Promotions provide opportunities in Asia, says Nielsen

A new Nielsen study on shopper trends shows an increase in promotion-seeking as a result of inflationary concerns, providing opportunities for manufacturers to gain strong shopper and brand loyalty.

According to the study, more shoppers are turning to promotional offers for some respite from the rising prices of fast-moving consumer goods. The study suggested that shoppers in Vietnam and Malaysia were particularly motivated by promotions, followed by shoppers in China. Both Vietnamese and Malaysian shoppers profess to promotion-seeking and, according to the study, almost 9 out of 10 Vietnamese shoppers claim to be promotion seekers along with 86 percent of Malaysian shoppers - up from 77 percent in 2008. The increase in China has been more moderate, with an increase of 6 percent since 2008.

Managing director of retailer services (Asia-Pacific, Middle East & Africa) at Nielsen, Peter Gale, said that this increasing trend implies opportunity for the food and beverage industry in Asia. He said that “the real opportunity lies in building shopper and brand loyalty,” something he said should be done by both manufacturers and store owners. Promotion-seeking and impulsive buying is increasing in just about every market, he said.

“The key here is to become more relevant to shoppers, so it's going to be a level playing field for both domestic and international players,” he said. “Packaged foods and beverages are a significant part of grocery shopping, and packaging is one of the ways to attract shoppers' attention, particularly as they zip through stores on a 'grab-and-go' top-up shopping mission. Retailers also have a part to play in thinking through the store layout to make it more convenient for these shoppers."

Whilst Asia-Pacific shoppers are still relatively brand loyal and price increases are accepted, promotions are increasingly attractive. These increasing trends in Asia Pacific shoppers must not be ignored, Gale said. Manufacturers need to respond with savvy marketing, promotions and convenience food and beverage products, if they want to grab the opportunity of building shopper and brand loyalty in the current marketplace.

Gale said creative promotional marketing from retailers and brand owners, coupled with the impact of inflation has created a higher level of activity that is set to stay and become the new norm as long as shoppers continue to seek good value and inflation does not let up.

In what he defines as a rapidly evolving market, Gale said: “The key is as always in knowing how to best leverage these trends and understanding the needs and desires of today’s consumers.”