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	<title>Nielsen Wire » Consumer</title>
	
	<link>http://blog.nielsen.com/nielsenwire</link>
	<description>Consumer Insights, News, Research &amp; Reports</description>
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		<title>CPG Study: Online Ad Campaigns Using Purchaser Data Nearly Triples ROI</title>
		<link>http://feedproxy.google.com/~r/NielsenWireConsumer/~3/KRsS6_BiQuA/</link>
		<comments>http://blog.nielsen.com/nielsenwire/consumer/cpg-study-online-ad-campaigns-using-purchaser-data-nearly-triples-roi/#comments</comments>
		<pubDate>Thu, 24 May 2012 17:04:37 +0000</pubDate>
		<dc:creator>Nielsen Wire</dc:creator>
				<category><![CDATA[Consumer]]></category>
		<category><![CDATA[Nielsen News]]></category>
		<category><![CDATA[advertising]]></category>
		<category><![CDATA[marketing effectiveness]]></category>
		<category><![CDATA[Nielsen Catalina Solutions]]></category>

		<guid isPermaLink="false">http://blog.nielsen.com/nielsenwire/?p=31640</guid>
		<description><![CDATA[Consumer packaged goods (CPG) brands can experience a return of almost three dollars in incremental sales for every dollar spent in online advertising that has been precisely delivered using purchase-based information, according to research from Nielsen Catalina Solutions (NCS).]]></description>
			<content:encoded><![CDATA[<p>Consumer packaged goods (CPG) brands can experience a return of almost three dollars in incremental sales for every dollar spent in online advertising that has been precisely delivered using purchase-based information, according to research from <a href="http://www.ncsolutions.com" target="_blank">Nielsen Catalina Solutions</a> (NCS), a leader in measuring and improving advertising performance using purchaser-based analytics.</p>
<p>These findings, based on what NCS believes to be the most in-depth study on the correlation between online advertising and offline purchase, indicate a turning point  for the digital medium as marketers seek to better leverage their advertising budgets across multiple channels.</p>
<p>“Not only can we prove that online advertising drives sales, but the returns on ad spends are significant when purchaser-based data is used to optimize the media buy,” said Mike Nazzaro, CEO of Nielsen Catalina Solutions. “The marketer’s ability to precisely reach the desired consumer segment in the right media enabled by shopper-based analytics is changing the way advertisers plan and buy media,” Nazzaro said.</p>
<p><a href="http://blog.nielsen.com/nielsenwire/wp-content/uploads/2012/05/payback-ad-investment.jpg"><img class="aligncenter size-full wp-image-32105" title="NCS – Online Ad Investment Payback" src="http://blog.nielsen.com/nielsenwire/wp-content/uploads/2012/05/payback-ad-investment.jpg" alt="NCS – Online Ad Investment Payback" width="575" height="381" /></a></p>
<p>Nielsen Catalina Solutions and Nielsen completed more than 800 studies over the past seven years, collaborating with more than 300 CPG brands and 80 companies to measure the correlation between online advertising and offline consumer purchases.</p>
<p><strong>Sales Return on Advertising Ranges from Three to Five Times Investment</strong><br />
A key metric for measuring campaign success is the ratio of the sales generated compared with the cost of the advertising, typically expressed as a cost per thousand or “CPM.” The incremental sales revenue per thousand households or “RPM” is compared with the advertising CPM to determine the return, or payback. According to Nielsen Catalina Solutions’ research, the average payback for all CPG categories was 2.79, ranging from 2.36 for food items to 5.29 for the pet category.</p>
<p>“These findings reveal an opportunity for advertisers to increase sales by leveraging purchaser data to improve media planning and buying. CPG marketers spent over $22 billion in total advertising in 2011, including $2 billion to $3 billion in the online medium,” Nazzaro said.</p>
<p><strong> About Nielsen Catalina Solutions</strong><br />
Nielsen and Catalina established Nielsen Catalina Solutions as a joint venture enabling the CPG advertising industry to understand how advertising influences purchase behavior for TV, online, mobile, CRM and print using single-source analytics.  The joint venture integrates viewing data from Nielsen and directly from media companies and purchase data from Nielsen Homescan and Catalina’s shopper data warehouse incorporating a subset of over 60 million households from participating retailers.</p>
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		<title>The Shifting Nature of U.S. Housing Demand</title>
		<link>http://feedproxy.google.com/~r/NielsenWireConsumer/~3/P03YZ8K15y4/</link>
		<comments>http://blog.nielsen.com/nielsenwire/consumer/the-shifting-nature-of-u-s-housing-demand/#comments</comments>
		<pubDate>Thu, 17 May 2012 18:07:26 +0000</pubDate>
		<dc:creator>Nielsen Wire</dc:creator>
				<category><![CDATA[Consumer]]></category>
		<category><![CDATA[Featured Insights]]></category>
		<category><![CDATA[Nielsen News]]></category>
		<category><![CDATA[Reports + Downloads]]></category>
		<category><![CDATA[demand]]></category>
		<category><![CDATA[economy]]></category>
		<category><![CDATA[housing]]></category>
		<category><![CDATA[The Demand Institute]]></category>

		<guid isPermaLink="false">http://blog.nielsen.com/nielsenwire/?p=32016</guid>
		<description><![CDATA[The Demand Institute Reports that the U.S. housing market is growing again—but not as we knew it.]]></description>
			<content:encoded><![CDATA[<p><strong>Mark Leiter, Chairman, The Demand Institute</strong></p>
<p>Our homes play a vital role in our lives, from the time we awake in the morning to when we return home from a long day at work or school.  For many Americans their home is also their most valuable financial asset.  But recently this has proved to be a rather volatile asset, and dramatic changes in home values have created stress for many Americans.</p>
<p>The trajectory of the housing market has now reached a true turning point.  Based on our team’s analysis, the worst of the housing crash is over and a recovery has now started.</p>
<p>Yet this recovery will be very different from previous ones, with implications for leaders in most sectors.  Where housing goes, the economy follows. Each time a house is sold many industries benefit as consumers arrange financing, launch renovations, and invest to improve the comfort and value of their homes.  We hope you will find this report on the U.S. housing market to be timely, thought provoking, and valuable.  </p>
