SlideShare a Scribd company logo
1 of 26
Download to read offline
Grocery shopping in developing markets
Countries include: UK,US, Brazil, China, India and Nigeria
March 2012
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
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.
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
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.
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
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
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
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
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
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
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
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
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
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
Purchasing, Frequency & Spend
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
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
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
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
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.
Want to ask your own research
          questions? Contact us today:
          Sarah Quinn
          sarah@ondeviceresearch.com
              @ondevice
              Follow us on SlideShare




Sign up to our newsletter for more free reports
            ondeviceresearch.com
On Device Research
On Device Research uses
the mobile Internet to gain
    access to consumer
opinions at any time, place
        or country
Some of our clients
On Device Research Provides

More Related Content

What's hot

Nielsen traditional trade report
Nielsen traditional trade report Nielsen traditional trade report
Nielsen traditional trade report Brand Camp
 
Vietnam retail report, 8.2017, euroasiaresearchexperts
Vietnam retail report, 8.2017, euroasiaresearchexpertsVietnam retail report, 8.2017, euroasiaresearchexperts
Vietnam retail report, 8.2017, euroasiaresearchexpertsĐăng Khôi - FPT Skillking
 
[Kantar] Consumer insights asia Q1/2017
[Kantar] Consumer insights asia Q1/2017[Kantar] Consumer insights asia Q1/2017
[Kantar] Consumer insights asia Q1/2017Duy, Vo Hoang
 
2015 Target Case Competition Winners
2015 Target Case Competition Winners2015 Target Case Competition Winners
2015 Target Case Competition WinnersVan Harriram
 
Presentation1 for nature talks revised 1
Presentation1 for nature talks revised 1Presentation1 for nature talks revised 1
Presentation1 for nature talks revised 1Mankesh Mishra
 
Holiday shopping preferences 20 nov 2013
Holiday shopping preferences   20 nov 2013Holiday shopping preferences   20 nov 2013
Holiday shopping preferences 20 nov 2013Rusty Warner
 
Local Banya Presentation
Local Banya PresentationLocal Banya Presentation
Local Banya PresentationSatej Nagwekar
 
Nielsen presentation q42014 fmcg update
Nielsen presentation q42014 fmcg updateNielsen presentation q42014 fmcg update
Nielsen presentation q42014 fmcg updateVietnammm.com
 
Omni- / Multi-Channel Retail - A.T. Kearney - Report - On Solid Ground
Omni- / Multi-Channel Retail - A.T. Kearney - Report - On Solid GroundOmni- / Multi-Channel Retail - A.T. Kearney - Report - On Solid Ground
Omni- / Multi-Channel Retail - A.T. Kearney - Report - On Solid GroundOliver Grave
 

What's hot (15)

Nielsen traditional trade report
Nielsen traditional trade report Nielsen traditional trade report
Nielsen traditional trade report
 
E-grocery model
E-grocery modelE-grocery model
E-grocery model
 
Vietnam retail report, 8.2017, euroasiaresearchexperts
Vietnam retail report, 8.2017, euroasiaresearchexpertsVietnam retail report, 8.2017, euroasiaresearchexperts
Vietnam retail report, 8.2017, euroasiaresearchexperts
 
[Kantar] Consumer insights asia Q1/2017
[Kantar] Consumer insights asia Q1/2017[Kantar] Consumer insights asia Q1/2017
[Kantar] Consumer insights asia Q1/2017
 
Nature's Basket
Nature's BasketNature's Basket
Nature's Basket
 
www.bigbasket.com
www.bigbasket.comwww.bigbasket.com
www.bigbasket.com
 
2015 Target Case Competition Winners
2015 Target Case Competition Winners2015 Target Case Competition Winners
2015 Target Case Competition Winners
 
How in-store shoppers are using mobiles
How in-store shoppers are using mobilesHow in-store shoppers are using mobiles
How in-store shoppers are using mobiles
 
Presentation1 for nature talks revised 1
Presentation1 for nature talks revised 1Presentation1 for nature talks revised 1
Presentation1 for nature talks revised 1
 
Holiday shopping preferences 20 nov 2013
Holiday shopping preferences   20 nov 2013Holiday shopping preferences   20 nov 2013
Holiday shopping preferences 20 nov 2013
 
Big basket
Big basketBig basket
Big basket
 
E-GROCERY
E-GROCERY E-GROCERY
E-GROCERY
 
Local Banya Presentation
Local Banya PresentationLocal Banya Presentation
Local Banya Presentation
 
