TRENDCASTING – TUNING INTO THE INDIAN CONSUMER IN …...organic and has come from consumers who don’t consume breakfast cereals. Oats consumption across India is relatively low

1INDIA TRENDING 2014 Copyright © 2014 The Nielsen Company

1

F E AT U R E D I N S I G H T S

T R E N D C A S T I N G – T U N I N G I N TO T H E I N D I A N C O N S U M E R I N 2014BY: ADRIAN TERRON, EXECUTIVE DIRECTOR, NIELSEN INDIA

The Indian consumer and her purchasing behaviour is perhaps the

most fundamental building block of the Indian economy. So at a time

when pundits and punters alike are interrogating the true potential of

the Indian economy, it helps to look at some of the trends that have

emerged clearly over the last year and will likely determine the way

business, marketing and advertising moves forward.

Despite the uncertain macro-economic dimension to this understanding,

our view of the Indian consumer remains as clear as ever. Today, driving

growth will depend on deriving growth – looking at the pockets of

growth that point to what the new future will look like and choosing

to leverage those marketing variables that can help organisations get

ahead of their competition.

Let’s take a look at some of the consumption and attitudinal trends

across categories to add evidence to this discussion.

• Overall consumer sentiment has improved in the last quarter of

2013 with India moving to the second spot globally – this uptick

has seen a revival in corporate performance occur simultaneously

• Geographically, rural India recorded the highest growth. Town

Classes with a population of less than one lakh people (Rest of

Urban) have shown clear signs of revival

• Out of eight million FMCG retail outlets in urban India, 2.3 million

drove 80 percent of sales

• For FMCG, Chemists have emerged as a fast growing channel

• The growth of modern trade has been driven by events – events

now contribute 12 percent in key geographies

• The Oats category has already cornered 26 percent of the Rs 720

crore breakfast cereal market in urban India in a span of just two

years

DELIVERING CONSUMER CLARITY

2 INDIA TRENDING 2014

• Breakthrough innovations that focused on building demand and

supporting the product in the store in months six through 18

delivered cumulative sales growth of 41 percent, compared with 11

percent for all other innovations

• The first seven seconds of an ad are the most crucial in capturing

a consumer’s attention and can boost a consumer’s opinion of the

brand by 15 percent to 20 percent

• Smartphone incidence has risen notably amongst the under 18 and

25-30 years age groups

• 3 out of 4 male consumers are visiting apparel stores seeking new

experiences and products

• Financially, life insurance penetration in India is up by three percent

in 2013 to touch 66 percent from 63 percent in 2010. Penetration of

fixed income and equity investments has increased

• Self-medication for common ailments is on the rise with ~55%

urban Indians self-medicating

STILL LOW ON CONFIDENCE?

The fact of the matter is that the overall sentiment over the economy

is still poor and this is reflected in the latest Nielsen Global Consumer

Confidence Index (Q4 2013) where India continues to lag behind

Indonesia in the second spot. However, the mood has marginally

improved compared to the third quarter of 2013, where India was

ranked third – behind Indonesia and Philippines.

122 120 118

108 108 112 115

85 89

96

124

118 121

110 107

110 114

108

96 100

120

112

118

110 111 109 112

107

97 97

124

115 114 111 110 110 109

106 103 101

ID IN PH CN AE BR TH HK DK SA

Q1 2013 Q2 2013 Q3 2013 Q4 2013

CONSUMER CONFIDENCE INDEX

TOP 10%

Base: All respondents n=32596

ID – Indonesia, IN – India, PH – Philippines, CN – China, AE – UAE, BR – Brazil, TH – Thailand, HK – Hong Kong, DK – Denmark, SA – Saudi Arabia


THE FMCG STORY

2013 has been a tough year for Indian consumers. On the one hand,

food inflation showed no sign of coming down to manageable levels

and on the other, uncertainties about job prospects and the state of the

economy. Given these factors, we have seen the FMCG growth trends

declining. In fact, the rate of value growth in the overall FMCG market

halved from a double digit high of 18 percent in 2012 to 9 percent at the

end of 2013. In the third quarter of 2013, we witnessed a consumption

decline for the first time over the last three years. However, the segment

bounced back in Q4 2013 with growth in volumes.

