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THE DELIVERY ECONOMYCOVID AS A CATALYST
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PRE-COVID DELIVERY LIFESTYLE
MEET THE NEW CONSUMER & RETAIL
CRITICAL QUESTIONS TO ASK
AGENDA
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MEGATRENDS SHAPING CONSUMER NEEDS
Urbanization Spending power Young population Shifting demographics
Mobile First
Smaller households Evolving Gender
Roles
TrafficMall
expansion
New economy - Varying time zones and meal times among other family members (e.g. those who work in BPOs, TNVS drivers, online business people)
Online food apps
Well traveled
PRE-COVID
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CONVENIENCE LIFESTYLE WAS THE BUZZ WORDBusier lifestyle are making convenient options very relevant
Apps for everything
Types of services we use
PRE-COVID
Accessibility of store and speed of
service matter
Extended hours of operation
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TRIPS ONLINE & SMALL STORES TOP UP SHOPS
LOYALTY STOCK UPS LARGE STORES
GLOBAL SHIFTS IN GROCERY SHOPPING BEHAVIOR REFLECT NEEDS FOR CONVENIENCE, TECHNOLOGY & CHOICE
FRESH FOODEATING OUT
FOOD & DRINK GROCERY SPENDING
PRE-COVID
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• Eating out spend has risen by 9.5% overall but could be more apparent for ABC
• Demand for wider assortment and reasonably priced RTE offerings
EATING OUT WAS ON THE RISEPRE-COVID
97%-INCIDENCE OF OOH-
-DINING IN PAST 3 MONTHS-
2019 PRIOR TO COVID-19 OUTBREAK
7 outlets-AVERAGE NUMBER OF-EATING-
-OUT-CHANNELS IN PAST 3 MONTHS-
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2019 Foodies syndicated report
PRE-COVID
QSR Delivery
Pizza Delivery
Food Aggregators/Apps
79% awareness34% tried once26% often
Pizza brands60% awareness11% ever tried4% often
89% Aware in MMA19% Ever tried14% often
Delivery Awareness and Usage - Metro Manila
FOOD DELIVERY EVOLVING OVER TIME7 out of 10 patrons choose a restaurant for its Delivery Availability and Speed of Delivery
79%34%26%
Pizza Delivery
60%11%4%
89%19%14%
OFTEN
TRIED
AWARE
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Thresholds are determined by the total number of reported COVID-19 cases, the increase in cases, government and market news including quarantine measures such as school closures, transportation restrictions, commercial closures, health campaigns and reports of death. Last Updated: Tue. Mar. 30, 2020
MAJORITY OF MARKETS STILL IN RESTRICTED LIVING INCLUDING THE PHILIPPINES
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● Heightened health awareness● Focused on quality and safety
assurance● Renewed desire to “Stay at
Home”● Less loyal, more experimental● Tighter budgets for the masses
MEET THE NEW CONSUMER
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Source: Nielsen COVID-19 online study – March 2020
THE NEW CONSUMER:
RENEWED DESIRE TO “STAY AT HOME”
“Given the extended period Asian markets have endured COVID-19 escalation, the prolonged time people have had to spend in their homes in lockdown across a number of markets clearly forcing a rethink in consumer behavior. The desire to spend more time at home appears to be a likely side effect that will extend over time.”
