Generation S - Kantar
Transcript of Generation S - Kantar
© Kantar Worldpanel
Korean Consumer Pulse 2012 1st Half
Generation S
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© Kantar Worldpanel
Generation G
G stands for ‘Global & Green’ People in their 20s, born after ’88 Seoul Olympic
Generation N
N stands for ‘Net’ People in their 30s, who find internet or network more familiar than TV
Born after 1988
Baby Boomers
People in their 50s, born right after WW2
Generation X
X stands for ‘Unknown’ People in their 40s, that have different Values & behavior
from their parents
Born in 1977-87
Born in 1966-76
Born in 1950-65
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2013
Generation G
Generation N
Generation X
Baby Boomers
Generation S
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We are all Generation S
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We Are All Generation S: Now
GEN
ERAT
ION
S
BABY BOOMERS GENERATION X GENERATION N GENERATION G
{NOW}
Strategy
Sluggish
Seize the Opportunity
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Strategy: The year of ‘Strategy’ has passed… what’s next?
STR
ATE
GY S
TRATEGY
ustainability
rade Imbalance
isk
bnormal Climate
hreat and Change
conomic
reen
ounger Senior
What’s Next?►
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Sluggish: Low GDP growth continues in 2013
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5.3
-4.2
8.7
2.4
07Q2 08Q2 09Q2 10Q2 11Q2 12Q2
Korea QoQ GDP Growth
Source: National Statistical Office (NSO) Basis: Korea quarter-on-quarter GDP growth rates (%)
© Kantar Worldpanel
Seize the Opportunity: In such stagnating economy, What can our strategy be?
5.8
Korea
15.8
China (urban national)
6.1
Taiwan
8.4
Thailand (national)
15.4
Vietnam (4 key cities)
16.1
Indonesia
Source: Kantar Worldpanel Asia Basis: FMCG market growth rates in each country (%, latest 1 year)
5.6
Malaysia (peninsula)
4.6
Philippines (national)
9
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BABY BOOMERS
We Are All Generation S: Baby Boomers
GEN
ERAT
ION
S
GENERATION X GENERATION N GENERATION G
{NOW}
Strategy
Sluggish
Seize the Opportunity
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{Baby Boomers}
Self-Sustaining
Silversumer
Stay Beautiful
© Kantar Worldpanel
Self-Sustaining: Leading Baby boomers to head back to work
07Q1 08Q1 09Q1 10Q1 11Q1 12Q1 12Q2
# of Employees by Age Generation G
Generation N
Generation X
Baby Boomers
11 Source: National Statistical Office (NSO)
Basis: Number of employees by age
© Kantar Worldpanel
Silversumer: A Consumer group with much potential to further grow
2011 2012
Total FMCG Market Value by Age
Generation G
Generation N
Generation X
Baby Boomers
12 Source: Kantar Worldpanel Korea
Basis: Total FMCG market value by age (mil. KRW, latest 1 year)
© Kantar Worldpanel
Stay Beautiful: Growing desire to age “Beautiful”
-5.9 -6.3 -5.3
0.8 1.8
-2.8
-1.6 -2.7
2.6
7.8 7.5
9.2
Total Skincare Makeup Total Skincare Makeup Total Skincare Makeup Total Skincare Makeup
Total Cosmetics Market Value YoY Growth
Baby Boomers
Generation X Generation N
Generation G
Source: Kantar Worldpanel Korea Basis: Total Cosmetics market value year-on-year growth rates by age (%, latest 1 year) 13
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{Baby Boomers} With increased life expectancy, 50s has become a starting point of a new chapter. Retirement therefore, is defined in many forms - heading back to workforce or opening up a new business to sustain better quality of life. (Self-Sustaining). They are now the rising consumer group who have significant influence to the market. (Silversumer). As a result, there are growing products targeting the rising seniors to aid in overall well-aging lifestyle, ranging from health to beauty products (Stay Beautiful). Retail & Service industry is another fast rising sector that is customizing to meet the true needs of rising Silver consumers.
