Retail and Shopper Trends in Asia Pacifc

Retail and Shopper Trends

Asia Pacific 2010The latest in retailing

and shopper trends for the FMCG industry

August 2010

2

About The Nielsen CompanyWe are a leading global information and measurement company that provides clients with a comprehensive understanding of consumers and consumer behavior. We deliver critical media and marketing information, analytics and industry expertise about what consumers watch (consumer interaction with television, online and mobile) and what consumers buy on a global and local basis. Our information, insights and solutions help our clients maintain and strengthen their market positions and identify opportunities for profitable growth. We have a presence in approximately 100 countries, including many developing and emerging markets, and hold leading market positions in many of our services and geographies. Based on the strength of the Nielsen brand, our scale and the breadth and depth of our solutions, we believe we are the global leader in measuring and analyzing consumer behavior in the segments in which we operate.

BUYOur Buy segment provides retail transactional measurement data, consumer behavior information and analytics primarily to businesses in the consumer packaged goods industry. Our extensive database of retail and consumer information, combined with our advanced analytical capabilities, helps generate strategic insights that influence our clients’ key business decisions.

We track billions of sales transactions per month in retail outlets in approximately 100 countries around the world and our data is used by our clients to measure their sales and market share. We are the only company offering such extensive global coverage for consumer packaged goods.

Our Buy products and services also enable our clients to better manage their brands, uncover new sources of demand, launch and grow new products, analyze their sales, improve their marketing mix and establish stronger consumer relationships.

WATCHOur Watch segment provides viewership data and analytics primarily to the media and advertising industries across television, online and mobile screens.

Within our Watch segment, our ratings are the primary metrics used to determine the value of programming and advertising in the U.S. total television advertising marketplace. In addition to the United States, we measure television viewing in 29 countries. We also measure markets that account for approximately 80% of global internet users and offer mobile measurement services in 10 countries, including the United States, where we are the market leader.

Our Watch data is used by our media clients to understand their audiences, establish the value of their advertising inventory and maximize the value of their content, and by our advertising clients to plan and optimize their spending.

3

ContentsExecutive Summary

• Retail & Shopper Trends in Asia Pacific 2010 4

Regional Highlights

• Grocery Share of Trade in Asia 8

• Share of trade for modern self-service outlets 8

• Share of trade for modern self-service outlets 9

• Total FMCG Nominal Growth in 2009 9

• Total FMCG Growth in 2009 9

• Grocery store numbers in Asia Pacific 10

• Traditional grocery trade 2009 v 2000 10

• % of Male Shoppers in South/ South-East Asia (2009 vs. 2002) 11

• % of Main Shoppers who are Housewives 11

• % of Urban Shoppers Using Hypermarkets Regularly 12

• Frequency of Visiting Hypermarkets 12

• % of Urban Shoppers Using Supermarkets Regularly 13

• Frequency of Visiting Supermarkets 13

• % of Shoppers Focused on Promotions 14

• Trade Concentration Share for Top 5 Chains 14

• Trade Concentration Share for Top 5 Chains 15

• Private Label Share of Total Market 15

Country Highlights

Pacific

• Australia 16

• New Zealand 17

North Asia

• China 19

• Taiwan 21

• Hong Kong 23

• Korea 25

South-East Asia

• Singapore 27

• Malaysia 29

• Thailand 31

• Indonesia 33

• Philippines 35

• Vietnam 37

South Asia

• India 39

• Sri Lanka 41

Country Highlights include:

• Retail Structure – Store Numbers

• Shoppers Usage of Modern Trade Store Types

• Modern Trade Retailers – Banner Names and Numbers

• Share of Trade

4

2009 a tough year for retailers in most Asia Pacific markets but light appearing at the end of the tunnel

Volume growth down in 2009: Throughout the Asia Pacific region, countries experienced a lower level of grocery sales growth in 2009 compared to the very strong performance in 2008. Discounting the effects of lower inflation on absolute sales dollars, volume growth was significantly lower in many markets.

The strongest performing markets in 2009 were India and Vietnam, where sales values increased by nearly 15% compared to 2008. In China and Indonesia, markets that had consistently enjoyed double-digit growth over the last 5 years, the growth rate slowed down to +3% and +5% respectively. China has seen a strong recovery though since Q4 2009 and is now back to 11% growth in Q1 driven by a strong demand for food categories.

In the more developed markets of Hong Kong, Singapore and Korea, where grocery sales had benefited from the economic difficulties as consumers spent less on eating out, we saw growth rates slowing down in the 2nd half of 2009 as consumer sentiment became more positive. In Singapore where the sales of basic groceries such as cooking oil grew strongly in 2009 we are now seeing growth switching back to personal care, health and more premium products. Both New Zealand and Australia also showed continued steady sales growth of over 6% last year.

Surging consumer confidence in 2010: The latest consumer confidence index in the Asia Pacific region, as surveyed by Nielsen globally, continued to improve in 2009 and reached an index score of 101 in Q2 2010, an increase of 23 points from Q1 2009. Globally, the consumer confidence index reached its highest level since Q3 2007, at 93 points in Q2 2010.

Executive Summary

Retail & Shopper Trends 2010Peter GaleManaging Director – Retailer ServicesAsia Pacific, Middle East & AfricaThe Nielsen Company

The big increase in the consumer index for the Asia Pacific region was led by Vietnam (+18) and Singapore (+5). The region also took 6 of the top 10 spots globally, in terms of consumer confidence: India (129), Indonesia (119), Vietnam (119) The Philippines (113), Singapore (112) and Australia (108). Of these countries, India and Indonesia occupied the top 2 positions globally.

In Q2 2010, 43% of consumers in the region felt good about spending on items they want and need over the next 12 months, compared to 36% in Q3 2009. While consumers are also saying that they plan to change their spending to save on household expenses, they plan to spend their spare cash in areas including Clothes and New Technology which should be positive for the Hypermarket channel, which suffered from the cut back in general merchandise sales during 2009. They also plan to increase spending on out-of- home entertainment which may be less positive for the grocery trade, particularly in developed markets, where the move to entertaining at home had a positive effect on grocery sales in 2009.

