In 2018 the insurance sector spent nearly $79 million in New Zealand on advertising to reach potential insurance buyers. Whether it is car, contents, house, life, medical, travel or other insurance, 2,861,000 New Zealanders aged 20+ hold at least one insurance policy.
While the 2018 census data isn’t due for release until 2019, marketers should be prepared to answer two key questions - “are we adjusting to the changing needs of our target market? and how do we acquire new customers that are gaining relevance in NZ?”
Consumer trust is crucial for e-commerce growth. Trust includes many aspects for shoppers to feel comfortable in selecting the crucial “add to basket” button. For example, shoppers need to be sure they are purchasing genuine products, that what they purchased will arrive safely on time and in good condition, and that the payment is secure.
There are fewer opportunities to convert a shopper to a sale while in-store. Retailers and manufacturers need to think very deeply about how to best influence each shopping experience to maximise the potential of a sale.
While online has been growing as a channel in several developed markets in recent years, it’s broadening in scope, and is fast becoming a popular shopping destination for consumers around the world, particularly those looking to purchase premium products, as these platforms are able to attract shoppers and generate sales by providing exclusive product ranges and compelling deals.
As companies look to break into new markets, they must understand that each market demands its own approach. In burgeoning sustainability markets, however, natural and organic are paving the way for more detailed and specific claims.
The fish and seafood category is well-positioned to be a premium protein offer for Australian consumers. In the 52 weeks ending 8 September 2018, more than nine-in-ten (94%) Aussie households purchased some type of fish or seafood. These households spent an average of $167 split across 16 shopping occasions in the last 12 months.
Households who purchased for the first time accounted for 21.6% of Australian online grocery growth for the year ending 6 October 2018. Compared to the rest of the population, these new online buyers are more likely to spend on health and beauty products and pet supplies online.
Looking for a better lifestyle, consumers are searching for options that are healthier for them and for their homes. The good news is that companies can be benevolent and bankable if they understand the intricacies of these forces and react accordingly.
A new era of sustainability is rising and it’s touching every corner of the world. Consumers in markets big and small are increasingly motivated to be more environmentally conscious and are exercising their power and voice through the products they buy. But why do these shifts feel so urgent?
A recent Nielsen article found that New Zealand grocery shoppers are some of the most promotionally-driven in the developed world. Almost six in every ten dollars spent on groceries in the supermarket channel are sold on promotion. The estimated retail sales value of discounts applied to products that generate little incremental sales was almost half a billion dollars. For specialist liquor stores, this number is around $160 Million annually.
Optimising your pricing strategy is one way your brand can still grow in a deflationary environment. It is critical to have a deep understanding of which items in your portfolio are best suited to a High-Low pricing strategy and which ones would benefit from Everyday Low Price (EDLP).
Competing in the beverage categories is a tough business. Shelf space is limited; shoppers buy beverages for various needs and motivations; and they are faced with an abundance of choice. Keeping a close eye on consumer needs, as well as on the performance of like-categories, can avert falling behind in the beverage game.
With rising consumer uptake across e-commerce categories, online FMCG growth is accelerating across the globe. In fact, we estimate that online FMCG growth will accelerate four times faster growth than offline sales in the next five years.
This report looks at the changing FMCG e-commerce landscape in eight markets (Colombia, New Zealand, Norway, Poland, Portugal, Taiwan, Thailand, United Arab Emirates), influenced by 10 key drivers, along with deep insights for each of these markets.
A slight drop in consumer sentiment in the second quarter was reflected in a slight pullback in spending in certain markets, as skepticism about the future had some consumers feeling as though their free cash would be better served in savings rather than on discretionary purchases.
Australians are the world’s most price-sensitive grocery shoppers. For manufacturers and retailers, this poses quite the dilemma. If the price is the most powerful component of profitability, how can you best use it as a lever when you are working with shoppers who are always on the lookout for the best bargain in this industry?
Affluence, a calculation based on income, number of children and household size reveals a lot about purchasing power. But how does affluence affect how many vegetables Australians eat? Can Australian shoppers reach their “two and five a day” on any budget?
Convenience isn’t just about store formats, products or packaging. And it means more than the latest technologies or new engagement strategies. Rather, it’s about every encounter, interaction and action that can help fulfill consumers’ growing demand for efficiency.
Australian manufacturers and retailers are investing an exceptional amount of time and money executing promotions on a regular basis - with the hope that both parties will benefit from a maximum return on their investment. The reality is, however, that this outcome is rarely ever achieved.
Protein - a compound that builds and repairs muscle tissue - is driving a health food craze sweeping the globe. With demand and interest increasing, the opportunity for manufacturers to boast their products’ protein content and drive growth is large.