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GENERATION X
{Generation X}
Stressed Out
“Sale” Hunter
Small Luxury
We Are All Generation S: Generation X
GEN
ERAT
ION
S
GENERATION N GENERATION G
{NOW}
Strategy
Sluggish
Seize the Opportunity
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BABY BOOMERS
{Baby Boomers}
Self-Sustaining
Silversumer
Stay Beautiful
© Kantar Worldpanel
Stressed Out: Suffering the tightest squeeze on “Education”
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23.4
25.3
21.5
20-30s 40s 50s
Average Private Education Cost per Month
Generation X
Source: National Statistical Office (NSO) Basis: (1) Household spending costs by age of householders (2011, %),
(2) Average private education cost per month by age of householders (2011, 10 thousand KRW)
12.3%
19.4%
Importance of Education Cost in Total Household Spending
Total Households
Householders at 40s
© Kantar Worldpanel
“Sale” Hunter: Financial pressure made them “Price sensitive”
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19.8%
22.5%
24.6%
17.8%
20s
30s
40s
50s
Promotion % by Age in Total FMCG Market
ALE
58.2
52.4
38.7
31.7 31.0 28.7
23.3
18.7
Bleach Cooking Oil Soap ProcessedMilk
Sesame Oil MSG Beef Fresh Fruit
Promotion % of 40s by Category
Total
40s
Source: Kantar Worldpanel Korea Basis: Promotion volume % by age (%, latest 1 year)
© Kantar Worldpanel
Small Luxury: Selective spending on personal care for themselves & family
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ELECTIVE CHOICE
15.6
21.2
40's functional toothpaste YoY penetration changes
20.7
23.3
40's hair treatment YoY penetration changes
FOR SMALL LUXURY
Shiseido Tsubaki Damage care treatment & hair mask were hit in Korea, not only among 20s, but also 40s.
Not only Wash-off, but also Leave-on products attracted more 40s, esp. via damage care & hair loss function.
Source: Kantar Worldpanel Korea Basis: Penetration of 40s in each segment (%, last 1 year vs. latest 1 year)
© Kantar Worldpanel
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{Generation X} 40s are under much pressure both in & outside of household, stemmed from squeezed budget for high education cost for children coupled with growing stress from work (Stressed Out). Financial pressure on 40s make them sensitive to promotional activities (“Sale” Hunter) in overall FMCG market. They seek for second-hand market to maximize utility at less cost especially with books, digital devices, and sports apparels. Need for outdoor activities with family increases as a way to relieve stress which leads to growing desires for new outdoor products. Various in-home entertainment devices are also capturing their wants to have fun & relaxing time at home with family or by themselves. In short, Generation X make selective shopping choices to maximize where there may be a limited resources through “Promotion” or “Second-hand” items. On the other hand, they have the urge to invest on certain premium segments, items that offer quality family time or on children education (Small Luxury). Generation X truly knows how to be a Smart shoppers!
© Kantar Worldpanel
We Are All Generation S: Generation N
GEN
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ION
S
GENERATION N GENERATION G
{NOW}
Strategy
Sluggish
Seize the Opportunity
{Generation N}
Speed Up
S&S: Shop & Ship
Subscription
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BABY BOOMERS
{Baby Boomers}
Self-Sustaining
Silversumer
Stay Beautiful
GENERATION X
{Generation X}
Stressed Out
“Sale” Hunter
Small Luxury
© Kantar Worldpanel
Speed Up: Convenience is another element they strive for
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LG Robo-King Dual Eye 2.0
Loofen Waste-disposal Unit Philips Air Fryer
HanKyunghee Dual-steam Handy cleaner
LG Magic Space Refrigerator
Kenwood Food Processor
LG Drum Washing Machine
HanKyunghee Steam Iron Machine
Source: Kantar Worldpanel Korea Basis: Penetration in each category by age (%, latest 1 year)
26.6
34.7 34.2 32.1
31.1
40.9 38.7
36.2 34.8 34.6
31.1 30.0
Value % of 30s in Each Category of Convenience Food, Breakfast Substitutes
© Kantar Worldpanel
S&S-Shop and Ship: Online is the best way to save some of that time