Nielsen presentation q42014 fmcg update
Nielsen presentation q42014 fmcg updateNielsen presentation q42014 fmcg update
Nielsen presentation q42014 fmcg update
 
Omni- / Multi-Channel Retail - A.T. Kearney - Report - On Solid Ground
Omni- / Multi-Channel Retail - A.T. Kearney - Report - On Solid GroundOmni- / Multi-Channel Retail - A.T. Kearney - Report - On Solid Ground
Omni- / Multi-Channel Retail - A.T. Kearney - Report - On Solid Ground
 

Viewers also liked

Online Grocery Shopper Behaviour
Online Grocery Shopper BehaviourOnline Grocery Shopper Behaviour
Online Grocery Shopper BehaviourEvolution Insights
 
Design Master's Thesis: Designing for the Grocery Store
Design Master's Thesis: Designing for the Grocery StoreDesign Master's Thesis: Designing for the Grocery Store
Design Master's Thesis: Designing for the Grocery Storescalandro
 
K.chaitanya sm
K.chaitanya smK.chaitanya sm
K.chaitanya smkongara
 
Empowering investors to take charge of their grocery-anchored assets
Empowering investors to take charge of their grocery-anchored assetsEmpowering investors to take charge of their grocery-anchored assets
Empowering investors to take charge of their grocery-anchored assetsDavid Winnie
 
Global trends in grocery retailing
Global trends in grocery retailingGlobal trends in grocery retailing
Global trends in grocery retailingMichelle Simbulan
 
Consumer Behavior Grocery Store Analysis
Consumer Behavior Grocery Store AnalysisConsumer Behavior Grocery Store Analysis
Consumer Behavior Grocery Store AnalysisJoseph Avellino
 
Kroger Presentation 2014
Kroger Presentation 2014Kroger Presentation 2014
Kroger Presentation 2014Andre Amoureux
 
Power point presentation (grocery store)
Power point presentation (grocery store)Power point presentation (grocery store)
Power point presentation (grocery store)Alina Hacopian
 
Loreal diversification strategic management
Loreal diversification strategic managementLoreal diversification strategic management
Loreal diversification strategic managementJagjeet Kaur Saini
 
Amazon 05 - Diversification Strategy
Amazon 05 - Diversification StrategyAmazon 05 - Diversification Strategy
Amazon 05 - Diversification StrategyPere Joan
 
Diversification strategy final
Diversification strategy finalDiversification strategy final
Diversification strategy finalANSHU TIWARI
 
Chapter 5 - Retail Market Strategy
Chapter 5 - Retail Market StrategyChapter 5 - Retail Market Strategy
Chapter 5 - Retail Market StrategyBecky Campbell
 

Viewers also liked (16)

Wadud
WadudWadud
Wadud
 
Online Grocery Shopper Behaviour
Online Grocery Shopper BehaviourOnline Grocery Shopper Behaviour
Online Grocery Shopper Behaviour
 
Design Master's Thesis: Designing for the Grocery Store
Design Master's Thesis: Designing for the Grocery StoreDesign Master's Thesis: Designing for the Grocery Store
Design Master's Thesis: Designing for the Grocery Store
 
K.chaitanya sm
K.chaitanya smK.chaitanya sm
K.chaitanya sm
 
Waqas analysis
Waqas analysisWaqas analysis
Waqas analysis
 
Empowering investors to take charge of their grocery-anchored assets
Empowering investors to take charge of their grocery-anchored assetsEmpowering investors to take charge of their grocery-anchored assets
Empowering investors to take charge of their grocery-anchored assets
 
grocery management system
grocery  management systemgrocery  management system
grocery management system
 
Global trends in grocery retailing
Global trends in grocery retailingGlobal trends in grocery retailing
Global trends in grocery retailing
 
Consumer Behavior Grocery Store Analysis
Consumer Behavior Grocery Store AnalysisConsumer Behavior Grocery Store Analysis
Consumer Behavior Grocery Store Analysis
 
Kroger Presentation 2014
Kroger Presentation 2014Kroger Presentation 2014
Kroger Presentation 2014
 
Power point presentation (grocery store)
Power point presentation (grocery store)Power point presentation (grocery store)
Power point presentation (grocery store)
 
