Shopper Trends 2012 Romania

Shopper Trends 2012
Romania
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shopper trends
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Research Methodology in Romania
Nielsen | Winning Brands
Target respondents
Main household products shoppers* (main grocery shoppers
and key influencers for household monthly shopping),
aged 18-65 years
Sampling
Random selection with quotas for age and gender
The sample is representative on national level for the urban
population in large cities (above 200.000 inhabitants) and in
medium cities (between 50,000 and 200,000 inhabitants).
Interview Methodology
Sample size and
structure
Data collection period
Face-to-face home interviews
1.200 respondents
- 300 interviews in Bucharest
- 100 interviews in every of the following cities: Iasi, Cluj Napoca,
Timisoara, Constanta, Brasov, Ploiesti
- 60 interviews in every of the following cities: Arad, Tg. Mures,
Rm.Valcea, Piatra Neamt, Targoviste
October - November 2011
*Main Shopper: The person in the household who is mostly responsible for most of the food, grocery, and personal care shopping.
**Key Influencer: The person in the household who is not most often doing the household shopping, but who frequently buy food, grocery and personal
care items for the household or actively participate in the decision-making.
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Market Context
shopper trends
Market Context - Summary
• After 2 years of significant and continuous decrease in consumers' confidence, Romanians recorded
their first rebound explained by a slightly better view on their personal income and shaped also by a
better perception on their readiness for buying things. Both better perceptions are due to improved
income levels - average salary increase was in November higher with 8% vs. last year, income
growth rate increased 5 times at the end of 2011 versus 2010 (from 1.3% to 8.7%), while inflation
significantly decreased (from 7.96% in December 2010 to 3.14% in December 2011). At the same
time, the end of the year was positively influencing consumers willingness to spend more... 'moving'
the Consumer Confidence Index back to a little higher position than in Q4 2010 (CCI of 54).
However, the overall Romanian consumers' confidence remains conservative, lower than European
and global average, as only one quarter of the consumers have positive perceptions on their financial
state, in an environment of increasing prices and political confrontations.
• In 2011 the perception about the increase of food prices is even stronger than in 2010. More than 4
in 5 shoppers consider that food prices are increasing in Romania
• Smaller traditional trade formats continue to struggle through 2011, being more and more affected by
the ascension of the modern trade sector.
• The modern trade sector continued its growth both in terms of shopper engagement and revenue but
also when it came to network development, as more than 100 new stores opened their doors during
the past year.
• While in 2010 the growth engine was represented by supermarkets, discounters are making a
powerful comeback taking the lead with more than 60 new openings in 2011.
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Nielsen Consumer Confidence Index - Europe
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
In 2011 income levels improved – the average salary increase was in November
higher with 8% vs. 2010, income growth rate increased 5 times at the end of 2011
vs. 2010 (from 1.3% to 8.7%), while inflation significantly decreased (from 7.96% in
December 2010 to 3.14% in December 2011).
Inflation
Evolution of Net Wages
*In October as compared
to October 2010
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Source: INS
shopper trends
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
In 2011 the perception about the increase of food prices is even stronger
than in 2010. More than 4 in 5 shoppers consider that food prices are
increasing in Romania.
Perceived dynamic of food prices
Base: All respondents 2011 (n=1200) 2010 (n=1200)
Significantly higher at 95% confidence level
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shopper trends
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
More than half of the shoppers who consider that food prices have
increased resorted to buying only the essential products and giving up high
price products in order to meet their budget.
Shoppers reaction to Food prices rising
Significantly more
women (30%) declare
be more active in
looking for special
offers than men (24%)
Base: All respondents who perceived food prices as growing (n=1019)
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Shopping Behavior
shopper trends
More shoppers do their main grocery shopping weekly in 2011 than in
2010. However the frequency of top up/intermediate grocery shopping is
almost unchanged.