2011 2012
Internet Value of Total FMCG by Age
Generation G
Generation N
Generation X
Baby Boomers
22 Source: Kantar Worldpanel Korea
Basis: Internet channel value of total FMCG market by age (Mil. KRW, latest 1 year)
© Kantar Worldpanel
Subscription: Subscription is another way to save some more time
Eight Point Nine, Customized coffee blending weekly subscription www.eightpointnine.com
Dum & Dummerce, Every month service www.dummerce.com
35% of 30s use subscription
77.4
26.3 3.1
16.8 34.9
InternetMall
DirectSales
Catalogue TV Home-shopping
Subs-cription
Non-Store Penetration of 30s
Milk, 62%
Yogurt, 28%
Healthy Breakfast Box
Truelife, Homeal www.etruelife.com
Necessities for busy 30s
‘Beauty Box’ for busy 30s
Glossy box, Men & Women box www.glossybox.co.kr
Mimi box, Men & Women box www.memebox.co.kr
Baby products for busy moms
Mimi box, Baby box www.memebox.co.kr
••••••••••••••••••• Food •••••••••••••••••••••••••••••••••• Personal Care ••••••••••••••••••••••••••••••• Culture & Life ••••••••••••••••
Little Peanut, Baby toy box www.littlepnuts.com
Sentimental Items for sentimental 30s
Socks by Post Socks subscription www.sockstaz.com
Turntable Kitchen, Pairings Box curated food and music discovery experience www.turntablekitchen.com
Mantry Monthly subscription of food & drink with story www.mantry.com
Gotham box Monthly parcel of assorted location-inspired foods www.gothambox.com
Wanash, Beauty box www.wannash.com
‘Food box’ for Beauty & Health
Wanash, Food box www.wannash.com
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The Chaeum, One day nut http://www.e25gram.com
CJ Onmart Subscription http://www.cjonmart.net
Dum & Dummerce Survival Box www.dummerce.com
Convenience-Noodle, retorte, etc.
© Kantar Worldpanel
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{Generation N} It’s not difficult to find singles or newly weds in their 30s these days. With hectic lifestyle and growing dual-income households, family size is becoming smaller. As family gets smaller, more compact products are gaining popularity; mini home appliances, functional furniture, and small-packaged foods are some to name a few. In relation to above trend, Convenience is another keyword for the Generation N (Speed Up). Balance between work and home has made them to become supermoms and as a result, “convenience” categories and services that help to cope with such life is in fast growth. These attributed in change in Shopping behavior – growing online (S&S: Shop & Ship) and subscription services (Subscription) , and RTE or RTD categories. Generation N live the most hectic days, but they have the greatest desire to catch & feel small sentiments in daily lives.
© Kantar Worldpanel
We Are All Generation S: Generation G
GEN
ERAT
ION
S
GENERATION N GENERATION G
{NOW}
Strategy
Sluggish
Seize the Opportunity
{Generation N}
Speed Up
S&S: Shop & Ship
Subscription
{Generation G}
Self-Conscious
Slim Down
Sensitive Listener
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BABY BOOMERS
{Baby Boomers}
Self-Sustaining
Silversumer
Stay Beautiful
GENERATION X
{Generation X}
Stressed Out
“Sale” Hunter
Small Luxury
© Kantar Worldpanel
Self-Conscious: Most aware about their appearance
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20s 30s 40s
% of men who choose their cosmetics on their own
Greater # of Men in 20s make conscious decision when purchasing Cosmetics for themselves
20s 30s 40s
# of cosmetics brands bought by men
Men in 20s try out various cosmetics brands
20s 30s 40s
# of cosmetics types in men
Men in 20s use various types for facial care
20s 30s 40s 50s
# of make-up types
Women in 20s apply more make-up
20s 30s 40s 50s
Nail Care Penetration
Fashion is completed with Nails for women in 20s
Generation G
Women & Men
%
#
%
#
#
Source: Kantar Worldpanel Basis: Penetration of men or women in each segment (%, Latest 1 year),
# of cosmetics types of men or women in each segment (#, Latest 1 year)
© Kantar Worldpanel
Slim Down: Wanna-be Slimmer
18.9
25.9
% of Non-sweet cereal in total cereal
11.2 13.3
% of low-fat & skim milk in total whitemilk
Non-sweet Cereal Share%
Low-fat & Skim Milk Share%
14% of 20s have tried Special K in Latest 1 Yr.