<p>To learn more, download <a href="http://thedemandinstitute.com/blog/shifting-nature-us-housing-demand">The Shifting Nature of U.S. Housing Demand</a> from The Demand Institute website.</p>
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		<title>Reaching the New Chinese Consumer</title>
		<link>http://feedproxy.google.com/~r/NielsenWireConsumer/~3/hlTxHwtKiEc/</link>
		<comments>http://blog.nielsen.com/nielsenwire/consumer/reaching-the-new-chinese-consumer/#comments</comments>
		<pubDate>Thu, 17 May 2012 14:01:35 +0000</pubDate>
		<dc:creator>jeffb</dc:creator>
				<category><![CDATA[Consumer]]></category>
		<category><![CDATA[Global]]></category>
		<category><![CDATA[China]]></category>
		<category><![CDATA[Consumer 360 - China]]></category>
		<category><![CDATA[global economy]]></category>

		<guid isPermaLink="false">http://blog.nielsen.com/nielsenwire/?p=31921</guid>
		<description><![CDATA[Today’s Chinese consumer is different than the one of just two or three years ago. Increasingly sophisticated, connected and with upgraded preferences, today’s consumer is willing to pay a higher price for certain goods if the value proposition is right. Gaining competitive advantage in China, whether in traditional brick and mortar stores or in the emerging online retail landscape, takes more than just good strategy—it takes indepth knowledge of the consumer.]]></description>
			<content:encoded><![CDATA[<p>Today’s Chinese consumer is different than the one of just two or three years ago. Increasingly sophisticated, connected and with upgraded preferences, today’s consumer is willing to pay a higher price for certain goods if the value proposition is right. Gaining competitive advantage in China, whether in traditional brick and mortar stores or in the emerging online retail landscape, takes more than just good strategy—it takes indepth knowledge of the consumer.</p>
<p><strong>Identify what they want</strong><br />
Sometimes less means more to lose. By optimizing your product portfolio to provide the greatest incremental volume, you can maximize sales value to align with what consumers actually want. Tactical listing and delisting decisions based on facts requires identifying the risks and opportunities of listing/delisting and evaluating the assortment health of categories in the aisle.</p>
<p>A study of 38 categories in the east region of China revealed that the smaller the store, the bigger the gain. Only 58 percent of the categories reviewed actually reach the smaller channels. With a bigger gap to fill, there is a bigger opportunity to offer an assortment structure that is aligned with shopper needs. Determining the product characteristics that drive demand across channels in the right number of stores will provide the most optimal assortment strategy.</p>
<p><strong>Build a better linkage between online and offline</strong><br />
Current online shopping in China is dominated by a few key stores, but is that the right strategy? At least for fast-moving consumer goods (FMCG), it might not be, since those channels are owned by non-FMCG categories and the presence of FMCG categories is low. Also, there is a limited opportunity for FMCG exposure within those stores since online shopping occasions are more planned, focused and direct in terms of their shopping behavior, compared with offline shopping.</p>
<p>A potential solution is to build an online space owned by FMCG categories. Hypermarket online stores offer the best opportunity for expansion as online shopping and hypermarket shopping share commonality in terms of shopping occasion and shopping needs. As such, by building a better linkage between online and offline shopping and utilizing existing resources, FMCG categories might be able to create a dedicated online space to further take advantage of growing online shopping trend.</p>
<p><strong>Make your TV money work harder</strong><br />
Knowing how much to spend on advertising, where to allocate spending and how to optimize on a real-time basis to maximize return on investment (ROI) are some of the most challenging issues facing marketers today when it comes to TV optimization.</p>
<p>TV ad performance is more than just good creative. Other factors such as programming, media weight, placement, cross-platform exposure and competitive activity also have significant impact on advertising breakthrough and branding performance.</p>
<p>The new news is that brands can now optimize their TV advertising and media plans in flight, to achieve more than 10–20 percent gains in effectiveness. By measuring breakthrough and branding on a daily basis, brand advertisers can optimize performance by:</p>
<ul>
<li>Optimizing creative rotation to focus on strongest spots.</li>
<li>Editing spots to improve branding and messaging.</li>
<li>Moving spend from 30 second spots to high-performing 15 second spots.</li>
<li>Shifting spending out of lower performing genres and into higher ones.</li>
<li>Determining when ads are worn out and need replacement.</li>
<li>Learning from and applying insights from competitive advertising.</li>
</ul>
<p>Real-time ad effectiveness measurement is now a reality. Smart marketers are leveraging this capability to optimize their creative and media allocation decisions in-flight to greatly improve advertising performance.</p>
<p><strong> </strong></p>
<p><strong>Diagnose effective/ineffective ads</strong><br />
Using the power of science, you can capture consumer’s unarticulated deep subconscious response to ads, logos, package, brand attributes, in-store displays and merchandising layouts, therefore you can impact sales dramatically.</p>
<p>Nielsen NeuroFocus has done thousands of ad testing and gathers the core Neurometrics of Attention, Emotion, and Memory for every second of the consumer’s experience with the ad. This level of detail allows you to diagnose effective/ineffective segments and to uncover areas for improvement, second-by-second. A study carried out by a third party using approximately 50 television ads in 14 campaigns found that Nielsen NeuroFocus effectiveness is highly correlated with sales, significantly higher than traditional research methods.</p>
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		<title>How to Win in China’s Media Environment</title>