Loreal diversification strategic management
Loreal diversification strategic managementLoreal diversification strategic management
Loreal diversification strategic management
 
Amazon 05 - Diversification Strategy
Amazon 05 - Diversification StrategyAmazon 05 - Diversification Strategy
Amazon 05 - Diversification Strategy
 
Diversification strategy final
Diversification strategy finalDiversification strategy final
Diversification strategy final
 
Chapter 5 - Retail Market Strategy
Chapter 5 - Retail Market StrategyChapter 5 - Retail Market Strategy
Chapter 5 - Retail Market Strategy
 
Diversification
DiversificationDiversification
Diversification
 

Similar to Grocery shopping in developing markets

Five Principles Of Retail
Five Principles Of RetailFive Principles Of Retail
Five Principles Of RetailRenee Franco
 
Detailed analysis of bigbasket
Detailed analysis of bigbasketDetailed analysis of bigbasket
Detailed analysis of bigbasketrathan devatha
 
Analysis Of Big Basket.Com - Slideshare
Analysis Of Big Basket.Com - SlideshareAnalysis Of Big Basket.Com - Slideshare
Analysis Of Big Basket.Com - SlideshareSagar Sawant
 
Mobile in-store research-studies 2013
Mobile in-store research-studies 2013Mobile in-store research-studies 2013
Mobile in-store research-studies 2013Tecnocible
 
Mobile Research Study from Google & M/A/R/C Research
Mobile Research Study from Google &  M/A/R/C ResearchMobile Research Study from Google &  M/A/R/C Research
Mobile Research Study from Google & M/A/R/C ResearchNigel Mark Dias
 
Mobile in Store Research Studies
Mobile in Store Research StudiesMobile in Store Research Studies
Mobile in Store Research StudiesCalvin Nguyen
 
Mobile in-store research-studies
Mobile in-store research-studiesMobile in-store research-studies
Mobile in-store research-studiesDigital Story
 
How Mobile Is Transforming the Shopping Experience in Stores
How Mobile Is Transforming the Shopping Experience in StoresHow Mobile Is Transforming the Shopping Experience in Stores
How Mobile Is Transforming the Shopping Experience in StoresMaría Bretón Gallego
 
How in store shoppers are using mobile devices
How in store shoppers are using mobile devicesHow in store shoppers are using mobile devices
How in store shoppers are using mobile devicesIan Beckett
 
Mobile in-store research-studies
Mobile in-store research-studiesMobile in-store research-studies
Mobile in-store research-studiesSarah Taha
 
Estudio del impacto del uso de móviles en tiendas
Estudio del impacto del uso de móviles en tiendasEstudio del impacto del uso de móviles en tiendas
Estudio del impacto del uso de móviles en tiendasSawabona Marketing
 
Retail Innovation - Ruth Harrison, ThoughtWorks
Retail Innovation - Ruth Harrison, ThoughtWorksRetail Innovation - Ruth Harrison, ThoughtWorks
Retail Innovation - Ruth Harrison, ThoughtWorksThoughtworks
 
Coming Full-Circle: The Store As The Center Of The Omnichannel Shopping Journey
Coming Full-Circle: The Store As The Center Of The Omnichannel Shopping JourneyComing Full-Circle: The Store As The Center Of The Omnichannel Shopping Journey
Coming Full-Circle: The Store As The Center Of The Omnichannel Shopping JourneyG3 Communications
 
marketing strategy of vmart
marketing strategy of vmartmarketing strategy of vmart
marketing strategy of vmartamaan Khan
 
Craig Rosenblum Provides a Glimpse of the Next Generation of Food Retailing
Craig Rosenblum Provides a Glimpse of the Next Generation of Food RetailingCraig Rosenblum Provides a Glimpse of the Next Generation of Food Retailing
Craig Rosenblum Provides a Glimpse of the Next Generation of Food Retailingjeffbrice
 
Gibs shoppertunties
Gibs shoppertuntiesGibs shoppertunties
Gibs shoppertuntiesKairC
 
Presentation for we like
Presentation for we likePresentation for we like
Presentation for we likePriti Dedhia
 
Global Shop 2010 Destination + Impulse
Global Shop 2010 Destination + ImpulseGlobal Shop 2010 Destination + Impulse
Global Shop 2010 Destination + Impulseprodmell
 
Interim report akriti jain
Interim report akriti jainInterim report akriti jain
Interim report akriti jainmadhvih
 