VAUGHAN RYANNielsen Southeast Asia, Managing Director
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● Shoppers will likely buy more per trip● Promote to encourage upsize or multi-pack● Spend less time in store to essential items must
be at key locations in store, higher visibility
IMPLICATIONS:
BASKET TO CART ONE TO MANY SMALL TO BIG
THE NEW CONSUMER:
RENEWED DESIRE TO “STAY AT HOME”
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92%households cooked their meals daily 27% cooked more often
than before ECQ
ONLINE FOOD DELIVERIES
12% households used food delivery apps during ECQ
46% ordered food via apps less than once a week
33% were first time users
1 Grabfood 58%
2 Food Panda 27%
3 Restaurant delivery 21%
4 Facebook 13%
5 Lalafood 11%
Total Household Panel | Total Philippines | Purchase Behaviour Survey: ECQ Edition | April 2020
HOME COOKING WITH OCCASIONAL FOOD DELIVERIES
Top 5 food delivery platforms:
HOME COOKING
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MEET THE NEW RETAIL
• Better FMCG E-commerce adoption and delivery options
• Omni-channel (O2O) emergence• Proximity retailing will rise in
importance• Technology catalysts
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E-COMMERCE
SARI-SARI STORE
MARKET STALL
DRUG STORE
GROCERY / CV
NEIGHBORHOOD STORES & E-COMMERCE TO GROW MORE RELEVANT
►►► DURING
ECQ
SUPERMARKET
►►► NEW
NORMAL
►►► NEW
NORMAL
►►► DURING
ECQ
►►► NEW
NORMAL
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CATALYST FOR FASTER E-COMMERCE GROWTH AND HABIT FORMATION DURING ECQ
17% Claim they have shopped ONLINE MORE
6% Shopped ONLINE for the FIRST TIME
+50% Will CONTINUE to shop ONLINE
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1 Facebook 49%
2 GrabMart 25%
3 LazMart 4%
4 Landers 4%
5 Bayan Mall 4%
Total Household Panel | Total Philippines | Purchase Behaviour Survey: ECQ Edition | April 2020
ONLINE PLATFORMS TAP INTO MORE HOUSEHOLDS
-3%- purchased once
-7%- of Filipino households purchased groceries online
purchased more than twice
-2%-
Top 5 online grocery platforms:
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HOW BRANDS ADJUSTED TO COVID 19FIND WAYS TO GO DIRECT TO CONSUMER
P&G MOBILE MARKET
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GROWTH OF E-PAYMENTS, MOBILE BANKING
BEHAVIOUR CHANGES MAY STICK INTO THE FUTURE CREATING NEW RETAIL
OPPORTUNITIES
NEW CHANNELS: DIRECT TO CONSUMER
SMALL BUSINESSES SELL DIRECT USING FB OR VIBER COMMUNITIES
COVID-19 RESPONSES IN ACTIONLIVE-STREAMING DRIVES
E-COMMERCE
BEHAVIOUR CHANGES MAY STICK INTO THE FUTURE CREATING NEW RETAIL
OPPORTUNITIES
In China, Alibaba’s live-streaming unit, Taobao Live,
has seen rapid growth
TECHNOLOGY CATALYSTS DRIVE BEHAVIOURAL CHANGE
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THE NEW CONSUMER
Greater health awareness
Focus on quality and safety
Desire to “Stay at Home”
Less loyal, more experimental
Tighter budgets
THE NEW BASKET THE NEW RETAIL
Better FMCG E-commerce adoption and delivery options
Omni-channel (O2O) emergence
Continued rise of neighborhood stores
+ Hygiene: rubbing alcohol, household cleaners, air freshener+ Cooking essentials and Shelf stable food- Indulgence OOH beverages and snacks- Non-essential personal care
THE NEW CONSUMER & RETAIL SHAPE THE NEW BASKET
Copyright © 2020 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.
“COVID-NIENCE”CONVENIENCE WITH SAFETY & QUALITY ASSURANCE
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RE-THINKING YOUR BUSINESS MODELSCHALLENGING OUR ASSUMPTIONS
PRE POST
Race to have the most branches Widest coverage with least amount of outlets
Available in most retail stores (quantity) Available in the right stores (quality)
Delivering to retail warehouses and outlets Direct to customers
Customer experience in store Customer experience in home
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CRITICAL QUESTIONS TO ASK
1. What are my Core Competencies and Sources of Competitive Advantage?
2. What new activity systems do I need to have?3. What new skills will I or my workforce?4. Do I build or partner?
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“IT IS NOT THE STRONGEST OF THE SPECIES THAT SURVIVE, NOR THE MOST INTELLIGENT, BUT THE ONE MOST RESPONSIVE TO CHANGE.”CHARLES DARWIN
This artwork was created using Nielsen data.Copyright © 2020 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.
SHAPING A SMARTER MARKET™