		<link>http://feedproxy.google.com/~r/NielsenWireConsumer/~3/5zGfh28MD1A/</link>
		<comments>http://blog.nielsen.com/nielsenwire/consumer/how-to-win-in-china%e2%80%99s-media-environment/#comments</comments>
		<pubDate>Thu, 17 May 2012 14:00:41 +0000</pubDate>
		<dc:creator>jeffb</dc:creator>
				<category><![CDATA[Consumer]]></category>
		<category><![CDATA[Global]]></category>
		<category><![CDATA[China]]></category>
		<category><![CDATA[Consumer 360 - China]]></category>
		<category><![CDATA[cross-media measurement]]></category>
		<category><![CDATA[marketing effectiveness]]></category>

		<guid isPermaLink="false">http://blog.nielsen.com/nielsenwire/?p=31952</guid>
		<description><![CDATA[The dynamics of the Chinese media market make for a unique environment for marketers and advertisers looking to reach the country’s consumers.]]></description>
			<content:encoded><![CDATA[<p><strong><em>Jesse Goranson, Senior Vice President, Nielsen Greater China; Tao Libao, Vice President, Nielsen China</em></strong></p>
<p>Today’s Chinese consumers are more connected than ever before, with media playing a growing role in the lives of an increasing number of Chinese—across all age groups and geographic regions. But, the dynamics of the Chinese media market make for a unique environment for marketers and advertisers looking to reach the country’s consumers.</p>
<p>Television is an essential piece of a successful marketing mix model in China, but it can be costly. Recently, increased demand for ad time from local advertisers along with global brands has combined with a short supply of ad space driven by regulations to significantly increase the cost of TV advertising. Despite high costs, TV still offers tremendous reach, particularly as digital options thrive in the country’s most urban areas. Thus, TV will likely remain the anchor of brands’ marketing mix for reach and engagement, and advertisers will increasingly seek greater returns on investment through more effective and efficient TV advertising.</p>
<p>China’s 500+ million Internet consumers and growing mobile/smartphone populations ensure that digital media remain on the minds of marketers as well. And, social media’s increasing importance has consequences for a brand’s total share of voice, as consumers share their own opinions with friends and strangers alike.</p>
<p>In fact, among many consumers, the lines between TV, online, and mobile screens are becoming less and less distinct. Nielsen’s cross-media measurement panel in Shanghai has found that half of Shanghai households regularly engage in multi-screen media consumption while watching TV.</p>
<p><a href="http://blog.nielsen.com/nielsenwire/wp-content/uploads/2012/05/simultaneous-usage.png"><img class="aligncenter size-full wp-image-31953" title="simultaneous-usage" src="http://blog.nielsen.com/nielsenwire/wp-content/uploads/2012/05/simultaneous-usage.png" alt="simultaneous-usage" width="570" height="425" /></a></p>
<p>Thus, while digital media offers some precision marketing advantages, its fragmented and sometimes-multitasking audiences mean that digital ad campaigns are most effective when combined with other ad channels like TV.</p>
<p>As China’s media landscape continues to evolve, companies with the most effective marketing and advertising strategies are the most likely to reach and win with China’s increasingly connected consumers.</p>
<p>Learn more about Nielsen’s <a href="http://nielsen.com/us/en/practices/marketing-effectiveness.html">marketing effectiveness solutions</a>.</p>
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		<title>Driving Growth in a Slowing Chinese Auto Market</title>
		<link>http://feedproxy.google.com/~r/NielsenWireConsumer/~3/asqqQjG-8bA/</link>
		<comments>http://blog.nielsen.com/nielsenwire/consumer/driving-growth-in-a-slowing-chinese-auto-market/#comments</comments>
		<pubDate>Thu, 17 May 2012 14:00:15 +0000</pubDate>
		<dc:creator>jeffb</dc:creator>
				<category><![CDATA[Consumer]]></category>
		<category><![CDATA[Global]]></category>
		<category><![CDATA[automakers]]></category>
		<category><![CDATA[China]]></category>
		<category><![CDATA[Consumer 360 - China]]></category>

		<guid isPermaLink="false">http://blog.nielsen.com/nielsenwire/?p=31916</guid>
		<description><![CDATA[Chinese auto makers face three major challenges: Finding the right demand in market, reaching consumers effectively and creating optimal distribution systems.]]></description>
			<content:encoded><![CDATA[<p>Exponential growth in the Chinese auto market is a thing of the past. The explosive growth of recent history was primed by economic policies created to stimulate consumption along with strong economic expansion fueled by foreign investment. With the expiration of subsidies, growing interest rates and more rapid inflation, consumption has slowed.</p>
<p>The compound annual growth rate for the Chinese auto market is estimated at 7.4 percent between 2011 and 2015. Comparatively, the U.S. growth rate is 7.2 percent.</p>
<p>Ganesh Relekar, Director, Automotive Industry, Nielsen Greater China, discussed the issues and challenges facing the automotive industry and outlined the strategies necessary to meet the emerging demand of Chinese consumers. Speaking at <a href="http://www.consumer360.com/content/c360/china-en.html" target="_blank">Nielsen’s Greater China Consumer 360 Conference</a> in Beijing, Relekar said that understanding the changing demographic landscape and knowing where and how to reach consumers is critically important as these changes will impact automotive demand and expectations.</p>
<p>Chinese auto makers face three major challenges: Finding the right demand in market, reaching consumers effectively and creating optimal distribution systems.</p>
<p><strong>Emerging demand</strong><br />
Evolutionary consumer dynamics are reshaping the vehicle demand structure. By 2020, China’s population in the 45 and older age group will increase by 118 million, while the 25–44 age group will decrease by 22 million. Such a shift in age structure implies a growing base of wealthy consumers with an increased need to trade up.</p>
<p>A few factors will affect future car-buying behavior considerably. Industry overcapacity issues will intensify in the next five years, growing from eight percent in 2011 to an estimated 21 percent in 2015. This oversupply will fuel increased competition and drive down car prices.</p>