Similar to Grocery shopping in developing markets (20)

Five Principles Of Retail
Five Principles Of RetailFive Principles Of Retail
Five Principles Of Retail
 
Detailed analysis of bigbasket
Detailed analysis of bigbasketDetailed analysis of bigbasket
Detailed analysis of bigbasket
 
Analysis Of Big Basket.Com - Slideshare
Analysis Of Big Basket.Com - SlideshareAnalysis Of Big Basket.Com - Slideshare
Analysis Of Big Basket.Com - Slideshare
 
Mobile in-store research-studies 2013
Mobile in-store research-studies 2013Mobile in-store research-studies 2013
Mobile in-store research-studies 2013
 
Mobile Research Study from Google & M/A/R/C Research
Mobile Research Study from Google &  M/A/R/C ResearchMobile Research Study from Google &  M/A/R/C Research
Mobile Research Study from Google & M/A/R/C Research
 
Mobile in Store Research Studies
Mobile in Store Research StudiesMobile in Store Research Studies
Mobile in Store Research Studies
 
Mobile in-store research-studies
Mobile in-store research-studiesMobile in-store research-studies
Mobile in-store research-studies
 
How Mobile Is Transforming the Shopping Experience in Stores
How Mobile Is Transforming the Shopping Experience in StoresHow Mobile Is Transforming the Shopping Experience in Stores
How Mobile Is Transforming the Shopping Experience in Stores
 
How in store shoppers are using mobile devices
How in store shoppers are using mobile devicesHow in store shoppers are using mobile devices
How in store shoppers are using mobile devices
 
Mobile in-store research-studies
Mobile in-store research-studiesMobile in-store research-studies
Mobile in-store research-studies
 
Estudio del impacto del uso de móviles en tiendas
Estudio del impacto del uso de móviles en tiendasEstudio del impacto del uso de móviles en tiendas
Estudio del impacto del uso de móviles en tiendas
 
Retail Innovation - Ruth Harrison, ThoughtWorks
Retail Innovation - Ruth Harrison, ThoughtWorksRetail Innovation - Ruth Harrison, ThoughtWorks
Retail Innovation - Ruth Harrison, ThoughtWorks
 
Coming Full-Circle: The Store As The Center Of The Omnichannel Shopping Journey
Coming Full-Circle: The Store As The Center Of The Omnichannel Shopping JourneyComing Full-Circle: The Store As The Center Of The Omnichannel Shopping Journey
Coming Full-Circle: The Store As The Center Of The Omnichannel Shopping Journey
 
marketing strategy of vmart
marketing strategy of vmartmarketing strategy of vmart
marketing strategy of vmart
 
Craig Rosenblum Provides a Glimpse of the Next Generation of Food Retailing
Craig Rosenblum Provides a Glimpse of the Next Generation of Food RetailingCraig Rosenblum Provides a Glimpse of the Next Generation of Food Retailing
Craig Rosenblum Provides a Glimpse of the Next Generation of Food Retailing
 
Gibs shoppertunties
Gibs shoppertuntiesGibs shoppertunties
Gibs shoppertunties
 
Bigbasket cs 1
Bigbasket cs 1Bigbasket cs 1
Bigbasket cs 1
 
Presentation for we like
Presentation for we likePresentation for we like
Presentation for we like
 
Global Shop 2010 Destination + Impulse
Global Shop 2010 Destination + ImpulseGlobal Shop 2010 Destination + Impulse
Global Shop 2010 Destination + Impulse
 
Interim report akriti jain
Interim report akriti jainInterim report akriti jain
Interim report akriti jain
 

More from On Device Research

The mobile path-to-purchase for Saudi Arabian main shoppers
The mobile path-to-purchase for Saudi Arabian main shoppersThe mobile path-to-purchase for Saudi Arabian main shoppers
The mobile path-to-purchase for Saudi Arabian main shoppersOn Device Research
 
Insights into the App Economy in MENA
Insights into the App Economy in MENAInsights into the App Economy in MENA
Insights into the App Economy in MENAOn Device Research
 
Messenger wars 2: How Facebook climbed back to number 1
Messenger wars 2: How Facebook climbed back to number 1Messenger wars 2: How Facebook climbed back to number 1
Messenger wars 2: How Facebook climbed back to number 1On Device Research
 