The “2000’s” - a decade of change for grocery retailing in Asia

Over the last 10 years we saw a massive change to the grocery retail business across Asia, driven by retailer investment in new stores. The number of modern trade stores has been growing by over 16,000 stores a year with the total store count increasing from less than 50,000 to close to 220,000.

Modern trade on the rise: Across the region, the modern trade now accounts for 53% of the packaged grocery sales tracked by Nielsen, from the 35% share in 2000. This shift of consumer spending of nearly 2% per annum has been strongest in North Asia – led by China where the importance of modern trade increased on average by 3%

China and Korea are fastest changing markets: While there has been significant store growth in all markets, the biggest story of the decade was clearly the expansion seen in the China market. China alone accounted for over 100,000 new stores or more than 60% of the total new store investment and equivalent to a 1000% increase in a 10 year period. Subsequently the modern trade share increased from 34% to 64% during the decade with all formats driving that growth.

5

Hypermarkets are the strongest modern trade channel accounting for 28% of packaged grocery sales. The importance of Hypermarkets differ significantly by city though – in Shanghai, 77% of shoppers claim to use them as their main store compared to just 45% in Beijing. The biggest growth opportunity for this channel is now coming from the lower tier cities with the key cities generally reaching a relatively mature level of development.

Korea was another market where the speed of change has been rapid. Again, this is a market where Hypermarkets occupy a very strong 31% share of trade. Convenience stores have also expanded rapidly, achieving a 12.5% share and increasing from 3,000 to nearly 17,000 in numbers. Traditional grocery stores have suffered most in Korea, with a closure rate of 5% per year or more than 50,000 stores during the decade.

The speed of change has generally been slower in South-East Asia, ranging from 0.6% in the Philippines, the only market in the region where there has been no significant foreign investment, up to 1.9% in Malaysia.

Hypermarket growth, at 40% per annum, has been the biggest driver of change in Malaysia’s grocery shopping scene. However, unlike China or Korea, we have not seen the same level of store closures for the traditional trade with overall store numbers only down by a few thousand, and over 70% of shoppers still using them as frequently as 2 to 3 times per week.

Indonesia was the second fastest developing market in South-East Asia with an annual share change of 1.6%. This is likely to continue to grow at a fast rate with modern trade still accounting for less than 40% of sales. The fastest growing channel in Indonesia has been the mini-market, led by local giants Indomaret and Alfamart. Over the decade, store

numbers increased from just over 2000 to more than 11,500. It is now difficult in many cities to stand on a corner and not see at least 2 of these stores!! The impact of mini-markets on where people shop has been significant as their share of trade has increased nearly six-fold to over 17%. Indonesia is also a market where Hypermarkets have grown strongly but where there is still room for expansion with only 43% of shoppers using one on a regular basis.

2010: The start of the male shopper decade?

Over the last 10 years, we have also seen some change in who is taking responsibility for doing the grocery shopping. Across the Asia region, the proportion of men claiming to be the main shopper increased on average from 14% to 22%. The only exception was in China where the proportion of male “main” shoppers remained relatively flat at just 15%.

In South and South-East Asia, men are generally more likely to be grocery shoppers – in most countries, we now see male shoppers accounting for more than 25% of the “main” shopper pie. Malaysia leads the way with 38% followed by the Philippines and India.

There are still two countries though, where things remain a little more traditional – Korea and Vietnam. While there are signs of change in Korea, likely due to the development of Hypermarkets, only 11% of men claim to be the main shopper for their families. In Vietnam, where only 3% of main shoppers are males (from 1% a decade ago), the traditional Wet Market dominates with only 11% of packaged grocery sales going through the modern trade channel.

Housewives no longer dominate the (shopping) aisles: As male shoppers become more involved in grocery shopping, the popular perception that grocery shopping is mainly done by stay-at-home housewives is now only applicable to a couple of markets. In particular, India and Indonesia are the only markets where more than 60% of the main shoppers claim to be housewives.

At the other end of the spectrum, China has the lowest number of shopping housewives at just 10%, followed by Thailand at 27%. With a high proportion of working women in these markets, a key challenge for retailers is to provide even more convenient solutions. In Thailand, we have seen very strong growth over the last 12 months of smaller formats, particularly convenience stores that now account for over 16% of packaged grocery sales.

6

Hypermarket growth stalls: a short term effect?

One of the clear effects of the 2009 economic downturn was a halt in the forward march of Hypermarkets in many countries. In a number of countries such as Korea and Taiwan, we saw Hypermarkets lose as much as 1% share as shoppers used them slightly less frequently. This was quite possibly an effort from shoppers to try to save money by avoiding the larger stores where they are faced with more non-discretionary spending temptations.

At the same time, many countries saw a growth in the usage of smaller supermarkets or mini-markets, stores that offer shoppers a more convenient local grocery shopping option and lower travelling costs.

In Korea, the number of shoppers who used supermarkets as their main channel increased from 17% to 23%, reversing a declining trend we had seen for more then 10 years. Regular use of Supermarkets also increased for the first time in many years in Taiwan, Indonesia and Thailand, markets that have had strong development of Hypermarkets. Whether this trend continues through 2010, as consumer confidence returns and shoppers start to increase their spending, remains to be seen.

It is possible that Hypermarkets may find growth harder to come by in a number of markets, with retailers continuing to invest in smaller formats, offering shoppers more convenient “top-up” shopping. In many cases the smaller formats are being opened by the leading Hypermarket chains in an effort to expand their footprint to smaller catchment areas that cannot support a larger store, or to capture spending from different shopping trips other than the main “stock-up” trip. The development of this multi-format strategy in Asia follows a retail trend we see being implemented globally.

Shoppers become more focused on value in 2009

A prominent impact of the economic downturn on shopper’s behavior was an increased focus on value across all markets. This was partly due to the economic downturn, but was also retailer driven with the amount of retailer promotional activity increasing sharply in a number of markets.

The proportion of shoppers who claim to be promotion seekers increased noticeably, particularly in some of the developing markets such as Vietnam, India and China. Malaysia was another market where promotions became even more important despite it already having one the highest proportions of promotion-sensitive consumers.

