Promotion Sensitivity

While both UAE and KSA shoppers are highly promo-sensitive, UAE shoppers exhibit a slightly stronger inclination toward brand preference. This suggests that while promotions are influential, brand reputation and trust play a significant role in their purchasing decisions. 

KSA’s higher promo intensity, coupled with increased efficiency, suggests that brands are strategically utilizing promotions to drive sales while minimizing costs. Temporary price reductions appear to be the dominant promo type. 

While the UAE has maintained a stable promo intensity, there has been a slight decline in efficiency. Temporary price reductions have become more prevalent in recent years, suggesting a shift in promotional strategies. 

Implications for Brands and Retailers

72% of shoppers in UAE and 71% in KSA claim that they are willing to pay more for quality products as they care about quality. This number has increased +4 points vs a year ago which shows the demand from consumers to look for their needs where health and wellness was one of the priorities. 

Another important implication for brands and retailers is convenience. 63% of shoppers in UAE and 64% in KSA believe it is worth paying more for anything that saves time for them. More importantly, this number has gone up by almost +10 points vs a year ago. This validates the rise of smaller formats and E-commerce where these channels provide high convenience. 

FMCG Segment 

Leading the UAE market fragmented between affordable brands & premium brands. Whereas the KSA market is skewed towards mainstream brands, and this is the growth engine.  

The FMCG market in KSA is characterized by a more concentrated mid-tier segment, leading to a decline in the number of brands. In contrast, the UAE market has witnessed brand growth, driven by the introduction of new brands and innovative premium offerings. 

Additionally, beverages, frozen food, and dairy consistently dominate the FMCG sector in both the UAE and KSA due to their essential nature, convenience, and rising consumer demand. Conversely, the decline in categories like home care, baby care, and paper products can be attributed to shifting lifestyles, and an increased preference for online channels. 

As per the recent census study conducted by NIQ, number of stores in HORECA (hotel, restaurant, cafe) has witnessed a drastic growth in 4 key cities in KSA. We have seen growth in almost all HORECA channel types whereas Coffee & Tea shops is one of the fastest growing. In line with the increasing beverage consumption, this channel type grew by +67% in last 2-3 years. This clearly shows the changing lifestyle of Saudi consumers and increasing demand for these store types. 

Tech & Durable segment

The T&D market in the UAE and KSA is witnessing varied performance, with organized retail continuing to dominate as the leading shopping destination in both regions. Both markets have seen growth in the premium segment, KSA with 4% and UAE with 2% growth. Entry level segments observed similar growth.  

However, mainstream portfolios are facing challenges as consumers increasingly opt for value purchases or invest in aspirational brands. In KSA, the shift towards premium brands mirrors the trend observed in the UAE, where value-oriented players are experiencing double-digit growth, up 18% compared to the previous year.  

The T&D industry is experiencing exponential growth in both regions, with a notable increase in the number of active brands and products. In KSA, active brands and products have surged by 27%, while the UAE has seen a 28% rise, reflecting the industry’s focus on capitalizing on emerging growth opportunities. 

Despite the growth in organized retail channels in the UAE, traditional trade remains significantly larger in KSA in terms of overall market value. However, independent retailers in the UAE TCG market are making substantial gains, signalling a shift in consumer preferences and heightened competition. As the T&D landscape evolves, businesses across the UAE and KSA continue to adapt, seeking to capture the growing demand for both premium and value-driven offerings. 

Andrey Dvoychenkov, APP Cluster Leader comments: “The UAE’s diverse population and differences in disposable income have created a polarized FMCG market. Affordable brands resonate with price-sensitive consumers, while premium brands attract those prioritizing quality and luxury. In contrast, KSA’s larger population and competitive market dynamics have driven the success of mainstream brands, which offer a balanced mix of quality and affordability appealing to a broad consumer base. In addition, the T&D industry is rapidly expanding in both regions, marked by a significant rise in active brands and products.” 

China’s Beauty Market: A Closer Look

In the context of China’s beauty market, brands need to focus on managing three key areas: consumers, products, and channels. The personal care category in China has seen continuous growth across all channels. As of 2024, moisturizers make up 62.9% of the skincare category, with this segment growing by 9.5%, pushing overall skincare growth to 4.2%. Online sales dominate the skincare market, accounting for over 80% of total sales and continuing to grow.

In 2024, online personal care sales grew by 7.3%, with TikTok e-commerce standing out, thanks to a remarkable growth rate of 43.7%. TikTok’s share of online beauty sales increased from 26.1% to 34.9% year-over-year, while traditional e-commerce platforms like JD.com and Tmall saw their market share decline. As a result, focusing on TikTok has become crucial for Chinese beauty brands aiming to capture growth and gain a competitive edge in the digital space.

Social media has also become a crucial battlefield for beauty brands, with promotions during key periods helping to amplify brand influence and drive conversions. While the beauty industry’s social media presence experienced some fluctuations during the pandemic in 2022, by June 2024, social media buzz had not only recovered but surpassed pre-pandemic levels. The future looks bright for social engagement in the beauty sector.

When it comes to fragrances, certain keywords resonate more with consumers on social media. Phrases like “scent,” “emotion,” and “limited editions” generate significant engagement, while scenarios such as “dating” and “holiday gifts” continue to drive growth. For brands, creating emotionally resonant fragrances and leveraging specific social scenarios in marketing will be key to attracting consumers and boosting sales.

Despite the challenges posed by the pandemic, China’s beauty market has shown resilience and is set to continue its upward trajectory, with more opportunities for innovation and growth on the horizon. Understanding the full view of the beauty landscape, consumers and trends will be paramount to achieving success and provide the competitive advantage.

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Good product visibility is an essential part of a successful Amazon strategy. In this article we’ll explore strategies to optimize it for maximum impact. Whether you’re a seasoned online retailer or just starting your ecommerce journey, mastering product visibility on Amazon is essential to stand out amongst the sea of products found there. 

Get ready to unlock the secrets of product visibility and elevate your ecommerce game!

Understanding the power of product visibility.

Product visibility refers to the ability of your offerings to be seen and discovered by potential customers across various online platforms. It plays a crucial role in attracting visitors, driving conversions, and ultimately boosting your sales. Without effective product visibility, your products may remain hidden, limiting your growth and revenue potential.

By understanding the power of product visibility, you can leverage it to your advantage and create a strong online presence.

Optimizing product titles and descriptions for Amazon

One of the key factors in enhancing product visibility is optimizing your product titles and descriptions. Craft compelling titles that accurately represent your products and include relevant keywords that resonate with your target audience. Ensure that your descriptions provide detailed information about the product’s features, benefits, and unique selling points. By optimizing your titles and descriptions, you can improve search engine rankings, attract organic traffic, and increase the visibility of your products. 

Amazon has distinct ‘optimal values’ for all of these features of the product detail page, and it’s essential to be in compliance with them and optimize for them. 

Utilize Amazon’s search algorithm by strategically incorporating keywords in your titles, bullet points, descriptions, and backend search terms. This optimization enhances the chances of your products appearing in search results and related product suggestions.

Understanding location-based analytics

Location-based analytics is data collected from a complete set of geographical points to create accurate measurement, enable data cross-referencing and to gain profound insights into product performance, market trends and much more. Due to its ability to be cross-referenced with other types of data it is being used in increasingly more data ecosystems. Location-based (or geo-complete) data differentiates itself from the much more common sample-based data by its completeness and resultant reliability.

In the CPG industry, location-based data can be collected from online retailer locations, giving CPG companies a treasure trove of information. This data-driven approach enables informed decisions that will resonate with shoppers and drive the performance of household brands.

Sample-based analytics

As mentioned, location-based analytics (LBA) are significantly different from the more common sample-based analytics. The latter will use a sample of data from 5, 10 or 100 online retailer locations. This data is dangerously non-representative. It’s unreliable because the small sample size is not representative of the whole. When CPGs make decisions based on this kind of data they tend to make costly mistakes. Search ranking, for instance, varies from store to store. If only a sample of locations are analyzed, the average search rank will be quite wrong and companies may spend large amounts of budget to attain a false goal.

1. The power of location-based data

An important inherent capability of location-based analytics is the ability to cross reference data sets. The granularity of this kind of data is powerful because it can be linked with other performance metrics at the same locations–thus pointing back to the precise ingredients that go into a conversion. Sample-based analytics cannot match up two data points from the same location because it doesn’t cover all locations. Thus, no performance analysis is possible and a CPG can never understand what actions need to be taken to boost a product’s performance.

2. Personalized marketing precision

Imagine having the ability to deliver hyper-targeted marketing campaigns to shoppers based on a range of past behavior, preferences and their physical whereabouts. Location-based analytics are making this increasingly possible. With this data, you can send personalized offers, promotions, and advertisements to individuals when they are in close proximity to precise products. This level of precision not only enhances the consumer experience but also boosts the likelihood of conversion. It also heightens the effectiveness of eretail media and produces shopper insights through the new data it generates.

3. Unveiling localized trends

Every region has its unique preferences and trends. Through location-based analytics, you can uncover these localized trends and adapt your brand strategy accordingly. Whether it’s tailoring packaging to resonate with a specific cultural sentiment or introducing region-specific product variations, this data arms you with insights to stay relevant and responsive to varying consumer demands.

4. Optimizing supply chain efficiency

Efficient supply chain management is the backbone of successful CPG operations. Location-based analytics assists in optimizing distribution networks by identifying where and when products are out of stock and aid in forecasting when they will be.

5. Competitive intelligence and expansion opportunities

In the ever-evolving CPG landscape, staying ahead of the competition is crucial. Location-based analytics not only illuminates your brand’s performance but also provides insights into competitors’ activities. Are they gaining ground in a particular region? Are there untapped markets with a high potential for expansion? Are they out of stock? Are they running emedia ads linked to your keywords?

6. Enabling location-based distribution data for eretail media investments

Out of stock (OOS) products are costly for CPGs. In addition to the lost sale, there’s a long term risk of shoppers switching loyalty to another product. Another potential loss is promoting products that aren’t available. LBA can be put to use for this purpose by tracking OOS products and ensuring they’re in stock when emedia campaigns run. This can result in increased return on advertising spend (ROAS).

Armed with those six points, you can strategically position brands for growth.

The conquesting brand can appear in the third and descending search result positions. 

Potential benefits:

The potential benefits are enticing, including new brand loyalists, increased sales, and acquisition of competitor market share. Timing the brand term targeting when the targeted brand is out of stock (OOS) can have good results. However, success is not guaranteed. What is guaranteed is an increased media spend.  

Potential pitfalls:

The gains from buying competitors’ keywords could be offset by a sales loss when competitors target your keywords. This can lead to bidding wars which can be costly. 

The return on advertising spend (ROAS) may be inferior to other strategic actions, such as optimizing the digital shelf and exploring alternative media options, which we’ll look at next. 

The weight of importance of different PDP content features and their corresponding ideal values change according to category.  

CPG ratings and reviews and search ranking

Ratings and reviews influence not only conversion but also visibility. To what extent they influence retailers’ algorithms depends on the retailer, but they do seem to influence results on Amazon. For this reason, the utility of a positive rating can’t be overstated, and the need to respond immediately–that is to say within hours–to negative reviews is paramount. Continuous monitoring of ratings and reviews is necessary to rectify issues and limit brand reputation damage. How recent the reviews are is also an important factor. For most products, reviews that are more than four months old can have very little impact. Review length and the number of reviews are also factors that can impact search ranking.

CPG sentiment analysis

AI is becoming more adept at analyzing consumer reviews and understanding why exactly a review is positive or negative, what shoppers do or don’t like about a product, or, more precisely, Why exactly a consumer feels the way they do about a product. This information can be gathered in categorized and used for research and development and product improvement. This area holds a lot of potential for manufacturers.

Retailers and brands need to be flexible and consider their particular situation to see how they can best benefit from their existing distribution network. Store-based fulfillment, dark stores, warehouse or micro-fulfillment options can all apply.

1. Rising Consumer Demand for Wellness

Rising consumer demand for functional beverages is being driven by a growing focus on health and wellness, as well as a desire for convenient, on-the-go solutions. As consumers become more knowledgeable about the potential health benefits of these ingredients, they are increasingly turning to beverages that offer functional advantages. This shift is driving brands to develop and market products that cater to these health-conscious preferences, positioning functional beverages as an integral part of the modern wellness routine.

This growing demand is especially driven by the younger demographics, such as Millennials and Gen Z, who prioritize self-care and holistic well-being. In fact, clean label products are out-performing other products with an 8% increase in the last year.¹ As a result, the functional beverage market is experiencing a surge in popularity, with consumers actively seeking out drinks that align with their health goals and fit seamlessly into their busy lifestyles. This growing demand is encouraging brands to innovate and expand their offerings, further fueling the category’s rapid growth.

