Mobile Wallets and the Evolving Consumer

Transcription

A FRESH LOOK INTO
MULTICULTURAL CONSUMERS:
Disrupting the mainstream market
Vanna Tran, Director Multicultural Growth and Strategy
Jana Mickey, Director Perishables Group
August 25, 2016
AMERICA’S CULINARY EVOLUTION
More than
1 in 4 Americans believe that
multicultural flavors are important
Almost 1 in 3 Americans consume foods that
contain multicultural flavors at least once a week
Source: 2016 Harris Poll Study
The U.S population will grow by
Hispanic 6.8M
In 5 Years,
Asian American 2.3M
African American 1.8M
Non-Hispanic White 1.0M
Source: Nielsen State of the Hispanic Consumer Report: The Hispanic Market Imperative, American Communities Survey (2014), U.S. Census Bureau * Excludes American Indian, Alaska Native,
Hawaiian & Other Pacific Islanders
(in Millions)
THE BLENDING OF U.S. HOUSEHOLDS
% Blended Households
Bl
15.6%
UnBl
NHW
60.5%
40%
Unblended MC +
Blended HH’s
UnBl MC
24.0%
American Households
Unblended Non Hispanic White
Unblended Multicultural
46 Million
Blended
2014 American Community Survey (ACS) 1-year PUMS, tabulations by Ethnifacts
<50
50+
% of Total US Population
66%
34%
UnBlended NHW Pop
47%
66%
UnBlended MC +
Blended Pop
53%
34%
SOCIETY
INDUSTRIIES
MARKETS
CITIES
FAMILY
MULTICULTURAL
INFLUENCE
FRIENDS
NEIGHBORS
RETAILERS
MANUFACTURERS
GOVERNMENT
Nearly
half of all
Americans
agree it is important to speak
52%
more than just English
32% of all Americans
would pay more
for a brand that understands
multicultural needs
Between 2011-2015, U.S. Total Food and Beverage
grew by $35 billion
only $1 billion
came from the top 25
largest companies
~50% growth
came from the 20K
companies below Top 100
SHIFTING WELLNESS CHARACTERISTICS
21st Century Wellness
Characteristics
20th Century Wellness
Characteristics
• Reduced fat or non-fat
• Reduced calories or calorie free
• Cholesterol reducing ingredients
(Plant Sterols)
• Reduced cholesterol
• Reduced sodium
• Reduced sugar or sugar free
• Good or excellent source of calcium
• Bran
• Whole Grain
•
•
•
•
•
•
•
•
•
•
•
•
•
Gluten Free
Naturally Heart Healthy Foods
Organic/Natural
GMO free
Nothing artificial
No High Fructose Corn Syrup
Nut Free
Alternative Grains (Ancient, Quinoa,
Chia, Amaranth, Kamut, Spelt)
High Protein
Grain Free
Ethical (cage free, free range, fair
trade)
Low Glycemic
Products with natural sources of
Omega 3
HEALTH AND WELLNESS HAS STRONG MULTICULTURAL
CONNECTIONS
BIGGEST AND
FASTEST
GROWING
H&W CLAIMS
Tofu*SOY
+16%
Avocado**
Heart
+10%
Healthy
Hummus*
GLUTEN
+19%
FREE
Kombucha*
NATURAL
+23%
54% of
Multicultural
consumers
ORGANIC
regularly
eat
organic
foods***
Source: 2015 Nielsen Meat Trends, *Nielsen TargetTrack x US AOC Weeks Ending in Latest 52 Weeks Ending in 7/30/2016,**Nielsen Perishables FreshFacts Ending in 3/26/2016, ***Nielsen Scarborough 2016
Couscous**
ANCIENT
+42%
GRAIN
I WOULD
THAT OFFERS A WIDER SLECTION OF
MULTICULTURAL PRODUCTS
AMERICAN ADULTS
49%
MILLENNIALS
65%
RETAILER 1
ROASTED
SEAWEED
SESAME OIL
RETAILER 2
CAGE FREE EGGS
WILD CAUGHT
SALMON
MULTICULTURAL CONSUMERS HAVE UNPRECEDENTED
INFLUENCE ON THE MAINSTREAM
MULTICULTURAL FLAVORS DRIVING PRODUCT
INNOVATIONS
Habanero
Source: Nielsen Perishables FreshFacts 52 Weeks Ending 4/30/2016
Wasabi
Cajun
MULTICULTURAL CONDIMENTS TAKING OVER
Dollar Growth Rate 2012 vs. 2015
Ketchup 1.5%
Ranch -5.5%
Salsa 3.3%
Hot Sauce
Guacamole 54%
18%
Source: Nielsen TargetTrack x US AOC Lcalendar Year 2012-2015
GROWTH IN HERBS AND SPICES
HERBS
Growth Rate (2012-2015)
17%
Source: Nielsen TargetTrack x US AOC Lcalendar Year 2012-2015, Nielsen Target Track Latest 52 Weeks Ending in 7/23/2016
SPICES
Growth Rate (2012-2015)
14%
MULTICULTURAL MINDSET
100% Prefer cooking with
fresh products rather than
frozen or canned
73% Rarely eat frozen foods
69% Purchase locally grown
food
Source: Nielsen Scarborough 2016
81% Cook meals frequently
during the week
70% Agree that dinners in my
home are usually planned
ahead of time
Copyright ©2016 The Nielsen Company. Confidential and proprietary.
