Check out China-Emmanuel Sabbagh

INSIDE THE MIND OF CHINESE SHOPPERS

CHECK OUT CHINA Vol1 -TBWA

UNDERSTANDING HOW CHINESE SHOPPERS REALLY BUY


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A Shopper is defined by the process that takes place between that first thought the consumer has about purchasing an item, all the way through the selection of that item.

Shopper n.

shopper

consumer


Shopper continuum

Using product Post-Tail® Purchase

Moment

Retail

Pre-Tail® Supermarket


Top tier cities

FMCG

Shanghai Beijing Chengdu

Food&Beverage Home Care Personal Care

. . .

3 DIMENSIONS Shopper + Retailer + Brand


Top tier cities

FMCG

Shanghai Beijing Chengdu


. . .

3 DIMENSIONS Shopper + Retailer + Brand

W H Y ?


Top tier cities Shanghai Beijing Chengdu

. . .

?


First-tier cities economic growth slows to 18-month low in first-quarter 2014.

“ “ REUTERS

Top tier cities

?


FMCG SALES GROWTH Y-O-Y -- FMCG

10.4

6.1

Q1-2013

Q1-2014

Top tier cities

?

Shopper + Retailer + Brand

3 DIMENSIONS

SHOPPER


Top tier cities

?

Shopper + Retailer + Brand

3 DIMENSIONS

SHOPPER

8 INTERVIEWS CMOs & Brand managers

5 INTERVIEWS CEOs & Shopper Expert

12 INTERVIEWS Beijing + Chengdu + Shanghai

913 QUESTIONNAIRES 305 Beijing + 303 Chengdu + 305 Shanghai

+


4 Shopper Archetypes


27%

21% 27%

25% EFFICIENCY ADDICT

1

3

EXPERIENCE LOVER

4

STRATEGIC SAVER

2

EAGLE-EYE SHOPPER

SEGMENT SIZE WITHIN OUR

SAMPLE


14

EXPERIENCE LOVER EAGLE-EYE SHOPPER EFFICIENCY

ADDICT STRATEGIC SAVER

KEY VALUE

LOOKS FOR

DECISI

ON

MAKING

ATTITU

DE

Leisure and Enjoyment

Expertise and Information

Value and getting the best deal

Efficiency in time and money

Willing explore and can be impulsive

Discerning, detail orientated and cautious

Validating the price and value from comparison,

optimizing different choices

Quick and efficient, mainly done before coming to the store

In-store experience – browsing the aisles,

searching for promotions and exploring the variety

Pleasant store environment

Higher quality products Familiar layouts and

stores

The lowest price Saving money, even if

they have to travel In-store assistance to

find the best value

Getting in and out of the

store quickly

1


15



KEY VALUE

LOOKS FOR

DECISI

ON

MAKING

ATTITU

DE














stores



find the best value


store quickly

2


16



KEY VALUE

LOOKS FOR

DECISI

ON

MAKING

ATTITU

DE














stores



find the best value


store quickly

3


17



KEY VALUE

LOOKS FOR

DECISI

ON

MAKING

ATTITU

DE














stores



find the best value


store quickly

4


18



MORE EXPERIENTIAL MORE RATIONAL

KEY VALUE

LOOKS FOR

DECISI

ON

MAKING

ATTITU

DE














stores



find the best value


store quickly


EXPERIENCE LOVER

I am very picky about the in-store experience. It should be a

multisensory satisfaction.

Wu, 32 y/o, Shanghai

1

FEMALE MARRIED + KIDS 30s – 40s 87 RMB(per trip)

CARREFOUR WATSONS

(early)


20

• Themed Promotions like body-wash festival

• Product trials – chance to experience the product

• Clean and bright shelves, clear product displays, spaces in between shelves

• In-store media can grab their attention: music & TV screens

• Newly launched products with unique packaging (e.g. Kisses chocolate)

While the majority of their purchases are

planned, Experience Lovers are more likely than the total to make impulse purchases

48% OF PURCHASES ARE ON IMPULSE (compared to 42% of total)

1

EXPERIENCE LOVER

THEY LOOK FOR…


Lv, Chengdu

EAGLE-EYE SHOPPER 2 I prefer retailers with refined

brand choices instead of a large number. I believe the quality of a shopping experience should go

beyond the product

MALE + FEMALE HIGH INCOME 18–35yo 75 RMB(per trip)