2. A Focus on Product Innovation

The functional beverage market is an area where innovation is truly shaping the landscape. In fact, innovation drove 258 new item launches in the last year, many with unique functional claims and ingredients.² Driven by demand for beverages that offer specific health benefits, companies are experimenting with cutting-edge ingredients such as adaptogens, probiotics, and collagen, creating formulations that address everything from stress relief to immune support.

In addition to unique ingredients, innovation extends to packaging, flavor profiles, and product formats, making functional beverages more convenient, enjoyable, and accessible. Sustainability and eco-friendly packaging are also major drivers of innovation in the beverage aisle, driven by consumer demand for products that minimize environmental impact. In fact, 69% of consumers state that sustainability is more important to them than it was two years ago.³ As the market continues to evolve, product innovation remains a key factor in attracting new consumers and driving category expansion. Identifying the key attributes consumers are seeking and innovating around them may be key to future growth.

3. Needs to Address Specific Health Concerns

Functional beverages are increasingly being designed to address specific health concerns, catering to consumers who seek targeted solutions for their wellness goals. As consumers become more proactive in managing their well-being, functional beverages are emerging as a convenient and effective way to address specific health needs in everyday life. Key functional claims in the Beverage category include Metabolism Support and Obesity Support, the 3rd & 9th highest-grossing functional claims for beverages.² Brands are responding by creating beverages that blend traditional ingredients with modern scientific advancements, offering a holistic approach to well-being. This is particularly true in the energy drink market.

Whether it’s improving gut health, boosting mental clarity, enhancing energy levels, or supporting immune function, these beverages are formulated with ingredients that aim to deliver precise health benefits. This growing focus on personalized health has led to a surge in products tailored to concerns such as digestive issues, stress management, and post-workout recovery. Yet, while Digestive claims on packs are growing, nearly 60% of Digestive-benefit RTD volume bears no claim—a missed opportunity for brands.⁴

Challenges in the Functional Beverage Market

The functional beverage market faces several challenges, with consumer education being one of the most critical. Many consumers are still unfamiliar with the specific benefits and ingredients that functional beverages claim to have, such as improved gut health, energy enhancement, or cognitive support. As a result, brands must invest in clear and informative marketing to help consumers understand the value these products provide and how they can fit into a healthy lifestyle. Without this education, many consumers may not fully benefit from the products or may overlook functional beverages altogether.

Misconceptions about functional beverages present an additional marketing challenge. Some consumers may perceive these products as unnecessary or overly complex compared to regular beverages, while others might harbor skepticism about the claims made by brands. The lack of familiarity with emerging ingredients such as adaptogens, nootropics, or probiotics can create confusion and hesitation. Over-promising or making exaggerated health claims can erode consumer trust, so transparency and authenticity in marketing efforts are key to overcoming these challenges.

Regulatory and safety concerns further complicate the functional beverage market. As these products often make health-related claims, they fall under regulatory scrutiny to ensure compliance with guidelines regarding ingredient safety, proper labeling, and the accuracy of marketing claims. Brands must navigate a complex landscape of food and beverage regulations, which vary by region, to avoid making unsupported or misleading health claims. Additionally, ensuring transparency in ingredient sourcing and production processes is vital for maintaining consumer trust. NIQ data shows that 77% of consumers will quit brands that are guilty of greenwashing, so transparency is more vital than ever.⁵

Future Outlook for Functional Beverages

The future of functional beverages is poised to be shaped by the introduction of emerging ingredients and innovations in production. As consumer awareness around wellness continues to grow, brands are exploring new, science-backed ingredients like nootropics for cognitive enhancement, adaptogens for stress relief, and prebiotics to support gut health. Additionally, the demand for plant-based and clean-label ingredients is expected to influence future product development. Optimizing your product attributes to highlight their benefits may help you stand out in the store or on the digital shelf and ride this growing trend.

Market expansion is another key aspect of the future for functional beverages. While the category has seen significant growth in developed markets, there is untapped potential in emerging regions, where consumers are becoming more health-conscious and seeking convenient, functional products. As global health trends, such as the rise in preventive healthcare and wellness-focused lifestyles, continue to gain traction, functional beverages are likely to see further growth across diverse demographics and geographies. In particular, younger generations such as Gen Z and Millennials are driving demand for personalized and health-enhancing products opening the door for sustained growth and broader market penetration in the years ahead.

Understanding online shopping behavior of Asia Pacific consumers

Emerging channels: Social commerce and quick commerce are rapidly gaining traction. Social commerce has surged in popularity, with over a third of APAC shoppers making purchases through social media platforms. China leads this trend, boasting an impressive 52% adoption rate. Quick commerce thrives in markets like India, where nearly 40% of consumers rely on it for fast delivery of essentials.

Price and promotions matter most: Price and promotions remain the primary factors influencing consumers’ decisions to shop online across the APAC region. Millennials and Gen Z, in particular, are drawn to promotional offers. Additionally, the convenience of online shopping, saving time and effort, is a significant motivator for consumers.

When it comes to choosing an e-commerce platform in APAC, price and promotions reign supreme across all generations except Baby Boomers. However, beyond these top factors, some interesting variations emerge. For Baby Boomers and Gen Xers, ensuring secure payment options takes priority over ease of use, while younger generations like Millennials and Gen Z prioritize convenience when it comes to payment methods.

Gen Z shoppers bring a unique perspective to platform selection, emphasizing factors beyond traditional price and promotion with more demand for convenience and freshness. While these consumers want products faster and fresher than ever, we see delivery fees being a top deterrent to purchase among these consumers.

This digitally native generation prioritizes platforms that align with their values and lifestyles. Sustainability emerges as a key consideration, with Gen Z shoppers more likely to choose platforms that demonstrate a commitment to environmental responsibility. Understanding these nuances is crucial for brands seeking to connect with this influential demographic.

Optimizing your digital shelf

Content is king: Compelling product descriptions, high-resolution images, and informative videos are the cornerstones of a winning digital shelf strategy. To ensure your content resonates with consumers, measure its performance and compare it to successful SKUs within your category. This data-driven approach will help increase product visibility and drive higher conversions.

Availability is paramount: To meet the growing demand for convenience, ensure your products are readily available across all locations. Sample-based data does not provide accurate data. Receiving reactive alerts to support inventory management and supply chain optimization is key.

Master retail media: Leverage retail media platforms to connect directly with your target audience. By understanding your demographics and utilizing data-driven insights, you can allocate media spend effectively. Analyzing competitor spending further informs your strategy.

Conquer the search algorithm: Search engines and marketplace algorithms play a vital role in discoverability and these levers vary by retailer. Optimizing your search by using digital shelf tools to identify high impact keywords, leveraging content recommendations, and monitoring search rankings by organic and paid are essential. A digital shelf tool can provide insights to optimize search performance and help you react as quickly as possible.

Connecting consumer behavior to digital shelf strategies

Personalization is key: Consumers in APAC are increasingly receptive to personalized advertising. Tailor your search ads, banners, and product recommendations using retail media platforms to cater to specific needs and preferences. In markets like Thailand, where 65% of online shoppers appreciate personalized ads, this strategy holds even greater potential.

Social commerce is now a permanent fixture in the retail landscape: Find personalized, innovative ways to engage with your audience, showcase products and promotions through compelling videos and posts, and leverage social commerce features to facilitate direct purchases within the platform.

Build trust through reviews: The power of online reviews in influencing purchase decisions cannot be overstated. A staggering 88% of online shoppers meticulously scrutinize at least three reviews before making a purchase, while a full 54% rely solely on reviews for all their shopping needs. This underscores the critical role of reviews in shaping consumer trust and brand perception. Actively managing online reviews by addressing customer concerns and amplifying positive feedback is essential for businesses aiming to thrive in the competitive digital marketplace. By encouraging satisfied customers to share their experiences, brands can foster a loyal customer base and enhance their online reputation.

The path to e-commerce success

To thrive in the fiercely competitive APAC e-commerce landscape, brands must adopt a strategic approach to the digital shelf. By understanding consumer behavior and implementing effective strategies, businesses can boost product visibility, drive sales, and build lasting customer relationships. Mastering product content, optimizing availability, leveraging retail media, and conquering search algorithms are essential components of a successful digital shelf strategy.

Showcasing the critical need for granular out of stock tracking

Before the eruption of omnichannel and flexible shipping methods, demand was far more predictable. Manufacturers could rely on recurrent supply cycles without the need for high precision metrics or localization of data. Now, many analytics providers struggle to adapt to the spiral of data points and the need for exhaustive omnichannel data collection. By not adapting to this change, brands are no longer empowered to measure true availability across retailers.

New digital shelf analytics help to get an accurate measurement of crucial availability metrics, and provide the ability to localize issues and address problematic stores and SKUs.

In the above example, a bestseller SKU in the haircare category lost a significant proportion of online sales revenue by not addressing the increasing gap between online and offline distribution. It’s useful to note here that discrepancies between online and offline distribution can often be relatively quick wins for manufacturers.

Location-based analytics can indicate which retailer, products, and even which store locations should be targeted to reduce high availability rates. Setting a benchmark in line with offline distribution helps to maximize ecommerce sales opportunities with a retail partner.

In the next example, we see how a food manufacturer’s primary SKU had consistently lower distribution than its competitor’s equivalent during the months from September to December.

By ensuring distribution is consistent and competitive across all of the retailer’s channels, you can boost sales and avoid all the negative consequences of being out of stock e.g. decreased search rank, retail media ROI and shopper loyalty.

The below graphic illustrates the cumulative loss of sales and therefore potential gain from distribution optimization across a number of popular US stores and channels.

Omnichannel complexity

Implementing granular KPIs to track availability ensures CPGs are equipped with the right information to quickly get to the root cause of problems and take precise actions. It is the only way to fortify an ecommerce strategy against high out of stock rates – by effectively making use of resources to improve planning, strategy and mitigating against risks.

As the market continues to shift from a warehouse-based ecommerce model to a store-based omnichannel model, CPGs must adopt new analytics to counter the growing layers of complexity.

The role of granularity in ecommerce

Data granularity refers to the level of detail and precision in the data collected and analyzed. In the context of ecommerce, having granular data means capturing and understanding information at a micro level–such as an individual online store location level. The metrics that can be collected include availability, price and visibility. Such detailed insights enable CPGs to gain a competitive advantage through data-driven decisions.

For example, tracking out-of-stock levels at a store level allows CPGs to identify potential supply chain issues and prevent stockouts. By having a granular view of inventory and sales data, businesses can optimize their demand planning, forecast accurately, and ensure product availability. This leads to increased customer satisfaction and revenue.

The significance of data accuracy in ecommerce

Data accuracy is equally important in the ecommerce landscape. Reliable and precise data is the foundation for effective decision making. Inaccurate or incomplete data can lead to misguided strategies, wasted resources, and missed opportunities.

Consider pricing variations across different platforms and markets. They can significantly impact profitability. CPGs need accurate data on pricing trends, competitor pricing, and market dynamics to make informed pricing decisions. By monitoring and analyzing accurate pricing data, CPGs can monitor their pricing across retailers, adjust their prices strategically, stay competitive, and maximize profit margins.

Utilizing data granularity and accuracy for profitability

To harness the power of data granularity and accuracy, ecommerce businesses must implement robust data collection, management, and analysis practices. Here are some strategies to consider:

The key ingredients of content optimization

It’s important to grasp the basics of content optimization. It goes beyond simply creating informative product descriptions or captivating visuals. Content optimization is about crafting content that resonates with your target audience, aligns with your brand’s values, and entices customers to take action.

By understanding the psychology of your customers and leveraging data-driven insights, you can fine-tune your content to deliver exceptional results.

The art of crafting compelling product descriptions

Product descriptions are the foundation of your ecommerce success. They serve as the voice of your brand, conveying the unique attributes and benefits of your products to potential customers. When optimizing your product descriptions, focus on creating engaging, concise, and persuasive content. Highlight the key features, demonstrate how your product solves a problem or fulfills a need, and use language that resonates with your target audience.

By striking the right balance between information and persuasion, you can captivate your customers and drive conversions.

Elevating ecommerce success through content optimization

Content optimization is an indispensable aspect of a thriving ecommerce business. By crafting compelling product descriptions, showcasing stunning visuals, leveraging user-generated content, optimizing for SEO, personalizing the customer experience, and continuously testing and improving, you can create a content strategy that drives conversions and builds brand loyalty.