<p>Surging fuel prices will also affect consumers’ purchasing decisions. As gas prices increase, so will the demand for hybrid and smaller vehicles. With hundreds of models to choose from, savvy consumers are looking not only for high-performance, fuel-efficient vehicles, but good-looking ones too.</p>
<p><strong>Luxury Opportunity</strong><br />
The past decade’s luxury car sales growth more than doubled the pace of the total market. Market size of luxury vehicles is close to one million and expected to double in the next five years. However, with rising wealth and rising aspiration, the market is growing heterogeneously.</p>
<p>As the competition and demand landscape is changing, Nielsen classified luxury car consumers into five groups with a number of attitudinal and behavioral variables. Each group showed distinctive differences in car needs, media habits and lifestyles. For instance, more <em>Value Seekers</em> (34%) and <em>Business Leaders</em> (28%) are interested in buying a hybrid vehicle than other segments.</p>
<p>In the future, <em>Value Seekers</em> and <em>Image Enhancers</em> will represent higher volume opportunities, as they are predominantly younger or female buyers looking for luxury A/B segment vehicles (e.g., MB B-class, BMW 3 series, etc.). <em>Brand Leaders</em> and <em>Technology Upgraders</em> represent higher profitable opportunities, as these consumers are about 35 years old, intending for luxury C/D segment vehicles (e.g. Audi A6L, Lexus LS600).</p>
<p><strong>Effective reach</strong><br />
Increased marketing costs are posing a real challenge to auto marketers. Nielsen reports the average cost to air a single commercial increased 63 percent in five years from 9,000CNY in 2007 to 14,000CNY in 2011. Auto marketers are actively complementing traditional TV and print campaigns with online advertising strategies. In fact, the Q2 2011 year-on-year growth rate of online advertising (18%) exceeded the growth rate of traditional media (14%).</p>
<p>Regardless of the medium, effective automotive advertising effectiveness in an era of heightened marketing costs must resonate with the audience using compelling creative that is delivered in engaging programming. Nielsen research shows that developing a creative that connects with the viewer exceeded brand recall norms:</p>
<ul>
<li><strong>Create the Hook:</strong> Give the viewer a reason to pay attention to and      remember your ad by using a relevant storyline, humor, elements of      surprise and emotion. Successful auto ads analyzed by Nielsen increased      memorability by 51 percent.</li>
<li><strong>Be Consistent:</strong> Use consistent elements overtime to help viewers become      more familiar with your ads. Successful auto ads analyzed by Nielsen      increased brand communication by 34 percent.</li>
<li><strong>Focus on Messaging</strong>: Keep the message simple and focused. Successful      auto ads analyzed by Nielsen increased message communication by 24      percent.</li>
<li><strong>Connect with Engaging Programming</strong>: Seek placement of your ads in      high-engagement programming. Viewers who are watching the programming      closely will watch your ads closely too. Successful auto ads analyzed by      Nielsen increased engagement by 10 percent.</li>
<li><strong>Repeat Exposures:</strong> Be impactful, especially in saturated environments such      as sports. Give viewers an opportunity for repeated exposures regardless      of the flighting approach—multiple ads in a program give concentrated      media weight. Successful auto ads analyzed by Nielsen increased brand      recall by 90 percent.</li>
<li><strong>Integrate Programming:</strong> Advertising within a sponsored program often      results in an ad lift and a chance for a deeper impression on viewers.</li>
<li><strong>Choose Relevant Content:</strong> Choose content for the ad that      will be particularly relevant to a specific program audience. Successful auto      ads analyzed by Nielsen increased brand recall by 81 percent.</li>
</ul>
<p><strong>Optimal Distribution</strong><br />
Which markets are ripe for auto expansion? What is the city capacity for distribution and what locations are most successful? Taking into account factors such as demographics, income, competitive landscape, cartography, etc., a fact-based expansion strategy can be developed that pinpoints the hot-spot cities with the highest probability of distribution success.</p>
<p>In order to achieve success in a single-digit growth market, China’s auto makers need to devise a new winning formula, one that focuses on maximizing consumer value through continual product and marketing innovations. At the core of this formula is listening to what consumers are saying and watching their behavior.</p>
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		<title>In China’s Banking Industry, Customer Experience Matters</title>
		<link>http://feedproxy.google.com/~r/NielsenWireConsumer/~3/pYXe5Aalz6c/</link>
		<comments>http://blog.nielsen.com/nielsenwire/consumer/in-chinas-banking-industry-customer-experience-matters/#comments</comments>
		<pubDate>Thu, 17 May 2012 13:59:43 +0000</pubDate>
		<dc:creator>jeffb</dc:creator>
				<category><![CDATA[Consumer]]></category>
		<category><![CDATA[Global]]></category>
		<category><![CDATA[China]]></category>
		<category><![CDATA[Chinese banks]]></category>
		<category><![CDATA[Consumer 360 - China]]></category>
		<category><![CDATA[financial services]]></category>
		<category><![CDATA[online banking]]></category>

		<guid isPermaLink="false">http://blog.nielsen.com/nielsenwire/?p=31948</guid>
		<description><![CDATA[In China, recent gains in income and the growth of the middle class over the past decade have dramatically increased the demand for retail banking services. ]]></description>
			<content:encoded><![CDATA[<p><strong><em>Georgia Zhuang, Vice President, Nielsen China</em></strong></p>
<p>In China, recent gains in income and the growth of the middle class over the past decade have dramatically increased the demand for retail banking services. While the finance industry has responded with greater numbers of offerings and services, many Chinese consumers have expressed dissatisfaction with several banking services and their overall customer experience. In fact, a recent Nielsen analysis of Chinese social media conversation about retail banks found over half (55%) of the consumer comments about banking experiences were negative, compared to 15 percent that were positive.</p>