MULTICULTURAL SHOPPERS SPEND
$40B IN FRESH
28.0%
30.0%
Total Store
Fresh
SHARE OF DOLLARS FROM
MULTICULTURAL SHOPPERS
20
THE MULTICULTURAL SHOPPER
AND THE FRESH SPACE
WHAT IS FRESH?
THE FRESH PERIMETER CONTINUES TO GROW
Dollar % Share
CENTER
63.2%
PERIMETER
36.8%
(+0.3)
63.5%
64.4%
$8.7B
Growth
Source: Nielsen Perishables Group Advanced Fresh Perspective; Total U.S., 2015.
36.5%
2015
(+0.9)
2014
35.6%
2013
$12.4B
Growth
Shr. pt. chg. vs YA
Source: Nielsen Homescan TSV Panel, Data 52 Weeks Ending 07/02/2016
Make 3% more trips
containing Fresh
Spend 4% more per year on
Fresh
80,000
ADDITIONAL TRIPS
$60M
INCREMENTAL
SALES
Increasing share of Fresh
faster than nonMulticultural shoppers
24
HOW SHOPPERS SHOP IS EVOLVING AS MORE OPTIONS
BECOME AVAILABLE
% OF MULTICULTURAL SHOPPERS PURCHASING FRESH
DRUG
CONVENIENCE
& GAS
WAREHOUSE
& CLUB
MASS &
SUPERCENTER
GROCERY
18%
26%
57%
81%
99%
-
25
FRESH SPEND VARIES GREATLY ACROSS ETHNICITIES
INDEX OF FRESH SPEND TO TOTAL BASKET
AFRICAN
AMERICAN
ASIAN AMERICAN
HISPANIC
NON-HISPANIC
WHITE
94
139
108
97
MEAT
116
101
103
97
SEAFOOD
166
258
106
81
DELI
92
113
107
100
BAKERY
89
102
103
102
PRODUCE
26
HIGH-SELLING ITEMS HIGHLIGHT MULTICULTURAL PREFERENCES
INDEX HIGH WITH THESE MULTICULTURAL SEGMENTS
Fresh Chicken Wings
Fresh Crab
Fresh Catfish
Fresh Pork Ribs
Fresh Tilapia
Frozen Green Beans and Broccoli
Bakery Oatmeal Raisin Cookies
Bacon
Whole Fresh Chicken
Decorated Cakes
Produce Beverages
Deli Self-Serve Bologna
Deli Hot Dogs
Fresh Green/ String Beans
Bakery Croissants
Fresh Tuna
Fresh Salmon
Fresh Sprouts
Fresh Garlic
Fresh Shrimp
Fresh Tilapia
Deli Sushi
Cooking Vegetables
Specialty Desserts
Fresh Chicken Thighs
Fresh Limes
Fresh Avocados
Bakery Croissants
Fresh Tilapia
Fresh Garlic
Specialty Cheese-Gouda
Decorated Cakes
Fresh Mandarins
Bakery Bread
Fresh Salmon
Fresh Pineapple
Produce Beverages
27
FRESH FISH- CATFISH, TILAPIA, CRAB
HIGH INDEXING
MULTICULTURAL GROUPS, SUCH AS HISPANICS EMBRACE COOKING
AND LIKE TO ADD THEIR OWN FLAVORS TO DISHES
FRESH CHICKEN- WINGS ,LEGS, DRUMS
DRIED VEGETABLES AND GRAINS
FRESH LIME, LEMONS, GARLIC
COOKING GREENS
FROZEN DOUGH
INSTANT BREAKFAST
DAIRY CHEESE
FROZEN VEGETABLES
DELI APPETIZERS
LOW INDEXING
SPICES, SEASONINGS, EXTRACTS
FROZEN PIZZA
28
Opportunities exist to better reach Multicultural shoppers on trips
% using on most shopping trips when shopping for groceries
Multicultural:
White
Hispanic
Asian
African
American
Using shopping list
59%
53%
42%
43%
Compare unit prices
48%
49%
45%
39%
Use store circular
36%
34%
35%
36%
Use coupons
30%
31%
28%
30%
6%
8%
4%
9%
Purchase from display
Asians Less Likely To Use Shopping List, Use Coupons & Buy From Display
Source: Nielsen Homescan Survey—March 2016 (n=22379)
29
THE HALO EFFECT IS MUCH MORE APPARENT WITH MILLENNIALS
Bakery 101
Meat 101
Produce
96
96
INDEX OF FRESH DEPARTMENTS TO AVERAGE
Bakery
96
Deli
100
INDEX
Total Perishables
101
Deli 102
106
INDEX
Total Perishables
105
Meat
106
Produce 106
30
