THE MiddlE Class State of Mind or Share of Wallet?€¦ · ThE MIddLE CLASS ˜ STATE Of MINd OR...

1THE MiddlE Class | sTaTE of Mind or sHarE of WallET? Copyright © 2013 The nielsen Company

THE MiddlE Class

S tat e o f M i n d o r S h a r e o f Wa l l e t ? spEnding FlExibiliTy around THE World during inFlaTionary TiMEsOCTOBer 2013

2 THE MiddlE Class | sTaTE of Mind or sHarE of WallET?


c o n t e n t SIntroductIon / Survey Methodology . . . . . . 4

Part I: SPendIng FlexIbIlIty and conSuMer dIverSItyIncome is relative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Categories with staying power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Deconstructing the demand landscape . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Private-label brands are not for everyone—yet . . . . . . . . . . . . . . . . . . . . . . . . 12

Strategies to deploy, marketing levers to pull . . . . . . . . . . . . . . . . . . . . . . . . . . 15

SectIon II: country SnaPShotS: . . . . . . . . . . . . . . . . . . 17

brIcBrazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21

the bIg three United States ................................................................................. 22

Japan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

countrIeS to Watch by regIon Indonesia (Asia-Pacific) ..................................................................25

Mexico (Latin America).................................................................. 26

Poland (Eastern Europe) .................................................................27

Canada (North America) ................................................................ 28

United Arab Emirates (Middle East) .............................................. 29


OVERVIEW

• Income alone does not dictate spending

considerations

• Greater spending flexibility is reported among those

with the lowest incomes

• Unbranded cereal/grains, fruits, and vegetables are

stock-up essentials

• Discount stores and destocking/clearance retailers are

poised for success

• Convenience channels, family-owned stores and

specialty retailers are most vulnerable

• New brand experimentation is high in developing

markets

• Online deal seeking is a key method to save


Social StatuS iS not dictated by the Wallet aloneThe expanding middle class meets rising food prices. The convergence

of these two mega trends is set to dramatically and permanently reshape

the consumer landscape.

With the global middle class growing by 70 million each year, and

food prices expected to more than double within 20 years, the world is

entering an unprecedented period of rising demand, economic pressures

and aspirationally-driven buying behavior.

But focusing solely on the middle class, which is often defined by

income parameters that are either too high or too low for universal

acceptance, is unlikely to fulfill economic growth expectations for

business. New findings from Nielsen reveal that differences in buying

intentions for food products with regard to what we buy, where we shop,

and our perceived spending flexibility is driven more by aspirations and

cultural norms than by income alone.

The Nielsen Global Survey of Inflation Impact polled more than 29,000

Internet respondents in 58 countries to understand how respondents

around the world of all income ranges were coping with rising food

prices. The study identifies the countries, categories and retail channels

that were more insulated to weather hard economic times and those

that were more vulnerable. Ultimately, we outline tactics and strategies

necessary to reach consumers across the world in these demanding and

changing times.

“While measuring the global middle class carries real-world implications,

the broadest income classification is too low and the narrowest

classification is too high to represent real-world buying potential,” said

James Russo, senior vice president, Global Consumer Insights, Nielsen.

“A more accurate measure is to look at consumer diversity, spending

flexibility and the demand landscape in order to understand how to scale

goods and services that meet the needs of consumers in both developed

and developing markets around the world.”

about the global Survey Methodology

The findings in this survey

are based on respondents

with online access across

58 countries. While an

online survey methodology

allows for tremendous

scale and global reach,

it provides a perspective

only on the habits of

existing Internet users,

not total populations.

In developing markets

where online penetration

has not reached majority

potential, audiences may

be younger and more

affluent than the general

population of that country.

Additionally, survey

responses are based on

claimed behavior, rather

than actual metered data.


incoMe iS relativeWhen evaluating the impact of inflation among respondent households

that earned incomes reflective of middle-class income parameters (as

defined by the Organization for Economic Co-operation and Development

[OECD]), Nielsen found that in times of rising food prices, no single group

is immune from the pain. The buying sentiment for both discretionary and

non-discretionary food and beverage categories among “middle-class”

households compared with all other households, on average, was not

dramatically different. In other words, a closer look at buying propensity

by standards other than income was necessary to better measure financial

stability.