In Korea, 34% of shoppers’ choice of stores to patronize is influenced by the stores’ promotional leaflets, nearly 20% more than the average for the region. The story is different in Indonesia, where shoppers were less inclined to buy based on promotional offers. As sales dropped sharply, shoppers were more likely to focus on buying the brands that they trusted rather than risking their money on products they were not familiar with, even if these were priced competitively. Indonesia is also the country where the highest proportion of shoppers (81%), claims to choose stores purely based on convenience (store location). This may well be due to the preponderance of conveniently located mini-markets.

So, what is going to happen during the next decade?

Many of the trends we have seen over the last decade will no doubt continue.

Size matters: There will be further growth in large format stores offering consumers low prices, a wide assortment and a spacious shopping environment, particularly in the developing markets. In countries where they are already dominant, there may well be a challenge from more convenient smaller format stores and also a need for retailers to refresh their offer to capture and/or keep the interest of shoppers.

Convenience: Convenience stores typified by 7-Eleven will continue to grow strongly in all countries, with a big driver of this likely to include an ever-expanding offer in food services as well as many other services aimed at making everyday life even more convenient.

Concentration of trade: Retailer concentration will increase very much at the same rate that we saw over the last few years, shifting by 1 to 2% annually. The occasional bigger changes will be driven by mergers and acquisitions as retailers strive to drive profitability through size.

The traditional trade will remain an important retail channel in most developing markets, although they will lose share at a rate of about 1% per year. For the region, this is likely to be slower than the preceding decade as there will not be the same size of impact from China.

While India will have a lot of focus from a regional perspective with investment being ramped up again over the next few years, the speed of change is unlikely to bear much resemblance to what was experienced in China. While we still saw 16% growth

7

in modern trade stores in 2009, it was definitely a year of consolidation and the overall share of sales these stores account for remained at only 5%.

Only 30% of urban shoppers use supermarkets or hypermarkets regularly, with only 14% claiming to usethem as their main store. During 2009 the average number of different chains used on a regular basis actually dropped from 2.4 to only 1.8. India has probably the strongest traditional trade with its Kirana stores successfully meeting shoppers’ needs for convenience and personal service. As well as competition, there are a number of other issues modern retailers will need to overcome to be successful, particularly the development of an efficient and cost effective supply chain.

Retaining shoppers: Shopper loyalty and creating differentiated retail brands will be key themes in many of the more developed markets, where retailers have a strongly-established footprint and as competition between the leading chains becomes keener. We have started to see the launch of many types of loyalty cards but the jury is out as to whether these cards will truly provide differentiation for retailers or whether these cards will just be a different means for shoppers to obtain promotional offers. Regardless, these cards will say a lot about shoppers. As the usage of such cards increase in

popularity, the wealth of customer data and insights gained will increasingly be central to the shopper engagement strategies for many leading chains.

Private Labels: The private label concept is still undeveloped in all Asian markets, with only Hong Kong having a share above 5%. This opportunity will be developed over the next 10 years but how quickly it will grow will be dependent on how much retailers invest, not just in product development and quality but also in actively marketing and selling the concept to shoppers.

“Wired” shopping habits: Technology is the final trend which is likely to fundamentally alter how and where shoppers spend their money and interact with retailers. Whether it is through TV shopping, on-line retailers, mobile phone applications or social networking sites, the application of technology is likely to be the area where we see some of the biggest changes by the year 2020.

In Korea, the transformation has already begun. We now see 4% of shoppers claiming to use the internet for the majority of their grocery shopping needs, while 71% use the internet regularly to purchase groceries and personal care items. Another 30% use TV shopping channels… so watch this space!!

8

Grocery Share of Trade in Asia

53% of packaged grocery products are now sold through modern self-service stores across the Asia region

Regional Highlights

Share of trade for modern self-service outlets

China has been the most dynamic market in the world during the last 10 years with the modern trade share increasing by 3% a year to 64%

44 46 48 50 52 52 5335 39 41

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Modern Self Service Trade Traditional Counter Service

65 61 59 56 54 52 50 48 4748

8287 86

74

92 94

63

86 86

34

63 64

ChinaKoreaTaiwanHK

2000 2008 2009

Based on FMCG categories tracked by The Nielsen CompanyChina excluded villages

9

Share of trade for modern self-service outlets

In South and South East Asia, Malaysia and Indonesia showed the most rapid modern trade growth at over 1.5% per year for the last 10 years

Total FMCG Nominal Growth in 2009

China’s FMCG growth dropped back in 2009 while Taiwan improved after showing declining sales for the last couple of years

Total FMCG Growth in 2009

In South and South-East Asia, India and Vietnam continued to see strong sales growth while Indonesia saw volume sales decline in 2009

Singapore Malaysia Thailand Philippines Indonesia India Vietnam

Volume Value

5.6

-1.43.5 4.3

-1.4

10.28.1

2.5

73.3

3.9

6.1

4.4 9.1

8.1% 5.6% 6.8%

8.2% 4.7%

14.6% 17.2%

78

34 36 37

22

4337

105

15

92

5346 43

38

115

16

52

91

45

Singapore Malaysia Thailand Philippines Indonesia Vietnam India Sri Lanka

2000 2008 2009

Volume Change Unit Value Change

Australia NZ Taiwan Korea Hong Kong China

3.4

3.5

6.9% 6.9%

5.6

1.3

2.5%

7.5%

4.9%

3.0%

1.3

1.2

7.55.6

2.0

1.0-0.7

Based on FMCG categories tracked by The Nielsen Company

10

Grocery store numbers in Asia Pacific

Traditional grocery stores increased by 1 million in the last decade but the modern trade store numbers grew by an average of 35% per annum

Traditional grocery trade 2009 vs. 2000

In developing countries the number of Traditional Stores continues to increase and in most countries Modern Trade share growth is significantly slower than developed markets

Traditional Grocery Modern Trade

13.1 million11.9 million

48,500

217,318

2000 20102009

2.3% 1.4% 2.0%3.0%

1.9%0.4% 1.0%

0.3%1.6%

0.6%

-3.0%-2.0% -2.0%

-1.0% -1.0%

6.0%

1.0%1.0%2.0%

-5.0%

Korea Singapore Taiwan China Malaysia HK Thailand India Indonesia Philippines

Modern Trade Annual Share Growth Annual % Change in Traditional Stores

Source: Nielsen retail census

Source: Nielsen retail census

11

% of Male Shoppers in South/South-East Asia (2009 vs. 2002)