Remember, content optimization is not a one-time endeavor but an ongoing process. Embrace the power of content optimization, connect with your target audience, and unlock the full potential of your ecommerce venture. With the right content, you can captivate, inspire, and convert customers, propelling your business to new heights of success.

Key takeaways

• What are the most important indicators to analyze?  
• Local versus global search indicators, is one group more important than the other? 
• What is the best methodology and are the best-practices?

Duration: 30 minutes 

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Event description

In her role as Senior Shopper Insights Manager, Vivian works with a lot of data to unpack and make sense of today’s fragmented channels and ever-evolving consumer behavior. In this recording, she answers questions such as:

• How has Clif Bar evolved in their measurement and management of their omnichannel business?

• What KPIs do they monitor to optimize ecommerce?

• How does Clif Bar determine if their online sales are incremental and not just a shift of in-store sales? 

Vivian shares her expertise in cultivating the deep customer and market insight that contributed to Clif Bar’s omnichannel success. 

Yacine Terki, CEO & Co-founder of Data Impact by NielsenIQ and Matt Mumford, Client Director, Omnishopper Sales at NielsenIQ participate in the Q&A in the second half of the webinar by answering audience questions.

Challenges:

• Camel: Camel is a popular brand among new-to-category users and gains most newcomers from Marlboro. However, it experiences negative net switching with Marlboro, which is also its top destination brand for switchers leaving Camel. Camel’s losses are particularly pronounced in the 5xl+ pack size segment.
• Winston: Winston’s neutral net switching indicates a need for a stronger strategy to attract and retain new joiners. L&M emerges as Winston’s top destination brand, highlighting its competition within the Value segment.

Actions:

• Camel: Focus on retaining switchers from Marlboro and improving the 5xl+ pack size portfolio.
• Winston: Enhance appeal to switchers and improve performance among new joiners.

Net Switching Analysis

Marlboro shows the strongest performance in the Dutch RMC market. Camel and Winston find themselves in the middle of the pack. 1 in 6 smokers have switched their regular brand within the last 12 months, more than 1 in 5 have switched their regular SKU, including those who switched within the same brand (e.g., Camel Base to Camel Activate).

Switchers Profile

Switchers tend to be urban-based males, predominantly aged 19-24, and are more likely to have mid-high income and high education levels. These demographic insights are crucial for tailoring marketing strategies.

Brand Switching decreased by 3 percentage points between March and October. Future waves will reveal if this downwards trend is seasonally driven and will bounce back or if there is a general trend towards less switching.

Value of sales took a hit at the start of the year, but volume demand is up.

Beauty and Wellness categories within tech products—think hair dryers, hair stylers, shavers, electrical cosmetics (electrotherapy), and massage devices—performed inconsistently in the first four months of 2024. Although revenue was down 11% compared with the same period last year, sales volume trended upward. These patterns signal a recovery in consumer appetite to buy, but also a focus on affordability and lower-priced options. 

Category trends

At the total category view, hair stylers and electric blankets stood out as hitting modest revenue growth in Q1. When it comes to hair stylers, consumers are looking for performance (with 35% prioritizing the number of speed/heat settings the device has) and time savings (33% prioritizing speed to style).  This further illustrates consumers’ continuing focus on saving money: 32% globally are still feeling financially worse off now than they did a year ago, per NielsenIQ’s forthcoming Mid-Year Consumer Outlook report.

Sales of shavers and hair dryers remained mostly stable. But there was a significant decline in revenue for both electrical stimulation devices and electrical cosmetics, due to market saturation but also to new legislation and guidelines. This is especially true in China, a huge market for electrical cosmetics), where 2024 growth has been clearly affected by new regulations. For example, the sale and regulation of Intense Pulsed Light (IPL) devices as over-the-counter products still varies significantly by country, but more countries (including China) are now classing them as medical devices requiring registration, testing, and adherence to national standards. 

Within men’ shavers (traditionally a high-movement category), there has been key growth in segments that offer multi-functionality—such as multi-grooming kits and body-groomers—or that cater to easy grooming on the go, such as electric system razors and beard trimmers. The relatively small segment of body groomers delivered a 29% increase in value, while sales of electric system razors grew 12%, beard trimmers were up 9%, and multi-grooming kits rose 7%. 

In a big market like the U.S., nearly two in three (62%) electrical beauty buyers are middle income. This is an aspirational, yet vulnerable, buyer group that will be affected by external factors such as cost of living. Additionally, two in five electrical beauty shoppers are replacing a faulty product—and could potentially opt for a more aspirational model. Only 27% are looking to upgrade a working product, and 17% are shopping for additional products.  

When it comes to personal care (shavers, hair dryers, and stylers), price is still the most important factor for most buyers. Price discounts are the preferred type of promotional offer, followed by bundling (accessories included). Product features come close to price in importance (70% of buyers mention it as an important factor in their decision making), while product design (41%) and brand (39%) lag behind. 

Generation and channel implications

Beauty trend influencers are younger than ever, with Gen Z and even Gen Alpha representing key demographics for manufacturers and retailers to consider.

In India, Saudi Arabia, and Mexico, one-third of the population is under 20 years old, while in Brazil, China, the U.S., the U.K., and France, this age group accounts for nearly a quarter of the population. In five years, Gen Z will overtake Boomers for overall spending.    

This makes channel selection even more important. Currently, around 60% (volume) of electrical products in the Personal Care and Wellness categories are purchased online. However, social e-commerce has gained share from traditional online, with platforms such as TikTok shaking up beauty e-commerce in several key markets. 

Aspirational yet discretionary 

Most people’s beauty spending within Small Domestic Appliances (SDA) is aspirational, but it is also discretionary. Cost of living factors will affect these buyers; however, smaller ticket price items continue to sell.  

Out-of-home focus impact 

Tourism has rebounded, and consumers are again focusing on out-of-home events and socializing— and thus prioritizing their appearance. Because many electrical beauty buyers are also prioritizing affordability, they will likely complement their visits to the salon by buying devices that allow them to achieve similar results at home.  

Social media impact 

Social media has high relevance for SDA beauty categories, as it does for categories such as makeup and fashion. In particular, channels like TikTok are set to become increasingly important, driven by the growing influence of Gen Z and Gen Alpha as key demographics.

Top sellers and dynamics 

Hair stylers are a key growth segment due to innovation and new launches. The electrical cosmetics and electrical stimulation categories also have seen new the launch of new products, but saturation from last year’s sales has affected growth this year. 

Outlook 

Overall, we expect to see some conventional categories return to growth by 2025, with newer areas, such as electrical cosmetics and electrical stimulation, being affected by increasing regulation across all markets. 

The evolution of retail media networks: Adapting to the digital age.

The concept of retail media networks isn’t new, but the digital age has significantly transformed their scope and impact. Traditional retail spaces have expanded into the digital realm, with ecommerce and omnichannel retailers leading the way. Retailers, recognizing the potential of their online real estate, have evolved into comprehensive advertising platforms, offering brands a unique opportunity to integrate their marketing efforts directly into the consumer shopping experience. The shopper data these retailers own and gather on their sites is very valuable and is sold to advertisers.  

The collaborative approach: Building partnerships for success

In the competitive landscape of retail media networks, strategic partnerships are a linchpin for success. Brands that forge alliances with key retail platforms gain access to a broader audience, increased visibility, and enhanced data-sharing capabilities. Here’s why collaborative relationships with retailers are indispensable: 

Why the Buy Box matters for CPGs

For CPG manufacturers, the Buy Box serves for both increased sales and visibility. Amazon hosts countless product options, and customers typically opt for the simplest and quickest purchase path, which is through the Buy Box. Being the default option significantly enhances your chances of capturing sales, particularly from shoppers who are less inclined to compare offers from multiple sellers. 

How Amazon determines the Buy Box winner

Amazon’s algorithm for Buy Box winners is multifaceted, considering factors like price, availability, fulfillment, customer experience, and seller performance. Successful competitive pricing, while crucial, does not necessitate being the cheapest. Ensuring constant product availability, utilizing Fulfillment by Amazon (FBA) for better fulfillment efficiency, and maintaining high standards of customer service are all key to Buy Box eligibility.

The impact of not winning the Buy Box

Failure to secure the Buy Box can significantly diminish your product’s visibility and sales. Products not featured in the Buy Box are listed under the “Other Sellers on Amazon” section, which receives considerably less traffic. For CPG manufacturers, this can translate into lost revenue and a decreased market share. 

Additional strategies for CPG manufacturers

In the competitive landscape of retail media networks, strategic partnerships are a linchpin for success. Brands that forge alliances with key retail platforms gain access to a broader audience, increased visibility, and enhanced data-sharing capabilities. Here’s why collaborative relationships with retailers are indispensable: 

The growth of supermarket retail media networks

The rise of supermarket retail media networks is fueled by the digital transformation within the grocery sector. As consumers increasingly turn to online grocery shopping, supermarkets have responded by developing sophisticated digital advertising platforms. These networks are designed to provide CPG brands with precise targeting capabilities and valuable consumer insights, driven by robust data analytics harvested from shopper behavior and preferences. 

How retail media networks enhance brand visibility on the digital shelf

Utilizing retail media networks allows CPG brands to place their products in front of consumers who are already in a buying mindset. This is particularly effective in the supermarket sector, where purchase decisions are often made impulsively and can be influenced by timely and relevant advertisements. 

Benefits of retail media for CPG brands

The main allure of retail media lies in its ability to drive sales while enhancing brand loyalty. Here are some of the key benefits: 

Targeted advertising

Retail media networks offer advanced targeting options based on real-time data, including purchasing history, search behavior, and demographic information. This allows CPG brands to tailor their marketing messages more effectively.

Improved ROI

Advertising through retail media networks often results in higher return on investment compared to traditional advertising channels. The proximity of the ad to the point of purchase reduces the consumer’s journey, potentially leading to immediate conversions.

Data-driven insights

Supermarket retail media networks provide access to a wealth of data, enabling brands to refine their marketing strategies, predict consumer trends, and better understand the effectiveness of their ad spend.

Challenges and considerations

While retail media offers numerous advantages, there are challenges that ecommerce managers must navigate: 

Complexity of platforms

Each supermarket retail media network has its own platform with distinct features and capabilities. Brands need to invest time in understanding these platforms to optimize their ad placements, or find a digital shelf service provider they can trust. Amazon, for example, has a highly unique sponsored product/ retail media model.

Cost implications

Competing in popular retail media networks can be costly. Brands must balance their budgets against the potential high costs of bidding for premium ad spaces.

Integration with overall marketing strategy

For maximum effectiveness, retail media should be integrated with a brand’s overall marketing strategy, aligning digital and physical advertising efforts for a cohesive consumer experience.

Strategies for success with supermarket retail media networks

To leverage the full potential of supermarket retail media networks, CPG brands should consider the following strategies: 

Leverage first-party data

Utilize the retailer’s first-party data to customize and personalize advertisements to meet the needs and preferences of specific consumer segments.

Engage in collaborative partnerships

Work closely with supermarket chains to develop exclusive promotions or co-branded campaigns, which can enhance the visibility and attractiveness of your products.

Rely on location-based analytics

To optimize retail media ROI, it’s essential to cross-reference the dates campaigns are running with store-level out of stock rates to be sure the products being promoted are actually available.

Looking ahead: The future of retail media in supermarkets

As technology evolves and consumer behaviors shift, the landscape of retail media will continue to expand. Innovations such as augmented reality shopping experiences and the integration of artificial intelligence for predictive analytics are on the horizon. For CPG ecommerce managers, staying ahead in this dynamic environment means continuously adapting strategies and exploring new opportunities within supermarket retail media networks. 

Retail media is more than just advertising; it’s about creating meaningful connections with consumers at moments that matter. By effectively utilizing supermarket retail media networks, CPG brands can enhance their market presence, forge deeper consumer relationships, and drive substantial growth. 

The power of first-party data

One of the most compelling reasons for the growth of retail media is the access to first-party data. First-party data is collected directly from consumers by the retailer, which means it is highly accurate and specific. This data includes information about browsing behavior, purchase history, and even real-time shopping patterns.

For CPG brands and others, leveraging this first-party data means they can create highly targeted and personalized advertising campaigns. Unlike third-party data, which can be fragmented and less reliable, first-party data provides a clear and comprehensive view of the consumer, leading to more effective marketing strategies.  

Changing consumer behavior

Consumer behavior has shifted significantly in recent years, especially with the increased reliance on digital platforms for shopping. Today’s consumers expect a seamless and personalized shopping experience, whether they are browsing online or in-store. Retail media allows CPG brands to meet these expectations by delivering relevant ads that resonate with shoppers. 