Frequency of Main grocery shopping
Frequency of Top Up/Intermediate Grocery Shopping
34%
Weekly
Daily
13%
13%
21%
47%
2 to 3 time a week
44%
39%
Every 2 weeks
28%
Weekly
44%
30%
Every 2 weeks
27%
Every month
7%
7%
34%
Every month
1%
Less often
Less Often
1%
2011
2010
3%
5%
1%
1%
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Base: All respondents (n=1200)
shopper trends
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
2011 did not bring any changes in the level of adoptiveness displayed by Romanian
shoppers, as they continue to have a more reserved approach in general.
Adoptiveness
21%
19%
19%
55%
56%
56%
I seldom try new things - I find it is far
better to know what you want rather
than risk buying something that may
not work out
24%
25%
26%
Nov 2009
Nov 2010
Nov 2011
I sometimes buy new brands or
products - but usually stick to my
favourites
I love trying new things - I'm always on
the lookout for new brands and
products
12
Base: All respondents (n=1200)
shopper trends
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Attitude towards buying grocery products
I always prefer to shop in a well organized grocery store with a pleasant ambience
I a lw a ys p re fe r to sh o p in a w e ll o rg a n ize d g ro c e ry sto re w ith a p le a sa n t
a mb ie n c e
I really enjoy doing the grocery household shopping
I re a lly e n jo y d o in g th e g ro c e ry h o u se h o ld sh o p p in g
94%
6%
91%
9%
I usually plan what I want to buy before I shop for groceries
84%
16%
I care about quality and I am willing to pay more for quality products
82%
18%
I like to take my time and browse all parts of the store
80%
20%
I always take advantage of a special offer or deal to stock up on my everyday grocery items
80%
20%
I usually make a point of looking at circulars and clip coupons on grocery products
79%
21%
Although I plan beforehand, I usually end up buying additional grocery items once in-store
77%
24%
I usually compare the prices of store brands with leading brands to decide if they are worth buying
76%
24%
I u su a lly p la n w h a t I w a n t to b u y b e fo re I sh o p fo r g ro c e rie s
I c a re a b o u t q u a lity a n d I a m w illin g to p a y mo re fo r q u a lity p ro d u c ts
I lik e to ta k e my time a n d b ro w se a ll p a rts o f th e sto re
I a lw a ys ta k e a d v a n ta g e o f a sp e c ia l o ffe r o r d e a l to sto c k u p o n my
e v e ryd a y g ro c e ry ite ms
I u su a lly ma k e a p o in t o f lo o k in g a t c irc u la rs a n d c lip c o u p o n s o n g ro c e ry
p ro d u c ts
A lth o u g h I p la n w h a t I w a n t to b u y b e fo re h a n d , I u su a lly e n d u p b u yin g
a d d itio n a l g ro c e ry ite ms o n c e in -sto re
I u su a lly c o mp a re th e p ric e s o f sto re b ra n d s w ith le a d in g b ra n d s to d e c id e
if th e y a re w o rth b u yin g
Anything that saves me time is worth paying extra for
66%
35%
When shopping for groceries, customer service is very important to me
65%
36%
I make a real point of buying healthy options
64%
36%
I have a strict budget for household groceries and only buy the grocery items that I need
61%
39%
59%
41%
A n yth in g th a t sa v e s me time is w o rth p a yin g e xtra fo r
Wh e n sh o p p in g fo r g ro c e rie s, c u sto me r se rv ic e is v e ry imp o rta n t to me
I ma k e a re a l p o in t o f b u yin g h e a lth y o p tio n s
I h a v e a stric t b u d g e t fo r h o u se h o ld g ro c e rie s a n d o n ly b u y th e g ro c e ry
ite ms th a t I n e e d
I make a real point of buying products that are friendly to the environment
I ma k e a re a l p o in t o f b u yin g p ro d u c ts th a t a re frie n d ly to th e e n v iro n me n t
Base: All respondents (n=1200)
I go to a lot of effort to buy my groceries at the lowest prices
I g o to a lo t o f e ffo rt to b u y my g ro c e rie s a t th e lo w e st p ric e s
I usually stick to my plan when grocery shopping
I u su a lly stic k to my p la n w h e n g ro c e ry sh o p p in g
50%
50%
45%
55%
Yes
No
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
The proportion of men and women shoppers remained almost unchanged from
2010. However, when it comes to the age splits within each gender, it seems that in
2011 males aged 25 to 34 were more involved in the shopping decisions than in the
previous year.