<p>Having recognized these challenges and with competition heating up, many banks are seeking to approach the customer experience in a new way. Indeed, as Chinese consumers increase their use of banking services from basic transactional needs (e.g., savings, credit cards) to more substantial financial dealings (e.g., loans, wealth management), banks have an opportunity to cultivate long-lasting and rewarding relationships with their customers. But, to do this, they must build trust and reinforce positive interactions at every possible customer touch point.</p>
<p>Traditionally, physical retail branches were the only channel for customers to interact with financial institutions. But, technological advances have led to the development of different banking channels, introducing alternative ways for banks to connect with their customers. Internet banking, mobile phone transactions, and ATM machines are all customer interactions with banks—and opportunities for banks to build consumer trust and loyalty. A recent consumer study by Nielsen found 79 percent of Chinese bank consumers use ATMs, 75 percent use online banking, and 26 percent bank by mobile phone. Satisfying interactions at each of these channels can build consumer trust and loyalty, helping to persuade them to deepen their relationship when they need additional financial services.</p>
<p>Banks that are successful in building brand equity and deeper relationships with customers will have a significant competitive advantage and be poised for the most robust growth. The key is to understand that all touch points are critical and ensure that the products and services offered via these channels enhance the overall customer experience at each different point.</p>
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		<title>Winning At E-Commerce in China</title>
		<link>http://feedproxy.google.com/~r/NielsenWireConsumer/~3/Tp588Bqj23s/</link>
		<comments>http://blog.nielsen.com/nielsenwire/consumer/winning-at-e-commerce-in-china/#comments</comments>
		<pubDate>Thu, 17 May 2012 13:59:04 +0000</pubDate>
		<dc:creator>jeffb</dc:creator>
				<category><![CDATA[Consumer]]></category>
		<category><![CDATA[Global]]></category>
		<category><![CDATA[China]]></category>
		<category><![CDATA[Consumer 360 - China]]></category>
		<category><![CDATA[e-commerce]]></category>

		<guid isPermaLink="false">http://blog.nielsen.com/nielsenwire/?p=31941</guid>
		<description><![CDATA[With over 500 million people online, China’s e-commerce industry already offers major opportunities to retailers and is poised for significant development in the years ahead.]]></description>
			<content:encoded><![CDATA[<p><strong><em>Joey Chan, Vice President, Nielsen China</em><em>; Marco Tang, Associate Director, Nielsen China; Queenie Gu, Associate Director, Nielsen China</em></strong></p>
<p>With over 500 million people online, China’s e-commerce industry already offers major opportunities to retailers and is poised for significant development in the years ahead. Currently, 38 percent of Chinese consumers shop online. With a population as large as China’s, this represents huge amounts of commerce, yet the percentage of people buying goods online is far below rates in Europe, the U.S., and even other Asian markets, where online shopping penetration rates can reach upwards of 60-80 percent. Many in China are already preparing for the time when the rest of the population begins to adopt e-commerce. Central planning is underway, warehouses, distribution centers and other logistics are being constructed, and manufacturers and retailers are refining the product lines and assortments. In fact, the China Internet Network Information Center predicts online retail sales could reach 3 trillion Yuan in 2012 (~$475 billion USD). And, trends suggest Chinese e-commerce will only grow from there.</p>
<p>In this ripe environment, retailers planning their Chinese e-commerce strategy have two overarching goals: expand their consumer base, and improve consumer satisfaction and loyalty. China’s online shoppers right now are primarily younger and more educated consumers (with 80% having a college education). For these shoppers, price and convenience rule. For traditional brick-and-mortar retailers, entering the online market expands their potential shopper base by offering more convenient buying opportunities. To truly win in e-commerce, retailers must synergize their online and brick-and-mortar shopping experiences to improve the customer’s experience both online and offline. Flexible shopping and delivery/pick-up options and smart promotions can facilitate sales both online and off, boosting a retailer’s overall bottom line. Satisfied customers with successful online purchases are likely to drive more sales as consumers share positive experiences via social media. A recent Nielsen survey found 85 percent of Chinese consumers regularly use social media to share their experiences with online purchases.</p>
<p><strong>E-Commerce Retail Strategies</strong><br />
As retailers look to synergize their offline and online businesses, the challenge is how to develop successful marketing strategies for the sophisticated Chinese consumer.</p>
<ol>
<li><span style="text-decoration: underline;">Products</span> – Chinese online shoppers are primarily young and educated consumers who      are seeking value and convenience, along with particular types of      products. Offering unique product assortments online—products unavailable      in most offline stores—and giving the consumer multiple convenient options      for payment and delivery are likely to resonate with these shoppers.</li>
<li><span style="text-decoration: underline;">Price/Cost </span>– While consumers do expect some cost savings online—at least in some      categories like apparel and electronics—price is not their only      consideration when choosing an online retailer. Favorable reviews from      previous customers, product availability/choice, and fast delivery      offerings also drive many online purchases in China, so retailers who meet      these demands can likely avoid losing out in a price war as long as they      maintain a low-cost reputation.</li>
<li><span style="text-decoration: underline;">Promotions</span> – Online shopping offers many advantages for precision promotions, giving      the retailer opportunities to better reach their potential customers.      Combining promotions online and in brick-and-mortar locations can help      synergize the two businesses and drive sales.</li>