Over the last decade the % of men who are taking responsibility for grocery shopping has increased in all South-East Asian countries except Vietnam

% of Main Shoppers who are Housewives

In the least developed markets (India, Indonesia and Vietnam), traditional housewives make up more than 50% of all main grocery shoppers compared to just 10% in China and New Zealand

2002 2009

Singapore

Philippines

Taiw

an

India

Thailan

d

Malaysia

Indonesia

China

Korea

Vietnam

Hong Kong

29

38

32

2327

18

27

15

7

26

20 22

13 13

19 1815 15

1

11

13

3

27 19 22 3211

3821

India

Indonesia

Vietnam HK

Philippines

Korea

Taiwan

Malaysia NZ

China

Housewife Other female Men

63 62 54 50 49 40 39

10

10 19 4328

1949

5323 68 75

1515

3211

12

Frequency of Visiting Hypermarkets

Across the region shoppers tended to visit Hypermarkets less frequently during 2009 as they tried to limit their overall spending and use more convenient alternatives

% of Urban Shoppers Using Hypermarkets Regularly

Hypermarket penetration has grown most significantly in Korea, Malaysia and Indonesia during the last 10 years, while over 60% of shoppers in China and Thailand now use them as their main grocery channel

2002 2009

Singapore

Taiw

an

Thailan

d

Malaysia

Indonesia

China

Korea

86

0

20

40

60

80

10098

88 90

81

90

75

59 58

71

26

45

1622

6.8 6.5

3.1 2.92.3 1.9

6.55.8

3.12.4 2.1 1.9

2008 2009

China Korea Thailand Malaysia Indonesia Taiwan

13

Frequency of Visiting Supermarkets

Shoppers used the more convenient Supermarkets more frequently during 2009 in a number of countries, including Thailand and Taiwan

8.7

6.6 6.5

3.2

2.2 2.2 2.1

9.1

6.7 6.5

2.8 3.12.5 2.2

Hong Kong Singapore China Malaysia Thailand Taiwan Indonesia

2008 2009

% of Urban Shoppers Using Supermarkets Regularly

In Thailand, Indonesia, Taiwan and Korea we saw Supermarket penetration improve after a decade of losing shoppers

2002 2008

Taiw

an

Thailan

d

Malaysia

Indonesia

China

Korea

93

2009

0

20

40

60

80

100

8389

75 78 7886

8177

70

42

61

76

41

54 56

32

43

14

% of Shoppers Focused on Promotions

During 2009 more shoppers were attracted by promotional activities, particularly in Vietnam, China and India

Trade Concentration Share for Top 5 Chains

Both Korea and Taiwan had a 2% increase in trade concentration during 2009

2008 2009

82 81 79

69

7774

72

6265

7066

61 61

54 53 5949

5254

6157

68

Singapore

Philippines

Taiw

an

India

Thailan

d

Malaysia

Indonesia

China Korea

Vietnam

Hong Kong

2008 2009

Australi

aChina

Korea

Taiw

an

Hong Kong

2009

0

20

40

60

80

100

New Zea

land

93 97 9791

95 95

7276 76

34

55 57

12

30 32

28 9


15

Trade Concentration Share for Top 5 Chains

Trade concentration continues to grow in South-East Asian countries with 2% increases seen in Thailand and Indonesia

Private Label Share of Total Market

Private label share of sales increased in a number of countries in 2009 but it still remains less than 5% other than in Hong Kong

2000 2008

Singapore

Philippines

Thailan

d

Malaysia

Indonesia

2009

0

10

20

30

40

50

60

70

80

61 64 65

25

3336

1511 10

2224

6 7

2926

2008 2009

Indonesia

0

1

2

3

4

5

6

7

87.2%

Thailan

d

Malaysia

Korea

Singapore

Taiw

an

Hong Kong

3.1%2.8%2.6%2.3%

1.6%

0.7%


16

PacificCountry Highlights – Australia

Retail Structure – Store NumbersTRADE SECTOR 2009 2010

GROCERY STORES

Traditional Grocery Stores 19,537 19,537

Convenience Stores 2,655 2,725

Supermarkets 4,361 4,406

Hypermarkets 2 2

Warehouse Clubs 1 1

TOTAL GROCERY OUTLETS 26,556 26,671

DRUG STORES

Independent Drugstores 3,167 3,337

Chain Drugstores 1,949 2,053

TOTAL DRUG OUTLETS 5,116 5,390

Modern Trade Retailers – Banner Names & NumbersSUPERMARKETS 2009 2010

Woolworths 798 818

Coles 709 737

Franklins 81 84

ALDI 204 225

Ritchies - IGA 57 57

Drakes - IGA 42 42

IGA 1,288 1,288

Tasmania Independent Retailers 231 227

Food Works 710 708

Spar Aust 241 220

CONVENIENCE STORES

7 Eleven 384 395

BP (Corp. & Buying group)) 390 394

Coles Express (formerly Shell) 618 621

Mobil (Quix & Buying group) 140 149

Caltex 641 662

Night Owl 50 58

Gull 27 27

Woolworths Petrol 405 419

6.0% 3.4% 5.1% 3.5% 4.4% 2.8% 2.8% 2.5%

1.8%

5.7%

2.7%3.5%

0.4%

0.8%3.5%

2.3%

6.9%

9.2%

6.3%5.1%

2.9%

6.8% 6.9% 7.1%

2008 2009 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10

0%

2%

4%

6%

8%

10%

Unit value change Volume change Nominal growth

FMCG Growth Trendin Australia

17

PacificCountry Highlights – New Zealand


GROCERY STORES

Dairies 2897 2897

Convenience Stores 1435 1460

Supermarkets 381 388


DRUG STORES

Pharmacies 962 931



Pak'N Save 47 48

New World 134 134

Foodtown 29 20

Countdown 63 103

Super Value 52 54

Woolworth's 56 29

CONVENIENCE STORES

Caltex 115 109

BP Connect/Express 78 78

Mobil Pegasus/On the Run 86 86

Shell Select 214 203

Gull 35 35

18

Shoppers Usage of Modern Store Types in New Zealand 2009

% that spend most money vs. used in the last month

1 1

2821

36

89

1 1 41

99

70 64 6150

Supermarkets Large DiscountStores

Conveniencein PetrolStations

ConvenienceExcl. Petrol

Stations.

