May 2013
ETHNIC OPPORTUNITY – IF ONLY I KNEW…
CANADIAN GROCER CONFERENCE
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SOMETHING’S IN THE AIR…
or
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“I FOUND OUT…”
1) What’s happening?
4) Homescan Panel (Canada)
“IF ONLY I KNEW…”
2) How ethnic shops
3) Global Insights
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1) What’s happening?
2) How ethnic shops
4) Homescan Panel (Canada)
3) Global Insights
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VISIBLE MINORITIES WILL DOUBLE WHILE CAUCASIANS WILL ONLY GROW 10%
1
Source: Statistics Canada 2010 Medium Growth (Reference scenario), 2011 Immigration & Ethno-cultural Diversity in Canada
VM6.3 Mil
Caucasians26.5 Mil
2011 VM12.8 Mil
Caucasians29.2 Mil
More than
Double!
10% Growth
2031
What’s happening?
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RECENT IMMIGRANTS MOSTLY FROM ASIA2
Source: Statistics Canada 2011 Immigration & Ethno-cultural Diversity in Canada
What’s happening?
13%
10%
10%
4%3%
3%3%2%2%
2%
All Others47%
PhilippinesChinaIndiaUnited StatesPakistanUnited KingdomIranSouth KoreaColombiaMexico
Top 10 Countries
New Immigrants (2006 to 2011)
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0%
50%
100%
150%
200%
250%
300%
- 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000
South Asian3.6M
Chinese2.7M
Black1.8M
Arab930K
Population (2006)
= Forecasted size in 2031
Filipino1.0M
Latam733K
~Gro
wth
Rat
e by
203
1
SE Asian449K
West Asian523K
Korean 407K
Other489K
Japanese142K
GROWTH RATES ARE STAGGERING…
The Big 37.3 M
Source: Statistics Canada, 2010
3
What’s happening?
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NEW IMMIGRANTS LIKE TO RESIDE IN FOUR PROVINCES4
43%
5%2%12%16% 19%
% of new immigrants (2006-2011) settling into each province
What’s happening?
1%
1%
Source: Statistics Canada 2011 Immigration & Ethno-cultural Diversity in Canada
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VM WILL BRING AN ADDITIONAL $5 BIL TO CDN MANUFACTURERS BY 2017
Source: Statistics Canada, 2010; Homescan data, 2012
2013 2014 2015 2016 20176.2
6.6
7.0
6.3M
7.1MVisible Minorities in Canada
Year
Cana
dian
s (M
illio
ns)
19% of Cdn Pop
21% of Cdn Pop
$29.5B $34.2B
~800k increase
$4.7B incremental
What’s happening?
5
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1) What’s happening?
2) How ethnic shops
4) Homescan Panel (Canada)
3) Global Insights
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2X as likely to buy food for today’s
meal
5X as likely to do
quick trips
Shoppers in Asia are … How ethnic shops
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ASIAN CONSUMERS COMPARTMENTALIZE THEIR PURCHASES
How ethnic shops
1) Ethnic Store
2) Traditional Banner
90%Of
Chinese Cdns
Source: PanelViews Omnibus October 2012 Base: n=6201
80%Of S.Asian
Cdns
Manufacturers: Listing decisions – Presence in ethnic bannersRetailers: Capture more $ into your banner
“How many stores do you typically visit to find all/most of the items on your shopping list on a routine planned shopping trip?”
Asian Shopping
2 or more stores
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ASIAN CONSUMERS VIEW GROCERY SHOPPING AS FUN, FAMILY TIME
How ethnic shops
More likely to have entire
family (3 generations)
on shopping expeditions
56%Asian shoppers actively seek a demo in-store before buying
Treat as weekend Excursion
Multiple decision makers | Fun, interactive store environment | Sampling Organics
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ASIAN COUNTRIES HAVE GREATER BELIEF THAT ORGANIC FOODS EQUALS INCREASED SAFETY IN FOOD
Canada China India Phillipines0%
50%
100%
29%
53%
70%
81%
Organics are Safer
Source: Nielsen Global Online Survey Q1 2011
How ethnic shops
Organic strategy
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1) What’s happening?
2) How ethnic shops
4) Homescan Panel (Canada)
3) Global Insights
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LEVERAGING OUR GLOBAL NETWORK, WE GAINED A BETTER UNDERSTANDING OF HIGH GROWTH CATEGORIES
Global Insights
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TOP 50 HIGHEST GROWTH CATEGORIES
Global Insights
Canada China India* Philippines0%
20%
40%
60%
80%
100%
6% 20% 15%12%
50%
14%15%
38%
18%
22% 12%
16%
10%
28% 42%24%
10%
BabyBeautyCandyDrinkFoodHealthHouseholdPetOther
* India - Top 26 categoriesSource: Nielsen Canada, China, India, Philippines
China
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Global Insights
CHINA’S HIGHEST GROWTH CATEGORIES
China Growth (%)
Functional Drink 40%
Asia Traditional Drink 32%
Beauty ProductsChina Growth (%)
Toner 42%Facial Mask 40%Skin Moisturizer 27%Facial Cleanser 26%
ConfectioneryChina Growth (%)
Loose Pack Confectionery 26%
Confectionary chocolate 24%
Full brand confectionery candy 22%
Beverages
IndiaSource: Nielsen China
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Global Insights
INDIA’S HIGHEST GROWTH CATEGORIES
HABAIndia Growth (%)
Hair oils 23%
Skin creams 22%
Hair dyes 21%Toilet soaps 21%Sanitary napkins 20%
Food ProductsIndia Growth
(%)Milk foods 27%
Salty snacks 27%
Palm olein refined oil 20%
Beverages 20%
PhilippinesSource: Nielsen India
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Global Insights
PHILIPPINES’ HIGHEST GROWTH CATEGORIES
CoffeePhilippines Growth (%)
Instant Coffee Mix 50%Roasted Coffee 34%RTD- Coffee 14%
Milk ProductsPhilippines Growth (%)
Yogurt 21%Cultured Milk 16%
Philippines Growth (%)
Liquid Soap 17%
Hair Treatment 15%
HABA
Source: Nielsen Philippines
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1) What’s happening?