With persistently high inflation, urban consumers were impacted more

when compared to other segments; consumption growth has come

down to close to 7.5-8 percent. However, in rural areas, there is still

some story around it wherein the overall FMCG consumption continues

to grow at about 12.5 percent. If you were to take a mix of this, you

would see that there is indeed a marked slowdown which has happened

and it continues as we go into 2014.

With consumption being flat in 2013, growth was mainly price led -

through price hikes, reduction in unit pack sizes, reduced discounts,

premiumization and so on. But there’s always a silver lining. Despite

the uncertain times, certain segments demonstrated growth.

UNIT VALUE CHANGE OVER YA VOLUME CHANGE OVER YA NOMINAL GROWTH OVER YA

10% 8% 12% 11% 10% 9% 10% 10% 8% 6%

8%

1%

6% 6% 10% 8% 2% 1%

-1%

2%

18%

9%

18% 17%

20% 18%

12% 11%

7% 8%

2012 2013

Q1'12 Q2'12

Q3'12 Q4'12

Q1'13 Q2'13

Q3'13 Q4'13

FMCG MARKET DYNAMICS


• Categories: The foods category grew faster than overall FMCG at

12 percent

• Pop-Strata: Rural recorded the highest growth in 2013 at 12 percent

versus year ago as opposed to the low 6 percent witnessed in

metros. Town Classes with a population of less than one lakh

(Rest of Urban) have shown clear signs of revival with a 14 percent

growth in the fourth quarter of 2013 vs. year ago.

• Zones: North has clearly led the growth for Packaged Consumer

Goods at 13 percent, followed by East & West at 11 & 10 percent

respectively. South was far behind in the league at 3 percent.

• Channels: Chemists have emerged as an evolving channel for

FMCG growing at 13 percent over 2012.

EVENT WEEKS: A SHOT IN THE ARM FOR RETAIL

Event weeks centred around major national holidays, are taking the

modern Indian retail market by storm. Thanks to enterprising retailers

and savvy marketing strategies, consumers are being driven towards

modern trade outlets to partake in what’s turning out to be a weeklong

shopping excursion.

Using data and analytics derived from Nielsen Scantrack, we have

been able to get a thorough understanding of shopper behaviour and

shopping preferences at a weekly level and found that major festivals

and events like Diwali and Republic day display remarkable success in

terms of sales.

The study found that at an overall level, events contribute to 12 percent

of sales within these five markets and for these chains as a group. Delhi

NCR and Mumbai contribute 13 percent followed by Pune, Hyderabad

and Bangalore.

4 CELEBRATING EVENTS

5 MARKETS (SCANTRACK) DELHI NCR MUMBAI

HYDERABAD BANGALORE PUNE

DIWALI, REPUBLIC DAY, INDEPENDENCE DAY AND LABOUR DAY WEEKS CONTRIBUTE TO 12% OF TOTAL SALES FOR KEY RETAIL BANNERS AND GEOGRAPHIES*

*Total sales in Delhi NCR, Mumbai, Pune, Hyderabad, Bangalore across seven banners between Oct 2011 & Nov 2012

EVENT WEEKS:Diwali 2011: W/E 23/10/11Republic Day 2012: W/E 29/01/12Labour Day/May Day: W/E 06/05/12Independence Day 2012: W/E 19/08/12

Diwali 2012: W/E 11/11/12

Delhi NCR - 13%Total 5 Markets - 12%

Mumbai - 13%Pune - 12%

Hyderabad - 11%Bangalore - 10%


There’re several factors which point towards a significant fillip to this

phenomenon over the course of the next few years:

• Increasing consumerisation through advertising & digital media

• Increased brand awareness and shopper proclivity to experiment

• Rise of ecommerce and reduced shopper stigma to use credit

cards online

• More and more retailers launching their brands or opening new

stores giving shoppers increased access to products and brands

PRIVATE LABELS GAINING TRACTION

It’s a segment that is projected to touch the $500 million mark by

2015. Today, private label commands a healthy share of modern trade

competing closely with branded FMCG products. With a five percent

share compared to peer markets, the room for growth in this space is

immense.

Most industry leaders who we spoke to are excited about this space

stressing that private label in India is only going to become stronger as

the Indian customer is both value-driven as well as receptive to trying

out new products.