Fruit &Veggie shop

Butcher Fish Shop Online

0

Spend Most Used in the Last Month

5.6% 6.9% 7.5% 5.5% 3.1% 1.4%

0.4% 1.4%

1.7%

1.5%

1.3%

2.1%

7.3%7.2%

5.2%

2.9%

6.9%

8.9%

2008 2009 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10

0%

2%

4%

6%

8%

10%


FMCG Growth Trend in New Zealand

19

North Asia Country Highlights – China


GROCERY STORES

Grocery Stores 1,962,873 2,139,315

Kiosks


Minimarkets 80,728 84,363


Hypermarkets 1,912 2,108

TOTAL GROCERY OUTLETS 2,069,201 2,254,730

OTHERS

Cosmetic 128,307 140,096

General store 848,240 847,872

Soft Drinks and Ice Cream Store 60,757 46,317

TOTAL OTHER OUTLETS 1,037,307 1,034,285

Modern Trade Retailers – Banner Names & NumbersHypermarket 2008 2009

Carrefour 134 156

Wal-Mart (Supercenter) 123 175

A.best 105 109

Trust Mart 104 104

Shanghai RT-Mart 101 121

Centurymart 86 86

Lotus 76 77

JiaShiJie Group Co. Ltd 63 65

Tesco 61 79

Wuhan Wushang 53 75

WuHan ZhongShang 31 32

Auchan 31 35

HuNan Apolo (Jia run duo) 13 15

Aeon( Jusco) 18 21

Multiple Formats

CRV (Vanguard) 2,698 2,926

Wu-mart 1,975 2,298

Shangdong Jiajia Yue 456 489

RenRenLe 73 90

Extra Times 67 68

Fujian XinHuaDu 52 75

PARKnSHOP 43 54

Beijing MeiLianMei 32 35

WenFeng Co. Ltd 913 978

Beijing Hualian 65 85

Shanghai Nong Gong Shang (NGS) 3,330 3,331

JiangSu SuoGuo 1,802 1,852

Wuhan Zhongbai 626 674

Qingdao Li Qun Group 866 890

Beijing Ji Ke Long 243 247

Warehouse Club

Metro 38 42

Makro 8 8

Sam’s Club 3 3

Modern Trade Retailers – Banner Names & NumbersSupermarket 2008 2009

Shanghai Lianhua 3,932 4,138

Shanghai Hualian 1,946 1,461

ChengDu RedFlag 858 980

SiChuan HuHui 800 1,200

Shanghai JieQiang 394 412

ZheJiang RenBen 387 599

FuJian Yonghui 205 268

HuNan BuBuGao 110 123

NingBo SanJiang 106 127

ShenZhen MinRun 97 113

20

Shoppers Usage of Modern Store Types in China 2009


China Share of Trade

In China, Hypermarkets gained 1% share of market during 2009 as the traditional trade continued to slowly lose share

2.0% 2.9%1.3%

0.9% 1.0%

2.2%

-1.2% -0.7%

0.2%

8.8%

1.0%8.2%

1.7% 1.1%

9.2%11.0%

3.0%

0.6%

2008 2009 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10

-2%

0%

2%

4%

6%

8%

10%

12%


62

20

1 0

9077

26

8

Hypermarkets Supermarkets Convenience Stores Personal Care/ Drugstores

Spend Most Used in last Month

26.6

36.7 36.7

27.7

36.7 35.6

Hypermarket Other Modern Trade Traditional Grocery

2008 2009

FMCG Growth Trendin China


21

North Asia Country Highlights – Taiwan


GROCERY STORES



Supermarket 1,832 2213

Hypermarkets 112 119


DRUG STORES

Drugstores 7,716 7,817

Chain Personal Care Stores 775 812


OTHERS

Liquor Stores 883 885

Kiosk 36,645 38,371

TOTAL OTHER OUTLETS 37,528 39,256

Modern Trade Retailers – Banner Names & NumbersCONVENIENCE STORES Mar 2009 Mar 2010

7-11 4,823 4,751

Family Mart 2,331 2,429

Hi-Life 1,253 1,242

OK 828 835

DRUGSTORES

Watsons 395 399

Cosmed 295 314

HYPERMARKETS

Carrefour 59 61

RT-Mart 20 20

a.mart (AiMai) 15 17

Dollars 1 1

Save&Safe 4 4

SUPERMARKETS

PX Store 457 522

Wellcome 241 299

Simple Mart 171 186

SongChin 76 82

Sinon 38 40

Carrefour Super 1 3

WAREHOUSE CLUBS

Costco 5 6

22

Taiwan Share of Trade

Chain supermarkets and modern personal care stores continued to show the strongest performance in Taiwan during 2009

Shoppers Usage of Modern Store Types in Taiwan 2009


4.6%

1.3%

4.4%2.9%

1.8%

-0.7%-1.3%

-0.6%-3.9%

0.0%

-1.1%

3.9% 1.2%

-6.2%

1.2% 4.3%

0.5% 2.9% 3.2% 3.0%

0.6%

-1.6%

2.5% 0.7%

2008 2009 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10-8%

-6%

-4%

-2%

0%

2%

4%

6%


FMCG Growth Trendin Taiwan

Hypermarkets Supermarkets ConvenienceStores

Personal Care/Drugstores

Post Exchange


40

717

321

5944

95

27

63

22.918.2

9.6

28.7

11.96.8

1.9

22.3 19.9

9.0

28.8

12.46.0

1.6

Hypermarkets ChainSuper

OtherSuper

ConvenienceStore

Drugstores Traditional Other

2008 2009


* Taipei, Kaohsiung, Taichung,

23

North Asia Country Highlights – Hong Kong


GROCERY STORES




Superstores 74 74


DRUG STORES

Traditional Drugstore 1,386 1,386

Chain Drugstores 406 458


Modern Trade Retailers – Banner Names & NumbersCONVENIENCE STORES 2009 2010

PARKNSHOP Express 5 6

7-11 964 977

Circle K 301 303

Caltex 43 44

Vango 23 25

DRUGSTORES

Mannings 301 305

Watson's 157 159

SUPERMARKETS

Wellcome 271 272

Park'N Shop 246 241

CRV 96 96

Jusco 11 11

24

Shoppers Usage of Modern Store Types in Hong Kong 2009

% that Spend most money vs. used in the Last Month

Hong Kong Share of Trade

In Hong Kong, the strongest performing channel continues to be drugstores, which gained 1.3% share in 2009