Australian households are buying healthier packaged grocery products thanks to greater health education and awareness, along with supplier innovation bringing in a range of better-for-you alternatives. However, this growing demand for healthy products is yet to be fully realised when it comes to fresh produce.
If you can’t see it, it must not be there, right? In the FMCG market, this couldn’t be farther from the truth. That’s because every category has a certain concentration of brands that aren’t top of mind for many, but they have the ability to shift the overall landscape if conditions are right.
Convenience retailers and Manufacturers have a huge opportunity to tap into the needs of time-poor, health conscious shoppers in New Zealand. To realise this opportunity, we need to know what these shoppers’ motivations are. Are they aspiring to be healthy, or are they truly healthy people?
Australian manufacturers need to think hard about where and how they are going to place their bets in 2018. We are a market that has collectively become accustomed to high growth. At the turn of the century (2000-2009), the industry enjoyed 6-7% dollar growth; while this decade recorded 3-4% average growth. Today, we are facing a different reality. In 2017, grocery dollar growth hit 1.3% - the lowest in two decades.
New Zealand grocery shoppers are the most promotion-driven in the world. Almost six in every ten dollars spent on groceries in 2017 were sold on promotion - well ahead of other developed markets around the globe.
This month, all eyes will be on the U.K. market as a sugar tax on drinks goes into effect there, encouraging consumers through price to reduce their sugar consumption. No doubt the Australian Federal Government will be watching, as they consider a ‘sugar tax’ here in Australia.
While sales of fast-moving consumer goods in some traditionally successful markets like the U.S. saw signs of softness in early 2017, opportunities for growth are still readily available if you know where to look.
Consumers today have access to a wider array of products than ever before thanks to globalisation and connectivity. So when it comes to country of origin, just how much does being a 'local' or 'global' brand influence the purchasing behaviour of consumers in Australia and New Zealand?
For a decade, emerging markets have ignited the global economy, contributing more than 80% to its economic expansion. Today, these markets consistently perform a remarkable three to four times better than their developed market counterparts in the FMCG industry.
Backed by rising consumer confidence and optimism, many of the world’s economies are experiencing degrees of positive momentum. In some cases, that momentum is strong; in others, it’s subtle, but still worth noting.
The news that Amazon is coming to Australian shores has the local retailing community set for something of a shake-up; and the pharmacy sector is not immune to the imminent disruption. In January 2017, 38% of Australians were aware of a potential Amazon launch, this increased to 47% by March 2017.
Global FMCG retail is pegged at $4 trillion today, growing at a rate of just 4%, with signs of continuing sluggish performance in developed markets. On the other hand, total retail e-commerce is predicted to grow by 20% (combined annual growth rate) to become a $4 trillion market by 2020.
Authentic Italian grocery brands are growing in popularity. In some categories, products made in Italy have enjoyed strong sales gains over the past year driven by a rise in the number of Australian shoppers spending more on these brands. Despite this, category share for these brands is still relatively low - highlighting significant opportunities for expansion.
The market for dairy products is highly saturated, and driving new growth can prove challenging. However, Nielsen research shows that consumers who purchase cheese on a weekly basis have a very distinct profile and appealing to this group of cheese lovers could uncover new growth opportunities.
Winter and spring 2016 was one of the wettest periods Australia has seen for a number of years. The rainy weather also triggered a rise in allergy and hayfever remedies which increased by 3.3% on last year’s allergy season.
Australians love seafood. And while most of us already purchase seafood, there is still an opportunity to encourage more consumption, and grow the category further with innovation that caters to consumers’ evolving needs and tastes.
After a long day spent on a sunny beach, there isn’t a meal quite as perfect as fish and chips. This time-honoured, classic fried feast is synonymous with summertime in Australia. Research from Nielsen’s Consumer & Media View (CMV) survey shows that almost a third (32%) of Australians aged over 14 years old have claimed to have eaten or bought fish and chips in the past six months, with consumption peaking during the warmer months (October to February).
Innovations in the U.S. liquor market are creating new avenues for growth; and there are a number of key trends that New Zealand can learn from to boost local liquor sales. Danny Brager, Senior Vice President of Nielsen’s Beverage and Alcohol Practice presents the latest Beer, Wine, Cider and Spirits trends.
Over the past year, growth in the pharmacy channel has moderated substantially - to just below 1%. However, strong performance in other, smaller pockets of the store - including infant formula and cosmetics - signals positive future growth prospects in pharmacy.
