AN OVERVIEW OF MALAYSIAN SHOPPERS · BACK IN STORE REASONS OF BUYING IN OFFLINE STORE 0,65 0,41...

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This artwork was created using Nielsen data. Copyright © 2020 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute. 200332 Luca De Nard, 15 July 2020 AN OVERVIEW OF MALAYSIAN SHOPPERS

Transcript of AN OVERVIEW OF MALAYSIAN SHOPPERS · BACK IN STORE REASONS OF BUYING IN OFFLINE STORE 0,65 0,41...

Page 1: AN OVERVIEW OF MALAYSIAN SHOPPERS · BACK IN STORE REASONS OF BUYING IN OFFLINE STORE 0,65 0,41 0,39 0,32 0,29 0,21 0,16 0,15 0,14 0,14 0,06 0,05 I prefer shopping in a real store

This artwork was created using Nielsen data.

Copyright © 2020 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute. 200332

Luca De Nard, 15 July 2020

AN OVERVIEW OF MALAYSIAN SHOPPERS

Page 2: AN OVERVIEW OF MALAYSIAN SHOPPERS · BACK IN STORE REASONS OF BUYING IN OFFLINE STORE 0,65 0,41 0,39 0,32 0,29 0,21 0,16 0,15 0,14 0,14 0,06 0,05 I prefer shopping in a real store

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NAVIGATING FROM THRESHOLDS TO REGENERATION

REGENERATION

AC

CE

LE

RA

TO

RS

FA

ST

TR

AC

KC

ON

SU

ME

R B

EH

AV

IOU

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HIF

TS

#1 #2 #3 #4 #5

Proactive Health Buying

Reactive Health

Management

Pantry Prep

QUALITY & EFFICACY ► ► ►

RISE OF LOCAL ► ► ►

TECH CATALYSTS ► ► ►

Quarantined Living Prep

Restricted Living

THRESHOLD LIVING

ENDURANCE

React | Respond | Adopt Reconsider | Reprioritise | Reposition

REINVENTIntense Shocks

EMERGENCE

Living a New

Normal

#6

REBOUNDPartial Impacts

REBOOTExacerbated

Consequence

Q1’21Q3’20 Q4’20

PROLONGEDLONG TERM

EARLYSHORT TERM

DELAYEDMEDIUM TERM

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VALUE

VIRTUALBEFORE

PHYSICAL

DEMAND MORE PRECAUTIONS, EVERYWHERE

24/7

CONFINE PROXIMITY

VALUE PERSONAL

S P A C E

APPRECIATE ESSENTIALS

LIMIT

TOUCHPOINTS

OPT FOR.…OPEN….CONFINED

PLACES

EXERCISE

FINANCIALRESTRAINT

LOCALPATRONAGE

AUTHENTICATE INFORMATION

►►► LIFE IN

REBOUND

►►► LIFE IN

REBOOT

►►► LIFE IN

REINVENT

RELIANT ON ESSENTIALS

FINANCIAL CONSTRAINT

[MICRO]

LOCALRELIANCE

SOCIALSOLIDARITY

SURVIVE ON ABSOLUTE

BASICS

FINANCIAL DESTITUTION

MICRO LOCAL

DEPENDENCE

SOCIALBACKLASH

RESET LIFESTYLE ADJUSTMENTS & EXPECTATIONS

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REGENERATION CONSUMPTION CHANGES

WALLET ADJUSTMENTSInsulated vs Constrained Spenders as income uncertainty grows

RESET BRAND RELATIONSHIPSRefreshed narratives, tone and placement

ORIGIN PREFERENCESSecurity of local supplyConsumer preference: reboot economies; safety reassurances

RE-PRIORTISED VALUESRevised consideration of choice drivers

REVISED PRICING MECHANICSReset Value definition, target efficiencies and need

REBALANCED FMCG BASKETSChanging repertoires of channels, categories & items

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This artwork was created using Nielsen data.Copyright © 2020 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

A CLOSER LOOK AT MALAYSIA

Page 6: AN OVERVIEW OF MALAYSIAN SHOPPERS · BACK IN STORE REASONS OF BUYING IN OFFLINE STORE 0,65 0,41 0,39 0,32 0,29 0,21 0,16 0,15 0,14 0,14 0,06 0,05 I prefer shopping in a real store

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FAMILIES WITH SCHOOL-AGED KIDS ARE MOST IMPACTED

42%

CONSTRAINED

INSULATED

0,29

0,4

0,2

0,1

0,17

0,1

0,34

0,4

HH with child under 6 HH with child between 7-12 (Junior School) HH with child between 13-17 (High School) Other

58%CONSTRAINED SHOPPERS (experienced income loss)

INSULATED SHOPPERS (not experienced income loss)

Others: Single/Older children/without childrenSource: Nielsen Shopper Evolution 2020 | Dipstick W4’May

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Will be cooking / preparing more nutritious food for m...