So, what are the factors that are driving private label? Besides the

increased number of shoppers prone to experimenting, greater access

to modern retail, value for money options and the ability to interact

directly with retailers will ensure that this space keeps expanding.

Source: Nielsen

CHINA INDONESIA THAILAND

0.8% 1.7% 3.3%5%

6.8%8.6%

13.6%

24.5%

INDIA HONG KONG SINGAPORE NEW ZEALAND

AUSTRALIA

PRIVATE LABEL SHARE IN MODERN TRADE

• EXPERIMENTALNATUREOFTHESHOPPER• INCREASEDACCESSTOMODERNTRADE• VALUEFORMONEY• ABILITYTOINTERACTWITHTHEMANUFACTURER


A ‘HEALTHY’ FUTURE FOR THE OATS MARKET

It may be a new entrant into India’s largely traditional breakfast space,

but the oats category has already cornered 26 percent of the Rs 720

crore breakfast cereal market. What’s significant is that there’s still

tremendous room for expansion as the bulk of this growth has been

organic and has come from consumers who don’t consume breakfast

cereals.

Oats consumption across India is relatively low at 13 percent, but some

areas boast much higher penetration rates, particularly those in the

South. Several markets in South India were early adopters of oats, such

as Chennai and Cochin, which have penetration rates of 37 percent and

34 percent, respectively. The acceptance in these cities highlights the

opportunity for further penetration in the southern region. The other

regions represent a notable opportunity as well, but research indicates

that a large portion of the consumer base in the North, East and West

remains oblivious of oats as a breakfast option. So in that respect, the

lack of knowledge is the biggest barrier.

Category drivers: Our study shows that health benefits followed by

convenience and taste are some of the most important factors that

drive the oats category.

Source: Nielsen(% consuming oats at least once a week at home)

Oats present Not present13 87

CONTROLSCHOLESTEROL,EASYTODIGEST,FILLINGANDENERGIZING

EASYTOPREPARE,CONVENIENTPACKSIZES

TASTEOPTIONS,DIFFERENTFLAVOURS,AFFORDABILITY

CONTROLSSUGAR&WEIGHT,FIBROUS

HEALTH BENEFITS

CONVENIENCE AND TASTE

Source: Nielsen

MOREIMPORTANTDRIVERS

BULK OF THE GROWTH IN THE OATS MARKET HAS BEEN ORGANIC AND HAS COME FROM CONSUMERS WHO DON’T CONSUME BREAKFAST CEREALS.


Given Nielsen’s findings, manufacturers and retailers have understood

the opportunity that this space offers. With new flavours and options

likely to be launched by market players and with new players expected

to enter the category, the road ahead for oats promises to be exciting.

HEALTH IN INDIA AND THE OTC OPPORTUNITY

As a result of easy access and low pricing, self-medication for common

ailments is on the rise with more and more Indians purchasing over-the-

counter drugs. The Nielsen Consumer Health Monitor 2013: Incidence

of Common Ailments and Conditions focuses on 36 common ailments

suffered by urban Indians and tries to understand consumer habits

and practices towards diseases that are commonly self-treated, and the

opportunity that the OTC space presents.

INCIDENCE OF COMMON AILMENTS AND CONDITIONS

Overall, every second individual suffers from headache, fever, body ache,

cough or cold at least once every six months. Consumers are relatively

unlikely to self-medicate for fever, even though the recommended

medications for headache/body ache have the ability to reduce fever.

The apprehension to self-medicate to treat fever could be due to a lack

of consumer awareness about antipyretic drugs—those that reduce

fever.

1

2

3

4

5

6

7

40-50% 20% 20% 15% 10% 10-15% 10%

HEADACHE, FEVER, BODY-ACHE, COUGH AND COLD

MUSCULAR ACHE & PAINS

MENSTRUAL CRAMPS

ACIDITY/GAS/INDIGESTION

CONSTIPATION

ORAL PROBLEMS

SKIN CONDITIONS

Overall incidence summary: Ailments suffered at least once in 6 months. Age group 5-60 years, SEC A, B & CBase: 79,042 from 25,000 households.