<li><span style="text-decoration: underline;">Communication</span> – E-commerce and online shopping flip the traditional store-to-consumer one-way conversation. Consumers are now searching out retailers’ websites for specific products and learning about goods via social media. Retailers need to engage in this social conversation and interact with China’s tech-savvy consumers who are increasingly open to boosting e-commerce spending.</li>
</ol>
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		<title>Urban China is Growing, but Rural China’s 650M Consumers Can’t Be Ignored</title>
		<link>http://feedproxy.google.com/~r/NielsenWireConsumer/~3/1ktLFuSDpaU/</link>
		<comments>http://blog.nielsen.com/nielsenwire/consumer/urban-china-is-growing-but-rural-chinas-650m-consumers-cant-be-ignored/#comments</comments>
		<pubDate>Thu, 17 May 2012 13:57:36 +0000</pubDate>
		<dc:creator>jeffb</dc:creator>
				<category><![CDATA[Consumer]]></category>
		<category><![CDATA[Global]]></category>
		<category><![CDATA[China]]></category>
		<category><![CDATA[Consumer 360 - China]]></category>
		<category><![CDATA[rural markets]]></category>
		<category><![CDATA[urban growth]]></category>

		<guid isPermaLink="false">http://blog.nielsen.com/nielsenwire/?p=31938</guid>
		<description><![CDATA[China crossed over from a majority-rural to a majority-urban country last year, when the urban population increased by 21 million. The urban population of 691 million residents now officially represents 51 percent of the total population. But marketers striving to reach only urban consumers are missing out on a 650 million rural consumer opportunity and a market worth almost $500 billion. Companies can no longer afford to ignore this segment of the market where consumers are often experiencing brands and products for the first time, forming brand connections that may last a lifetime.]]></description>
			<content:encoded><![CDATA[<p><em><strong>Dale Preston, Senior Vice President, Analytics &amp; Consulting, Nielsen Greater China</strong></em></p>
<p><iframe width="560" height="315" src="http://www.youtube.com/embed/DuCMC9vW8cU" frameborder="0" allowfullscreen></iframe></p>
<p>China crossed over from a majority rural to a majority urban country when the urban population increased by 21 million last year. The urban population of 691 million residents now officially represents 51 percent of the total population. But marketers striving to reach only urban consumers are missing out on a 650 million rural consumer opportunity and a market worth almost $500 billion*.</p>
<p>Dale Preston, Senior Vice President, Analytics &amp; Consulting, Nielsen Greater China, discussed that while urbanization is important to the development of consumption in China, attention to the buying behavior of migrant and rural residents is critical. Speaking at Nielsen’s Greater China Consumer 360 Conference in Beijing, Preston said that companies can no longer ignore the rural migrant segment of the market where consumers are often experiencing brands and products for the first time and thus, are forming brand connections that may last a lifetime.</p>
<p><strong>Migrant workers fueling urbanization</strong><br />
The influx of migrant workers in urban areas carries considerable implications. By 2020, 32 percent of China’s 900 million urban residents are likely to be migrants. Today, around 20 out of every 100 villagers are migrants; almost half (45%) are blue collar workers, one-third (35%) are students and one-fifth (21%) are semi-skilled blue collar workers.</p>
<p>It is important to note that there are key differences between urban and migrant consumers. According to the World Bank, migrant workers send home around $45 billion a year. Some send as much as four-fifths of their incomes to their families. Because of the amount migrant workers send home, they are not likely to spend as much in urban centers (i.e., they don’t behave like the average urban consumer). Also, families in rural villages have more money to spend on better homes, children’s education, consumer durables and more premium groceries.</p>
<p>Tomorrow’s migrants will not need to travel far to find good jobs as urbanization is helping to drive the development of China’s lower city tiers and interior regions.</p>
<p><strong>Less than 5 percent sales impact</strong><br />
The effects of these transitional consumers will impact the big city tiers, but the size of the impact will be much smaller than expected. A continued and keen focus on rural villages is vitally important for sustainable growth strategies. With increased government investment in rural areas and policy changes favoring rural and low-income workers, there is a rising income base among these residents. Marketers that understand the changing purchase dynamics of both urban and rural consumers will be poised for success.</p>
<p><strong>Shop more, but spend less</strong><br />
Nielsen finds that the rural shopper makes twenty percent less shopping trips than urban residents, but spends one-third more on each trip, totaling an average monthly spend of 418RMB, which is 1,199RMB less than urban consumers and highlights the growth opportunities with these rural consumers. Rural shoppers living in lower-tier cities typically have larger families and lower incomes than higher city tier residents, and shopping is considered a social event where interpersonal relationships are valued.</p>
<p>Rural shoppers are less likely than urban consumers to switch stores, but they follow urban purchasing trends closely. Willing to travel to shop in modern trade outlets in higher city tiers about once a month, rural shoppers are exposed to an assortment of options not found in the villages. As these lower-income consumers move up the value chain, marketers need to pay close attention to purchasing patterns and align product availability in the villages. Product assortment and good quality are important purchase drivers for the rural consumer—even more so than price and promotions.</p>
<p>In the past, companies have focused on low price and often low quality offerings to penetrate villages. With village consumers becoming more affluent and aspiring to a higher quality of life, they seek products with key features and benefits similar to the ones they see in urban centers. Understanding what theses “must have” product attributes are and then offering tailored products at a lower price point to meet these needs will be the key to success.</p>