Will control fast food intake for my children

Will be packing food for my children for school

Will be buying more snacks for my children for school

0,89

0,69

0,72

0,17

0,79

0,67

0,79

0,17

CONSTRAINED PARENTS LESS LIKELY TO EASE UP ON HOME COOKING

WHEN SCHOOLS WILL REOPEN

Source: Nielsen Shopper Evolution 2020 | Dipstick W4’May

COOKING MORE NUTRITIOUS FOOD FOR MY CHILDREN

96%

TRYING TO REDUCE MY HOUSEHOLD'S FAST FOOD INTAKE

85%

I AM PLANNING SNACKSFOR MY CHILDREN

74%

INSULATEDCONSTRAINED

TRENDS NOW

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EATING HABITS HAVE STABILIZED,TAKE AWAY AND DELIVERY SHOW SIGNS OF RECOVERY

FREQ

UENC

Y OF

ACTI

VITY

W1'APR W3'APR W1'MAY W4'MAY W1'APR W3'APR W1'MAY W4'MAY W1'APR W3'APR W1'MAY W4'MAY

0,830,66

0,3

0,11 0,12 0,07

0,07

0,2

0,12

0,17 0,1 0,14

EVERY SECOND DAYAT LEAST ONCE A DAY

WILL GO BACK TO THE SAME LEVELS AS BEFORE THE COVID-19 85% 68% 51%

Source: Nielsen Shopper Evolution 2020 | COVID-19 Tracker | Shopper in New Normal

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SHOPPERS ARE BACK IN STORES TRAFFIC STABILIZING WITHIN THE MONTH OF MAY

73

0.38

0.53

0.760.7

0.4

0.59

0.73

0.440.5

0.56 0.56 0.55

0.4 0.43

0.56

0.410.48

0.34

0.5

HYPERMARKETS SUPERMARKETS MINIMARKETS CONVENIENCE STORE PROVISION STORE WET MARKET

73% 70%

44%55%

41% 44%

0,75 0,76

0,460,57

0,450,51

GO FO

R GR

OCER

Y SHO

PPIN

G

BEFORE MCO W1’APRIL W3’APRIL W1’MAY W4’MAY

Source: Nielsen Shopper Evolution 2020 | COVID-19 Tracker | Shopper in New Normal

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HYPERMARKETS SUPERMARKETS ONLINE СONVENIENCE STORES

MINIMARKETS PROVISION STORES

WET MARKET

PHARMACIES

0,44

0,31

0,090,04 0,03 0,04 0,03 0,02

0,290,26 0,28

0,08 0,08

0 0 0,01

SHOPPED THE MOST OFTEN BEFORE COVID-19

LAST VISITED CHANNEL

ONLINE AND SMALLER FORMAT STORES GAINED POWER

Source: Nielsen Shopper Evolution 2020 | Shopper in New Normal

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PROMO HUNTING AND OUT OF STOCKSENCOURAGED SHOPPERS TOVISIT NEW STORES 60%

SHOPPED AT A NEW STORE IN THE LAST WEEK

Source: Nielsen Shopper Evolution 2020 | Shopper in New Normal

NEW STORE HAD PROMOS

COULD NOT TRAVEL

IN USUAL STORE WERE

OUT OF STOCKS

REGULAR STORE CLOSED DOWN

NEW STORE IS KNOWN FOR

COVID-19 CATEGORIES

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SHOPPEDOFFLINE

SHOPPEDONLINE

SHOPPED IN THE PAST WEEK

SHOPPED IN BOTH

13% 86%

SHOPPERS BECAME TRULY OMNICHANNEL

1%

66% BEFORE COVID-19*

*Omnichannel shopper study Omnichannel shopper study

Source: Nielsen Shopper Evolution 2020 | Shopper in New Normal

Shopee

Lazada

Tesco

99speedmart

Aeon

7-Eleven

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FEAR OF OUTDOORS FORCE SHOPPERS TO STICK TO ONLINEREASONS OF BUYING ONLINE