Personalization is key to capturing consumer attention and loyalty. With retail media, CPG brands can tailor their messaging to individual consumers, offering promotions, discounts, and product recommendations that are directly relevant to their needs and preferences. 

The decline of third-party cookies

The decline of third-party cookies has also played a crucial role in the growth of retail media. With major browsers phasing out third-party cookies, advertisers are facing challenges in tracking and targeting consumers across the web. Retail media networks, however, do not rely on third-party cookies. Instead, they use first-party data collected directly from their customers as they shop the digital shelf.  

This shift has made retail media an attractive option for CPG brands looking to maintain effective advertising strategies in a cookieless world. By partnering with retailers, brands can continue to reach their target audience without the limitations imposed by the decline of third-party cookies. 

Measuring the ROI of retail media

Another reason why retail media is growing is its ability to provide measurable ROI. Traditional advertising channels often struggle with proving their effectiveness and justifying the investment. Retail media, on the other hand, offers clear metrics and analytics that demonstrate the impact of advertising efforts. 

Retail media networks provide detailed reports on ad performance, including impressions, clicks, conversions, and sales data. This transparency allows CPG brands to understand the return on their advertising spend and make data-driven decisions to optimize their campaigns. 

Enhancing the shopper experience

Retail media not only benefits CPG brands but also enhances the overall shopper experience. By integrating relevant ads into the shopping journey, retailers can offer valuable information and promotions that assist consumers in making informed purchasing decisions. 

For example, a shopper browsing for skincare products might see ads for complementary items or receive personalized product recommendations based on their past purchases. This not only drives sales for CPG brands but also creates a more engaging and helpful shopping experience for the consumer. 

The growing investment in retail media

As the benefits of retail media become more apparent, investment in this advertising channel continues to grow. According to eMarketer, US digital retail media ad spending is projected to reach $61.15 billion by 2024. This rapid growth is a testament to the effectiveness and value that retail media brings to both retailers and CPG brands. 

Retailers are continuously enhancing their media networks, offering more sophisticated targeting options, better analytics, and new ad formats. This ongoing innovation is attracting more CPG brands to allocate a larger portion of their advertising budgets to retail media. 

The future of retail media

The future of retail media looks promising, with advancements in technology and data analytics paving the way for even more effective advertising strategies. Artificial intelligence (AI) and machine learning are set to play a significant role in optimizing ad targeting and personalization. 

Moreover, as retail media networks expand and improve, we can expect to see more seamless integration of ads across various touchpoints, from online stores to physical retail locations. This omnichannel approach will provide CPG brands with more opportunities to engage with consumers and drive sales. 

Where to start with rich media?

Adding engaging rich media content to product pages doesn’t have to be complicated. Many brands already have a wide range of rich media assets available due to in-store campaigns, advertisements and marketing campaigns, and these can be reused online. Brands can create a full, dynamic view of their product on retailer websites with rich media content above and below the fold.  

1. Understand your audience 

It is essential to understand the shoppers’ preferences and behaviours when shopping online. What types of content do they engage with the most? Are they more likely to watch videos or interact with infographics? Does this vary via retailer website? 

2. Start with high quality engaging images 

One of the simplest ways to begin incorporating rich media is by enhancing the visual content in the product image carousel. Images are the most basic form of rich media but are incredibly effective at capturing the shoppers attention and conveying information quickly. Increasing images on product description pages from 1 image to 5 images can increase the add to basket rate from 8.53% to 18.9%.  

3. Incorporate video content 

Video is one of the most powerful forms of rich media and should be a key component of brands digital strategy. In fact, after watching a video, 64% of shoppers are more likely to buy a product online. Videos can be used to demonstrate key product call outs, recipes or product demonstrations.  

4. Utilise feature sets  

Feature sets are an effective way to present complex information in a visually appealing and easily digestible format, whilst showcasing the products most compelling features and key differentiators in a customised and attention-grabbing format.

Going beyond the label visually

While labels play a key role in providing essential product information, many of today’s shoppers want to know more. In fact, 87% of shoppers state that they are interested in understanding information beyond the label. It is an opportunity for brands to visually communicate their commitment to their values including sustainability and health and wellness, building trust and loyalty. To truly captivate shoppers and foster brand loyalty, brands need to leverage rich media elements to call out key product differentiators, creating a memorable and impactful online experience.  

Keep connecting with shoppers all year round

Product pages don’t have to be static, rich media can be updated at any time to suit any campaign. New seasons, new campaigns and new initiatives are the perfect opportunities to refresh product pages to remain engaging to shoppers whenever they visit product pages. Rich media offers endless possibilities for creating engaging content throughout the year and brands should consider building a content calendar that integrates rich media into their marketing efforts, aligning with key dates, holidays and events that are relevant to the audience. By regularly updating content with fresh relevant rich media, shoppers remember the products and are encouraged to return to purchase.  

In the spotlight…Asda 

Asda saw an elevated cart value in just 6 weeks after implementing rich media content.  

Data from Asda.com shows that pages with rich media present receive increased page views and add to cart rates by up to 11%. In the 6-week period after rich media content was added, product description pages gained an extra 23,650 page views translating to a 6% increase over the previous period.  

In a mere 6 weeks, these products had 6% more shoppers engaging in the product description page than when these same pages had no rich media present. But shoppers weren’t simply viewing, these products received a total of an additional 13,083 more cart adds after rich media was featured, totaling an 11% increase across each category on Asda.com.  

This in turn translated to an overall additional cart value of over 30% in just 6 weeks.  

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Bridging the Gap for Mutual Success

McKinsey’s Growth Triple Play research found that although more CEOs recognize the growth potential from the marketing function, fewer CFOs believe they can bring this growth. This aligns with data from NIQ’s CMO Outlook survey where 44% of Marketing leaders agreed very strongly that “My CEO and CFO believe in the value of investing in our brand for the long-term”, an increase from 41% in 2023.  In this survey, we also see that only 31% feel they have “the right balance between short-term return and long-term brand building in our marketing”. So, while CEOs have heard the message, CMOs are not yet able to convince them to back long-term brand investment over the imperative to deliver short-term sales impact.  

To bridge this gap, CMO’s and Brand Leaders must strive to articulate the value of brand building in terms that resonate with financial stakeholders. This involves linking marketing efforts to market performance and demonstrating their contribution to the company’s success in measurable terms. By speaking a common language with CFOs focused on shared financial outcomes, CMOs can make a compelling case for the strategic importance of their work.  

Jonnie Cahill, CMO at Heineken USA has been successful in crafting this common language and getting the CFO behind brand as ‘the disproportionate unlocker of growth’. His advice to other CMOs: “It’s our job to help CFOs understand us…you have got to get the conversation into terms that they understand, which is revenue, margin, accretion, growth, market share, profitability…in order to defend the discipline, it’s a part of the job.” 

When brand strength is measured and linked to sales performance, CFOs begin to recognize the long-term payoff of brand-building investments—not just in terms of volume but also revenue.

Measuring What Matters: Quantifying the impact of brand building 

Talking the language of the CFO and demonstrating the contribution of brand strength to sales revenue allows CMOs to get the whole business aligned behind the brand to create a common language, strategy and purpose, held together by the values and mission of the brand. Organizations that fully back the brand from finance, through to sales, marketing and brand leaders, can jointly unlock the full potential of their brands. The result will be a longer-term shift in focus. Brand strength will become the company’s north star unlocking not only volume growth but also revenue growth.  

How are volume and revenue growth unlocked? The outcome of brand building is two-fold. Not only does a great brand strategy speak to a wide audience influencing their choice in favor of your brand, thus attracting new users and ensuring current users remain loyal, but it also has a hidden but more profound impact. It decreases people’s sensitivity to price increases. The result is that more people will choose your brand, and they will be willing to pay more for your brand—the outcome is a long-term multiplier effect proven in the Meta research. According to Emily Ketchen Lenovo’s CMO, price inelasticity is the key to demonstrating the value your impact to CFOs. Reducing the need for discounts and promotions is “great for the organization, it’s great for your products, and it’s great for your CFO”.  

When the entire business gets behind the brand, everyone will recognize their impact on brand building. This is important since each interaction consumers have with the brand, whether through product, experience, communication or in-store activation, either builds or erodes brand strength. When brand is in sync with sales, stars align and the outcome is a consistent reinforcement of brand strategy through marketing activation.  

Internal multiplier effects will come into play. Sales teams will recognize that success isn’t only measured by yesterday’s sales figures; they will understand that a strong brand today means higher sales tomorrow.  

Budgets will be unlocked for brand building activity and greater consumer centricity will result as the company focuses their efforts on bringing consumers value within and beyond product delivery. 

A Seat at the Table: Empowering marketing to lead growth  

When CMO’s have the right measurement tools that showcase their true impact, the doorways to growth will be opened. They will have the confidence to continue to bring the consumer perspective to the forefront of business strategy and the evidence to demonstrate the tangible financial benefits of such an approach. By doing so, they can secure the support of the board and position marketing as a key driver of business growth. This all begins with measuring right, measuring long and connecting brand performance to market reality.

Benefits of Building Brand Resilience During Economic Slowdown:

Expanding Audience Reach: Economic shifts often result in changes in consumer behavior and needs. Brands that proactively engage with a broader audience can capture new market segments that emerge due to down-trading or shifting contextual needs and preferences.  

An example of success through audience expansion is e.l.f. Beauty, a company that exceeded $1 billion in annual sales by investing in its brand. e.l.f. has broadened its audience reach by featuring older women like Judge Judy, Jennifer Coolidge, and Billie Jean King in their advertising. As a result, while retaining their core Gen Z market, they have significantly grown their audience among Gen X and older demographics, offering affordable quality cosmetics that appeal to older women looking to stretch their budgets. 

Building Price Resilience: Consumers are feeling the impact of cumulative inflation on their wallets with elevated year-on-year inflation compounding (31% increase in unit cost over the last 4 years in the US²) with an inflation-wage gap in most countries. A strong brand can embody a sense of value that transcends price points. By reducing price sensitivity, brands can maintain their appeal even when consumers become more cost-conscious.

Coca-Cola, a company that has reaped the benefits of brand building, considers marketing investment as a “motor to drive the topline and bottom line,” according to CEO James Quincey. He shared this insight with investors after the company achieved an 8% net revenue growth in the third quarter last year, driven by pricing power despite challenging economic conditions. 

Price is top of mind for everybody everywhere. The 2024 Consumer Life trends study reveals that out of 24 countries, inflation and high prices was the primary concern in 21 countries and ranked second in the remaining 3. This held true regardless of income level. The study also shows that financial worries are consistent around the world with 3 out of the 4 of people’s top concerns relating to money. So, while today’s global challenges impact consumer habits, brands can take the opportunity to set themselves up for the future.  

Strategies for Building Brand Resilience

By remaining visible, relevant and appealing, brands can capitalize on the reduced noise in the marketplace. This involves crafting compelling narratives that resonate with consumers, thereby strengthening mental availability, attachment and image. These pillars must be nurtured to develop a robust brand capable of withstanding market fluctuations. Driving mental availability ensures that the brand is linked to the category and easily comes to mind through category cues and distinctive assets. Attachment and image are carefully crafted through consumer centricity continuously aligning with what people commonly value to find a meaningful brand positioning that is articulated in people’s worlds through your products, experiences and purpose. In essence, it’s about keeping close to consumer needs and priorities in order to imagine new ways to bring people more value.  It’s the essence of marketing! 

A well-crafted brand strategy directly influences commercial outcomes. Our market measurement data across various categories reveals that brand strength typically contributes to a revenue premium of around 30% of total category value. Strong brands command loyalty, allow for premium pricing, and can lead to increased market share and shareholder value. Investors see brand strength as an indicator of a company’s ability to generate future earnings and sustain growth. The NYT reported a 30% increase in mentions of price elasticity in S&P 500 company calls in 2022³. Protecting and enhancing brand strength is paramount, as every action taken by a company can either contribute to or detract from the overall brand strength.

Reducing consumers’ brand price sensitivity is an important lever to ensure sustainable commercial success. Brands that ask a price above the market average have a brand price elasticity that is almost three times lower than other brands,” said Alexandra Chirilov, Head of Marketing Science for Brand and Media at NIQ. 

“Pricing power is also known as Brand Premium. It is an outcome of your brand building strategy – and it is what gives Power Brands like Pepsi, Apple, Microsoft, Starbucks and BMW their advantage despite the recent economic crisis. The last decade of investment into these brands has paid off, with consumers willing to pay more for these products even when disposable incomes are squeezed.” Even if you are not a power brand with years of brand building investment behind you, pricing power might mean that your brand will withstand the temptation to discount, pricing will be maintained, and revenue will be preserved.   