Impact of the mobile internet in Africa vs UK
Impact of the mobile internet in Africa vs UKImpact of the mobile internet in Africa vs UK
Impact of the mobile internet in Africa vs UKOn Device Research
 
Mobile in shopping in MENA, September 2014
Mobile in shopping in MENA, September 2014Mobile in shopping in MENA, September 2014
Mobile in shopping in MENA, September 2014On Device Research
 
Philippines mobile internet trends
Philippines mobile internet trendsPhilippines mobile internet trends
Philippines mobile internet trendsOn Device Research
 
Myanmar: The Final Frontier For The Mobile Internet
Myanmar: The Final Frontier For The Mobile InternetMyanmar: The Final Frontier For The Mobile Internet
Myanmar: The Final Frontier For The Mobile InternetOn Device Research
 
Moving brand tracking successfully to the mobile world
Moving brand tracking successfully to the mobile worldMoving brand tracking successfully to the mobile world
Moving brand tracking successfully to the mobile worldOn Device Research
 
Selfies: Have they reached their peak?
Selfies: Have they reached their peak?Selfies: Have they reached their peak?
Selfies: Have they reached their peak?On Device Research
 
Mobile Malaysia - ahead of the south-east Asia pack
Mobile Malaysia - ahead of the south-east Asia packMobile Malaysia - ahead of the south-east Asia pack
Mobile Malaysia - ahead of the south-east Asia packOn Device Research
 
Will Brits watch the Winter Olympics in Sochi?
Will Brits watch the Winter Olympics in Sochi?Will Brits watch the Winter Olympics in Sochi?
Will Brits watch the Winter Olympics in Sochi?On Device Research
 
Indonesia - the social media capital of the world
Indonesia - the social media capital of the worldIndonesia - the social media capital of the world
Indonesia - the social media capital of the worldOn Device Research
 
Messenger Wars: How Facebook lost its lead
Messenger Wars: How Facebook lost its leadMessenger Wars: How Facebook lost its lead
Messenger Wars: How Facebook lost its leadOn Device Research
 
South Africa mobile consumer trends
South Africa mobile consumer trendsSouth Africa mobile consumer trends
South Africa mobile consumer trendsOn Device Research
 
The Sound of Big Data - SoundCloud case study
The Sound of Big Data - SoundCloud case studyThe Sound of Big Data - SoundCloud case study
The Sound of Big Data - SoundCloud case studyOn Device Research
 
Report: Wearable Technology - Ready for Prime Time?
Report: Wearable Technology - Ready for Prime Time?Report: Wearable Technology - Ready for Prime Time?
Report: Wearable Technology - Ready for Prime Time?On Device Research
 
Silicon Savannah - Why Nairobi Is The Next World Tech Capital
Silicon Savannah - Why Nairobi Is The Next World Tech CapitalSilicon Savannah - Why Nairobi Is The Next World Tech Capital
Silicon Savannah - Why Nairobi Is The Next World Tech CapitalOn Device Research
 
Young People’s Consumer Confidence Index
Young People’s Consumer Confidence Index Young People’s Consumer Confidence Index
Young People’s Consumer Confidence Index On Device Research
 

More from On Device Research (20)

The mobile path-to-purchase for Saudi Arabian main shoppers
The mobile path-to-purchase for Saudi Arabian main shoppersThe mobile path-to-purchase for Saudi Arabian main shoppers
The mobile path-to-purchase for Saudi Arabian main shoppers
 
Insights into the App Economy in MENA
Insights into the App Economy in MENAInsights into the App Economy in MENA
Insights into the App Economy in MENA
 
Messenger wars 2: How Facebook climbed back to number 1
Messenger wars 2: How Facebook climbed back to number 1Messenger wars 2: How Facebook climbed back to number 1
Messenger wars 2: How Facebook climbed back to number 1
 
Impact of the mobile internet in Africa vs UK
Impact of the mobile internet in Africa vs UKImpact of the mobile internet in Africa vs UK
Impact of the mobile internet in Africa vs UK
 
Mobile in shopping in MENA, September 2014
Mobile in shopping in MENA, September 2014Mobile in shopping in MENA, September 2014
Mobile in shopping in MENA, September 2014
 
Mobile phone shopping diaries
Mobile phone shopping diariesMobile phone shopping diaries
Mobile phone shopping diaries
 
Philippines mobile internet trends
Philippines mobile internet trendsPhilippines mobile internet trends
Philippines mobile internet trends
 
Myanmar: The Final Frontier For The Mobile Internet
Myanmar: The Final Frontier For The Mobile InternetMyanmar: The Final Frontier For The Mobile Internet
Myanmar: The Final Frontier For The Mobile Internet
 
Moving brand tracking successfully to the mobile world
Moving brand tracking successfully to the mobile worldMoving brand tracking successfully to the mobile world
Moving brand tracking successfully to the mobile world
 
Selfies: Have they reached their peak?
Selfies: Have they reached their peak?Selfies: Have they reached their peak?
Selfies: Have they reached their peak?
 