Source: Nielsen


As lifestyles become even more sedentary, it’s likely that ailments such

as these become more prevalent. While this is an opportunity for the

healthcare sector, the counterculture of self-medication is making a

significant impact. At this stage, drug manufacturers should approach

the OTC space cautiously and with great focus. To encourage consumers

to take the OTC route, pharma players will need to invest in advertising

that focuses on people suffering from these common ailments and are

looking for fast-acting remedies.

INVESTING IN A BETTER LIFE

It’s not just in FMCG but the slowdown has had an impact on the

finance sector as well – particularly in life insurance, where our studies

show that intention to invest has diminished. However, the good news

is that life insurance penetration in India is up by three percent in 2013

to touch 66 percent from 63 percent in 2010.

While life insurance retains the highest penetration among financial

products, the fixed return investments and equity investments

categories showed more impressive growth in 2013.

2010 2013

CURRENT FINANCIAL PRODUCT OWNERSHIP

BASE(2013)-6742|BASE(2010)-6492 Source: Nielsen

LIFEINSURANCE

FIXED RETURNINVESTMENTS

OTHERINVESTMENTS

EQUITYINVESTMENTS

HEALTHINSURANCE

63

4352

34 31

5

1712 15

66


There are two key trends that we’ve seen emerge:

• Higher disposable income in the hands of the youth has directly

influenced their policy purchase decisions. The age group of 22 to

30 showed a higher intent for purchase of life insurance products

(18%) than the 31 to 40 age group (16%).

• There is a far higher awareness of financial products amongst

women today, whether for investment purposes, or for securing

their or their children’s future – and this leads to an active role

in the financial decision making process within the family. The

incidence of women investing in insurance surged by six percent

to touch 59 percent in 2013.

With new entrants and private players in the mix, the life insurance

landscape in India is expected to become more dynamic in the days

ahead. In order to target the women and the youth, the offerings by

these players as well as the older ones will become more diversified

and flexible. But since life insurance already has a strong penetration,

the trick to stand out would be to align marketing strategies to involve

these high potential consumer categories and make them feel involved

in the insurance policy decisions of the household.

HOW TO INFLUENCE $20 BILLION SALES IN INDIA

UNDERSTANDING WHAT MAKES INDIA BUY

Today’s shoppers are empowered by choice, and they refine their

decisions based on marketplace disruptions. Knowing which factors

motivate shoppers to action will ensure that you stand out. In a first,

we studied the evolving Indian shopper across sectors. We looked at

the affluent urban Indian shoppers’ buying habits across sectors and

found that on an average one in two shoppers change their mind from

the time they decide to buy something till they actually purchase it. In

the fast-moving consumer goods space alone, 80 percent of shoppers

will buy a different item than originally planned. This in fact translates

into an opportunity to influence $20 billion of sales in a year.

A GOOD DEAL CAN PROMPT CONSUMERS TO BUY MORE, BUY EARLIER AND BUY DIFFERENT THAN OTHERWISE INTENDED. THEY CAN ALSO TIP THE ECONOMIES OF SCALE AND CASH-FLOW MANAGEMENT IN YOUR FAVOUR.


There are essentially three ways companies can stand out to shoppers

by making key strategy changes to better align with an increasingly

empowered Indian consumer.

1. THE VIRTUAL REALITY

If you’re looking to disrupt brand behaviours and shift demand to the

tune of $14 billion in sales, leverage digital more. More than half of

shoppers, on average, across five industries reviewed (fast-moving

consumer goods, movie, travel, automotive and loans), accessed the

Internet as part of their pre-purchase decision-making process. While

the percent of e-tailing as part of total retail sales is still nascent, its

opportunity to influence opinions is high.

2. LET’S MAKE A DEAL

Promotions have the power to persuade and influence $10 billion in

sales. A good deal can prompt consumers to buy more, buy earlier and

buy different than otherwise intended. They can also tip the economies

of scale and cash-flow management in your favour. For fast-moving

consumer goods, promotions influenced 34 percent of shoppers

to make a bigger purchase than planned, and four in 10 consumers

shopped for groceries earlier than they anticipated. But promotions

should be used tactically and strategically. They shouldn’t be disruptive.

Consider creating the right deal by promoting it when others are not.

Go beyond thinking about promotions as simply a means to drive

additional volumes and start using them to align with consumer

experiences during their path to purchase.