7.6% 5.6% 7.3% 7.2% 6.5% 3.8% 3.7% 3.4%

5.0%

1.7%

-0.6% -1.1%

0.9%

3.2%

-0.7% -1.2%

12.3%

8.9%

2.7% 2.5%4.3%

10.8%

4.9% 5.9%

2008 2009 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10

-2%

0%

2%

4%

6%

8%

10%

12%

14%


70

8

47

21

4

838992

61

Superstores Supermarkets ConvenienceStores

Personal Care/ Drugstores

Online


Open TradeChain Supermarkets

Convenience& Ind. Smkt

Drugstores

21.9

27.526.2

1515.4

56.4 55.52008 2009

FMCG Growth Trend in Hong Kong


25

North Asia Country Highlights – South Korea


GROCERY STORES



Small Supermarkets 16,151 17,706

National Cooperative 2,083 2,141

Large Supermarkets 3,619 4,045

Warehouse Club 6 6



DRUG STORES

Independent Drugstores 19,456 20,790

Cosmetic Stores 7,695 7,695


Modern Trade Retailers – Banner Names & NumbersHYPERMARKETS 2009 2010

E-Mart 127 127

Lotte Mart 69 70

Homeplus 114 115

New Core Outlet 17 17

GS Mart 14 14

Hanaro Club 17 17

Mega Mart 10 10

Grand Mart 6 6

Big Mart 3 3

SUPERMARKETS

GS Super 134 149

Kims Mart 44 46

Lotte Super 185 181

Homeplus Express 159 199

Seowon Stores 70 70

CONVENIENCE STORES

7-11 2,213 2,329

Family Mart 4,596 4,837

GS 25 3,744 3,941

Ministop 1,192 1,255

Buy the Way 1,360 1,431

Joy Mart 230 242

OK Mart 317 334

C-Space 144 152

WAREHOUSE CLUBS

Costco Korea 7 7

26

Shoppers Usage of Modern Store Types in Korea 2009


Korea Share Of Trade

Chain supermarkets and convenience stores gained share in Korea while Hypermarkets lost 1 share point in 2009

0.0%

-2.8% 1.0%

2.3% 4.1% 4.6%

9.1%

8.9%

7.7%5.3%

1.2%

-0.2%

7.5%

4.3%

8.9% 6.1% 7.6% 8.4%

5.8%7.5%

8.7%

2008 2009 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10-4%

-2%

0%

2%

4%

6%

8%

10%


0 41

23

58716059

8998

Hypermarket Supermarket ConvenienceStore

Pharmacy Online

Spend most money Used in the last Month

31.6

9.4 10.1 11.8 12.5 10.613.9

30.6

10.2 10.1 12.5 12.3 10.6 13.7

Hypermarkets ChainSupermarkets

IndependentSupermarkets

Convenience Minimarkets NationalCoop

TraditionalTrade

2008 2009

FMCG Growth Trend in South Korea

Based on 71 FMCG categories tracked by The Nielsen Company

27

South-East Asia Country Highlights – Singapore


GROCERY STORES



Petrol Convenience Stores 200 200


Minimarket 503 503

Hypermarkets 12 12


DRUG STORES

Traditional Medical Stores 312 304

Chain Drugstore 264 279

TOTAL DRUG OUTLETS 576 583

Modern Trade Retailers – Banner Names & NumbersHYPERMARKETS Mar 2009 Feb 2010

Giant 8 8

Carrefour 2 2

FairPrice Xtra 3 3

SUPERMARKETS

NTUC FairPrice 85 94

Cold Storage 41 45

Shop N Save 50 50

Sheng Siong 22 23

CONVENIENCE STORES

7-Eleven (Petrol Mart) 64 64

7-Eleven 367 420

SPC 38 38

Caltex 30 30

Cheers 65 75

Cheers by FairPrice 48 44

FairPrice Xpress 19 21

MINIMARKET

Econ Minimart 3 0

i-econ 97 94

DRUGSTORES

Guardian 117 126

Watson's 100 103

Unity Healthcare 39 43

28

Shoppers Usage of Modern Store Types in Singapore 2009


Singapore Share of Trade

Supermarkets performed strongly in Singapore in 2009 while convenience stores share dropped back after a decade of strong growth