Mobile Malaysia - ahead of the south-east Asia pack
Mobile Malaysia - ahead of the south-east Asia packMobile Malaysia - ahead of the south-east Asia pack
Mobile Malaysia - ahead of the south-east Asia pack
 
Will Brits watch the Winter Olympics in Sochi?
Will Brits watch the Winter Olympics in Sochi?Will Brits watch the Winter Olympics in Sochi?
Will Brits watch the Winter Olympics in Sochi?
 
Indonesia - the social media capital of the world
Indonesia - the social media capital of the worldIndonesia - the social media capital of the world
Indonesia - the social media capital of the world
 
Messenger Wars: How Facebook lost its lead
Messenger Wars: How Facebook lost its leadMessenger Wars: How Facebook lost its lead
Messenger Wars: How Facebook lost its lead
 
South Africa mobile consumer trends
South Africa mobile consumer trendsSouth Africa mobile consumer trends
South Africa mobile consumer trends
 
The Sound of Big Data - SoundCloud case study
The Sound of Big Data - SoundCloud case studyThe Sound of Big Data - SoundCloud case study
The Sound of Big Data - SoundCloud case study
 
Report: Wearable Technology - Ready for Prime Time?
Report: Wearable Technology - Ready for Prime Time?Report: Wearable Technology - Ready for Prime Time?
Report: Wearable Technology - Ready for Prime Time?
 
Silicon Savannah - Why Nairobi Is The Next World Tech Capital
Silicon Savannah - Why Nairobi Is The Next World Tech CapitalSilicon Savannah - Why Nairobi Is The Next World Tech Capital
Silicon Savannah - Why Nairobi Is The Next World Tech Capital
 
Young People’s Consumer Confidence Index
Young People’s Consumer Confidence Index Young People’s Consumer Confidence Index
Young People’s Consumer Confidence Index
 
US & UK Device Satisfaction
US & UK Device SatisfactionUS & UK Device Satisfaction
US & UK Device Satisfaction
 

Recently uploaded

IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdfIaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdfDaniel Santiago Silva Capera
 
COMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a WebsiteCOMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a Websitedgelyza
 
Bird eye's view on Camunda open source ecosystem
Bird eye's view on Camunda open source ecosystemBird eye's view on Camunda open source ecosystem
Bird eye's view on Camunda open source ecosystemAsko Soukka
 
20230202 - Introduction to tis-py
20230202 - Introduction to tis-py20230202 - Introduction to tis-py
20230202 - Introduction to tis-pyJamie (Taka) Wang
 
AI You Can Trust - Ensuring Success with Data Integrity Webinar
AI You Can Trust - Ensuring Success with Data Integrity WebinarAI You Can Trust - Ensuring Success with Data Integrity Webinar
AI You Can Trust - Ensuring Success with Data Integrity WebinarPrecisely
 
VoIP Service and Marketing using Odoo and Asterisk PBX
VoIP Service and Marketing using Odoo and Asterisk PBXVoIP Service and Marketing using Odoo and Asterisk PBX
VoIP Service and Marketing using Odoo and Asterisk PBXTarek Kalaji
 
The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...
The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...
The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...Aggregage
 
Comparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioComparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioChristian Posta
 
Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...
Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...
Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...Will Schroeder
 
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPAAnypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPAshyamraj55
 
Nanopower In Semiconductor Industry.pdf
Nanopower  In Semiconductor Industry.pdfNanopower  In Semiconductor Industry.pdf
Nanopower In Semiconductor Industry.pdfPedro Manuel
 
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019IES VE
 
Machine Learning Model Validation (Aijun Zhang 2024).pdf
Machine Learning Model Validation (Aijun Zhang 2024).pdfMachine Learning Model Validation (Aijun Zhang 2024).pdf
Machine Learning Model Validation (Aijun Zhang 2024).pdfAijun Zhang
 
