imagesReport

What Now What Next (2020)

Release date
May 2020
# of pages
37
Agency
Intage Inc. × Kantar Worldpanel
Report price
Free
Target countries
  • ChinaChina
  • IndonesiaIndonesia
  • IndiaIndia
  • JapanJapan
  • KoreaKorea
  • MalaysiaMalaysia
  • PhilippinesPhilippines
  • ThailandThailand
  • TaiwanTaiwan
  • Viet NamViet Nam

Description

Intage worked with Kantar Worldpanel to compile the "now" and "future" of FMCG consumption in Covid-19-affected Asian countries with purchasing data through May 2020.

Summary

1)[What Now?]
Local brands grew in all regions except China. Both the frequency and volume of purchases are increasing, and the success of the company's efforts to respond immediately to local needs and deliver products to customers is a key factor for its success.
↓
[What Next]
Consumers are shopping less frequently and their choices will be limited to the ones on the shelves. Distribution to channels and distribution for consumer convenience and in-store visibility are important.

2) [What Now?]
Consumers are prioritizing spending on food and other essentials, with personal care being the hardest hit in Asian countries. The key driver is to promote the new occasions in the disaster and to increase the number of buyers.
↓
[What Next]
Redefining the role of the brand in identifying new needs and creating occasions e.g.) Ensuring access through Coke home drinking & delivery, colorless lip care, etc.

3) [What Now?]
Covid-19's impact on low-income households, which account for 42% of Asian households, has been varied, but it has caused significant behavioral changes. They are eating out less (Indonesia), shopping less often and more (Philippines), and buying more brands for quality (India). In all countries, FMCGs are becoming more and more important as a necessity.
↓
[What Next]
・Redefine the role of categories.
e.g.) Powdered milk powder appealing for enhanced resistance and increased milk powder packs
・Size and price range to suit the channel and income group
e.g.) a small-size toilet cleaner that can be purchased by low-income earners due to the growing need for hygiene.

4) [What Now ?
Neighborhood and convenience stores are booming. This is due to the fact that people are choosing safer and less crowded stores because of COVID-19 and are shopping faster. People are now buying daily necessities categories such as liquid soap, clothes detergent and canned food that used to be purchased through other channels.
↓
[What Next]
Neighborhood/convenience stores are now the place where the necessities of life are bought, so categories should not be out of stock. In addition, labeling should be designed to make your branded products easier to pick up in-store than the competitors, and the pack size and pricing should be appropriate.

5) [What Now?
EC purchase rates increased to 81% in China, Taiwan and South Korea, and to 11% in Southeast Asia, including Thailand. Southeast Asia remains low, but in the last 12 months to May 2020, including the COVID-19 period, 60% of EC purchases were new purchases. Across Asia as a whole, 40% of buyers who started buying EC during the COVID-19 period intend to continue buying EC after COVID-19.
↓
[What Next]
Build a marketing plan (go-to-market strategy) in EC as well. Based on the online/offline structure (inflow and cannibalization from offline), product portfolio (online/offline best-selling products), and EC purchaser profile (new and existing EC purchasers), we will consider product assortment, product launch timing, and promotion and its implementation timing.

6) [What Now?]
In Southeast Asian countries, with the exception of China and South Korea, the percentage of purchases made through promotions has declined. In China, for the categories in which purchase of Corona products declined and recovery was slow, the company spent more money on promotions in order to bring back those who had stopped purchasing the products and encourage them to continue buying them.
↓
[What Next]
Optimize the content, duration, and discount range of the promotion for each category in accordance with the reduction in purchases due to COVID-19 and the rate of post-Corona recovery. The content of promotions will be determined according to the objectives of attracting new purchasers in the growing category and attracting back and retaining those who stopped purchasing in the declining category.

Translated with www.DeepL.com/Translator (free version)

Research design

Consumer purchase panel survey (Product code scan or diary)

Contact us

Intage Inc. is working with Kantar World Panel to support your global business by analyzing actual consumer purchase data from around the world to identify market changes and their drivers.
For more information on this report or oversea panel data, please contact us at global-market-surfer@intage.co.jp.

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