Shoppers in Asia embrace change: NIQ 2024 Shopper Trends report unveils five key trends shaping the future of grocery shopping
July 25 2024 - 12:00AM
Business Wire
- Grocery shopping in Asia is undergoing a transformation as
value-conscious shoppers adjust spending habits and explore
different retail channels.
- NIQ's 2024 Shopper Trends report identifies five key shopper
trends to help consumer packaged goods manufacturers and retailers
win in this evolving retail landscape.
The grocery landscape in Asia is undergoing a dynamic
transformation, driven by evolving consumer values and economic
realities. The 2024 Shopper Trends report by NIQ, a leading
authority in consumer intelligence, sheds light on trends in
shopper retail channel choices, basket size, and shopping trip
frequency. The annual report identifies five key trends that
manufacturers and retailers in Asia can leverage to enhance
customer experience and achieve success in this evolving retail
landscape.
"By staying attuned to these shifting shopper trends in Asia,
manufacturers and retailers in the consumer packaged goods industry
have a unique opportunity to not only adapt and thrive in the
current environment, but also prepare for the impact these trends
will have on markets across the region,” states Gaurang Kotak,
Consumer and Marketing Insights, Southeast Asia Modern Trade
Leader at NIQ. “Developing proactive strategies that cater to
these changing behaviors will be paramount for success in the
future.”
Inflation's bite is evident in shopper sentiment. Across Asia,
more shoppers report heightened price awareness compared to 2019.
Notably, Vietnam (60%) and Thailand (72%) see over half their
shoppers acutely aware of price changes. This awareness translates
into sharpened focus at the store with over 80% of shoppers in
Korea, Singapore, and Taiwan perceiving price increases. Due to
this, shoppers are making deliberate choices to maximize their
budgets —— which retail channels they shop at, how often they shop,
their basket sizes, and their willingness to change stores and
brands for promotions.
Key shopper trends in 2024
To help navigate the evolving shopper behaviors, the NIQ 2024
Asia Shopper Trends report pinpoints five key trends taking hold
across the region.
- 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.
- 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.
- 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.
- 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.
- Shopper trade-offs: The wide range of choices bombarding
shoppers – which channel, retailer, product, brand, and even pack
size. 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.
“The trends identified in the Shopper Trends report, such as the
rise of omnichannel shopping, return of shoppers to the physical
stores, and increased tradeoffs that shoppers are making, paint a
clear picture of the evolving shopper landscape," says Dolly
Jitani, NIQ Global Shopper Leader, Consumer and Marketing
Insights. "By leveraging these insights, manufacturers and
retailers can develop targeted strategies to meet the diverse needs
of shoppers and build lasting customer loyalty."
About Shopper Trends
NIQ’s Shopper Trends is an annual syndicated survey-based
solution that leverages over a decade of trended data with
comprehensive coverage across 50+ markets, delivering in-depth
insights into shopper and category trends. In Asia Pacific the
report is available in China, Hong Kong, India, Indonesia, Korea,
Malaysia, Philippines, Singapore, Taiwan, Thailand, Vietnam.
About NIQ
NielsenIQ (NIQ) is the world’s leading consumer intelligence
company, delivering the most complete understanding of consumer
buying behavior and revealing new pathways to growth. NIQ combined
with GfK in 2023, bringing together the two industry leaders with
unparalleled global reach. Today NIQ has operations in more than 95
countries covering 97% of GDP. With a holistic retail read and the
most comprehensive consumer insights—delivered with advanced
analytics through state-of-the-art platforms—NIQ delivers the Full
View™.
For more information, please visit www.niq.com
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version on businesswire.com: https://www.businesswire.com/news/home/20240725738049/en/
Media: Liza D. Martija, liza.martija@nielseniq.com