Another measure of buying power is spending flexibility, or the elasticity

in the household budget to afford a rise in food prices without having to

make difficult spending choices elsewhere. In the survey, we segmented

respondents into three spending capacities; those that had enough money to

spend freely, live comfortably, or just meet the basics for food and shelter.

The findings revealed that the notion of spending was relative to

many factors, including household composition, in-country spending

opportunities, aspirations and cultural diversity. For example, respondents

in the Middle East/Africa region reported the highest percentage (49%) of

households earning an income under $5,000 per year, yet this region also

reported the highest percentage of respondents (17%) able to spend freely.

What’s more, households in this region had the greatest number of mouths

to feed living under one roof. One-third (31%) of households in the Middle

East/Africa region reported living with six or more people in the home,

compared with the global average of only 8 percent.

At the opposite extreme, respondents in the North America region reported

the highest percentage (46%) of households earning an income above

$50,000 (compared to the global average of 22%), but reported the lowest

percentage (9%) able to spend freely. North Americans also had the smallest

household size compared with other regions, as more than three-quarters

(76%) lived with three people or fewer in the same house.

On average, 42 percent of all respondents said they were able to live

comfortably and bought some things just because they liked them, while 44

percent only had enough money for the basics—food and shelter. Only 14

percent said they were able to spend freely. Nine of the top 10 countries with

the least spending flexibility hailed from Europe. More than three-quarters

of respondents not able to afford a rise in prices were from Greece (87%),

Croatia (82%), Romania (81%), Hungary (77%), Ukraine (77%) and Bulgaria

(77%).


INCOME IS RELATIVE

ASIA-PACIFIC

EUROPE

MIDDLE EAST / AFRICA

LATIN AMERICA

NORTH AMERICA

ANNUAL INCOME

33%20%

14% 32% 39% 15%

5%13%32%49%

29%20%30%22%

46%36%13%5%

27% 19%

33%20% 27% 19%< $5,000 $5,000 - $19,000 $20,000 - $49,000 $50,000+

ASIA-PACIFIC

EUROPE


LATIN AMERICA

NORTH AMERICA

NUMbER Of pEOpLE LIVINg IN hOME

46%5%

17% 54% 25% 4%

31%39%26%4%

10%44%42%5%

3%20%53%23%

40% 9%

33%20% 27% 19%1 2-3 4-5 6+

Source: Nielsen Global Survey of Inflation Impact, Q1 2013

ASIA-PACIFIC

EUROPE


LATIN AMERICA

NORTH AMERICA

SpENdINg fLExIbILITy IN ThE pAST yEAR

37%11%

17% 35% 48%

56%35%9%

51%40%9%

44%42%14%

52%

47%17% 36%

I’ve only had enough money for shelter, food and basics

I’ve been able to live comfortably, and bought some things just because I like them

I’ve been able to spend freely

GLOBAL AVERAGE


nearly everyone feelS the PainWhen it comes to rising food prices, nearly everyone feels the pain; 85

percent of all respondents said that higher costs impacted their choice of

grocery products. And in-home food products were not the only areas of

spending affected. The top ways that respondents in all corners of the world

would change spending habits because of increased food prices include

dining out (64%), buying new clothes (55%), spending on snack food (45%),

paying for recreation and entertainment (44%) and traveling for vacation

(39%).

As consumers make trade-offs, determining which categories have staying

power and which ones are more vulnerable is critical as tough in-store

decisions are made. While buying more of anything is a challenge when

wallets are squeezed, there were several categories that showed resilience

to inflation. The one category that rose to the top across all regions was

loose, unpackaged, unbranded cereal (such as rice, wheat and grains); with

14 percent of all respondents saying they would buy more of this category

if food prices increased. Fresh or frozen fruits and vegetables, and canned

fruits and vegetables were also stock-up essentials among 11 percent and 8

percent of all respondents, respectively.


Percent saying they would buy more, buy same, buy less

More than half of global respondents had no plans to change their shopping

routine for staple categories like dairy products (68%), meat and poultry

(62%), bread and bakery goods (60%), packaged foods (55%) and fish and

seafood (52%).

Buying propensity that often exceeded the global average was found in many

developing countries, with India and China consistently among the highest

percentage of respondents indicating they would buy more dairy, packaged

foods, packaged cereal products, bread and bakery products, fresh, frozen

and canned fruits and vegetables if food prices increased.