UiPath Studio Web workshop series - Day 7
UiPath Studio Web workshop series - Day 7UiPath Studio Web workshop series - Day 7
UiPath Studio Web workshop series - Day 7DianaGray10
 
Videogame localization & technology_ how to enhance the power of translation.pdf
Videogame localization & technology_ how to enhance the power of translation.pdfVideogame localization & technology_ how to enhance the power of translation.pdf
Videogame localization & technology_ how to enhance the power of translation.pdfinfogdgmi
 
Secure your environment with UiPath and CyberArk technologies - Session 1
Secure your environment with UiPath and CyberArk technologies - Session 1Secure your environment with UiPath and CyberArk technologies - Session 1
Secure your environment with UiPath and CyberArk technologies - Session 1DianaGray10
 
9 Steps For Building Winning Founding Team
9 Steps For Building Winning Founding Team9 Steps For Building Winning Founding Team
9 Steps For Building Winning Founding TeamAdam Moalla
 
UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6DianaGray10
 
Cybersecurity Workshop #1.pptx
Cybersecurity Workshop #1.pptxCybersecurity Workshop #1.pptx
Cybersecurity Workshop #1.pptxGDSC PJATK
 

Recently uploaded (20)

IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdfIaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
 
COMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a WebsiteCOMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a Website
 
Bird eye's view on Camunda open source ecosystem
Bird eye's view on Camunda open source ecosystemBird eye's view on Camunda open source ecosystem
Bird eye's view on Camunda open source ecosystem
 
20230202 - Introduction to tis-py
20230202 - Introduction to tis-py20230202 - Introduction to tis-py
20230202 - Introduction to tis-py
 
AI You Can Trust - Ensuring Success with Data Integrity Webinar
AI You Can Trust - Ensuring Success with Data Integrity WebinarAI You Can Trust - Ensuring Success with Data Integrity Webinar
AI You Can Trust - Ensuring Success with Data Integrity Webinar
 
VoIP Service and Marketing using Odoo and Asterisk PBX
VoIP Service and Marketing using Odoo and Asterisk PBXVoIP Service and Marketing using Odoo and Asterisk PBX
VoIP Service and Marketing using Odoo and Asterisk PBX
 
The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...
The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...
The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...
 
Comparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioComparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and Istio
 
Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...
Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...
Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...
 
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPAAnypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPA
 
Nanopower In Semiconductor Industry.pdf
Nanopower  In Semiconductor Industry.pdfNanopower  In Semiconductor Industry.pdf
Nanopower In Semiconductor Industry.pdf
 
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
 
Machine Learning Model Validation (Aijun Zhang 2024).pdf
Machine Learning Model Validation (Aijun Zhang 2024).pdfMachine Learning Model Validation (Aijun Zhang 2024).pdf
Machine Learning Model Validation (Aijun Zhang 2024).pdf
 
201610817 - edge part1
201610817 - edge part1201610817 - edge part1
201610817 - edge part1
 
UiPath Studio Web workshop series - Day 7
UiPath Studio Web workshop series - Day 7UiPath Studio Web workshop series - Day 7
UiPath Studio Web workshop series - Day 7
 
Videogame localization & technology_ how to enhance the power of translation.pdf
Videogame localization & technology_ how to enhance the power of translation.pdfVideogame localization & technology_ how to enhance the power of translation.pdf
Videogame localization & technology_ how to enhance the power of translation.pdf
 
Secure your environment with UiPath and CyberArk technologies - Session 1
Secure your environment with UiPath and CyberArk technologies - Session 1Secure your environment with UiPath and CyberArk technologies - Session 1
Secure your environment with UiPath and CyberArk technologies - Session 1
 
9 Steps For Building Winning Founding Team
9 Steps For Building Winning Founding Team9 Steps For Building Winning Founding Team
9 Steps For Building Winning Founding Team
 
UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6
 
Cybersecurity Workshop #1.pptx
Cybersecurity Workshop #1.pptxCybersecurity Workshop #1.pptx
Cybersecurity Workshop #1.pptx
 

Grocery shopping in developing markets

  • 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
  • 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 Follow us on SlideShare Sign up to our newsletter for more free reports ondeviceresearch.com
  • 24. On Device Research uses the mobile Internet to gain access to consumer opinions at any time, place or country
  • 25. Some of our clients
  • 26. On Device Research Provides