Galvanize the Business Behind the Brand 

To get the entire organization behind the brand mission, it is essential to demonstrate the link between brand strength and business performance. A robust and innovative brand measurement tool can quantify this connection providing tangible evidence of the brand’s contribution to commercial success. Such insights can be instrumental in securing buy-in from key stakeholders, including the CFO and executive team. 

It is equally important to ensure that marketing efforts are aligned with brand objectives to ensure consistency and coherence across all touchpoints. Internal silos should be bridged to present a unified brand experience to consumers. Consistent repetition through different avenues within the marketing mix ensures flawless execution of brand and marketing strategy. Marketing should be held accountable for its impact on brand strength, ensuring that all initiatives serve to bolster rather than dilute the brand’s essence. When the whole business focusses on a single north star, brand strength, all the pieces will come together harmoniously. 

Invest in Brand for an Upside

When a stagnant economic outlook seems bleak, invest in long-term growth. Focus on creating a brand that more people choose, love and are willing to pay a premium for, by investing in the three pillars of brand strength. This will enable audience expansion and price resilience, allowing you to emerge from economic challenges with a stronger, more resilient brand, a more profitable company and a prosperous future. 

Remember, while the economic landscape may shift, the power of a strong brand remains constant. 

Emerging Online Grocery Trends

The online grocery landscape is rapidly evolving, with several key trends emerging that are shaping how consumers shop for their groceries. In fact, in-store Food sales only grew +0.9% in the last year, but online sales saw a staggering 15.1% increase.²

With that in mind, here are 3 key emerging online grocery trends helping drive this shift:

1. The Rise of Subscriptions

One of the most significant trends is the continued growth of subscription services. These services, which offer convenience through recurring deliveries of essential items, are becoming increasingly popular among busy households. Subscription models allow consumers to automate their grocery shopping, ensuring they never run out of staples like milk, eggs, or pantry items. They’re also a good way for consumers to save money, and with consumers are spending 33% more in the past 4+ years, many are seeking out ways to save.³

Additionally, these services often offer personalized recommendations based on previous purchases, making the shopping experience more tailored and efficient. As more consumers embrace this convenient way of shopping, retailers are expanding their subscription offerings to include meal kits, specialty products, and even wellness-focused items, further embedding themselves into the daily lives of their customers.

2. Consumer Demand for Sustainability and Ethics

Sustainability and ethical shopping are also becoming major drivers of consumer decisions in the online grocery space. With growing awareness of environmental issues, consumers are increasingly seeking out products that align with their values. This includes choosing items with eco-friendly packaging, supporting brands with transparent and ethical supply chains, and opting for local or organic produce. In fact, 69% of consumers state that sustainability is more important to them than it was two years ago, so many brands are capitalizing on this opportunity.⁴

Online grocers are responding by highlighting these attributes in their product listings, offering consumers the ability to filter products based on sustainability criteria. Moreover, some retailers are going a step further by adopting carbon-neutral delivery options and reducing waste through innovative packaging solutions. This shift towards sustainability not only meets the demands of environmentally-conscious consumers but also helps retailers differentiate themselves in a competitive market.

3. Continued Health and Wellness Growth

According to NIQ’s 2023 Consumer Outlook, 46% of consumers identified physical or mental wellness as one of their top priorities.⁵ As consumers become more health-conscious, there is a growing demand for online grocery options that cater to specific dietary needs and preferences. Whether it’s organic produce, gluten-free snacks, or plant-based alternatives, consumers are looking for products that support their health goals.

Online grocery platforms are leveraging this trend by offering extensive selections of health and wellness products, along with detailed nutritional information and personalized recommendations. Additionally, many platforms are incorporating features like dietary filters and wellness-related content to help consumers make informed choices. This focus on health and wellness not only enhances the shopping experience but also fosters customer loyalty by aligning with the consumers’ lifestyle aspirations.

Challenges in the Online Grocery Space

The rapid growth of the online grocery market has brought with it significant logistical and supply chain challenges. As demand for online grocery shopping continues to rise, retailers face the complex task of efficiently managing inventory, ensuring product availability, and meeting delivery expectations. The perishability of many grocery items adds an additional layer of complexity, requiring robust cold chain logistics to maintain product quality from the warehouse to the consumer’s doorstep. Delays, inventory shortages, and the inability to maintain product freshness can lead to customer dissatisfaction and lost sales. Moreover, the surge in demand for delivery services has strained last-mile logistics, making it difficult for retailers to keep pace with consumer expectations for fast and reliable delivery.

In addition to logistical hurdles, online grocery retailers are grappling with intense competition and pricing pressure. The market is becoming increasingly crowded, with established players like vying for dominance alongside smaller, niche grocers. This competition has sparked a race to the bottom in terms of pricing, as retailers strive to attract and retain customers by offering the lowest possible prices. However, maintaining profitability in such a competitive environment is challenging, especially as consumers continue to prioritize value and cost-effectiveness in their purchasing decisions. Retailers must find a delicate balance between competitive pricing and maintaining healthy profit margins, all while differentiating themselves through unique product offerings, superior customer service, and innovative shopping experiences.

Future Outlook for Online Grocery

The future of online grocery shopping is poised to be shaped by significant technological innovations that promise to enhance the consumer experience and streamline operations. Advances in artificial intelligence (AI) and machine learning are expected to play a crucial role in personalizing the shopping journey, with AI-driven algorithms providing tailored product recommendations and optimizing inventory management. In fact, a recent study from Honeywell reports 97% of retailers surveyed claim to be using AI technologies – or are in active discussions to use them – for select use cases or regions, on a large scale, or in a pilot phase.6 Moreover, the adoption of autonomous delivery vehicles and drones could revolutionize last-mile logistics, making deliveries faster and more efficient while reducing operational costs. As these technologies continue to evolve, they will not only improve convenience for shoppers but also help retailers meet the growing demand for speed and personalization.

Market expansion is another key factor that will drive the growth of online grocery in the coming years. As more consumers become comfortable with shopping for groceries online, retailers are increasingly looking to expand their reach into underserved areas and emerging markets. This includes rural regions where access to physical grocery stores may be limited, as well as international markets where online grocery shopping is still in its nascent stages. Additionally, the growth of quick commerce—delivering groceries within hours, rather than days—will further broaden the appeal of online grocery services. By tapping into these new markets, retailers have the opportunity to significantly increase their customer base and capture a larger share of the global grocery market, ensuring that online grocery shopping remains a central component of the retail landscape for years to come.

Consumer behaviour is changing fast in New Zealand’s On Premise—and CGA by NIQ’s OPUS solution can help suppliers and operators influence their decision-making at every step of their path to purchase.

A rich source of On Premise consumer data and insights, OPUS (On Premise User Study) gives you the power to understand the ever-changing relationship between consumers, brands, categories, channels and occasions.

To learn more about CGA’s consumer research and market measurement services across New Zealand, please contact Sam Chopade at Sam.Chopade@nielseniq.com. 

A strategic mix of products can persuade drug store shoppers to grab that extra product.

The Right Product Mix for the Highest Impact

Revisiting Price Points in Drug Stores

Drug Store Food: Opportunity for Higher Sales

About the author

Lauren Fernandes

Vice President | Global Thought Leadership

Gaming: A Democratized Practice

Gaming has regularly been debated for its potentially addictive nature. However, the time when video games were only for hardcore gamers is long gone. It has become democratized.

From Assassin’s Creed to Candy Crush, Mario Kart, and Solitaire, there’s something for everyone. Moreover, gaming has become very accessible – it’s no longer necessary to own a console; one can now play on PC and mobile.

In short, you can play anywhere. It’s not surprising that video games have gained so much prominence, far from the reputation they had just a few years ago.

On a console, it is now possible to select:

• Educational games for young children (to learn colors or numbers)
• Fitness or workout exercises
• Strategy games
• Multiplayer games, fostering social connections
• FIFA, and play for 12 hours straight, of course!

If the gaming market is constantly growing in the five analyzed countries. There is a strong seasonality in the sector: franchises typically wait for back-to-school or the end-of-year period to release highly anticipated games and new consoles.

Gaming Purchases: Average Price by Country

In 2023, the average price of gaming items varies between 13 and 19€ depending on the country. This includes full games and downloadable content (extensions and microtransactions).

What Future for the Gaming Market?

• Cloud Gaming: It represents significant potential but does not signal the end of video game consoles. Gamers have a strong connection with the object – the installation and configuration of the console, and the purchase and collection of game boxes are important to them.
• E-sports becomes a full-fledged discipline: A discipline not reserved for hardcore gamers. Internet users are increasingly following online competition videos or shows.

What about Mobile Gaming?

To identify the most popular mobile applications at the moment, many solutions exist on the market. But the only KPI used is the number of downloads. Until now, there was no data on user behavior once the application was downloaded.

With AppWhalie, Foxintelligence offers in-app analyses: data specifically focused on in-app purchases (in value and volume). AppWhalie allows for comparing the performance of an application with its competitors and provides a deeper understanding of buyers and their purchasing behaviors.

A unique solution that offers the possibility to:

• Uncover the secrets of a product’s success
• Optimize user engagement in an application
• Foster long-term loyalty

➡️ More information on AppWhalie 🐳

Step 2: Keeping the focus on the consumer

As inflation affects consumer purchasing power, customers become more price-sensitive. That, however, is not where marketing strategies should place focus on.  

While consumers work with limited budgets, they still expect value and quality. Marketers should emphasize the quality and value proposition of their products. In fact, 46% of respondents to a recent survey* said they typically prepare a shopping list in advance of shopping. 

Marketers can make the most of that instinct and ensure their brand is on that shopping list through targeted messaging that highlights how their offerings meet customer needs at a fair price. Quality remains a key topic for consumers, with 91% considering it crucial in purchasing decisions. Also, consumers needs and inclinations are geared towards personalization, health and wellness, and sustainability.  The right messaging can help the consumer connect the dots. 

Step 3: The price on the shelf

Inflation calls for innovative pricing strategies. Marketers can explore offering smaller product sizes at lower price points or bundling products to provide perceived value. Promotions should focus on communicating the benefits that justify the price, aligning with the finding that two-thirds of businesses plan to highlight product benefits that consumers are willing to pay for. 

Step 4: Using data to pave the way 

Data plays a vital role in navigating inflationary pressures. Marketers should leverage data to understand consumer behavior and adjust strategies accordingly. Insights into price sensitivity and purchasing patterns can inform promotional strategies and help in setting competitive prices without eroding margins. Data-driven decisions are critical, with executives indicating that data insights are highly influential in pricing and promotional strategies. 

Inflation presents a significant challenge, but with strategic adjustments, marketers can continue to unlock the true value of their marketing investments. By focusing on value, leveraging data, and adopting innovative pricing strategies, businesses can maintain their competitive edge and ensure their marketing efforts remain effective despite economic pressures. 

*NIQ SpendZ report, 2024 

Health and wellness ingredients

Brands can no longer rely on brand loyalty to sell products. Increased education around what’s on the market is causing a shift as consumers now prioritize health claims, health benefits, and specific ingredients over brand choice. 

What trends are driving consumer choices?

Functional beverages, food as medicine, and vitamins/supplements are the earliest indicators of emerging consumer wellness priorities.  

The NIQ difference

Understanding the market is one thing – but doing so at a granular level can keep your business moving forward during times of change.

NIQ offers a Full View into product attribution with NIQ Product Insight (NPI) characteristics. NPI provides access to unmatched insights to help manufacturers measure the market through claims, certifications, and ingredient-level product attributes:

•  NPI taps into Retail Measurement data to allow companies to identify products that may be affected by the recent food additives ban.
• Understand how consumers consume attributes differently across consumer cohorts / life stages with direct integration into the NielsenIQ Panel
• Find pockets of volumetric growth with direct integration into advanced solutions like Assortment, Pricing, Trade, and Market Structure.
• This is invaluable for ingredient suppliers and manufacturers who need to make informed decisions and thrive in the face of regulatory change.

Start by Knowing Your Customer

Beyond demographics, understanding the underlying motivations that drive purchase decisions is essential. Every customer segment is influenced by unique “shopping triggers” that spark the buying action. These triggers can vary significantly across segments; for example:

• Millennial shoppers might be more susceptible to social media trends, leading to impulse purchases of the latest fashion items.  
• A value-conscious segment might prioritize a product’s sustainability credentials, making them more likely to choose eco-friendly options.

