internet. More North participants, many connect regularly—33 Americans dedicated the greatest amount me least t ime percent on a daily basis and 45 percent t ti of research time online compared to the os weekly. In a world where consumers m 10% other regions - 18 percent claimed they have increasing influence on brand conducted more than 75 percent of their 13% perception through social media and research digitally. ratings and reviews, authentic responses GLOBAL For those who said they used the Internet and generating advocacy is critical. AVERAGE 53% for grocery shopping-related activities, the Marketers need to encourage feedback majority of global respondents connected and provide specialized experiences that 24% online either weekly or monthly. About increase engagement and build a two-way one-third logged on daily to conduct relationship with the brand. How often have you used a connected device 12% 7% (PC, mobile phone, tablet, etc.) for each of the following ASIA- Global Average PACIFIC 54% 27 % Daily Weekly Monthly 11% Conduct research online 11% 37% 47% 16% EUROPE 59% Purchase a product online 19% 9% 43% 48% Read a grocery retailer's circular/flyer online 23% 54% 23% 8% Look for deals online 14% 31% 48% 21% MIDDLE EAST/ 54% AFRICA Look for coupons from an online coupon site 25% 29% 52% 19% Compare prices for a grocery product online 23% 56% 21% 12% Look up product information online 13% 31% 49% 20% LATIN 50% AMERICA Browse a manufacturer's website for a grocery category 25% 24% 51% 25% Provide feedback about a grocery category through social media 33% 45% 23% 18% Use a digital shopping list NORTH 44% 23% 51% 27% 20% AMERICA 19% 19% Source: Nielsen Global Survey of Digital’s Influence on Grocery Shopping, Q1 2012 Copyright © 2012 The Nielsen Company. 5
6.
Social media’s influence
is rising I use social media sites to help me make purchase decisions 2011 2010 63% 50% 44% 60% 40% 49% ASIA- MIDDLE EAST/ LATIN PACIFIC AFRICA AMERICA 32% 21% 46% 30% 14% 43% NORTH GLOBAL EUROPE AMERICA AVERAGE Source: Nielsen Global Survey of Online Shopping, Q3 2011 and Q1 2010 The influence of social media on purchase percent of Latin American respondents decisions is growing across all regions, and 32 percent of European online albeit at varying levels. Globally, 46 users relied on social media to percent of respondents said they used help make purchase decisions, an social media outlets to help make increase of five and two points, purchase decisions, a rise of three respectively. percentage points from 2010. North Social media can play an Americans were the least reliant on social important role in leveling media at 21 percent, but have increased the playing field among the their dependency by seven points. competition, allowing smaller Asia-Pacific respondents were the most brands to compete. Encourage active social media users to aid purchase satisfied customers to use decisions at 63 percent, an increase from online ratings and reviews to 60 percent two years ago. share positive experiences, but it is Middle Eastern/African respondents a two-way communication medium increased their dependency on social and marketers must engage in the media the most, rising 10 percentage dialogue in order to stay in control. points to 50 percent in 2011. Forty-four Copyright © 2012 The Nielsen Company. 6
7.
Online shopping preferences
and payments Thirty-seven percent of global percent, respectively. And while North cash on delivery, 12 percent chose direct respondents said they most frequently Americans reported a nine-point drop debit from a checking or bank account and purchase from online-only stores—an since 2010 in their preference for shops 10 percent utilized a debit card. increase from 34 percent in 2010. Twenty- that are exclusively online, Asia-Pacific Latin Americans were the most prolific two percent preferred sites that also respondents reported the opposite trend, credit card users for online purchases, as have traditional brick and mortar stores, with a nine point increase for shopping more than half (51%) used this method. 17 percent favored sites that allow you these online-only websites. Both regions Middle Eastern/African respondents to select products from many different reported usage of online-only websites at were most reliant on direct debit from online stores and 11 percent chose sites 40 percent. checking/bank accounts, as one-in-four that also sell products through catalogs or When it comes to paying for online utilized this payment system. North over the phone. purchases, one-third (32%) of Americans primarily use one of three For sites that are connected with physical respondents around the world said they primary methods; credit cards (34%), store locations, Latin Americans and most often paid for purchases using a debit cards (25%) and PayPal (24%). North Americans reported the greatest credit card. One-fourth (24%) preferred preference at 34 percent and 30 the ease of using PayPal, 14 percent used What kind of websites do you purchase from most frequently when shopping online? ONLINE-ONLY WEBSITES BRICK & MORTAR STORE WEBSITES 40 % 16% Asia-Pacific 31% Asia-Pacific 19% 38% 23% Europe 39% Europe 21% 19% 34% Latin America 20% Latin America 34% 24% 10% Middle East/ Africa 21% Middle East/ Africa 10% 40% 30% North America 49% North America 17% 37% 22% Global Average 34% Global Average 20% 2011 2010 MULTIPLE ONLINE STORE WEBSITES CATALOG/PHONE-ORDER WEBSITES 26% 10% Asia-Pacific 30% Asia-Pacific 8% 10% 13% Europe 13% Europe 13% 17% 8% Latin America 17% Latin America 9% 11% 6% Middle East/ Africa 14% Middle East/ Africa 8% 5% 10% North America 7% North America 11% 17% 11% Global Average 20% Global Average 10% Source: Nielsen Global Survey of Online Shopping, Q3 2011 and Q1 2010 Copyright © 2012 The Nielsen Company. 7
8.