0,65

0,58

0,53

0,51

0,42

0,41

0,39

0,37

0,3

0,3

0,25

0,22

I do not want to risk going outside

I didn’t want to queue in the store/in front of the store

Shopping online saves time

I don’t want to come in contact with other people

I can purchase all things I need in one place

I always shop online

Wide product range is available online

I can compare prices online

I can find products on promotion

Shopping would be heavy/ do not want to carry

I can check/ select what’s available for fast delivery

Items I needed are out of stock in the physical stores

TIME SAVING DANGER OF GOING OUTSIDE

Source: Nielsen Shopper Evolution 2020 | Shopper in New Normal

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BUT ONLINE CHALLENGES DRIVE SHOPPERSBACK IN STORE

REASONS OF BUYING IN OFFLINE STORE

0,65

0,41

0,39

0,32

0,29

0,21

0,16

0,15

0,14

0,14

0,06

0,05

I prefer shopping in a real store

Didn’t want to wait for delivery / no slots available

I wanted to shop at my usual / favorite store

There was a delivery charge

I wanted to go outside

Items I needed were out of stock online

Online had a restriction on the # of items I could order

There was a minimum spend that I didn't want to spend

Buying online is more expensive

Online is not available

I do not trust online

Online is only for vulnerable shoppers

PREFERENCE TO BUY IN REAL, USUAL STORE

NEED TO GO OUTSIDE

ONLINE POOR EXPERIENCE

Source: Nielsen Shopper Evolution 2020 | Shopper in New Normal

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DIFFERENT CHANNELS SERVEDIFFERENT MISSIONS

Large pantry restocking

Pantry stock up

Every day needs

Meal preparation

Emergency need

Use on-the-go

Promo Hunting

Other

0,52

0,19

0,11

0,09

0,04

0,02

0,03

0,17

0,16

0,23

0,06

0,14

0,17

0,02

0,05

0,34

0,18

0,13

0,06

0,08

0,16

0,05

STOCK UP FOR FUTURE

ASIA – 36% 52%

LARGE FORMATS (HYPERS/SUPERS)SMALL FORMATS (CVS, MINI, ETC.)ONLINE

Source: Nielsen Shopper Evolution 2020 | Shopper in New Normal

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MALAYSIAN SHOPPERS ARE ON THE HUNT FOR PROMOS

0,31

0,42

0,52

0,66

MORE ACTIVELY ARE SEARCHING FOR PROMOTIONS

ASIA MALAYSIA ASIA MALAYSIA

Source: Nielsen Shopper Evolution 2020 | Shopper in New Normal

%

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COVID-19 HAS RESET EXPECTATIONS

MOST IMPORTANT SAFETY EXPECTATIONS

31%Limit # of

people inside

32%Sanitizer/ mask at

the entrance

17%Check temperature at

entrance

26%Contactless delivery

46%Courier wearing

mask & gloves

14%Communication

about safety

SHOPPERS’ VOICE

“Where I shop is compliant with all the CMCO SOPs <..> it makes me feel safe. It is a one-stop shopping center where I can get all my goods.”

“I saved a lot of time and money shopping online. I also feel much safer staying at home waiting for items to be delivered via contactless delivery.”

Source: Nielsen Shopper Evolution 2020 | Shopper in New Normal

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SAFETY & IMMUNITY GOOD FOR ME PACKAGING INGREDIENTS FUNCTIONALITY OTHER

0,33

0,210,15 0,14

0,10,07

SHOPPERS ARE HYPER SENSITIVE ONSAFETY & IMMUNITY ATTRIBUTES

KILLS GERMS / BACTERIA

EFFECTIVELY

KEEP PRODUCT FRESH LONGER

NUTRITIOUSEASY TO

USE AT HOMEHIGH QUALITYINGREDIENTS

MADE BY BRAND I TRUST

MADE LOCALLY

MOS

T IM

PORT

ANT

ATTR

IBUT

E:

Source: Nielsen Shopper Evolution 2020 | Dipstick W4’May

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CARE ABOUT QUALITY AND WILLING TO PAY MORE

69%

SHOPPERS STILL VALUE QUALITY

CHOOSING CHEAPER BRANDS THAN BEFORE

1 out of 379% - SHOPPER TRENDS

Source: Nielsen Shopper Evolution 2020 | Dipstick W4’May

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0,05 0,36 0,34 0,25

The cheapest product available, regardless of qualityAn inexpensive product, even if I’m unsure about qualityA more expensive product, proven to be of good qualityI’d pay attention to get high quality no matter the price

QUALITY TRUMPS PRICE

41%

59%Source: Nielsen Shopper Evolution 2020 | Dipstick W4’May

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Copyright © 2020 The Nielsen Company. Confidential and proprietary.