MILLENNIAL PURCHASES SPAN ACROSS CULTURES
COMPARED TO THE MULTICULTURAL BOOMER,
MILLENIALS SPEND SILMILARLY IN…
HISPANIC
STONE FRUIT, PINEAPPLE, BANANA, CORN, CHICKEN THIGH/WING/WHOLE, BEEF STEAK
AFRICAN AMERICAN
BISCUITS, CREAM & PUMPKIN PIES, CITRUS, POTATOES, CHICKEN WHOLE/THIGH
ASIAN
BAKERY BREAD, CELERY, GARLIC, HERBS, SPROUTS, CITRUS, PORK ROAST, BACON
MULTICULTURAL BOOMERS SHOP MUCH MORE
TRADITIONALLY TO THEIR CULTURE
31
MULTICULTURAL MILLENIAL EMBRACE VARIETY AND FLAVORS
Hispanic Millennials
African American Millennials
Asian Millennials
Bread/Buns, Brownies, Cupcakes
Muffins, Cupcake, Brownies
Donuts, Cupcake, Brownies
Specialty Cheese
Deli Meat, Specialty Cheese, Sushi, Entrees
Deli Cheese, Sandwiches, Pizza
Strawberries, Apples
Strawberries, Kiwi
Strawberries, Pumpkin, Peppers, Avocado
Ground Turkey, Hot Dogs, Tilapia
Chicken, Salmon, Ground Beef
Chicken, Ground Beef
…Than Hispanic Boomers
…Than African American Boomers
…Than Asian Boomers
spend more on….
spend more on….
spend more on….
SHOPPING DIFFERENCES DIMINISH
32
PROXIMITY TO HISPANIC STORES IS LESS OF A CONCERN FOR HISPANIC
MILLENNIALS IN LA
54%
52%
38%
LOS ANGELES HISPANIC MILLENIALS
TOTAL U.S.
43%
THERE ISN'T A HISPANIC I CAN FIND ALL OF MY
GROCERY STORE NEARBY GROCERIES AND ETHNIC
PRODUCTS IN
MAINSTREAM RETAILERS
TOTAL HISPANICS
MILLENNNIAL HISPANICS
*LA TesSource: Nielsen July 2015 Online Survey, Hispanic Grocery
32%
36%
25%
18%
THEY LACK ENGLISH
THERE ISN'T A HISPANIC
I CAN FIND ALL MY
GROCERY STORE NEARBY GROCERIES AND ETHNIC SPEAKING EMPLOYEES
PRODUCTS IN
MAINSTREAM RETAILERS
THEY DON'T HAVE A
WIDE SELECTION OF
GROCERY PRODUCTS
LOS ANGELES HISPANIC MILLENIALS
33
DIVING INTO THE DEPARTMENTS
MULTICULTURAL PRODUCE EXCITES SHOPPERS
+72%
DOLLARS VS YAGO
LYCHEE
+39%
DOLLARS VS YAGO
CHINESE CELERY
+32%
DOLLARS VS YAGO
PASSION FRUIT
+22%
DOLLARS VS YAGO
BITTER MELON
+18%
DOLLARS VS YAGO
HABANERO PEPPERS
PRODUCE
35
VALUE-ADDED FRUIT AND VEG GROWING, BUT WITH
SPECIFIC ITEMS FOR MULTICULTURAL SHOPPERS
Value-Added Pineapple
$303K
10.8%
Value-Add Fruits
and
Vegetables
7.7%
DOLLARS
Value-Added Mango
$58K
37.9%
Value-Added Peppers
$28M
32.0%
Value-Add Sugar Snap Peas
$99M
5.2%
PRODUCE
36
ACTION PLANNING: MAXIMIZE VISIBILITY & VALUEPROPOSITION
37
MEAT AND SEAFOOD ARE KEY DIFFERENTIATORS WITH
MULTICULTURAL CONSUMERS
MEAT ANNUAL DOLLARS
SEAFOOD ANNUAL DOLLARS
MULTICULTURAL
MULTICULTURAL
$395.31
$62.88
WHITE NON-HISPANIC
WHITE NON-HISPANIC
$356.31
$42.77
African
Americans spend
the greatest share of
fresh dollars on meat
and seafood at 44%
Asian-Americans
spend more than
twice as much on
seafood as White
HHs, and grew spend
by 8%
MEAT & SEAFOOD
38
FRESH
MEAT
A
PROCESSED
MEAT
5%
SEAFOOD
Fresh Perceived vs Branded Products
SHARE OF SPEND ON BRANDS
MULTICULTURALS HAVE VARIED PREFERENCE FOR BRANDS
IN MEATS AND SEAFOOD
AA
15%
AA
HA
90%
A
35%
W
10%
W
85%
H
95%
H
AA
W
45%
55%
Asian Americans showed a stronger preference for unbranded in Fresh Meat/Seafood
39