Strategies for how
to win with digital Shopper marketing tactics are changing Determine what activities are important and there are several ways to grow to core shoppers and customize the positive engagement levels. Whether offering. If shoppers are more deal- customizing the message for the shopper, centric, provide coupon promotions. more narrowly segmenting shoppers, Third, connect with shoppers via the or delivering more ‘authentic’ messages right medium. An increasingly in brand communications, savvy digital complex landscape provides strategies must help personalize and consumers with a wide array integrate value-added content to improve of choices. Marketers need to the user experience. focus on the medium that First, focus on the right shopper. Not provides the best return on everyone is going to use digital. Nielsen investment. Think about research finds that one-of-four CPG product usage and devise shoppers are considered ‘Trendsetters’. strategies that speak to These are generally shoppers that love the needs of consumers. to keep ahead, try new things and tell Pair mobility with need others about them. They are typically and create apps that, for younger compared to other segments, example, make it easier to have children in the household and are a create a shopping list, refill bit more affluent compared to the general prescriptions or navigate a store. population. Whether the platform is online, Second, engage shoppers with the right mobile, social or in-store, prioritize the message. ‘Trendsetters’ tend to be medium based on the impact it drives and more digitally engaged, but that is still the feasibility of deploying it. Digital can dependent on what they are buying. be complex, but rewarding if done right. An increasing complex landscape provides consumers with a wide array of choices Weigh impact vs. feasibility of tactics to optimize digital platform Searching for Reading a Looking Sample Strategy coupons Flyer/ Circular for Deals Website E-Circular Emails ONLINE Printable Coupons Digital Magazines Search/Display Ads Mobile Coupon MOBILE Text Message Mobile Apps Reviews SOCIAL Social Media Kiosks IN-STORE QR / Bar Codes Copyright © 2012 The Nielsen Company. 8
9.
Countries in this
study Argentina Indonesia South Africa Australia Ireland South Korea Austria Israel Spain Belgium Italy Sweden Brazil Japan Switzerland Canada Latvia Taiwan China Lithuania Thailand Chile Malaysia Turkey Colombia Mexico United Arab Emirates Croatia Netherlands United Kingdom Czech Republic New Zealand Ukraine Denmark Norway United States Egypt Pakistan Venezuela Estonia Peru Vietnam Finland Philippines France Poland Germany Portugal Greece Romania Hong Kong Russia Hungary Saudi Arabia India Singapore About the Nielsen Global Survey About Nielsen The Nielsen Global Survey of Digital’s Nielsen Holdings N.V. (NYSE: NLSN) is Influence on Grocery Shopping was a global information and measurement conducted February 10–27, 2012 and company with leading market positions polled more than 28,000 consumers in in marketing and consumer information, 56 countries throughout Asia-Pacific, television and other media measurement, Europe, Latin America, the Middle East, online intelligence, mobile measurement, Africa and North America. The social trade shows and related properties. media, online payment and website Nielsen has a presence in approximately insights are based on the Q3 2011 Global 100 countries, with headquarters in New Survey. The sample has quotas based on York, USA and Diemen, the Netherlands age and sex for each country based on their Internet users, and is weighted to For more information, visit be representative of Internet consumers www.nielsen.com and has a maximum margin of error of ±0.6%. 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 percent Internet penetration or 10M online population for survey inclusion. The Nielsen Global Survey, which includes the Global Consumer Confidence Survey, was established in 2005. Copyright © 2012 The Nielsen Company. All rights reserved. Nielsen and the Nielsen logo are trademarks or registered trademarks of CZT/ACN Trademarks, L.L.C. Other product and service 9 names are trademarks or registered trademarks of their respective companies. 12/5301
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