VOICE OF RETAILERS

Page 22: AN OVERVIEW OF MALAYSIAN SHOPPERS · BACK IN STORE REASONS OF BUYING IN OFFLINE STORE 0,65 0,41 0,39 0,32 0,29 0,21 0,16 0,15 0,14 0,14 0,06 0,05 I prefer shopping in a real store

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TOP CONCERNS: LESS CUSTOMER VISITS, STAFF SAFETY, RESTRICTED OPERATING HOURS

Nielsen COVID-19 impact on retail industry survey The survey results come from 17 POC from key retailers of modern trade in various regions of the country, covering different channels. Online execution period: 30/04/2020 – 05/05/2020.

1 Lesser customers visit due to the movement control order 88%

2 Ensure the safety of the Employees 76%

3 Restricted Operating Hours 65%

4 Ensure the safety of the Customers 65%

5 Financial problems related to payment, terms or orders 41%

6Shoppers stock up on disinfectants / protective products and fresh categories, yet the suppliers have not responded in time and insufficient stocking at the early stage. 41%

7 Lack of manpower on home delivery to support a surge in online orders demand 29%

8 Lack of manpower in day to day brick & mortar business 12%

What are the main challenges of your company during the MCO period?Q1

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CAUTIOUS ABOUT FUTURE: 3 IN 5 EXPECT POOR BUSINESS PERFORMANCE IN 2H2020

Nielsen COVID-19 impact on retail industry survey The survey results come from 17 POC from key retailers of modern trade in various regions of the country, covering different channels. Online execution period: 30/04/2020 – 05/05/2020.

Very Good, challenging but also there is opportunity, could have good performance after all

Good, Retail is the base of economy, believe that sales will rebound back

Not so good, less consumption, economy could have impact, pressure on capital assets

Very Bad, It may takes longer time to recover, debit drops continuously, inflation, cannot pay the loan, overall the pressure is high to manage the stores

18%

23%

53%

6%

How do you foresee your business performance in the coming half of 2020?Q2

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KEY FOCUS: ADJUSTING ASSORTMENT, ONLINE EXPANSION AND HEALTH & SAFETY

Nielsen COVID-19 impact on retail industry survey The survey results come from 17 POC from key retailers of modern trade in various regions of the country, covering different channels. Online execution period: 30/04/2020 – 05/05/2020.

1Consumers’ shopping habits will change. The structure of daily necessities will be adjusted, strengthening the stocking and shelf ratio of health, disinfection and protection products.

82%

2 Expanding online channels 76%

3Consumers' concerns about public health will increase. Food safety strategies need to be improved and standardized pre-packaged (e.g. packaged vegetables & fruit, semi-finished products and etc.) product configurations will be enriched.

71%

4 Reducing costs, stabilizing cash flow and surviving. 53%

5 Deepening the supply chain, especially the fresh products supply chain; strengthening the relationships and communication efficiency with manufacturers. 41%

6 The Community Fresh Supermarket are more dynamic, would be supported strongly. 18%

After COVID-19 pandemic, what do you think are the opportunities for the retail industry in the coming year? What will be the focus and business strategy adjustment for your company?

Q3

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Copyright © 2020 The Nielsen Company. Confidential and proprietary.

MALAYSIA FMCG DATA

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SUPERMARKETS LEAD CHANNEL RECOVERY AS RESTRICTIONS IN MALAYSIA ARE LIFTED

Note: PRE MCO – Average Monthly Value Sales of Mar’19 – Feb’20; Pantry Stock – Mar’20; MCO – Apr’20; CMCO – May’20.Source: Nielsen Malaysia Retail Index, May 2020.

SALES PERFORMANCE BY CHANNEL

. PM HYPERMARKET

PM MINIMARKET.PM CONVENIENCE STORE.PM ON PREMISE.

. PM SUPERMARKET

PM DRUGSTORE/PHARMACY.PM TRADITIONAL TRADE.