Categories most vulnerable during inflationary times, and the ones that half

of all respondents said they would buy less frequently, included discretionary

products such as candies, cookies and other sweets (59%), chips and other

snack foods (58%), carbonated beverages (53%), alcoholic beverages (49%),

prepared meals (48%) and convenience foods (45%).

RESILIENT ANd VULNERAbLE CATEgORIES IN INfLATIONARy TIMES


buy MorE

Loose, unpackaged, unbranded cereal - 14%

Fresh or frozen fruits and vegetables - 11%

Canned fruits and vegetables - 8%

buy saME Dairy - 68%

Meat and poultry - 62%

Bread and bakery - 60%

Packaged goods - 55%

Fish and seafood - 52%

buy lEss Candies, cookies and other sweets - 59%

Chips and other snack foods - 58%

Carbonated beverages - 53%

Alcoholic beverages - 49%

Prepared meals - 48%

Convenience foods - 45%

Top CounTry

32% - Greece

19% - South Africa

14% - India

83% - Belgium

78% - Denmark

85% - Poland

80% - Belgium

74% - Japan

81% - South Africa

80% - South Africa

73% - Philippines

70% - Greece

72% - Estonia

68% - Estonia

( global average )

10 the MIddle claSS | State oF MInd or Share oF Wallet?

deconStructing the deMand landScaPe With less money to spend and hungry mouths to feed, consumers

continually look for ways to stretch their budgets and find the best value

for the money, which is why one-third of global respondents would shop

more at discount/dollar stores in times of rising prices. One-fourth would

increase shopping frequency at de-stocking/clearance stores (28%) and

hypermarkets/mass merchandisers (23%), which were other outlets poised

for success during inflationary times as their competitive prices are often

difficult to beat.

One-fifth of all respondents would shop more at warehouse club stores

(21%), supermarkets (20%), fresh food farmers markets (20%) and outlet

stores (20%) as prices rise. Globally, 21 percent intend to grow more of

their own food, and 17 percent would increase their frequency at local

neighborhood stores.

11the MIddle claSS | State oF MInd or Share oF Wallet? copyright © 2013 the nielsen company

Percent saying they would shop more and shop less

RESILIENT ANd VULNERAbLE RETAILERS IN INfLATIONARy TIMES

sHop MorE

Discount/dollar stores - 33%

De-stocking/clearance stores - 28%

Hypermarkets/mass merchandisers - 23%

Warehouse club stores - 21%

Supermarkets - 20%

Fresh food/farmers markets - 20%

Outlet stores - 20%

sHop lEss Convenience stores - 40%

Specialty retailers - 36%

Kiosks - 32%

Top CounTry

48% - Singapore

45% - Israel

40% - Chile

39% - South Korea

35% - Ireland

33% - South Africa

38% - Turkey

66% - Taiwan

52% - Bulgaria

50% - Argentina

( global average )


Evaluating the country profile where the greatest percentage of

respondents would increase shopping frequency provides a retail

landscape roadmap that reflects both opportunity and availability. Nearly

half of respondents in Singapore (48%), South Korea (47%) and Ireland

(47%) intend to shop more at discount/dollar stores. De-stocking/

clearance stores were the preference for 45 percent of respondents

in Israel and 44 percent in Greece. Forty percent of respondents in

Chile and 36 percent in China would shop more at hypermarkets/mass

merchandisers. Outlet stores were the channel choice among 38 percent

of Turkey’s respondents. And fresh was best among 46 percent of New

Zealanders and 33 percent of South Africans who intend to grow more of

their own food and increase shopping frequency at fresh foods markets,

respectively.

Conversely, retailer formats most vulnerable during inflationary times

include convenience stores and specialty retailers, whereby 40 percent

and 36 percent of all respondents, respectively, said they would shop less

often. In Latin America, local/neighborhood and family-owned stores

showed vulnerability, as 44 percent would decrease shopping trips in

both outlets if prices were to rise.


Private labelS are not for everyone—yetAs shoppers increasingly look for value, private-label brands, also known

as store brands, have a potential advantage as shoppers become more

discerning and lower-priced alternatives proliferate. Today, private-label

products account for roughly 16 percent of global fast-moving consumer

goods (FMCG) dollar share, according to Nielsen’s 2012 Global Private

Label Report. This percentage varies dramatically around the world,

as the availability of private-label brands are typically found across

modern trade outlets (larger retail formats), which dominate the retail

landscape in the developed world. For example, private label constitutes

46 percent of FMCG dollar share in Switzerland, but only 1 percent in

China. But conditions are ripe for private label growth within the heavily

urban settings of developing countries, as the spread of modern retail is

poised to usher in a host of private-label brands and new opportunities.