2) How ethnic shops
4) Homescan Panel (Canada)
3) Global Insights
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WE KNOW WHAT CHINESE AND SOUTH ASIAN CANADIANS ARE PURCHASING…
Homescan Panel
• What did you buy?
• Was it on sale?
• Where did you buy it?
Chinese Over-index
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CHINESE OVER INDEX ON DRIED GRAINS, REFRIGERATED DRINKS, NOODLES, & BEAUTY PRODUCTS
Homescan Panel
Source: Nielsen Ethnic Action Package (Syndicated)
2X
Manufacturers: Product innovation / expansion?Retailers: What are you stocking in your stores?
• Vegetables / Grains Dried
• Pasta/Noodles/ Instant light lunches
• Refrigerated Drinks1.5X• Face care
• Skin care preparation
• Interdental products1.5X
($/buyer index)
Deals
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Overall0%
20%
40%
60%
25% 28%
19% 18%
36%
55%
36%33%
% of expenditure on deal (By category)General Pop Chinese
Categories
% o
f Exp
endi
ture
pu
rcha
sed
on d
eal
A HIGHER % OF CHINESE SPEND ARE ON DEALS – 36% COMPARED TO 25% FOR GEN POP
Homescan Panel
Source: Nielsen Homescan Data (Jan - Dec 2012)
Deal sensitivity to your category?
Blades / Razors
Dry Bread(breadsticks, crispbread,
croutons, etc.)
Gum
Where?
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CHINESE LOVE ETHNIC GROCERS & WAREHOUSE CLUBS
Homescan Panel
Source: Nielsen Ethnic Action Package (Syndicated)
2XMore likely to shop at
3X More likely to shop at ‘Remaining Grocery’
Manufacturers: Where are your products listed? Retailers: Where are your customers shopping? S Asians
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SOUTH ASIANS OVER INDEX ON PREPARED FOODS, GRAINS, & MILK PRODUCTS
Homescan Panel
Source: Nielsen Ethnic Action Package (Syndicated)
2.5X
Manufacturers: Product innovation / expansion?Retailers: What are you stocking in your stores?
• All Other Prepared Foods (e.g. specialty eastern food, pancake, batter mixes)
• Vegetables / Grains Dried1.9X• Cooking Oils & Spray• Milk• Yogurt1.5X
($/buyer index)
Where
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SOUTH ASIANS LOVE DISCOUNT BANNERS AND DRUG STORES
Homescan Panel
Source: Nielsen Ethnic Action Package (Syndicated)
3X More likely to shop at
2X More likely to shop at
Manufacturers: Where are your products listed? Retailers: Where are your customers shopping?
5 KEY THINGS TO THINK ABOUT…
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VISIBLE MINORITIES ARE CHANGING THE CANADIAN LANDSCAPE…
Source: Statistic Canada, 2010
1921 1931 1941 1951 1961 1971 1981 1991 1996 2001 2006 2011 2017 20310
5
10
15
20
25
30
35
% o
f Pop
ulati
on th
at is
a V
isibl
e M
inor
ity
1 in 20
1 in 6
1 in 3
1
5 Key Things
Led by S. Asians & Chinese$5 B/yr
Opportunity by 2017
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THE WAY THEY SHOP IS DIFFERENT FROM MAINSTREAM CONSUMERS… 2
5 Key Things
1) Ethnic Store
2) Traditional Banner
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INTERNATIONAL TRENDS CAN GIVE US AN INDICATION ABOUT AREAS OF GROWTH3
5 Key Things
BeautyConfectioneryBeverages
HABAMilk foodsSalty snacks
CoffeeHABAMilk Products
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UNDERSTANDING CHINESE & SOUTH ASIAN CANADIANS IS AN ONGOING PROCESS4
5 Key Things
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THE OPPORTUNITY IS IN YOUR HANDS… DEVELOP AN ETHNIC STRATEGY NOW!5
5 Key Things
TRACK – Do you track performance on ethnic initiatives?
KNOW - Do you know this consumer?
TEST – Have you piloted a new initiative?
WANT – Is your company aligned?
SIZE - Have you quantified the opportunity?
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ONLY THE TIP OF THE ICEBERG!
Bernice CheungEthnic Practice Area Lead(905) 943-8593 | (416) [email protected]
Thank you!