UN-PLANNING THE PLANNING

Percent buying different than planned

FMCG MOVIE LOANS AUTO TRAVEL

80%75%

57% 57%

42%

Source: Nielsen


UN-PLANNING THE PLANNING3. QUALITY CONNECTIONS GO FROM TRANSACTIONS TO TRUST

Delighting consumers with a good experience can turn a plan into a

purchase. In fact, positive staff interactions in the automotive sector,

for example, prompted three-quarters (73%) of shoppers to change their

initial purchase decision. What’s more, it prompted pleased patrons to

tell others about their experience. This kind of brand advocacy prompts

positive feelings that extend far beyond the initial sale and often

represents the life-blood of strong brands.

‘RRREVVING’ UP YOUR MARKETING MIX

IMPLEMENTING THE REACH, RESONANCE AND REACTION FRAMEWORK

Like the country itself, India’s media and retail markets are dynamic

and rapidly evolving—marked by increasing media fragmentation,

the spread of advanced mobile devices, higher connectivity, and huge

growth in product options at retail outlets. And these changes present

a challenge for marketers to reach and resonate with consumers for the

all-important reaction—a sale.

REACH, RESONANCE AND REACTION

To get the right messages to the right audiences and drive all-important

sales, the “Three R” framework of Reach, Resonance and Reaction is an

effective way to evaluate advertising campaigns.

• Reach measures whether the campaign was relevant, and whether

it reached the intended audience.

• Resonance determines if the campaign message influenced the

audience, and if it improved the consumer’s opinion of the brand.

• Reaction looks at what the consumer did after seeing the ad, and if

the campaign influenced a purchase decision.

REV UP YOUR MIX WITH THE THREE R

REACH RESONANCE REACTIONRight audience Influence opinion Impact behaviour

s


When planning distribution strategies across India, reaching the right

stores is critical. Out of the eight million FMCG retail outlets in urban

India, 2.3 million drove 80 percent of sales. In rural India, 11 percent

of outlets across 600,000 villages drove 60 percent of sales. Similarly,

6000 Middle India towns (towns with a population of 1-10 lakh) are

critical to reach out for maximum impact. In both these markets, if

picked carefully, we can enhance the efficiency gain with our reach.

Across the global media landscape, Nielsen research shows that

the first seven seconds of an ad are the most crucial in capturing a

consumer’s attention and can boost a consumer’s opinion of the brand

by 15 percent to 20 percent. With the power of the remote when in front

of the television, and the ‘skip ad’ facility online, the first few seconds

have to communicate the intended message and enable a connect with

the brand. Ads that are of a shorter duration, are imperative to optimise

media spends.

The Triple R framework essentially boils down to the following 4 x 4

grid. How do you ensure your messages reach the right audience?

Did the message resonate well? Similarly from a sales standpoint, did

we reach the right store effectively, did our in-store activation lead to

desired uplift?

DID MY CAMPAIGN RESONATE?

FOUROPPORTUNITIESTORESONATEWITHYOURAUDIENCE

MINDTHECRUCIAL7

CONNECTBEYONDCONSCIOUS

ONESIZEDOESNOTFITALL

SHORTERCOULDBEBETTER

UPTO25%MOREEFFECTIVE

ONLY15%OFADSBENEFITFROMFREQUENCY

EDITWITHTHESECONDS THAT MATTER

80%OFADSDON’THAVEDESIREDRESONANCE


BREAKTHROUGH INNOVATION: WHAT MAKES THE CUT?

India is currently viewed as a hub for innovations, but success does

not come easy. While our FMCG innovation success rate mirrors global

averages, India is still a unique market. Successful innovation is not

formulaic, but there are patterns and behaviours that winners share.

Breakthrough innovations cut through the clutter because they address

an unmet consumer need with a distinctive market-ready offering.

AN EQUATION FOR INNOVATION

BREAKTHROUGH INNOVATION

+ + +IDENTIFY

AN UNMET NEED

CREATE A

DISTINCTIVE CONCEPT

EXECUTE THE RIGHT

ACTIVATION STRATEGY

DEVELOP A MARKET-

READY OFFERING

We carried out one of the largest studies ever on innovation in India.

Over 14,500 launches across more than 80 FMCG categories were

evaluated and only 31 breakthrough innovations emerged victorious.