Urban India’s rapid expansion is a case in point. Nielsen estimates that

FMCG sales will more than double through modern trade channels from

$1.8 billion today to $5 billion in 2015. While modern trade channels

account for only 5 percent of the Indian retail landscape today, and 6

percent of sales nationally (9% in urban India), sales growth is already

outpacing traditional trade by double. And sales of private label are

reaping the rewards, reporting sales growth of 22 percent in 2012,

compared to 2011.

“Indian shoppers who are more sensitive to price typically toggle

between packaged and ‘loose’ alternatives for commodities like wheat,

rice and sugar during inflationary times,” said Adrian Terron, vice

president CR BASES, Nielsen India. “Private label offers consumers a

tolerable down-trade zone since it assures them quality, the retailer’s

assurance, and the comfort of a recognizable origin. Private-label

brands’ lower price and quality characteristics can prove a useful

combination for shoppers who do not want to revert to unbranded and

unpackaged alternatives even during tougher times.”

In regions where private label is well established, the survey results

showed the potential power of private-label brands during inflationary

times. In North America, almost half (46%) of respondents said

they would shop more for private-label brands when food prices rise,

compared with only 7 percent that would increase shopping frequency

for national brands. Similarly, in developed European countries, 35

percent would shop more for private-label brands, compared with only 8

percent that would buy more national brands.

The price must be right and marketing must be effective for private-label

brands to be successful. Packaging impacts trust and quality perceptions

especially when private labels extend beyond commodity or low-risk

product categories.

Source: Nielsen Private Label Global Report, 2012

PRIVATE LABEL BRANDS

BRANDED

84%

16%

GLOBAL AVERAGE

2009

GLOBAL AVERAGE

2012

17%

83%

% FMCG DOllar Share


pRIVATE LAbEL dOLLAR ShARE by COUNTRy

Represents Developing Countries

SwitzerlandUnited Kingdom

GermanySpain

SlovakiaAustriaFrance

BelgiumPortugal

NetherlandsCanada

Czech RepublicSweden

DenmarkNorway

HungaryFinland

New ZealandUnited States

ItalyAustralia

PolandGreeceTurkey

ArgentinaChile

ColombiaRussiaMéxico

Hong KongBrazil

SingaporeMalaysia

VenezuelaTaiwan

South KoreaThailand

IndonesiaChina

Philippines

4643

3231

302828

272525

2424

2222

2020

1918

17

151414

1212

87

6555

532222

111

1

Source: Nielsen Private Label Global Report, 2012


StrategieS to dePloy and Marketing leverS to PullUnderstanding brand position within the category demand landscape

allows for a tailored food inflation response that will protect the

most profitable shoppers with optimum efficiency. While the strategic

response to consumer buying behavior may be consistent across

regions, market-by-market tactical variations are essential. Knowing how

to scale goods and services across the world can be challenging when

consumer diversity must factor into the marketing mix.

Certain tactics resonated with strong consistency around the world,

such as the increased propensity to purchase only sale-priced items

(41%), but other saving strategies showed variations that aligned with

regionally-motivated shopping patterns. For example, transportation

and storage/refrigeration space was not an issue for half of respondents

(50%) in North America that would stock up on regular-use items when

they were on sale, compared with only one-third (34%) of Asia-Pacific

respondents. But purchasing larger pack sizes was a strategy favored

among 29 percent of respondents across all regions.

The speed and efficiency of online methods proved to be the platform of

choice for saving money among one-third (32%) of all respondents. As

online penetration continues to grow around the world, so too will the

use of the Internet to search for money-saving deals. Since the survey

results captured the sentiment of only online respondents, Nielsen

found that these leading-indicator consumers in developing regions

actually out-performed those in developed markets for their intention

to use online sources to search for deals. One-quarter (25%) of online

respondents living in developing countries said they would shop more

on the Internet if prices increased, compared with 14 percent of those

living in developed countries. Similarly, 30 percent of developing-country

respondents would use social media to find specials, compared with 23

percent of those in developed countries.

Innovation is vital to sustaining profitability and building a strong

platform for growth. Tactics that align with how consumers in different

parts of the world think, plan and shop is vital for success.