3.4% 5.0% 3.1% 3.1% 1.9% 5.4%

6.4%

5.8%

4.1%0.0%

4.7%

3.3%

11.4%

7.2%

5.2%5.4%

8.1%8.9%

2008 2009 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10

0%

2%

4%

6%

8%

10%

12%


4

74

8 2

22

87

5544


Personal Care/Drugstores

Spend Most Used in Last Month

64.1

12.4 14.98.6

65.9

11.9 14.18

Supermarkets/Hypermarkets

ConvenienceStore

Drugstores& minimarts

Open Trade

2008 2009

FMCG Growth Trend in Singapore


29

South-East Asia Country Highlights – Malaysia


GROCERY STORES

Provision Shops 30,611 30,357


Supermarket 735 753

Hypermarkets 84 96


DRUG STORES

Traditional Medical Store 2,476 2,322

Chain/Independent Drugstore 1,925 2,012

Sundry toiletry stores 3,009 2,782



Giant 32 36

Carrefour 17 22

Sunshine 1 1

Tesco 21 24

Tesco Extra 8 8

SUPERMARKETS

The Store 74 52

Billion 32 30

Sunshine 5 3

Ngiu Kee 10 9

Jusco 21 25

Giant 63 65

Cold Storage 22 19

CONVENIENCE STORES

7-Eleven 998 1,016

Petronas 550 579


Caltex Starmart 211 203

Mobil 201 201

BHP 165 145

Esso 164 164

DRUGSTORES

Guardian 331 343

Watsons 208 209

PharmaCare 16 9

MINIMARKET

99 Speedmart 123 174

30

Shoppers Usage of Modern Store Types in Urban Malaysia 2009


Malaysia Share of Trade

All modern trade formats continued to gain share in Malaysia in 2009

17.2%

7.0% 4.3%

10.3%

-4.1%

-0.8% -0.4%-6.5%

1.7% 0.4% 5.3%

-0.9%

0.9%

-0.9%-1.4%-5.4%

3.4%

3.8%

0.5%

-0.4%

4.4%

-2.4%

5.6%

11.8%

2008 2009 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10-10%

-5%

0%

5%

10%

15%

20%


14

363725

50

7871



3.4

42.9

5.4

45.8

2.53.7

44.1

5.5

44.5

2.2

ConvenienceStore

Supemarkets/Hypermarkets

Drugstores TraditionalTrade

ChineseMedical Halls

2008 2009

FMCG Growth Trend in Malaysia


31

South-East Asia Country Highlights – Thailand


GROCERY STORES





Warehouse Clubs 41 44


DRUG STORES

Traditional Drugstores 10,195 11,093




Big C 67 67

Tesco Lotus 110 116

Carrefour 34 39

SUPERMARKETS

Tesco Lotus Supermarket 56 66

TOPS 95 96

Jusco 9 11

Foodland 11 11

Home Fresh Mart (The Mall) 9 10

CONVENIENCE STORES

7-Eleven 4,900 5,256

Tiger Mart 110 97

Family Mart 548 567

Jiffy 146 146

Select 102 106

Suria 101 99

Tesco Express 420 487

Tops Daily 14 24

Mini Big C 11 11

PERSONAL CARE

Watsons 148 156

Boots 152 164

WAREHOUSE CLUB

Makro 41 45

32

Shoppers Usage of Modern Store Types in Urban Thailand 2009


Thailand Share of Trade

Convenience stores in Thailand remain one the fastest growing trade channels in the region, reaching 16.3% in 2009

5.1%

3.3% 4.6% 3.2% 3.1% 3.0% 3.5% 2.3%

5.0%

4.5%3.0%

2.3%3.8%

5.8%

3.5% 4.5%

9.6%

7.7%

5.3%

8.0%

6.1%

10.9%

6.8% 6.1%

2008 2009 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10

0%

2%

4%

6%

8%

10%

12%


64

225 0

90

61

86

12


Spend Most Used in Last Month

30.5

14.7

54.8

30.1

16.3

53.5

Super/Hypermarket Convenience Store Open Trade

2008 2009

FMCG Growth Trend in Thailand

Based on FMCG categories tracked by The Nielsen Company excluding cigarettes

33

South-East Asia Country Highlights – Indonesia


GROCERY STORES

Traditional Grocery Stores 2,469,465 2,520,757


Minimarket 10,607 11,569

Supermarket 1,571 1,146


Warehouse Clubs 26 26


DRUG STORES




Modern Trade Retailers – Banner Names & NumbersCONVENIENCE STORES 2009 2010

Circle K 238 259

Mini Mart 36 36

Am/pm 28 28

Alfa Express 32

7-Eleven 3

PETROL STORES

Bright (Pertamina) 42 96

Select (Shell) 36 45

Surya (Petronas) 21

Bonjour (Total) 3

DRUG STORES

Century 193 208

Guardian 189 196

Boston 51 53

Shop In 2 2

Watsons 4 4

HYPERMARKETS

Carrefour 42 45

Carrefour ex ALFA 16 16

Giant 26 34

Hypermart 43 46

MINIMARKETS

Indomaret 3,312 3,892

Alfamart 2,896 3,422

Star Mart 122 124

Yomart 177 220

Alfa MIDI 60 109


Hero 52 41

Giant 55 59

Ramayana 93 93

Matahari / Foodmart 23 23

Carrefour Express 14 15

Yogya and Griya 56 57

Super Indo 64 65

Gelael 15 15

Borma 23 24

Macan Yaohan 8 13

Hardy's 11 13

Sri Ratu 8 7

WAREHOUSE CLUBS

Makro/Lotte 19 19

Indogrosir 6 6

Goro 1 1

34

Shoppers Usage of Modern Store Types in Urban Indonesia 2009


Indonesia Share of Trade

The story remains the same in Indonesia with the growth coming from the mini-market format which gained a further 2 share points to over 17% of total FMCG sales

14.8% 6.1% 14.8% 10.4% 6.4% 3.4% 2.7% 2.2%

1.0%

-3.5% -2.6% -1.4%

6.2%

6.3%

-1.4%

0.3%

15.8%

6.9%

2.0%3.0%

8.4%

21.1%

4.7% 3.8%

2008 2009 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10

-5%

0%

5%

10%

15%

20%

25%


0

302415 13

78

5445

Hypermarkets Supermakets Minimarts Personal Care Stores


21.115.4

63.5

20.9 17.2

61.8

Hyper/ Supermarkets Minimarkets Traditional Grocery

2008 2009

FMCG Growth Trend in Indonesia


* Jakarta-Tangerang-Bekasi-Depok, Bandung, Surabaya and Makasar

35

South-East Asia Country Highlights – Philippines


GROCERY STORES

Sari-Sari Stores 661,065 694,057

Market Stalls 37,619 36,694

Grocery Store 5617 5,461

Convenience Stores 2139 2,101

Supermarkets 1218 1,273

Hypermarkets 19 27

Department Stores 527 529




Shopwise 7 8

SM Super Shopping Market 12 19

SUPERMARKETS

Rustans 22 21

Gaisano (Chains) 39 44

SM-Shoemart(Supervalue) 38 50

Robinsons 37 49

Waltermart 14 14

South Supermarkets 9 9

Tropical Food Hut Mart 6 6

Ever Supermarkets 15 16

Lopues 9 9

CONVENIENCE STORES

7-11 376 447

Mini Stop 233 271


Caltex Star Mart 81 0

Petron Treats 50 53

DEPARTMENT STORES

Robinsons 23 25

Ever Gotesco 3 3

Isetann 3 3

SM Shoemart 35 38

DRUGSTORES

Mercury Drug 700 741

Save More Drug 51 56

Rose Pharmacy 122 154

Watsons 181 206

HBC Your Personal Store 172 175

CASH & CARRY

Makro 15 12

36

Shoppers Usage of Modern Store Types in Urban Philippines 2009


Philippines Share of Trade

Supermarkets gained 0.4% share during 2009 in the Philippines

0.1% 3.9% 5.8% 2.0% 3.3% 7.3% 8.3%

6.8%

5.9% 4.7%1.6%

13.9%

-1.3%

12.2% 4.3%

-0.3%

12.6%

7.9% 8.9% 8.0%

12.3%

8.2% 8.0%

12.6%

2008 2009 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10-4%-2%0%2%4%6%8%