That’s a success rate of only 0.2 percent. And while these 31 innovations

may have come from 20 different categories, they all stood out because

they not only excelled at being distinct and relevant, but also endured.

So what does it take to win with breakthrough innovation in India?

And what are some of the learnings from the breakthrough innovation

winners? We found that there are five things that set breakthrough

winners apart in India:

DISTINCTIVENESS

RELEVANCE

ENDURANCE

FMCG LAUNCHESIN 2011

SUCCESS RATE FOR INDIA IN THE

FMCG SECTOR

14,50931

0.2%

SUCCESS IS HARD TO COME BY IN INDIA

CHARACTERISTICS OF SUCCESS

BREAKTHROUGHINNOVATION

WINNERS

Source: Nielsen


PRICE HIGHER THAN THE CATEGORY AVERAGE

Premiumisation attracts upgraded shopping baskets

Breakthrough innovations were priced 1.7 times higher than the average

category price. Innovations focused on premium offerings are meeting

the needs of many consumers who are eager to upgrade their shopping

baskets.

LEVERAGE THE POWER OF MODERN TRADE

Use channel as a laboratory for innovation

Breakthrough innovations launched in 2011 sold in modern trade

outlets saw value growth that was seven times more than all other

innovations. While modern trade represents only six percent of the

retail landscape, it tends to attract a more affluent demographic and a

more experimental shopper profile.

MAXIMIZE THE METRO OPPORTUNITY

Big cities yielded faster and bigger returns for the winners

Breakthrough innovations distributed through big cities grew

sales seven times faster and sold three times as much as all other

innovations. Money spent in metropolitan areas account for three out

of every 10 rupees spent on fast-moving consumer goods in India, and

breakthrough innovations maximized reach and velocity in these top

cities.

FOCUS ON THE NORTH TOO

West & South have been traditional focus

While companies tend to prefer launching their innovations in the west

and the south regions of India, they also banked heavily on success in

the north region, and breakthrough innovations there delivered value

growth that was four times higher than all other innovations in this

region.

INVEST WELL INTO THE SECOND YEAR

Built demand by being in the right stores & supporting the product in months 6-18

Breakthrough innovations that focused on building demand and

supporting the product in the store in months six through 18 delivered

cumulative sales growth of 41 percent, compared with 11 percent for all

other innovations. Breakthrough innovations were actively supported

well into the second year.


HOW MEN SHOP FOR CLOTHES AND WHAT ENGAGES THEM

DRIVERS AND INSIGHTS ON THE MALE APPAREL INDUSTRY

Nielsen’s studies in the apparel space have shown that Indian men

enjoy variety and don’t typically tie themselves to a single brand. Once

the male apparel shopper is comfortable with a brand’s promise and

believes in its quality, he adds it to his list of “must check out brands”

every time he goes shopping. The male shopper considers five to seven

brands when he goes shopping, ultimately settling on two or three

brands that he’s most comfortable with.

Armed with a list of brands to investigate, the male consumer is

somewhat on auto-pilot as he shops, but is highly open to influences,

both within and outside the store, when choosing between brands.

Studies on the male clothes shopper indicate that a brand can influence

in-store impulse purchases by more than 40 percent. This level of

impulse stems from the fact that apparel shopping is now an activity

of choice for men, as the urban male has stepped away from a previous

“don’t like to shop” mindset and now actively seeks opportunities to

interact with and shop for apparel. And during those trips, they often

don’t have a pre-decided shopping occasion/mission.

But even if men do set out for something specific, we find that only one

in four have decided to seek out a specific brand before they set out to

go shopping. The remaining 75 percent of consumers are much more

open to see what’s out there before they commit to a brand.

PLANNED VS. IMPULSE PURCHASE

ONLY1 IN4

PLANNED IMPULSE

Source: Nielsen

SHOPPERSDECIDEDONTHEBRANDBEFORE

PURCHASING

AMONGSTTHOSEWHOHADPLANNEDTO

PURCHASE

5941


Here’s what we think marketers in the category should do:

JOB NO. 1: ATTRACT AND RETAIN

The most important task for today’s marketer is to stay present in the

consumer’s life.

Awareness or visibility of a brand is the most important driver of brand

equity in the branded men’s apparel the category, and can drive equity

by 60 to 75 percent.