16 the MIddle claSS | State oF MInd or Share oF Wallet?

Winning sTraTEgiEs aroundTHE World

euroPe: Inflation may be driving shoppers from local stores

to chains, so understand pricing and promotional scenarios at the

competition.

eaStern euroPe: Consumers look to find value, so deals at

discounters, clearance and club stores, as well as the use of the Internet

to find bargains provide a strong avenue for marketing activities.

aSIa-PacIFIc: While the landscape varies from advanced markets

like Japan to developing markets like Vietnam, the overall outlook is

optimistic, as consumers are able to absorb rising food prices better

than most. Shoppers are nimble in seeking food value, and they will

switch retail formats and price hunt both in-store and online.

chIna: Strong saving ethics shield consumers better than most to

rising food prices, but consumers shift from convenience, specialty and

kiosk retailers in favor of supermarkets and mass retailers and online

retailers during inflationary times.

IndIa: The growth of modern trade will provide more private-label

opportunities, but food inflation may put a damper on this development,

as Indians are less likely to shop the very large merchandiser and

grocery outlets that could support private-label development.

MIddle eaSt/aFrIca: Money is tight and true value,

differentiation and benefits are necessary as tradeoffs for non-essential

purchases are made in favor of at-home meals. Channel switching from

convenient one-stop shopping hyper and supermarkets to low-price

outlets and local/fresh markets is evident so messaging that focuses on

price and value is important.

latIn aMerIca: Trading down behavior is evident during times

of inflation, and consumers will increase purchasing of basic categories

like cereal, fruit, vegetables and dairy. Consumers will stretch dollars by

shopping more in discount, clearance and outlet stores.

north aMerIca: Consumers have less discretionary income

and savings and will switch to private-label brands, look for deals,

and stock up on essentials. Consumers are willing to compromise

recreational activities, snacking and buying new clothes.

develoPIng countrIeS are More exPerIMental onlIne

IF FOOD prICeS InCreaSe, whaT aCTIOnS wIll yOu InCreaSe?

33%32%

23%30%

14%25%

lOOk FOr DealS OnlIne

uSe SOCIal MeDIa TO FInD SpeCIalS

ShOp MOre OnlIne

Developed Countries

Developing Countries

Source: Nielsen Global Survey of

Inflation Impact, Q1 2013

17the MIddle claSS | State oF MInd or Share oF Wallet? copyright © 2013 the nielsen company

a c l o S e r l o o k at:brazIlruSSIaIndIachInaunIted StateSJaPan

SoMe helPFul deFInItIonS

Percent lIvIng coMFortably: Able to buy some things just because I liked them

Modern trade: Larger retail stores, such as supermarkets and hypermarkets

tradItIonal trade: Roadside vendors, farmers markets, food stalls

outlet StoreS: Products sold direct from wholesalers or manufacturer stores

de-StockIng/clearance StoreS: Stores selling closeout items, near expiration date items

SuPerMarketS: Large self-service stores that sell mainly food and household goods

gerManyIndoneSIaMexIcoPolandcanadaunIted arab eMIrateS

Nielsen Global Survey of Inflation Impact, Q1 2013

Nielsen Global Survey of Consumer Confidence, Q2 2013

*CIA World Factbook, 2013


31%

18copyright © 2013 the nielsen company

briC

braZil

bEsT-bET CaTEgoriEs:

• Fresh or frozen fruits

and vegetables

• Loose, unpackaged,

unbranded cereals

• Fish and seafood

• Organic products

bEsT-bET rETailErs:

• Discount/Dollar Stores

• De-Stocking/Clearance Stores

• Outlet Stores

• Grow Your Own Food

Top aCTions TakEn:

• Purchase only sale price items

• Stock up on regular use items

when they are on sale

• Look for deals online

44%55%

TOTal pOpulaTIOn

201,009,622

MeDIan aGe

30.3

6% Increasing

Trips

5%Increasing

Dollars Per Trip

ShOppInG DurInG InFlaTIOnary TIMeS

GrOSS DOMeSTIC prODuCT

$2.396 trIllIon

COnSuMerCOnFIDenCeInDeX -Q2 2013

perCenT lIVInGCOMFOrTaBly

110

inFl

aTio

na

ry

TiM

Es

*

*

FaST MOVInG COnSuMer GOODS lanDSCape

% SaleS

MODERN TRADE

TRADITIONAL TRADE

*


briC

ruSSia

52%



unbranded cereals

• Canned fruits and

vegetables

• Dairy


bEsT-bET rETailErs:


• Outlet Stores

• Fresh Food/Farmers Markets

Top aCTions TakEn:




• Purchase larger pack sizes

60%40%

TOTal pOpulaTIOn

142,500,482

MeDIan aGe

38.8

4% Increasing

Trips

18%Increasing

Dollars Per Trip



$2.022 trIllIon



80

inFl

aTio

na

ry

TiM

Es

*

*


% SaleS

MODERN TRADE

TRADITIONAL TRADE

*


briC

india

44%



unbranded cereals


• Fresh or frozen fruits and

vegetables

• Dairy

bEsT-bET rETailErs:


• Neighborhood Stores


Top aCTions TakEn:





5%

95%

TOTal pOpulaTIOn

1,220,800,359

MeDIan aGe

26.7

18% Increasing

Trips

14%Increasing

Dollars Per Trip



$1.825 trIllIon



118

inFl

aTio

na

ry

TiM

Es

*

*


% SaleS

MODERN TRADE

TRADITIONAL TRADE

*


briC

china

56%



unbranded cereals


vegetables

• Convenience foods

(precut fruit, frozen

entrees)

bEsT-bET rETailErs:

• Hypermarkets/Mass

Merchandisers


• Supermarkets

Top aCTions TakEn:

• Shop more online

• Use social media to find specials


62%

38%

TOTal pOpulaTIOn

1,349,585,838

MeDIan aGe

36.8

13% Increasing

Trips

13%Increasing

Dollars Per Trip



$8.227 trIllIon



110

inFl

aTio

na

ry

TiM

Es

*

*


% SaleS

MODERN TRADE

TRADITIONAL TRADE

*


99%

1%

THE big THrEE

the united StateS

39%



unbranded cereals


vegetables


vegetables

bEsT-bET rETailErs:



• Warehouse Club Stores


Top aCTions TakEn:






% SaleS

MODERN TRADE

TRADITIONAL TRADE

TOTal pOpulaTIOn

316,668,567

MeDIan aGe

37.2

4% Increasing

Trips

9%Increasing

Dollars Per Trip



$15.68 trIllIon



96

inFl

aTio

na

ry

TiM

Es

*

*

*


THE big THrEE

JaPan

29%



unbranded cereals

• Convenience foods (precut

fruit, frozen entrees)


vegetables

• Canned fruits and vegetables

bEsT-bET rETailErs:



• Supermarkets

Top aCTions TakEn:




• Purchase products closer to

expiration date or best

purchased before date

TOTal pOpulaTIOn

127,253,075

MeDIan aGe

45.8

4% Increasing

Trips

5%Increasing

Dollars Per Trip



$5.964 trIllIon



78

inFl

aTio

na

ry

TiM

Es

*

*

*


80%

20%

THE big THrEE

gerMany

26%



unbranded cereals

• Packaged foods (coffee,

pasta, etc.)

bEsT-bET rETailErs:


• Supermarkets



Top aCTions TakEn:




• Purchase products closer to

expiration date or best purchased

before date

TOTal pOpulaTIOn

81,147,265

MeDIan aGe

45.7

2% Increasing

Trips

9%Increasing

Dollars Per Trip



$3.401 trIllIon



90

inFl

aTio

na

ry

TiM

Es

*

*


% SaleS

MODERN TRADE

TRADITIONAL TRADE

*


15%

85%

asia-paCiFiC spoTligHT

indoneSia

31%



vegetables

• Fish and seafood



unbranded cereals

bEsT-bET rETailErs:





Top aCTions TakEn:





TOTal pOpulaTIOn

251,160,124

MeDIan aGe

28.9

7% Increasing

Trips

6%Increasing

Dollars Per Trip



$878.2 bIllIon



124

inFl

aTio

na

ry

TiM

Es

*

*


% SaleS

MODERN TRADE

TRADITIONAL TRADE

*


66%

34%

laTin aMEriCa spoTligHT

MeXico

43%



unbranded cereals


vegetables


vegetables

bEsT-bET rETailErs:


• Outlet Stores


Top aCTions TakEn:





TOTal pOpulaTIOn

116,220,947

MeDIan aGe

27.7

9% Increasing

Trips

8%Increasing

Dollars Per Trip



$1.177 trIllIon



84

inFl

aTio

na

ry

TiM

Es

*

*


% SaleS

MODERN TRADE

TRADITIONAL TRADE

*


EasTErn EuropE spoTligHT

Poland

21%


• Dairy

• Packaged foods (coffee,

pasta, etc.)


unbranded cereals

bEsT-bET rETailErs:




Merchandisers

Top aCTions TakEn:





53%

47%

TOTal pOpulaTIOn

38,383,809

MeDIan aGe

39.1

2% Increasing

Trips

3%Increasing

Dollars Per Trip



$487.7 bIllIon


perCenT lIVInGCOMFOrTaBly 63

inFl

aTio

na

ry

TiM

Es

*

*


% SaleS

MODERN TRADE

TRADITIONAL TRADE

*


99%

1%

norTH aMEriCan spoTligHT

canada

51%



unbranded cereals


vegetables


vegetables

bEsT-bET rETailErs:




Top aCTions TakEn:





TOTal pOpulaTIOn

34,568,211

MeDIan aGe

41.5

3% Increasing

Trips

9%Increasing

Dollars Per Trip



$1.819 trIllIon



98

inFl

aTio

na

ry

TiM

Es

*

*


% SaleS

MODERN TRADE

TRADITIONAL TRADE

*


MiddlE EasTErn spoTligHT

united arab eMirateS

43%



vegetables


vegetables


unbranded cereals

bEsT-bET rETailErs:




Merchandisers

Top aCTions TakEn:





72%

27%

TOTal pOpulaTIOn

5,473,972

MeDIan aGe

30.3

8% Increasing

Trips

14%Increasing

Dollars Per Trip



$358.9 bIllIon



107

inFl

aTio

na

ry

TiM

Es

*

*


% SaleS

MODERN TRADE

TRADITIONAL TRADE

*


Argentina 66%

Australia 89%

Austria 80%

Belgium 81%

Brazil 46%

Bulgaria 51%

Canada 83%

Chile 59%

China 40%

Colombia 60%

Croatia 71%

Czech Republic 73%

Denmark 90%

Egypt 36%

Estonia 78%

Finland 89%

France 80%

Germany 83%

Greece 53%

Hong Kong 75%

Hungary 65%

India 11%

Indonesia 22%

Ireland 77%

Israel 70%

Italy 58%

Japan 80%

Latvia 72%

Lithuania 65%

Malaysia 61%

Mexico 37%

Netherlands 93%

New Zealand 88%

Norway 97%

Pakistan 15%

Peru 37%

Philippines 32%

Poland 65%

Portugal 55%

Romania 44%

Russia 48%

Saudi Arabia 49%

Singapore 75%

Slovakia 79%

South Africa 17%

South Korea 83%

Spain 67%

Sweden 93%

Switzerland 82%

Taiwan 75%

Thailand 30%

Turkey 46%

United Arab

Emirates 71%

United Kingdom 84%

Ukraine 34%

United States 78%

Venezuela 41%

Vietnam 34%

about the nIelSen global Survey

The Nielsen Global Survey of Inflation Impact was conducted between

February 18 and March 8, 2013, and polled more than 29,000 consumers

in 58 countries throughout Asia-Pacific, Europe, Latin America, the

Middle East, Africa and North America. The sample has quotas based

on age and sex for each country based on their Internet users, and

is weighted to be representative of Internet consumers and has a

maximum margin of error of ±0.6%. This Nielsen survey is based on the

behavior of respondents with online access only. Internet penetration

rates vary by country. Nielsen uses a minimum reporting standard of

60 percent Internet penetration or 10M online population for survey

inclusion. The Nielsen Global Survey, which includes the Global

Consumer Confidence Survey, was established in 2005.

Internet PenetratIon

Source: Internet World Stats, June 30, 2012


about nIelSen Nielsen Holdings N.V. (NYSE: NLSN) is a global information and

measurement company with leading market positions in marketing

and consumer information, television and other media measurement,

online intelligence and mobile measurement. Nielsen has a presence in

approximately 100 countries, with headquarters in New York, USA and

Diemen, the Netherlands.

For more information, visit www.nielsen.com.

Copyright © October 2013 The Nielsen Company. All rights reserved.

Nielsen and the Nielsen logo are trademarks or registered trademarks

of CZT/ACN Trademarks, L.L.C. Other product and service names are

trademarks or registered trademarks of their respective companies.

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