This deeper understanding of how consumer needs and behaviors differ depending on context, and what drives choices within specific moments of consumption, will help retailers optimize their product range. By understanding the “why” behind purchase decisions, retailers can tailor their messaging and product offerings to create a more compelling and personalized customer experience.

Align your strategy with Customer Values

Consumer values are playing an increasingly significant role in purchasing decisions. Studies indicate that a staggering 40% of global consumers prioritize brands that align with their values. This trend presents a strategic opportunity for retailers who can effectively leverage customer segmentation.

Segmentation allows retailers to tap into this value-driven consumer landscape; for example:

• An environmentally conscious customer segment might be particularly drawn to a brand’s commitment to ethical sourcing and sustainable practices.
• A segment that prioritizes convenience might value a retailer’s user-friendly mobile app experience and efficient delivery options.

NIQ helps retailers identify these value-driven segments and craft targeted campaigns that resonate with their priorities. This enables retailers to build stronger customer relationships and drive growth through an approach that is both personalized and values-aligned.

Optimize the Customer Journey with Data-Driven Insights

Discovering how customers within each segment research and purchase across different channels is crucial for optimizing the overall customer journey. Segmentation allows you to tailor the customer experience based on these preferences; for example: 

• A segment that researches online but prefers to finalize purchases in-store would benefit significantly from click-and-collect options.  
• A segment that heavily relies on mobile apps for shopping requires a seamless, user-friendly mobile experience. 

No matter where they buy, brands and retailers must ensure target consumers can find, learn about, and purchase their products of choice effortlessly — when, where, and how they want it, at a price they can afford. As a result, accessibility also plays a vital role in influencing customer decisions. Catering to the accessibility needs of each segment ensures a more inclusive shopping experience, leading to greater customer loyalty and brand advocacy.

This need to be accessible is reflected in our retail brand management research, which shows a strong relationship between accessibility and consumers’ reported share of wallet and retailer brand choice. While being accessible is important, it is not enough to win consumers over.

NIQ solutions and service teams provide data-driven insights on the importance of accessibility and other factors which drive retailer’s choice within each segment, empowering retailers to focus on the decision drivers and remove barriers and create a more welcoming environment for all customers. 

From Insights to Action for Retailers

Customer segmentation, powered by NIQ’s data-driven insights, provides actionable intelligence that seamlessly translates into impactful strategies with the support of NIQ. Retailers can leverage these insights to:

• Develop targeted marketing campaigns that resonate with the specific needs and values of each customer segment.
• Optimize product assortments based on the buying preferences and priorities of each segment.
• Improve accessibility across channels for each segment to ensure a smooth and inclusive shopping experience for all customers.

By understanding the distinct “whys” behind customer behavior within each diverse consumer group, retailers can unlock a deeper level of customer-centricity. This approach, fueled by NIQ’s powerful solutions and consultancy, equips retailers to navigate the evolving retail landscape, craft a transformative customer-centric strategy to achieve marketing effectiveness and sustainable growth.

The Global Trend Landscape

The beauty industry is experiencing a dynamic shift, with innovation at the core of its transformation. NielsenIQ’s report dives deep into the most resonant beauty innovation themes globally, providing a clear lens on how these trends manifest in key markets. Whether it’s the rising importance of personalization and inclusivity in Brazil, the evolution of celebrity beauty in the US, or the growing prominence of Key Opinion Leaders (KOLs) in China, this report provides a thorough understanding of the current and emerging trends that are shaping the future of beauty.

The decline of third-party cookies

The decline of third-party cookies has also played a crucial role in the growth of retail media. With major browsers phasing out third-party cookies, advertisers are facing challenges in tracking and targeting consumers across the web. Retail media networks, however, do not rely on third-party cookies. Instead, they use first-party data collected directly from their customers as they shop the digital shelf.  

This shift has made retail media an attractive option for CPG brands looking to maintain effective advertising strategies in a cookieless world. By partnering with retailers, brands can continue to reach their target audience without the limitations imposed by the decline of third-party cookies. 

Retail media is undoubtedly on the rise, driven by the growth of ecommerce, the power of first-party data, and the changing landscape of digital advertising. For CPG brand manufacturers, embracing retail media is not just an option but a necessity to stay competitive in today’s market. 

By leveraging the unique advantages of retail media, CPG brands can create highly targeted, personalized, and effective advertising campaigns that resonate with consumers and deliver measurable results. As investment in retail media continues to grow, those who adopt this strategy early will be well-positioned to thrive in the evolving retail landscape.

The story of L’Oréal CPD

L’Oréal, a global leader in the beauty industry, is renowned for its diverse brand portfolio and innovative products. To gain a deeper understanding of the evolving e-commerce landscape, L’Oréal Consumer Products Division (CPD) partnered with NielsenIQ for a comprehensive data-driven approach to navigate complex market dynamics and consumer behaviors.  

Transforming Ecommerce strategy

NielsenIQ’s e-commerce solutions have given L’Oréal CPD comprehensive coverage of the omnichannel environment, which is becoming increasingly important for the beauty category. The collaboration began with a three-month pilot,during which 200 to 250 people at L’Oréal CPD started using it in various roles within the organization, including digital, e-commerce, activation, and brand roles. Before implementing NielsenIQ’s e-commerce solution, L’Oréal CPD attempted to manage with less effective, piecemeal solutions for e-commerce visibility. The comprehensive data from NielsenIQ’s tool allowed them to accurately read omnichannel trends and significantly improve their go-to-market strategy.  

Gaining consumer and market insights  

The NielsenIQ e-commerce solution brought three major improvements for L’Oréal CPD. First, it enabled the identification of significant trends across multiple markets, enhancing the effectiveness of global campaigns and programs. Second, the tool provided insights into actual consumer brand repertoires, revealing true competitors and allowing L’Oréal to better understand its mass portfolio. Third, the extensive e-retailer segmentation—covering over 400 beauty retailers—helped L’Oréal tailor their offers to specific retail touchpoints and manage campaigns more effectively.

A particularly notable feature is the consumer segmentation capability. This allowed L’Oréal CPD to segment consumers based on specific criteria and delve into their behaviors across market dynamics. This insight helped identify opportunities to expand reach, create more value, and leverage trends such as premiumization.  

Achieving measurable results 

Feedback on the usability of NielsenIQ’s platform has been overwhelmingly positive. The tool is praised for its intuitive and user-friendly design. The onboarding experience was described as one of the best, with responsive customer support, well-organized training sessions, and collaborative presentations and webinars.

L’Oréal CPD found the consumer switching data particularly valuable during a time when category lines are blurring and things are not clear. The insights provided by NielsenIQ’s e-commerce solution have been crucial for gaining more insight into consumer preferences and adapting to market changes.  

Emilia Simonin

Global Market and Business Intelligence Director L’Oréal Consumer Product Division

The category management concept is widely used in the retail industry and is crucial for: 

• Effective inventory management 

• Customer satisfaction, and  

• Overall business success 

Key components of Category Management include

The 8-step Category Management Process

While each company can manage product categories with unique processes, there are eight steps that brands and retailers can follow to ensure better category management. 

It is an 8 (eight) steps process, that will allow both retailers and manufacturers to find the opportunities and capitalize them with specific strategies and tactics according to the category role, potential and business objectives: 

0. Alignment of the relationship between retailer and manufacturers. 

1. Define the Category – During this step, you need to set parameters for the category, including sub-categories and consumer behavior. 

2. Role of the Category – What is the driving purpose of the category? Is it to bring new customers in or to expand your product line? 

3. Assessment of the Category – Here is where you look at all the data related to the category to anticipate any changes or trends. This step is the most time-consuming. 

4. Objective – After the category evaluation you identify the main opportunities and prioritize the objectives that will allow you reach your target. 

5. Category Strategies – Once you determine the category’s role, opportunities and objectives you need to know how you’re going to achieve it. This step lets you figure out how to get from where you are now to where you want to be. 

6. Tactics – Here is when you improve your sales fundamentals, the 4 “P” of category management: Product, Placement (merchandising), Price and Promotion. 

7. Implement Your Plan – Now that you have a game plan, you can start putting it into action. 

8. Review and Assess Your Progress – The only way to ensure that your processes work as efficiently as possible is to review them in action. Look at your data and see how it changes with various techniques. 

The tactics

are always the focus of attention while implementing a category management process because of the relevance of these core business areas in the results: 

• Assortment Planning: Determining the right mix of products within a category to meet shopper demand and maximize sales. 

• Price Management: Setting prices that are competitive and aligned with shopper expectations while still ensuring profitability. 

• Promotion Strategy: Developing promotional activities and campaigns to drive sales within each category. 

• Shelf Space Optimization: Allocating space on shelves and store layouts based on the performance and demand of products within a category and managing both macro and micro space efficiently. 

• Trust and collaboration are the foundations of this process, so a healthy, open, objective and independent Relationship is a must, collaborating with suppliers to ensure a steady supply of high-quality products at competitive prices and continuing alignment on the category objectives. 

Importance of Category Management

Category management is there to help your business understand consumer behavior and make better purchasing decisions. Since your profit margins are relatively slim, category management enables you to keep a leaner and more efficient bottom line while improving the shopping experience. 

A robust and consistent process implementation will also help you with: 

• Increased Sales: By tailoring strategies to each category, retailers can enhance the appeal of products to specific customer segments, leading to increased sales. 

• Better Inventory Control: Efficient category management helps in maintaining optimal inventory levels, reducing excess stock, and minimizing stockouts. 

• Enhanced Customer Satisfaction: Understanding and meeting customer preferences within each category leads to improved customer satisfaction and loyalty. 

• Cost Savings: Negotiating favorable terms with suppliers, optimizing shelf space, and streamlining operations contribute to cost savings. 

Our global voice in Category Management

In each region, the specific application of category management will depend on the unique characteristics of the market performance, opportunities and consumer behavior.  

In a market with an incredible development of omni-channel activity, with such maturity of the process implementation like China and its local giants, for instance, it is remarkable how they keep including category management as a core part of their day-to-day business operation.  So, we asked our experts in the matter, how do local giants in China use category management to improve their financial results across different channels, formats and even online platforms and solutions? 

There are examples of category management everywhere you look, and the beauty of the process is that it adapts to the market reality in different regions, for example: 

Latin America 

In Latin America, grocery retailers often implement category management to optimize the assortment of products such as fresh produce, local staples, and culturally relevant items to cater to the diverse preferences of the population. 

North America

In North America, particularly in the United States, category management is extensively used in large retail chains. For example, in the electronics category, retailers might tailor their assortment to include the latest tech trends and negotiate with suppliers for competitive pricing. 

Western Europe

In Western Europe, fashion retailers may use category management to align their product assortments with seasonal trends and regional preferences. For instance, winter clothing may have a more prominent place in the assortment in colder climates.

China

In China, e-commerce giants like Alibaba use category management to optimize the online shopping experience. For instance, they may customize their strategies for categories like electronics, beauty products, and health supplements to appeal to the preferences of the Chinese consumer base.

In each region, the specific application of category management will depend on the unique characteristics of the market, trends and consumer behavior. 

Finally, Category Management is a Data-Driven Decision Making process, that relies on data analysis to make informed decisions, allowing retailers and brands to respond quickly to market trends and changing consumer behavior. 

If you’d like to find out more about the benefits and execution of category management and all the resources and knowledge, we can provide through our CatMan Educational Program, Analytics, Assortment, Shelf Optimization and Spaceman tools, please reach out to your NielsenIQ executive. 

Personalization drives loyalty & growth

In the competitive and fast-evolving FMCG industry, understanding shopper behavior and preferences is crucial for success. By offering a tailored shopping experience, grocery retailers and brands can enhance shopper satisfaction, drive loyalty, and gain a competitive edge in the market. Personalization not only improves the omnichannel shopping experience but also builds long-term relationships with shoppers, leading to sustained business growth and success. 

However, incomplete product content is a significant barrier to achieving this level of personalization. When product information is lacking, it stops the ability of retailers and brands to tailor shopping journeys to individual shopper preferences, leading to missed opportunities and frustrated shoppers. 

Today’s grocery shoppers have diverse and evolving needs influenced by numerous factors. Some of the key aspects influencing todays shoppers include: 

• Value for money: Shoppers are searching for the best value products, seeking promotions, discounts and loyalty programs that offer savings across the products they desire. 
• Convenience: Shoppers prioritize simple, easy and quick ways to shop, whether that be in store or online, shoppers expect flexible and personalized options to save them time on their shopping trip.
• Health and wellness: A growing number of shoppers are seeking healthy and organic foods, and products that are suitable to their specific dietary requirements including coeliac, vegan.  
• Sustainability: Shoppers are increasingly concerned with the environmental impact of their choices and are seeking products and brands that use sustainable practices. 