CULTURES INSPIRE TRENDS AT RESTAURANTS
GROCERY CAN DRIVE GROWTH BY ALIGNING TO
TRENDS, FLAVORS AND CUTS
Source: Data Essentials – 25 Fastest Growing Proteins, Perishables Group Data - 2015
40
OPPORTUNITY TO BETTER MEET MULTICULTURAL NEEDS IN DELI
Non-Hispanic White
Hispanic
Nat’l Avg
Over-Index
$
$
Increases in ethnic
options like Tortilla
Soup, guacamole,
Pot Stickers, sushi
Largest annual spend,
with focus on
prepared foods &
specialty cheese
Asian
African American
Under-Index
$
Convenience
categories such as
Chicken, Sides and
Deli Platters
Nat’l Avg
$
Highest basket size,
with focus on
entertaining
DELI
41
MULTICULTURAL FLAVORS ARE IN DEMAND AND SEEKED OUT
LOVE TRYING NEW THINGS OUTSIDE
THEIR CULTURE
LOVE TRYING NEW THINGS OUTISDE THEIR
OWN CULTURE
Percentage of All Americans
84%
78%
Millennials
Source 2016 Harris Poll Study
71%
Boomers
42
IN FACT, MULTICULTURAL FLAVORS ARE MAINSTREAM IN DELI
+78%
Cajun
Turkey
Breast
DOLLARS VS YAGO
TACO SALAD
+14%
Habanero
Ham
DOLLARS VS YAGO
DELI SUSHI
+14%
Jalapeno
Hummus
DOLLARS VS YAGO
MANCHEGO
Jerk
Marmalade
Chicken
Teriyaki
Fried
Chicken
Acai
Bowls
+12%
DOLLARS VS YAGO
Jalapeno
Cheddar
CHORIZO
+8%
DOLLARS VS YAGO
MEXICAN
ENTREES
Source: Nielsen Perishables Group FreshFacts 52 Weeks Ending 4/30/2016
Charro
Beans
ETHNIC FLAVORS AND DISHES GROW IN CONVENIENT DELI
43
THE ROLE OF DELI IS A KEY DIFFERENTIATOR IN STORE SUCCESS
$ SHARE BY FRESH DEPARTMENT
29%
HIGH FRESH VELOCITY RETAILERS
Source: Nielsen Perishables Group FreshFacts® 52 Weeks Ending 12.26.15
11%
MEAT
DELI
PRODUCE
BAKERY
SEAFOOD
LOW FRESH VELOCITY RETAILERS
44
ACTION PLANNING: CREATE UNIQUE DINING
DESTINATIONS WITH MULTICULTURAL FLAIR
45
OPPORTUNITY FOR MULTICULTURAL CONSUMERS IN BAKERY
WHITE
Bakery
Dollars
HISPANIC
AFRICAN AMERICAN
ASIAN
High---------------------------------------------------------------------------------Low
BAKERY
46
DESSERTS
BREAKFAST
BREAD
BAKERY
AND ROLLS
TOTAL
BAKERY
Fresh Perceived vs Branded Products
SHARE OF SPEND ON BRANDS
ASIAN AND HISPANIC SHOPPERS HAVE A STRONGER PREFERENCE FOR
PREPARED IN STORE BAKERY ITEMS
A
A
40%
AAH
50%
60%
A
H
H
W AA
70%
WAA
A
H W
80%
AA
W
90%
47
WINNING IN BAKERY: GRAB THE COAT TAILS OF THE
DELI DEPARTMENT
IN-STORE BAKERY AND DELI SHARE…
PROXIMITY
Strong
cross-department
connections
for Multicultural
shoppers with
Utilize these departments’
adjacent locations to
cross-promote and crossmerchandise
CONVENIENCE
Drive connections between
the bakery and deli prepared
foods to meet the growing
consumer need for
convenience
Activate cross-department connections for these occasions:
entertaining categories
DINNER TO-GO
DINE-IN
PARTY TIME
48
Authenticity versus Convenience
Leverage Perishables for cross-store success
Invest in upfront research
Multicultural is the winning advantage
Greatest risk is not doing anything at all
49
Vanna Tran
[email protected]
Jana Mickey
[email protected]
50

Mobile Wallets and the Evolving Consumer

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