In an age where consumers say they are increasingly health aware, New Zealanders still regularly indulge in fast food. Research from Nielsen’s Consumer and Media Insights (CMI) survey reveals that in the past month, as many as 80% of New Zealanders ate fast food. Fish and Chips continues to be our fast favourite, with 1.7 million Kiwis eating it in the last month - an increase of 11% over two years.
The premium sector is growing globally, and as it turns out, it isn’t ritzy categories like diamonds and champagne that are topping the charts. Rather, global consumers are most often willing to trade up for everyday consumables.
Around the world, consumers are looking for a taste of the good life. And it’s not just those who are wealthy. Sales of products in the “premium” tier are growing at a rapid pace. In fact, the growth of the premium sector in many markets is outpacing total growth for many fast-moving consumer goods categories.
This study identifies the attributes consumers are looking for in premium product offerings, and reveals the underlying sentiment behind the reasons for purchase. We explore what “premium” means to consumers, and we identify the categories for which they’re most willing to pay a higher price.
Consumers are faced with a dizzying array of retailers vying for their attention, and a retail loyalty program can be a determining factor for where they decide to shop. In fact, 72% of global respondents agree that, all other factors equal, they’ll buy from a retailer with a loyalty program over one without.
When it comes to the most-valued loyalty-program benefits, monetary incentives top the list in every region. However, creating meaningful differentiation requires offering more than generic deals, and thinking beyond monetary perks can help brands stand out.
In recent years, Australian retailers have increased their efforts in maximising the opportunities particular events and holidays can bring. In pharmacy, however, much of the channel seasonality appears to be driven by factors such as weather.
Global consumers, by and large, have more shopping choices at their disposal than ever before. For retailers, differentiating your brand in such a crowded space is critical. A retail loyalty program can be an effective way to create competitive advantage by reducing customers’ likelihood to switch stores.
Done well, loyalty programs can help drive more frequent visits and heavier purchasing. More than seven in 10 global respondents (72%) agree that, all other factors equal, they’ll buy from a retailer with a loyalty program over one without.
Where growth is being driven (or declining) from can vary considerably by retailer and understanding the differences can help improve your category’s performance. Taking the craft beer boom as an example, we see how different market dynamics can be between banners.
When it comes to staying healthy, consumers are all too aware of how the foods we eat can affect our overall health. Almost a quarter (24%) of Australian consumers follow a diet that limits the consumption of sugar, while 44% say they avoid sugar as an ingredient.
Among global respondents, 74% say they appreciate the freedom of being connected anywhere, anytime, and 70% strongly or somewhat agree that their mobile device has made their life better. This constant connectivity has not only changed the way we keep in touch, but also the way we shop, bank and pay for goods and services.
Grabbing a bite to eat outside of the house is a weekly occurrence for almost half of global respondents, but are we stopping to savor our entrees or eating grub on the go? As it turns out, we’re doing quite a bit of both.
While today’s consumers certainly scrutinize the foods that fill their pantries, they aren’t just eating at home. In fact, eating out isn’t just for special occasions; it’s a way of life for nearly half of global respondents.
The ins-and-outs of what a healthy diet looks like may vary somewhat around the world, but simplicity resonates globally. While there is some variation across regions, the story stays the same: Artificial is out, many of us avoid food with long lists of ingredients and consumers are intent on removing the bad and adding the good.
Nearly two-thirds of global respondents say they follow a diet that limits or prohibits consumption of some foods or ingredients. Taking a closer look, a majority of global respondents say that when it comes to ingredient trends, a back-to-basics mind-set, focused on simple ingredients and fewer artificial or processed foods, is a priority.
Consumers around the world are increasingly focused on clean eating and the benefits of eating more healthfully, with 70% of global respondents saying they actively make dietary choices to help prevent health conditions such as obesity, diabetes, high cholesterol and hypertension.
In modern retail, the use of promotions has slowly escalated to become a now-standard practice that has resulted in a shared reliance among retailers and manufacturers, but decent returns are increasingly hard to generate. So knowing which categories are more or less sensitive to pricing changes is essential for driving growth.
A core element in increasing share of wallet is understanding and responding to local consumer needs. It makes sense then, that differentiation from your competition could be an important way to build a competitive advantage. So what are consumers looking for?
Modern retail has long been guided by a powerful premise: the bigger, the better. But the retail landscape is shifting, and this mantra no longer holds true in all cases. This report explores the pain and pleasure points in global consumers' shopping experiences.
Modern retail has long been guided by a powerful premise: the bigger, the better. Retailers, consumers and suppliers all benefited from economies of scale, but over the past 10 to 15 years, the retail store model has evolved. So how can retailers stay ahead in the rapidly changing landscape?