10%12%14%16%


11

41

209

57

Supermarkets Convenience Stores Personal Care/Drugstores

Use Most Often Used in the Last Month

39.9

9.51.9

47.3

0.9

40.3

9.11.9

46.8

1

Supermarkets Grocery/CVS Drugstores Open Trade Department Store

2008 2009

FMCG Growth Trend in the Philippines


* 13 urban cities across the Philippines

37

South-East Asia Country Highlights – Vietnam


GROCERY STORES

Traditional Grocery 49,703 52,435

Convenience & Minimarkets 239 343


Hypermarket 5 5

Warehouse Club 5 5


OTHERS

Street Vendors 1,181 924

Market Stalls 6,727 5,922

TOTAL OTHER OUTLETS 7,908 6,846


Big C 5 5

Citimart 17 16

Coop Mart 18 19

Fivimart 14 14

Maximark 2 2

Medicare 8 10

Vissan 19 28

INTIMEX 5 6

CONVENIENCE STORES

G7 Mart 25 19

Coop 6 6

Hapro 19 23

Shop & Go 14 35

WAREHOUSE CLUB

Metro 5 5

38

Shoppers Usage of Modern Store Types in Urban Vietnam 2009


Vietnam Share of Trade

The modern trade Vietnam now accounts for 11% of grocery sales

14.0% 9.1% 16.8% 14.1% 11.0% 6.0% 4.6% 5.0%

20.9%

6.8% 8.9%

6.8%

22.1%

28.7%

8.1%11.4%

37.7%

20.9%

12.8%16.0%

27.1%

42.7%

17.2% 19.9%

2008 2009 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10

0%5%

10%15%20%25%30%35%40%45%


43

5 0 0

90

37

319

0

20

40

60

80

100

Supermarket Hypermarkets Convenience Store Personal CareStores


10

90

11

89

Modern Trade Traditional Trade

2008 2009

FMCG Growth Trend in Vietnam


39

South-East Asia Country Highlights – India


GROCERY STORES

Provision Stores 3,998,261 4,022,155

Pan Bidi Outlets 1,787,269 1,830,984

Food Stores 170,727 172,341


General Stores 1,073,418 1,096,938


DRUG STORES

Chemist 379,263 390,176

Cosmetic Stores 184,383 186,686



Reliance Fresh 329 356

Trinethra/Fabmall 378 403

Spencer's Daily 172 131

Spencer's Express 62 44

Spencers Super 14 12

Spencers Fresh 2 1

Apna Bazar 125 135

More for You 266 246

Sabka Bazar 75 60

Foodworld 67 67

Spinach 45 35

Nilgiris 50 33

6TEN 499 270

LM365 44 49

Fresh@ 75 75

Kendriya Bhandar 29 123

Arambagh 27 33

Vishal Megamart 141 145

Wellness 137 156

Magna 61 65

Smart 47 34

Big Apple 44 42

Patel Low Price 11 11

Total 4 4

Kannan 7 9

Hypercity 1 7

Kishore Biyanani's Fair Price 149 93

Amudham 26 27

Maratha Stores 18 20

Supplyco 4 17

Janatha Bazar 8 8

Triveny 12 12

Samavayika 10 15

Dabur New U 7 10

Akbarallys 5 8

Basco 1 1


Big Bazaar 151 169

Spar Hyper 3 3

Giant-Spencers Hyper 21 19

CONVENIENCE STORES

BPCL In & Out 73 133

Convenio 8 15

HP Speedmart 15 17

Akbarallys 5 8

Club HP 7 22

PHARMACY

Apollo Pharmacy 188 740

Health & Glow 61 65

Medplus Pharmacy 119 570

Medicine Shoppe 18 210

Raj Rajya Sahakari 36 35

Himalaya Ayurvedic 14 95

40

Shoppers Usage of Modern Store Types in India 2009


India Share of Trade

After the strong expansion of the modern trade over the last 5 years in India, 2009 was a year of consolidation with share remaining at 5%

9.2% 4.4% 8.9% 5.6% 2.9% 0.3% 0.8%

8.3% 11.5%12.6%

10.2%

8.9%

10.2%10.4%

17.2%15.5%

9.2%11.0%

17.1%14.6%

19.6%

2008 2009 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'100%

5%

10%

15%

20%

25%


2 91 0

58

7

2817

56

92


Personal Care/ Drugstores

Traditional

Spend Most Used in last Month

5

95

5

95

Modern Trade Traditional Trade

2008 2009

FMCG Growth Trend in India


41

15

85

16

84

Supermarkets Traditional Grocery

2008 2009

South-East Asia Country Highlights – Sri Lanka


GROCERY STORES




DRUG STORES



Modern Trade Retailers – Banner Names & NumbersSUPERMARKETS

Cargills 138 142

Sathosa Retail 105 190

Keells/Super Pola 40 61

Arpico 10 13

Co-op City 263 365

CONVENIENCE STORES

Laugfs 22 31

Sri Lanka Share of Trade

In Sri Lanka, the modern trade continued to steadily gain share in 2009


Copyright © 2010 The Nielsen Company. All rights reserved. Produced in the USA. 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. 2010/1724

For more information, please contact:

Peter GaleManaging Director - Retailer ServicesAsia Pacific, Middle East & AfricaThe Nielsen Company

Phone: +66(0)2673-4660Email: [email protected]

www.nielsen.com

Documents

Retail and Shopper Trends in Asia Pacifc