Jan19Feb19

Mar19Apr19

May19Jun19

Jul19Aug19

Sep19Oct19

Nov19Dec19

Jan20Feb20

Mar20Apr20

May20

PRE MCO PANTRY STOCK MCO CMCO

PEN MALAYSIA

HYPERMARKET

SUPERMARKET

MINIMARKET

DRUGSTORE/PHARMACY

CONVENIENCE STORE

TRADITIONAL TRADE

ON PREMISE

GROWTH % VS PREVIOUS PERIOD

DECLINING GROWING

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FMCG SALES ARE REBOUNDING, BUT NOT YET AT PRE-LOCKDOWN LEVELS

Note: PRE MCO – Average Monthly Value Sales of Mar’19 – Feb’20; Pantry Stock – Mar’20; MCO – Apr’20; CMCO – May’20.Source: Nielsen Malaysia Retail Index, May 2020.

GROWTH % VS PREVIOUS PERIOD

PRE MCO PANTRY STOCK MCO CMCO

FOOD & BEVERAGES

NON-FOOD

PERSONAL CARE

HOUSEHOLD

BEVERAGES

POWDERED MILK

DRY GROCERIES

SNACKS & CONFECT

DECLINING GROWING

Mar’19 – Feb’20

March’20 April’20 May’20

GROWTH % VS PREVIOUS

PERIOD

AVERAGE MONTHLY

SALES TREND

PRE MCOPANTRY

STOCKINGMCO CMCO

+0.3%+17.0%

-27.0% +5.3%

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Serie1 -

20.000.000

40.000.000

60.000.000

80.000.000

100.000.000

120.000.000

140.000.000

160.000.000

180.000.000

-

50.000.000

100.000.000

150.000.000

200.000.000

250.000.000

300.000.000

350.000.000

400.000.000

PERSONAL CARE DRIVES FMCG RECOVERY AS RESTRICTIONS WERE RELAXED

Note: Top growing Personal Care categories are based on fastest % growth based on average weekly sales of CMCO (W19-23) and RMCO (W24-25) vs MCO (W12-18)Source: Nielsen Malaysia Scantrack 2.0 – Pen Malaysia Key Account Value Sales by Weeks in 2020.

GROWTH % AVERAGE WEEKOF CMCO+RMCO

VS MCO

. PERSONAL CARE

. DRY GROCERIES

. BEVERAGES

. HOUSEHOLD

. SNACKS

. POWDERED MILK

+30%

-28%

-1%

+9%

-19%

-13%

+30%PERSONAL CARE DRIVEN

BY SELF-GROOMING CATEGORIES

Suncare

+204%

Facial Eye Care

+154%

Hair Color

+116%

Acne Care

+111%

Hair Styling

+104%

PROACTIVE HEALTH-MINDED BUYING

REACTIVE HEALTH MANAGEMENT

PANTRY PREPARATION + QUARANTINED LIVING PREP

#3#1 #2 #3-4

RESTRICTEDLIVING

LIVING A NEW NORMAL

#5 #6

MAR. 18Movement Control Order starts

JAN. 25CHINESE NEW YEAR MAY. 4

Conditional Movement Control Order starts

JUN. 10Recovery Movement Control Order starts

JANUARY’20 FEBRUARY’20 MARCH’20 APRIL’20 MAY’20 JUN’20

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W0120W0220

W0320W0420

W0520W0620

W0720W0820

W0920W1020

W1120W1220

W1320W1420

W1520W1620

W1720 -

50.000.000

100.000.000

150.000.000

200.000.000

250.000.000

300.000.000

FMCG

OFFLINE (KA)

ONLINE

Source: Nielsen Malaysia E-Commerce Index, Retail Index and Scantrack 2.0, April 2020 – Value Sales by Weeks in 2020

MAR. 18Movement Control Order (MCO) starts

JAN’20 FEB’20 MAR’20 APR’20

RESTRICTEDLIVING

#5

3%

APRIL 2019

11%

APRIL 2020

IN APRIL 2020, E-COMMERCE CONTRIBUTE TO 11% OF FMCG SALES & GROWING AT +213% VS

APR’19

+213%

ONLINE SALES GREW +213%. NOW ONLINE CONTRIBUTES 11% OF FMCG SALES, MUCH HIGHER VS A YEAR AGO (3%)

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Copyright © 2020 The Nielsen Company. Confidential and proprietary.

SHAPING A SMARTER MARKET™