Personalization in grocery shopping is essential for addressing the varied and specific needs of today’s shoppers. It enhances convenience, relevance, engagement, and trust while catering to health, budget, and ethical preferences. By leveraging data and technology to create personalized shopping experiences, grocery retailers and brands cannot only meet the expectations of modern shoppers but also build long-term loyalty and drive business growth. 

Personalization relies on detailed, accurate and optimized product information. Information such as extended attribution, product descriptions, images, specifications, ingredients, usage instructions, and shopper reviews are crucial for: 

• Search and filter functionality: By leveraging extended attribution, retailers can enhance search accuracy, helping shoppers find the products that meet their specific needs quickly and efficiently.  
• Personalized recommendations: Utilizing shopper purchasing decision information and data on similar products, retailers can suggest products based on shopper preferences and past behaviors.  
• Shopper engagement: Leveraging enhanced product content including optimized product content, images and videos, engages shoppers and helps them make informed purchasing decisions.  

Where are Americans Traveling?

Americans like to travel far and wide, within the U.S. and overseas, but there are some common destinations. This summer – like many before – many Americans will flock to Europe, but the end destination will look a little different across incomes, generations, and regions:

• Lower income (<50K) earners, Midwesterners, and Gen Z are more likely to take short trips <100 miles from home 
• Retirees are keen to explore the world as 36% of them took a trip >500 miles from home in the last year 
• Immigrants travel internationally a huge 20 pts more than the average American, presumably due to familial ties  

No matter who or where, the top reason Americans travel? Visiting people – and by a large margin. 42% of Americans cited visiting family or friends as the top reason for taking their last trip, followed second by being close to water. 

The Great (American) Outdoors

Exotic and cultural destinations will always appeal to American travelers, but there’s one type of trip that never goes out of style: the quintessential road trip. 

Post-pandemic attitudes saw many explore abroad, but Americans still realize the value in the domestic outdoors: 49% of Americans have taken a road trip or camped in the last year. 

Unlike other travelers, campers are more likely to sacrifice for an adventurous experience – but don’t always want to. Comfort still matters to this group, and finding ways to promote comfort in camping will likely draw in other groups. 

Consider: The glamping market provides the amenities and experiences that different travelers seek, potentially opening the door to affluent and older travelers participating.  

From Lux Retreats to Adventure – Connecting Across Markets 

Different Americans will seek different experiences: 

•  43% of Americans say that taking trips to recharge their batteries completely describes their travel approach.
• Conversely, 34% seek excitement and adventure when planning travels – highest among Gen Z, Millennials, African Americans, and those never married.
• Affluent Americans are more likely than average to seek out luxury travel experiences, yet even lower income Americans can appreciate – and will pay – for luxury.

Consider: Affluent Americans are a small share of the travel market. Just 6% of those who took a trip last year had income over $200K, while 58% had income below $100,000.  

Marketers should think about extending affordable luxury to more groups and more experiences. Budget is top of mind for Americans, but many will splurge on vacation with more than one-third viewing quality travel as worth a premium. 

Why Brand Strength Matters for Retailers

Brand value isn’t just a feel-good metric; it’s a potent driver of long-term growth and resilience. Consider these statistics:

• 30% of company revenue is generated by the strength of the brand alone
• Power brands experience a staggering 2.6x higher sales volume and a 58% market share surge
• A whopping 74% of retail CMOs allocate at least 60% of their marketing budget to long-term brand building

However, there’s a crucial missing piece in the puzzle–measuring the effectiveness of brand-building efforts. How can you be sure your brand-building initiatives are delivering the desired results? This is where the challenge lies for CMOs. 

What Influences Customers to Choose You as a Retailer to Buy From?

Discovering what compels customers to choose you as a retailer over the competition is paramount. Research indicates several key drivers that influence brand choice in retail, most notably:

• Relevance — aligning with a shopper’s specific needs and preferences
• Ease of Access — offering seamless and hassle-free access to the brand portfolio
• Shopper Experience — delighting shoppers at every touchpoint

It’s crucial to recognize that these drivers can vary significantly across retail sectors. For instance, insights show that the combination of factors driving retail consumers to choose one FMCG brand, while shopping for groceries, over another is different compared to what drives them when choosing between two comparable technology brands.

Need more help understanding these drivers? NIQ’s solutions and service teams equip you with sector-specific brand tracking insights, empowering you to tailor your retail brand strategy to click with your target audience and stand out within your competitive landscape.

Understand Consumer Perceptions to Drive Growth 

Let’s delve into a real-world example: analyzing the success factors of FMCG retailers in Germany. This study revealed a fascinating trend – “Experience” emerged as a critical growth lever for some retailers. These retailers prioritized creating a positive and engaging in-store experience, recognizing that it’s not just about the products, but the overall customer journey.

In our evaluation of retailer brands, consumer loyalty remains strong at the top with the same retailers dominating both awareness and share of wallet.

On the other hand, discounters achieved success primarily based on price perception. While price is an undeniable driver of consumer choice, it shouldn’t be the sole focus.  

Discount grocers lack of brand differentiation and weak customer experience could hurt them when the economy recovers. The solution? Focus on improving customer experience and offering unique products to build trust and loyalty – key ingredients for long-term success in any economic climate.

For a deeper look into our FMCG retailer evaluation for Germany, or to explore similar findings in other markets, read more in our latest FMCG shopper trends report.

Turn Insights into Action

Imagine having a direct line to your customers’ minds. With NIQ’s retail brand intelligence, you don’t have to wonder what your customers are thinking.

Here’s how these insights empower retailers:

• Identify retail target audience: Gain insights into their demographics, needs, and shopping habits, allowing you to tailor your message and offerings for maximum impact.
• Understand customer purchase drivers: Are they price-conscious? Do they prioritize quality or convenience? By understanding these drivers, you can craft marketing campaigns that drive conversions.
• Track Your Retail Brand Perception Over Time: Are you building trust and loyalty? Are your marketing efforts effectively communicating your brand values? Brand health tracking lets you constantly monitor brand perception and adjust your strategy as needed.

These insights are critical to unlocking success. They empower retailers to develop short-term marketing wins, long-term brand building strategies, and overall growth.

With NIQ’s retail brand health tracking solutions, you have access to the data and insights you need to quantify the impact of your brand-building efforts. By tracking key retail brand health metrics over time, you can see what’s working, what’s not, and make data-driven decisions to optimize your brand strategy for long-term success.

Online Continues to Drive Category Performance

The digital transformation of the beauty industry shows no signs of slowing down, with online sales continuing to outpace in-store growth significantly. In the first half of 2024, 41% of all beauty and personal care sales occurred through e-commerce platforms, a marked increase from previous years. This surge is evident across the retail landscape, with major retailers, mass, and drug retailers all benefiting from the shift. Consumers are increasingly blending their shopping experiences, moving fluidly between online and in-store channels to find the best deals and a wider variety of products. As retailers continue to enhance their digital offerings and optimize omnichannel strategies, the growth of online beauty sales is set to accelerate further, reshaping how consumers engage with brands and make purchasing decisions.

About FNAC Darty

FNAC Darty is Europe’s leading retailer for cultural and technical goods, household appliances and services. The FNAC Darty group has been an integral part of French customers’ lives for decades as an ally in use of technological products, offering best-in-class services, advice and committed to 
sustainability targets.

FNAC Darty operates in a highly competitive market. Consumers are on a constant evolution, so their expectations, needs and purchasing habits, both in-store and online. FNAC Darty places the customer at the heart of its commercial and service approach. In order to meet these needs as closely as possible, FNAC Darty must be able to manage its business proactively and reactively. The group must have real-time visibility of its performance, sales, top products/services and flops.

With these in mind, FNAC Darty turned to GfK and its gfknewron Retail solution. It provides immediate access to sales performance to the various departments involved in steering global strategy, product strategy. At the same time, it delivers insights through an ergonomic platform with access for all staff members, offering a granularity of data that fits with both generic or specific needs at all group’s levels.

FNAC Darty Milestones:

1954

Max Théret and André Essel create the Fédération Nationale d’Achat des Cadres, with one ambition in mind: do business differently. 

1957 

The Darty brothers launch their retail brand. 

2016

The merger between Fnac and Darty, two iconic and popular brands, becomes official. Synergies arise naturally between the two entities, which share a similar vision of customer care and the role a company should play in supporting its customers on a daily basis. The Fnac Darty group is created, and becomes a leader in omnichannel distribution in Europe.

FNAC Darty Boosts Sales Strategy with gfknewron Retail Insights

The way FNAC Darty teams are using gfknewron Retail is wide. On the one hand, the range of KPIs and insights goes deep: market trends either by channel (shop, web) or by price range, vision in value/volume, segmentation of products, sales trends and 
performance, impact of promotions, weekly and monthly/annual dashboards… On the other hand, users’ profiles are very different, 
from product managers, analysts, sales directors to group managers, they all have access to the data they need to perform in their business and market. Thanks to the reliability and quality of the data and the analysis support provided by GfK consultants and gfknewron Retail platform, FNAC Darty can implement a more efficiently its sales and product strategy, promotions and tailor-made events, whatever the sales channel, market, market segment or product/service. 

Previously, the FNAC Darty group had manually created data files that were very static and offered little visibility for decision-making. This situation led to subscribing to gfknewron Retail platform and it radically changed all that. gfknewron Retail allows FNAC Darty teams to move away from blind management, incompatible with its constantly evolving business.

With greater data granularity, analyses are optimized and decisions are taken more quickly. As a result, the FNAC Darty group reduces 
risks and achieves better results and performance.

The gfknewron Retail platform enables FNAC DARTY to:

• Strengthen its ability to access and use key decision-making information across the group,
• Compile, manage and analyze market, consumer and product/service data, with a granularity unrivalled in the market, 
•   Have a complete view of the Group’s performance and positions in regards to competitors, 
•   Innovate and make strategic impactful decisions, 
•   Win market share, 
•   Position and adapt product, pricing and marketing strategies, 
•   Save time thanks to availability of data and insight in real time and at a glance. 

One of the most interesting aspects of Gen Z, particularly when it comes to understanding their impact on the market, is that it will be the most “non-Western” generation yet.

Gen Z is the least Western generation

Source: World Data Lab, Generations Forecasts

Financial Services:

NielsenIQ (NIQ) provides Finance Market Snapshot in the Thailand market. With rich experience in running local and regional studies, NIQ offers financial institutions the most comprehensive understanding of the financial industry landscape and delivers strategic insights to assist financial institutions in developing their business and strategies. NIQ has been running Financial Market Snapshot since Quarter 2 2023.

Key benefits:

The Finance Market Snapshot offers a holistic analysis of financial markets in Thailand. It provides a comprehensive understanding of the financial industry overview, financial products and brand usage, as well as explores brand health of banking, life insurance, and auto insurance. It includes a brand funnel and customer loyalty index, which is beneficial for measuring brand performance, growing brand awareness, and brand loyalty.

Key health categories within Tech and Durables are thriving

In the current health-conscious climate, Tech Consumer Goods (TCG) consumers are increasingly focusing on health care-related products, as evidenced by a 4.1% growth in sales revenue from health-focused categories. Small Domestic Appliances (SDA) with health care-focused features and core wearables are pivotal in this shift, helping individuals manage personal health more effectively at home.  

Even for categories like personal diagnostics, the revenue drops last year compared to 2022 were primarily due to high saturation levels caused by strong purchases made during pandemic years. If we compare 2023 sales to 2019, revenue from personal diagnostics is 11% higher, showing that devices like blood pressure monitors, digital thermometers, personal scales, and nebulizers remain indispensable for consumers.

Sleep health and mental well-being are gaining prominence within SDA products. In 2023, products like wake-up lights and seasonal affective disorder (SAD) lamps saw significant market traction, with a combined revenue growth of +36% over 2022.  

Wake-up lights, which simulate natural sunlight to gently wake users, help regulate circadian rhythms and improve overall sleep quality. Meanwhile, SAD lamps provide necessary light exposure during darker months, enhancing mental health. These innovations are crucial as sleep disorders become more prevalent due to sedentary lifestyles and high screen time. 

Innovative health appliances continue to drive the SDA market. For example, hot air fryers grew by 39%, to $3.3 billion globally in 2023. These offer a healthier alternative to traditional frying by using minimal oil, as well as the added benefit of using less energy compared to a conventional microwave oven. Similarly, electric cooking pots with steaming function, which reduce fat intake as well as preserving more vitamins and minerals than many other cooking methods, held their ground better than their overall category average: 

• Electric cooking pots with steaming experienced a -14% revenue drop last year, compared to -17% for electric cooking pots in total.   