Non-sweet Cereal grew by +64.8% Low-fat & Skim Milk increased by +24.6%
Amore Pacific, Sulloc Water Plus(+)
Hankook Yakult, R&B Slim-fit Diet Look
Smoothie King, Slim & Light Series
I’m Dieting, Diet Lunch Box Tous-les-jours, Calorie Box
27 Source: Kantar Worldpanel
Basis: Importance changes of each category in total segment (%, Last year vs. Latest 1 year), Penetration of each category (%, Latest 1 year)
Pulmuone, Muesli time variaties
Velz Slimming Fragrance PRENDS-MOI
14 13 13 10
20s 30s 40s 50s
Skim milk was picked up by about 18% of 20s in latest 1 Yr.
18 15
17
11
20s 30s 40s 50s
Special K penetration by age Skim milk penetration by age
© Kantar Worldpanel
Sensitive Listener: Even with small budget, all Ears are open for new Styles!
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20s 30s 40s 50s
Total Cosmetics Penetration
20s 30s 40s 50s
Brand-shop Penetration
20s 30s 40s 50s
Drugstore Penetration
“Word of Mouth”
20s
30s
40s
50s
Women
20s
30s
40s
Men
% of purchase related to word-of-mouth
Source: Kantar Worldpanel Basis: Penetration of each segment by age (KRW, Latest 1 year)
© Kantar Worldpanel
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{Generation G} In part of building a strong sense of identity, 20s are highly self-conscious about their appearance (Self-Conscious). However, they’ve gone smarter and now want to be Slim and healthy (Slim Down) which is developing a new vogue for Health-conscious Beauty industry. The limited purchasing power is leading the generation to be information sensitive (Sensitive Listener) to make the most out of their spend. In Generation G, Health & Beauty is focused on knowing different ways to pamper themselves and to build numerous competencies for oneself. This is most valued attribute as it is what they believe to be measured by.
© Kantar Worldpanel
We Are All Generation S: Future
GEN
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ION
S
GENERATION N GENERATION G
{NOW}
Strategy
Sluggish
Seize the Opportunity
{Generation N}
Speed Up
S&S: Shop & Ship
Subscription
{Generation G}
Self-Conscious
Slim Down
Sensitive Listener
{FUTURE}
Shifting Landscape
Standing Out
Shifting Paradigm
So What
Shaping New Strategy
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BABY BOOMERS
{Baby Boomers}
Self-Sustaining
Silversumer
Stay Beautiful
GENERATION X
{Generation X}
Stressed Out
“Sale” Hunter
Small Luxury
© Kantar Worldpanel
Giftyshow
Samsung TecTiles
UK Chirp, P2P Sound QR Code
Shifting Landscape: Boundary between online & offline is getting more Blurred
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Tesco: 3D Virtual Store with Kinect
ON OFF
Tesco: 3D Virtual Store with QR Code
QR Code Marketing
Giftycon
Gift Coupon
Virtual Store QR Code
Brazil C&A Fashion, “Fashion Like”
GS Super, The Grandeur purchase
Austria: Virtual e-book Library SonicNotify, B2C Sound QR Code
Social Commerce New Technology
Emart: Sunny Sale QR Code
SNS Marketing VenueSeen, Online buzz for offline Retailer
© Kantar Worldpanel
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Standing Out: Blurred classification of Soft & Hard
SOFT
HARD
Image
Machine
Product & Technology
Contents
Vibration Foundation/BB Cream Hard (Vibration machine) & Soft (Natural skin-fit)
LG Frostine Hard (New source-Ramaliv & new tech) & Soft (Zero toxic, zero preservatives, cold storage required)
Vibration Cleanser Hard (Vibration machine) & Soft (Deep pore cleaning)
IOPE Effector+ Hard (Ion machine) & Soft (Cos-medical)
White Soup Ramen Hard (New ingredient in soup) & Soft (Not red, but white soup)
Not-fried Ramen Hard (New recipe for noodle) &
Soft (Low-calorie with not-fried noodle)
Liquid Laundry Detergent Hard (New type) & Soft (Not powder, but liquid)
Paper Detergent, Softener, towel Hard (New packaging) &
Soft (Convenience)
Washable kitchen towel, mattress Hard (New material) & Soft (Reusable clean)
Pull-out mask pack/Gel mask pack Hard (New packaging/texture) & Soft (Convenience/more effective)
© Kantar Worldpanel
Shifting Paradigm: ‘Diverse’ contact points encompassing On/Off & Soft/Hard