Females
Shoppers’ Profile
Males
Gender
40%
60%
2010
Age by gender
59%
41%
2010
18%
33%
34%
15%
2010
20%
29%
34%
18%
Base: All respondents (n=1200)
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Significantly higher at 95% confidence level
shopper trends
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Price & Promotions
shopper trends
Price reduction is by far the best preferred promotion by shoppers who
declare to be influenced by promotions.
Preferred Promotions
1st preference
28
Buy one get one free
Buying one product and getting another
different product for free
Get an extra quantity (20-25%) for the same
price
Opportunity to collect points
3rd
59
Price off
Instant prizes
2nd
4
14
38
18
9
11
22
4 10
23
2 34
1 7
6
Competition entry into prize draw 1 32
Pack of 4 / 6 / 8… with a special price per
1
unit
Finding presents inside the pack
8
20
3
Base: All respondents who declare to be influenced by promotions (n=922)
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Romanian shoppers declare to be quite aware of the prices for the items they buy
regularly. About 3 in 5 declare to know the prices for most if not for all the prices for
the items bought regularly.
Price Awareness
23%
21%
38%
40%
16%
44%
Know all the prices of items
bought regularly
Know prices of most items
and notice when price
changes
Don’t know all prices but do
notice when prices change
32%
31%
33%
Don’t know or notice prices
8%
7%
8%
Nov 2009
Nov 2010
Nov-11
Base: All respondents (n=1200)
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Private Labels
shopper trends
The perception of the quality of the store is even more reflected in the perception of
the quality of the Private Labels in 2011 than in 2010. Almost 3 in 4 respondents
agree that the better the store the better the PL is going to be.
PL brands are considered as…
% Agree 2010 (Nov)
Generally, the better the store the better the Private Label is
going to be
% Agree 2011 (Nov)
63
I usually compare the price of Private Labels with leading brands
to decide if it is worth buying
64
72
71
Private Labels may be cheaper but overall manufacturer branded
products are better value for money
66
68
Private Label packs look just as good as manufacturer branded
products
68
65
Private Label quality is generally just as good as the quality of
leading brands
66
63
I feel better about buying manufacturer branded products for my
family rather than Private Labels
I think Private Label are for those with serious tight budget
58
60
54
I don't know enough about Private Labels to consider buying
them instead of my usual brands
54
55
If someone buys a lot of Private Labels, I think they made the
smart choice
52
55
Base: All respondents aware of PL (n = 1067)
+
+
59
Significantly different compared to Nov 2010
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Store Selection &
Spending on Grocery
shopper trends
Slightly increasing in importance, people continued to spend the majority of
their grocery budget in Hypermarkets.
Where do people spend the majority of their grocery budget?
2009
2010
2011
Hypermarkets
53%
50%
55%
Supermarkets
19%
22%
21%
Discounters
16%
18%
17%
Traditional
6%
6%
3%
Cash & Carry
5%
4%
2%
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Base: All respondents (2009 n=1200, 2010 n=1200 , 2011 n= 1200)
shopper trends
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
In 2011, the visiting frequency for hypermarkets and supermarkets increased
slightly, showing signs of market improvement, while the traditional trade
struggled to maintain the same rhythm as in previous years.
Average Frequency of Visits per Month
2009 (Nov)
21
Large Modern Trade
4
3
4
4 4 4
4
2 2 2
HypermarketSupermarket
9
10
11 11 11
6 6 6
5
Cash &
Carry
Discounter
3
2
5 5 5
3 3 3
3
Petrol
station
2011 (Nov)
20
18
10
5
2010 (Nov)
Bakery
Kiosk
Traditional
Grocery
Open
market
Vegetable
vendor
Butcher
2 2
Modern
Pharmacy
SCALE: Once a day (30) – Once a week (4) – Less often than once a week (0,5)
Base: All respondents ( Nov 2009 n=1200, Nov 2010 n=1200, Nov 2011 n=1200)
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