These products highlight the trend toward integrating health benefits into everyday appliances. Despite a saturated market, it helps to limit the current sales decline when products are in-line with consumer motivations, such as making it easier for consumers to maintain healthier living without significant dietary changes. 

Core wearables have become central to personal health management, with purchases last year showing a 5% growth in revenue over 2022. Devices such as smartwatches and fitness trackers offer people extensive functionalities, from tracking physical activity and monitoring vital signs to analyzing sleep patterns. These devices offer real-time feedback and a highly convenient way to track and optimize their daily holistic health routines and personal fitness goals. 

The future of SDA health and personal diagnostics

Looking ahead, the integration of health technology into everyday life will only deepen. Wearables and other health innovations are becoming more advanced, user-friendly, and cost efficient, enabling more personalized health management with real-time, at-home monitoring that frees users from unnecessary trips to their doctor. The focus is shifting toward multifunctional devices that offer comprehensive health monitoring and support. For instance, smart scales can now operate in an ecosystem where they can integrate with wearable fitness trackers and mobile apps to provide users with a holistic view of their health metrics at their fingertips.  

This convergence of technology and health empowers individuals to take proactive steps in managing their well-being with the convenience and speed demanded of today’s society. As technology continues to evolve, it will bring more sophisticated solutions that cater to diverse health needs, making proactive health management even more accessible. The future promises exciting advancements that will further enhance our ability to maintain and improve our health through technology. 

Key 2024 shopper trends in Asia

To help navigate the evolving shopper behaviors, the NIQ 2024 Asia Shopper Trends report pinpoints five key trends taking hold across the region. 

1. Omni shopper behavior: Shoppers are not just focusing on online stores but also bringing back physical stores in their choices for retail channels, blending online and physical store shopping. This omnichannel behavior is driven by the pursuit of both value and convenience. Shoppers in China and Singapore have added more retail channels to their repertoire compared to pre-pandemic times. This includes online stores, physical stores (big and small formats), and emerging traditional trade formats like fresh marts in China. In Vietnam, there is a shift towards adding a mix of online stores and traditional trade formats.

This shift in channel utilization has also impacted shopping frequency. Shoppers in Malaysia are showing increased visits to online stores and hyper/supermarkets, whereas shoppers in Hong Kong are adding trips to supermarkets. On the other hand, shoppers in Thailand are an exception, showing increased shopping trips across most channels.

2. Price and promo-conscious shopping: Price and promotion sensitivity are on the rise, requiring targeted strategies. Constant promotions are not sustainable. NIQ recommends adopting a more strategic approach, which involves promoting with purpose. This means identifying the different shopper segments within the target market and their priorities. For example, some shoppers might be more value-conscious, seeking the best deals. Others might prioritize quality or be eager to try new innovations.  
   
   Shoppers today are more willing to switch brands and stores for better deals. The willingness to switch varies by market. Malaysian shoppers are more open to brand switching for promotions, while shoppers in Thailand are willing to switch both brands and stores. China presents a unique case with two sets of shoppers: those open to brand switching for promotions and those who purchase on promotions when their familiar brands are on offer. 

3. Shopping mission changes: Basket sizes are adapting – some prefer smaller, more frequent trips, while others seek economies of scale with bigger baskets. There is a decline in large baskets among shoppers in China and Indonesia, with shoppers opting for smaller baskets and lower spending per shopping trip. Conversely, more than half of shoppers in Taiwan and the Philippines see a trend towards bigger baskets, suggesting a potential focus on economies of scale.
   
   Assortment optimization is crucial to cater to changing shopping needs and basket sizes.

4. Product and brand information seeking: Savvy consumers are conducting thorough research before making purchasing decisions, driving demand for transparency and sustainability. Brands must now focus on delivering innovative, environmentally friendly products that meet the evolving needs and values of their customers.
5. Shopper trade-offs: Shoppers are overwhelmed by countless choices at every turn —from which channel, retailer, product, brand, and even pack size to buy. This decision fatigue often leads to trade-offs with what they purchase, how often and from where. This underscores the critical need to go back to basics and get a comprehensive understanding of shopping behavior to win with shoppers.

Gen Z shoppers are redefining the retail landscape with their distinct preferences and trends.

Purchase drivers by generation

Source: NIQ US Gen Z survey, Aug 2022, Q9

Rank of attitudes by generation

Source: GfK Consumer Life Global 2023, E1/J1/M1 (global = 18 countries): *based on a list of 43 attitudinal statements

84%

The statistics are clear: online retail is experiencing explosive growth. By 2040, a staggering 95% of purchases are projected to be made online.¹ This dominance isn’t surprising. Online platforms offer unmatched convenience and access, along with fertile ground for innovation – key factors in attracting and retaining customers. Simply put, the acceleration of digital is becoming the “new normal,” and it provides a significant opportunity for personalization.

In order to understand the state of the shopper, the on-demand webinar reviews some very interesting statistics on generations and consumption. The key takeaway is that no matter what generation a shopper belongs to, the way they seek and engage with information is changing. Online is and will continue to be the entry point for browsing for information; this creates an opportunity for personalized content.

Meeting Evolving Expectations

Although exciting, this digital transformation presents a challenge: keeping pace with the ever-evolving expectations of online shoppers. Consumers are demanding a richer, more informative and personalized online experience. Today’s digital shopper wants to know if products will fit into their lifestyle and are demanding more product information including more visuals and tailored content to make informed decisions.

Unfortunately, many retailers struggle to keep pace with shoppers’ evolving expectations, particularly regarding access to detailed and/or accurate product information. This represents a significant missed opportunity.

Additionally, with the rise of ecommerce and increased inflation, we have seen the erosion of shoppers’ loyalty. As a result, a whopping 75% of shoppers are likely to switch brands if they don’t find the necessary product information³; and instead, “when enhanced content is present, shoppers are 25% more likely to make a purchase”⁴, says Phil Gabillia, Global Expansion Director at NIQ Brandbank. This highlights the crucial role of not only personalized content, but also detailed product descriptions, specifications, and anything else that empowers consumers to make informed decisions.

Personalization Strategies

The good news for retailers facing the ever-evolving online shopper is a powerful strategy: personalization. A staggering 72% of consumers today expect retailers to know them on a personal level⁴. How can this be accomplished? It’s about leveraging data and technology to understand individual customer needs and preferences.

Mastering these opportunities is a great way to demonstrate non-intrusive knowledge while delighting the customer throughout the journey.

The key isn’t just about offering “something special” for every customer; it’s about understanding core marketing objectives. Successful personalization lies in understanding the fundamentals of shopper behavior.

Any personalized offer can succeed only if it taps into one or more of these fundamental objectives. By leveraging data insights and utilizing technology and AI, you can create personalized offers that resonate with individual customers on a weekly basis, using a variety of tactics to maximize their impact. This approach doesn’t feel intrusive – it feels helpful, building trust and loyalty.

As Sarah Duchazeaubeneix, International Client Director at NIQ points out, “When we think about the art of personalization, it’s going to be a mix of technology innovation, a pinch of creativity, and also tireless effort to understand the customer and to master how we can predict how the customer is likely to behave, and this is even more important for the online world where things are really pacing very fast.”

Ultimately, the online retail landscape is undergoing a rapid evolution. To thrive in this digital age, retailers must prioritize a customer-centric approach and implement effective personalization strategies. By doing so, you can build online shopping experiences that resonate with the demanding digital shopper of 2024. This not only translates to improved customer satisfaction and loyalty, but also drives sales and fuels future growth.

If the context suggests that understanding alternative retailers and channels is important, over recent times it has become even more crucial. Over the last year, shoppers have been looking more actively for alternatives for their FMCG occasions, leading to growth in Penetration among alternative channels such as Pharmacy, Convenience, General Merchandise and Home Improvement:

This trend generates opportunities and challenges for brands, as increasing touchpoints between shoppers and brands could generate more purchasing occasions.

Incumbent players that don’t have a strong presence at alternative channels could be at risk as leading brands should aim to be distributed everywhere the category buyer shops to be able to maintain not only high levels of physical availability through distribution and shelving, but also mental availability, remaining top of mind for consumers. Brands that don’t have a strong presence among alternative channels could be giving the opportunity that smaller and agile players are looking for to disrupt the category as they could fill this void by building a strong positioning among these channels.

Understanding the shopper

Some of these alternative channels are more appealing to specific shopper profiles and knowing the channel shopper profile could be very valuable for companies willing to innovate and start ranging specific products at new channels, potentially opening growth avenues.

The convenience offered by the Grocery Online channel is especially appealing for households with children, that correspond to 60.2% of online sales. On the other hand, Pet Specialty is concentrated on the opposite demographic profile, with 71.7% of its sales coming from households without children, potentially the profile that is most engaged with their pets and spends more on niche products, only found at specialty stores.

Looking at age groups, the Beauty channel is especially appealing to younger consumers (below 35 years old), with 56.4% of sales coming from this age group, while most of the sales for Fresh Specialty and Liquor are coming from consumers older than 35 years old (81.7% and 71.3%, respectively).

Some categories are more dependent on alternative channels than others, such as Hair Care, where nearly half of the sales are not coming from the Grocery channel. Different categories will have different reasons for shoppers to purchase at alternative channels. Often, consumers could be looking for more affordability that some channels like Home Improvement and General Merchandise can offer. However, this is not always the case, as in some categories as Hair Care, there are significant differences in the range between Grocery, Pharmacy, General Merchandise and Beauty, leading to a more occasion-driven purchase as the Beauty channel offers unique brands.

As the Australian retail landscape continues to evolve, understanding the nuances of the omni-shopper journey and the rising significance of alternative channels is paramount for FMCG success. Brands and businesses that adapt their strategies to these changing dynamics will be best positioned to capture growth opportunities and thrive in this new era of consumer behaviour.

About the Author

Marco Silva, Customer Success Director, NIQ

Marco Silva is a Customer Success Director at NIQ, where he leads a team of FMCG consultants in Australia. He is passionate about helping clients to make informed data-driven decisions to unlock growth. Marco has more than 10 years of experience at NIQ and has worked in regional roles in both Latam and APAC before moving to NIQ Australia in 2018.

Six seconds. That’s how long retailers have to make a sale in-store for a given product. Such short customer attention spans demand efficient merchandising at shelf coupled with the right assortment to drive shopper conversion to purchase. Unfortunately, attention spans are only one of the challenges in this rapidly evolving omnichannel retail environment.

The lack of shelf space is of particular concern. According to Advantage Solutions, almost 40% of retailers plan to reduce SKUs in the next 12 months. Of those retailers, nearly half say they’ll do so to simplify shelves. Less shelf space means stiffer competition to get and maintain product placement, especially at a time when private label brands continue to grow and put pressure on pricing and brand loyalty. More than ever, manufacturers need to demonstrate to retailers the value and relevance of their products.

Leveraging Data for

Assortment Optimization

Prior to 2020, the shelf supported retail traffic, feature promotions, and additional inventory for displays.

Today, the shelf supports three additional functions:

In a fiercely competitive retail landscape, data is a powerful tool that positions manufacturers for success. It provides valuable insights into consumer behaviors and uncovers market trends and new ways to differentiate from competitors.

The right merchandising and assortment strategies are critical for keeping up with and capitalizing on consumer trends. By leveraging data analytics to identify market growth drivers and collaborate with retailers, manufacturers are driving more successful outcomes.

From three to four 

14% of BevAl consuming households have an observable spending overlap between beer, wine, spirits, and RTDs. They’re also responsible for 29% of total BevAl volume.  

These households are driving the growing dominance of RTDs through an openness to new products. And it shows. 

RTDs: The new player

RTDs hold untapped potential and are a key product play for brands today. Why?

• 50% of total alcohol innovation dollars today come from RTDs
• 35% of bartenders that work in an establishment stocking RTDs say they’ve seen a big increase in sales in just a year
• Spirit-based RTDs are driving rapid growth – contributing 40% more to total RTD sales than a year ago

Consumers see the benefits, replacing their usual cocktail hour favorite with a convenient, ready-to-go option.

17% drink of consumers drink RTDs in the on-premise. (US OPUS Spring 2024)

The value prop is clear: minimal ingredients, little to no prep time, and consumers can enjoy a Moscow Mule, spritz, or Margarita in seconds.

Consider: While RTDs are a growing hit, to ensure longevity, flavor innovation may require a creative boost – where can you challenge the standard and reach new audiences? True innovation is required to maintain RTD momentum and expand shelf space allocation beyond current rates.