JOB NO. 2: MAXIMIZE THE INFLUENCES AT THE STORE

While advertising works to get a brand onto a consumer’s consideration

list, it’s the actual presence and influence at the store that steers the

consumer toward the purchase decision.

Given the consumer’s increasing fickleness, there’s tremendous

potential for brands to enter this space and grow the category and the

characteristics of the male apparel shopper. This will ensure visibility,

relevance and a clear positioning that is reinforced along the decision-

making journey.

THE NUMBER GAMES: FROM BIG DATA TO SMART DATA

Big Data starts with data you already have. We have data sitting in

various parts of the company. We know what customers spend, their

payment history, who a good customer or a bad customer is, what

services they’ve availed of bought and so on. Add to this information

from Customer Relationship Management (CRM) systems which tell us

why the customer called up and what their experience was.

What we find is that in many companies this data sits in separate

islands. For many companies, the first opportunity is to simply try and

put together a single view of the customer across the company.

The next and more interesting opportunity is the explosion of data

from the Internet. Over 200 million people on the Internet in India are

accessing your shop windows, your Facebook page, your website, your

app and leaving behind little trails of their interest. The opportunity

here is to capitalise on these bits of information that the customer

leaves behind and create something meaningful out of it.

HOW CAN EXTERNAL DATA ENHANCE MY EXISTING DATA TO PROVIDE BETTER SOLUTIONS?

ADDING VALUE TO YOUR EXISTING DATA


Another exciting area in big data is the possibility of being able to

propose choices to the customer that is relevant to them in real time.

Most of us have service and product portfolios that extend across

maybe 15 to 100 SKUs or 10 different kinds of services. But how do you

identify what is relevant to a particular customer and what choices can

be offered to him when he encounters a brand, be it online, or in the

real world?

The fundamental questions therefore are - is there a business problem

that I can solve and is there a particular data set that I can go after? The

idea is that if you bring together data derived from encounters with your

own customers and add external sources of data to it, you have a clear

business opportunity, and often, you get a multiplier effect of value to

your business.

UNSTOPPABLE: SMARTPHONE SURGE CONTINUES

While the FMCG sector toils to get back on to the growth track, it’s a

different story altogether in the smartphone space. The latest Nielsen

Informate Mobile Insights study shows that smartphone ownership has

jumped from 27 million in 2012 to 51 million in 2013. At 89 percent year-

on-year, this presents an opportunity like no other.

AN 89% GROWTHOVER LAST YEAR

51 Million17%smartphone users

in UrbanIndia

SHARE OF SMARTPHONEUSERS AMONG MOBILE PHONE

USERS INURBAN INDIA


In the metro areas, more than one in five (23%) people now carry a

smartphone. Studies have also found a phenomenal rise in smartphone

usage among the under 18 and 25-30 years age groups.

WHAT IT MEANS FOR THE MARKETER

Nielsen Informate Mobile Insights expects this figure to go up to over

100 million in 2015.

Such a consumer base is an undeniable goldmine for marketers to tap

into. From apps to advertisements, smartphones present a plethora of

options and insights to marketers, manufacturers and the advertisers.

MALES FEMALES

%, APRIL 2013

OVERALL <18YRS

18-24YRS

25-30YRS

31-35YRS

36-40YRS

40+YRS

23

2020

11

18

11 10

6

26

15

26

13 1113Source: Nielsen Informate Mobile Insights

SMARTPHONE INCIDENCE ACROSS GENDER WITHIN AGE GROUPS

100+MILLION

51MILLION

2013 2015


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, mobile measurement, trade shows and related

properties. Nielsen has a presence in approximately 100 countries,

with headquarters in New York, USA and Diemen, the Netherlands.

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ADRIAN TERRON

EXECUTIVE DIRECTOR

NIELSEN INDIA

ABOUT THE AUTHOR

This article contains excerpts from various thought leadership and

insights published by Nielsen’s experts. To view or download the full

reports, please visit www.nielsen.com/in/en/insights

SMARTPHONE INCIDENCE ACROSS GENDER WITHIN AGE GROUPS


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TRENDCASTING – TUNING INTO THE INDIAN CONSUMER IN …...organic and has come from consumers who don’t consume breakfast cereals. Oats consumption across India is relatively low