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SOFT
HARD
ON OFF
{Soft & Hard}
Product
{On & Off}
Retail
© Kantar Worldpanel
So What: With ‘Consistent’ message delivery at all points of contact
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ON OFF
SOFT
HARD
{After}
Balance & Stretch
{Before}
Choose & Focus
© Kantar Worldpanel
Shaping New Strategy: To maximize ‘Efficiency’ at each point of Sales
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ON OFF
SOFT
HARD
Where to Stretch How to Balance
© Kantar Worldpanel
We Are All Generation S
GEN
ERAT
ION
S
GENERATION N GENERATION G
{NOW}
Strategy
Sluggish
Seize the Opportunity
{Generation N}
Speed Up
S&S: Shop & Ship
Subscription
{Generation G}
Self-Conscious
Slim Down
Sensitive Listener
{FUTURE}
Shifting Landscape
Standing Out
Shifting Paradigm
So What
Shaping New Strategy
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BABY BOOMERS
{Baby Boomers}
Self-Sustaining
Silversumer
Stay Beautiful
GENERATION X
{Generation X}
Stressed Out
“Sale” Hunter
Small Luxury
© Kantar Worldpanel
We Are All Generation S
GEN
ERAT
ION
S
GENERATION N GENERATION G
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BABY BOOMERS GENERATION X
{NOW}
Strategy
Sluggish
Seize the Opportunity
{Generation N}
Speed Up
S&S: Shop & Ship
Subscription
{Generation G}
Self-Conscious
Slim Down
Sensitive Listener
{FUTURE}
Shifting Landscape
Standing Out
Shifting Paradigm
So What
Shaping New Strategy
{Baby Boomers}
Self-Sustaining
Silversumer
Stay Beautiful
{Generation X}
Stressed Out
“Sale” Hunter
Small Luxury
© Kantar Worldpanel
Generation S
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{Generation S} In a stagnating economy, this report aims to understand changing consumers and find emerging opportunities by different consumer groups (Seize the Opportunity). Baby boomers are a rising consumer group who actively seek for well-aging lifestyle (Silversumer). Generation X are the Smart shoppers who seek for best Value under economic hardship (Small Luxury). Generation N put more importance in convenience to compensate for their hectic lifestyle. (Speed) Generation G try hard to stay competent following the latest vogue in terms of their appearance and personal development. (Self-Conscious). Although Generation G have greater tendency to be more adaptive to all changes, it is an attribute that is required for all generation to survive in the fast changing environment. From retail, such trend is led by blurred boundaries of Online and Offline channels & retail (Shifting Landscape) and from Product, it is led by undefined classification of the items being Software or Hardware. At the end, all things must be everything and at everywhere reaching every possible retail and product dimensions. This is what makes todays product Unique yet difficult (Standing Out). This special era is lived by the new consumer group ‘Generation S’. Generation S strive for diverse brand contact points that encompasses on/off/hard/soft sides throughout their experience. (Shifting Paradigm). “How to” find the right Balance and “Where to” reach out would be the most important question for us to answer. Let Kantar Worldpanel help you lead the new Generation S.
© Kantar Worldpanel
Generation S (Self-Conscious)
20s who are highly interested in self-development and actively respond to changing trends
Generation S (Speed)
30s who value convenience & time-saving to compensate their hectic lives
Born after 1988
Generation S (Silversumer)
Younger senior who are active in economic activities and seek for well-aging lifestyle
Generation S (Small Luxury)
40s who make selective choices in their spending under the high economic pressure
Born in 1977-87
Born in 1966-76
Born in 1950-65
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We Are All Generation S
© Kantar Worldpanel
D O Y O U W A N T T O K N O W H O W T O B A L A N C E
& W H E R E T O S T R E T C H T O A T T R A C T G E N E R A T I O N S?
Y O U R B E S T P A R T N E R
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