CARREFOUR ITO YOKADO(Chengdu)


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• Intuitive store layout to find the brands they’re looking for

• Always stick with same brands

• Don’t buy new brands to save money

• Know what they want and where to find it

• Willing to pay more for higher quality

• (Brand loyalty is esp. high in packaged f&b)

Eagle-eye Shoppers are the most brand loyal, and are more likely to plan out

the brand they want to purchase

2

EAGLE-EYE SHOPPER

THEY LOOK FOR…

64% PLAN THE BRAND THEY WANT TO PURCHASE

(COMPARED TO 51% OF TOTAL)


STRATEGIC SAVER 3

MALE MARRIED + KIDS LOW INCOME 76 RMB(per trip)

AUCHAN HAO JIAXIANG E-COMMERCE

I am very rationale and pragma tic when it comes to shopping. I pursue value for money so getting a balance between different factors is important

for consideration


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• Price Comparison: Validating the price and value from comparisons

• Deal Hunting: Optimizing different choices and digging for the best deals

• Balance personal needs and family needs as they are equally important

3

STRATEGIC SAVER

THEY LOOK FOR…

45% plan the price range they will look for

(compared to 39% of total)

Only 43% plan the brand they will look for



Deng, 32, Chengdu

EFFICIENCY ADDICT 4 I expect the shopping experience to

be quick and easy, so I can be efficient and move to the checkout

fast.

MALE + FEMALE SINGLE + DINKS 25–35yo 78 RMB(per trip)

CARREFOUR WALMART


26

• Overall in-store journey is a routine and a necessary task for them

• Not willing to spend too much time on the entire process

• Suffers from standing a long line when checking out

• Occasionally stops by large promotions

• Convenience is more important than saving money

3

STRATEGIC SAVER

THEY LOOK FOR…

62% plan their purchases before going in store



EXPERIENCE LOVER

EAGLE-EYE SHOPPER

SHANGHAI RMB 15.1 billion RMB 12.9 billion RMB 11.9 billion RMB 10 billion

BEIJING RMB 13.5 billion RMB 11.6 billion RMB 10.7 billion RMB 9 billion

CHENGDU RMB 9 billion RMB 7.7 billion RMB 7.1 billion RMB 6 billion

EFFICIENCY ADDICT

STRATEGIC SAVER

VALUE SIZE OF SEGMENTS BY CITY (*PROJECTED & ANNUALIZED) THE MORE EXPERIENTIAL SEGMENTS ARE NO LONGER NICHE – THEY ARE HIGH VALUE SIZE

MORE EXPERIENTIAL MORE RATIONAL


? COMMON BEHAVIOR


29

42%

58%

Impulse buy

Planned purchase

Total Packaged

food & drink

Personal care items

Household goods

Base: Total products purchased (1535) B5c. Before coming to the store today had you planned to purchase this item?

Less with this category

Avg. with this category

More with this category


30

4%

19%

31%

37%

39%

51%

None of the above, only theitem

I knew the function I wanted topurchase

I knew the packaging size Iwanted to purchase

I knew the flavor/type I wantedto purchase

I knew the price range I wantedto buy

I knew the brand I wanted topurchase

Extent of planning

Base: Planned purchases (894) B5d. What aspects of this item had you planned? (Multiple selection) B5e. (Only for those who selected yes to B5c) Did you purchase the exact item you had planned to purchase?

DID YOU PURCHASE ACCORDING TO PLAN?

YES: 93% NO: 7%

STICK TO THE PLAN


¥65 ¥86

PLANNED SHOPPING TRIP

UNPLANNED SHOPPING TRIP

Base: All respondents (913) B3a. In total, how much did you spend on this shopping trip?



?

HOW ARE THOSE SHOPPER ARCHETYPES IMPACTING

YOUR MARKETING PLAN?


HOW SHOULD THOSE SHOPPER ARCHETYPES IMPACT

YOUR MARKETING PLAN? CHECK OUT CHINA Vol1 -TBWA

Using product Post-Tail® Purchase

Moment

Retail

Pre-Tail® Supermarket

[email protected]

Want to know more

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Check out China-Emmanuel Sabbagh

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