When it comes to choosing a product, do consumers prefer global brands or local ones? Around half of New Zealanders (52%) try to buy NZ made products as often as possible but it really depends on the category.
Whether you think a gluten free diet benefits everyone or it is just the latest fad, there's no denying it's big business. Last year New Zealand shoppers spent over $50 million on gluten free products.
When it comes to choosing specific products, do consumers prefer global brands or local ones? The answer depends primarily on the category, and there is a surprising amount of agreement across regions.
Soft drink, soda, pop, fizzy drink, tonic—Americans have long loved bubble beverages. But over the last four years, total U.S. dollar sales for carbonated beverages have dipped 1%, a $1 billion loss to the industry.
As multinational companies continue to expand into new markets, often providing access to a greater range of products for local consumers, are local companies getting lost in the shuffle? Not necessarily so. In fact, many local companies are thriving.
No matter where you live or who you are, dirt and grime are inescapable facts of life. As such, we all need to clean—and we spend a significant amount of time keeping our homes and clothes clean and fresh.
Benjamin Franklin said the only things certain in life are death and taxes. Perhaps we should add dirt to the list. So who’s doing the cleaning, what solutions do they use and how often are they freshening up their homes and clothes?
Online shopping is growing around the world, but is this affecting how people are shopping in physical stores? Consumers aren’t simply “showrooming”—browsing in store and then going online in search of the lowest-cost option. They’re also “webrooming”—researching online and buying in stores.
While connected commerce is still largely a domestic affair, cross-border ecommerce is a growing phenomenon. Shoppers are increasingly looking outside their country’s borders, as more than half of online respondents in the study who made an online purchase in the past six months say they bought from an overseas retailer.
To better understand how younger respondents view the importance of dietary considerations, we asked six Millennials from different parts of the globe to explain how their eating habits differ from those of their parents.
For both baby food and diaper brands, 70% of global respondents say they have switched brands. Their reasons for switching baby food, however, are somewhat different than their reasons for switching diapers.
When it comes to keeping babies comfortable and clean, diapers are a top priority for parents—and one for which they spare no expense. In fact, Nielsen estimates diaper sales around the world will exceed $29 billion in 2015.
Becoming a parent can be a daunting endeavor, full of many “firsts.” But before first words and steps, come first foods. So who do new parents turn to most for advice about the best baby food/formula to buy for the first time? While friends and family rank highest, consumers don’t just rely on their circles for guidance.
From the pureed food on spoons to the formula in bottles, you’d be hard pressed to find a parent who didn’t want the best for their baby. And they're willing to spend for it. But for baby care manufacturers, there’s plenty at stake in the battle for baby bucks.
As the media landscape evolves, so too do the sources consumers use to find out about new products. Globally, shoppers' reliance on earned media is growing while their attention toward some paid media sources are declining.
Brand building can be costly and time consuming, so the ability to grow via line extensions—the use of an established product brand for a new item in the same category–can be extremely advantageous. In fact, line extensions are approximately three to four times more common than “new manufacturer” and “new brand” launches combined.
When it comes to taking a risk on a new product purchase, why do consumers choose one product over another? What needs and desires drive new product purchasing, and which attributes are most influential in the path to purchase?
In the last decade, we’ve grown the market by $10 billion in retail sales. However, most of that growth was five years ago. Our research tells us that growth is out there to be had, but it is uneven. We predict the next five years will offer the market a $6 billion growth prize. But, as an industry, a shift in mindset needs to occur if we are to realise ‘real’ new opportunities for growth.
Despite evidence that the rise of digital shopping has become an influential factor in the changing retail landscape, consumer shopping channel preferences continue to shift. A review of sales trends for select FMCG around the world reveal that when it comes to trade channel importance, there is no single answer that’s right for all.
From macchiatos to our beloved flat white, it is clear that coffee culture has well and truly established itself in New Zealand. 2.3 million Kiwis are drinking it at least once a week. In fact, coffee sales in supermarkets grew by $9.9 million in the last year. Finding growth in a mature category like coffee is difficult, yet coffee has grown at 4.7%, well above total grocery growth.
Imagine a grocery store where you can receive personal recommendations and offers the moment you step in the store, where checkout takes seconds and you can pay for groceries without ever taking out your wallet. Sound far-fetched? It’s closer than you think.
Imagine a grocery store where you can receive personal recommendations and offers the moment you step in store, your checkout takes seconds and you can pay for groceries without ever taking out your wallet. Sound far-fetched? It’s closer than you think.
Half of consumers around the world say they’re actively trying to lose weight, and 75% of them plan to achieve that goal by changing their diet. But the road to good health isn’t always paved with good intentions. So do desires materialize where it counts—at the point of sale?