<p>While no categories are expected to grow excessively, urbanization will impact categories differently. With greater exposure to products not available in village stores and with rural consumers moving towards the same behavior as urban consumers, expect shower gels, body moisturizers, liquid laundry detergents, jasmine teas, men’s skincare and juices to see the greatest growth.</p>
<p><strong>Evolving lifestyles and values</strong><br />
Lower tier consumers are experiencing the pushes and pulls of a society in transition. As a means to improve their lifestyle, they have a higher aspiration to achieve financial success than higher tier consumers, but they are not ready to compromise a healthy work-life balance. Family and respect are important and seeking social approval is a driving force. To reach lower tier consumers, brand communication must incorporate social themes.</p>
<p>A great store environment is a real differentiator for retail competition. Marketers have an opportunity to appeal to shoppers from a bigger trade area. Offer a shopping experience that makes an emotional connection with shoppers and meets their need to be “entertained”. While managing price is critical, product assortment and value need to be in lock-step with consumers desires.</p>
<p><em>*National Statistics Bureau, China &amp; Nielsen Forecast</em></p>
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		<title>Innovation Unveiled in China</title>
		<link>http://feedproxy.google.com/~r/NielsenWireConsumer/~3/0Xf29-bV1c8/</link>
		<comments>http://blog.nielsen.com/nielsenwire/consumer/innovation-unveiled-in-china/#comments</comments>
		<pubDate>Thu, 17 May 2012 06:31:57 +0000</pubDate>
		<dc:creator>jeffb</dc:creator>
				<category><![CDATA[Consumer]]></category>
		<category><![CDATA[Global]]></category>
		<category><![CDATA[China]]></category>
		<category><![CDATA[Consumer 360 - China]]></category>
		<category><![CDATA[product innovation and renovation]]></category>

		<guid isPermaLink="false">http://blog.nielsen.com/nielsenwire/?p=31930</guid>
		<description><![CDATA[Billions of dollars are spent every year researching and launching new products in China. In a recent Nielsen study of major industries, new products contribute over 75 percent of annual growth in China, which equates to 56 trillion RMB.]]></description>
			<content:encoded><![CDATA[<p><em><strong>Karthik Rao, Managing Director, Nielsen Greater China</strong></em><br />
Billions of dollars are spent every year researching and launching new products in China. In a recent Nielsen study of major industries, new products contribute over 75 percent of annual growth in China, which equates to 56 trillion RMB. While China is the second biggest country behind the U.S. in terms of innovation testing, multinational companies (MNCs) generate 70 percent more revenue from innovation than local companies.</p>
<p>More than half (56%) of local innovations are “me-too” products compared to 10 percent for MNCs. Among companies with revenue from innovation, nearly two-thirds (63%) of innovations are incremental, while only 14 percent are “me-too.&#8221;</p>
<p>Karthik Rao, managing director, Nielsen Greater China, identified the importance of creating new ideas to help stimulate consumer demand and how companies can drive more revenue from innovation. Speaking at Nielsen’s Greater China Consumer 360 Conference in Beijing, Rao discussed a landmark study that provides a roadmap for how to increase the odds of new innovation success and outlined what successful companies are doing differently than others.</p>
<p><strong>Drive more revenue</strong><br />
How can local companies drive more revenue from innovation? Winning big through innovation requires long-term sustainable growth, which comes from having an innovation process in place and implementing it every step of the way:</p>
<ol>
<li><strong>Build a separate innovation      team.</strong> A team focused solely on innovation drives more revenue.      Forty-three percent of local companies do not have formal new product      development team, while only 18 percent of MNCs do not have one.</li>
<li><strong>Make time for ideation.</strong> Take      time for white space identification and ideation. Nielsen studies show      that companies that invest in the ideation stage earn 20 percent more in      revenue from new products.</li>
<li><strong>Have a rigid and consistent      process.</strong> Companies with stage gates drive 53 percent      more revenue from innovation than those that do not. Only one-third of      local companies have stage gates, while almost two-thirds (62%) of MNCs do.</li>
<li><strong>Launch with excellence. </strong>An      effective knowledge management system gives an edge from learning from      past launches. Companies that have consistently used and updated a knowledge management system      have generated 12 percent more revenue from innovations than companies      that have not.<strong> </strong></li>
</ol>
<p><strong> </strong></p>
<p><strong>Manage ideas lightly, but handle the process precisely</strong><br />
Innovative companies in China will purse breakthrough and incremental innovation rather than “me-too” products and should allow at least one year for the innovation process. Involving global expertise at later stages than early on and adopting a knowledge management system will greatly improve your chances for new innovation success.</p>
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		<title>Meet Today’s Ethiopian Consumer</title>
		<link>http://feedproxy.google.com/~r/NielsenWireConsumer/~3/MO1tgAiPqw4/</link>
		<comments>http://blog.nielsen.com/nielsenwire/consumer/meet-todays-ethiopian-consumer/#comments</comments>
		<pubDate>Thu, 03 May 2012 12:40:05 +0000</pubDate>
		<dc:creator>Nielsen Wire</dc:creator>
				<category><![CDATA[Consumer]]></category>
		<category><![CDATA[Global]]></category>
		<category><![CDATA[Africa]]></category>
		<category><![CDATA[demographics]]></category>
		<category><![CDATA[Ethiopia]]></category>
		<category><![CDATA[global economy]]></category>

		<guid isPermaLink="false">http://blog.nielsen.com/nielsenwire/?p=31729</guid>
		<description><![CDATA[Although the majority of the population is rural (82%), the urban population is growing twice as fast as the rural and over half of Ethiopia’s population is under 20 years old.]]></description>
			<content:encoded><![CDATA[<p>Ethiopia follows Nigeria as the second most populous nation in Africa, with 83 million people and two major ethnic groups that account for close to 60 percent of the population. In recent years, Ethiopia has emerged as one of the fastest growing economies in Africa with 10 percent GDP growth in 2010. Although the majority of the population is rural (82%), the urban population is growing twice as fast as the rural and over half of Ethiopia’s population is under 20 years old.</p>
<p><img class="aligncenter size-full wp-image-31734" title="ethiopia-spotlight" src="http://blog.nielsen.com/nielsenwire/wp-content/uploads/2012/05/ethiopia-spotlight.jpg" alt="ethiopia-spotlight" width="575" height="250" /></p>
<p>Through analysis into the retail infrastructure and comprehensive, on-the-ground survey research across urban and peri-urban Sub-Saharan Africa, Nielsen is taking an in-depth look at the behaviors and attitudes of the African consumer.</p>
<p><strong>Meet Abede of Addis Abada, Ethiopia</strong><br />
The streets of Addis Ababa, are the center of commerce and social interaction and where much of life takes place. Abede works as a banker, which is currently a small industry in Ethiopia. Only about 50 percent of the population currently holds a bank account, but Abede is hopeful that with expanding globalization, it will spread.</p>
<p>Ethiopians like Abede—young, university educated, and relatively wealthy—account for about one-third of the population. He is part of the 10 percent of households that control 25 percent of all income. While half of Ethiopian citizens live on less than 2,750 ETB (approx. $160 USD), there is a color television in almost every home, but only one-third own a refrigerator. Half of the population is employed in unskilled or semi-skilled work, and literacy levels are only around 36 percent.</p>
<p>Three major consumer segments account for close to 60 percent of Ethiopian survey respondents: Trendy Aspirants, Evolving Juniors and Balanced Seniors.</p>
<ul>
<li>People like Abede are Trendy Aspirants. Affluent and willing to pay more for quality, they represent 17 percent of those surveyed and offer a very good opportunity for launching or growing brands.</li>
<li>Evolving Juniors (25%) are predominantly students in peri–urban areas. This group likes spending time with friends. Affordability and availability is the best way to reach them.</li>
<li>Balanced Seniors (16%) are traditional, family–oriented and religious. They value affordability and are open to recommendation.</li>
</ul>
<p><strong>Shopping and Purchasing Behavior</strong><br />
Consumers tend to shop at open markets and kiosks more often than other channels; supermarkets are popular with Trendy Aspirants and Progressive Affluents. In addition to the unorganized retail landscape, companies will have to navigate government–imposed price controls, which were a top concern among retailers interviewed in the study.</p>
<p>Food and grocery account for almost 40 percent of monthly household spending. Consumers tend to be habitual in the brands they buy and affordability is the largest purchase driver. Trendy Aspirants like Abede, and Progressive Affluents are more likely to try new products. Category penetration is much lower in Ethiopia compared other countries surveyed, providing an opportunity to introduce consumers to new categories, especially energy drinks, where interest to try is very high.</p>
<p><strong>Media Behavior</strong><br />
Among those surveyed, TV and radio are the most popular media (92% and 80% penetration, respectively). Dramas, sports and news are top programming content across both platforms. Ethiopian Television (ETV) is popular across all cities in Ethiopia, while radio is more regional in nature with each city having its own set of popular stations.</p>
<p>Print media and Internet are not prevalent, which may be explained by the low literacy rate (30%) . Nearly all Progressive Affluents read print publications and surf the Internet, while Trendy Aspirants are also much more likely to utilize these media than the rest of consumers in the country. And while over 70 percent of those surveyed own a cell phone, it is typically used for basic services, like text messaging.</p>
<p><strong>The Opportunity</strong><br />
When considering a new product launch in Ethiopia, spend time understanding not only Trendy Aspirants like Abede, but also the culture, people and traditions of all groups. A media campaign that focuses on national TV will achieve critical exposure.</p>
<p>Compared to other countries surveyed, CPG category penetration and consumer incomes are lower in Ethiopia. Low–cost products will help meet budget needs and introduce consumers to newer categories. Most importantly, demonstrate clear value to all citizens—those with money and those without—to attract and keep potential customers.</p>
<p>For more, download Nielsen&#8217;s <a href="http://blog.nielsen.com/nielsenwire/wp-content/uploads/2012/05/Ethiopia-country-profile-Mar-2012.pdf">Emerging Market Insights spotlight on Ethiopia</a>.</p>
<p><strong>About the Study</strong><br />
The Nielsen Emerging Market Insights Study provides an in-depth understanding of African markets and consumers. The study is based on face-to-face surveys from a sample of 5,000 urban and peri-urban residents between the ages of 15 and 45 across SEC groups A-E in and around key cities in seven Sub-Saharan African countries; Democratic Republic of Congo, Ethiopia, Kenya, Nigeria, Tanzania, Uganda, and Zambia. Five additional countries will be available mid-Q2 2012; Angola, Ghana, Mozambique, Namibia, and Zimbabwe. The individual country reports  provide vital information into growth opportunities within the marketplace, insight into consumer attitudes that drive decisions on what African consumers watch and buy, and a fact-based understanding of how to reach consumers.</p>
<ul>
<li>To learn more, download <a href="http://www.nielsen.com/us/en/insights/reports-downloads/2012/the-diverse-people-of-africa.html" target="_blank">The Diverse People of Africa Report</a> which provides a high level summary of the findings from Democratic Republic of Congo, Ethiopia, Kenya, Nigeria, Tanzania, Uganda, and Zambia.</li>
</ul>
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