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 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).
Sampling
Interview Methodology Sample size and structure
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, [Link], Piatra Neamt, Targoviste October - November 2011
Data collection period
*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.
shopper trends
Copyright 2012 The Nielsen Company. Confidential and proprietary.
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.
shopper trends
Copyright 2012 The Nielsen Company. Confidential and proprietary.
Nielsen Consumer Confidence Index - Europe
shopper trends
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
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)
shopper trends
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
34% 21%
Frequency of Top Up/Intermediate Grocery Shopping
Daily
Weekly
13% 13% 47% 44% 28% 30% 7% 7%
2 to 3 time a week
39%
Every 2 weeks
44% 27%
Every month
Weekly Every 2 weeks
34% 1%
Less often
Every month
3% 5% 1% 1%
Less Often
1%
2011 2010
Base: All respondents (n=1200)
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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%
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
55%
56%
56%
I sometimes buy new brands or products - but usually stick to my favourites
24%
25%
26%
I love trying new things - I'm always on the lookout for new brands and products
Nov 2009
Nov 2010
Nov 2011
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
a m b ie n c e
I a lw a y s p re fe r to s h o p in a w e ll o rg a n ize d g ro c e ry s to re w ith a p le a s a nt
94% 91% 84% 82% 80% 80% 79% 77% 76% 66% 65% 64% 61% 59% 50% 45%
6% 9% 16% 18% 20% 20% 21% 24% 24% 35% 36% 36% 39% 41% 50% 55%
Yes No
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 s e h o ld s h o p p in g
I usually plan what I want to buy before I shop for groceries I care about quality and I am willing to pay more for quality products
Ius u a lly p la n w h a t I w a n t to b u y b e fo re I s h 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 m o re fo r q u a lity p ro d u c ts
I like to take my time and browse all parts of the store I always take advantage of a special offer or deal to stock up on my everyday grocery items
e v e ry d a y g ro c e ry ite m s p ro d u c ts
I lik e to ta k e m y tim e a n d b ro w s e a ll p a rts o f th e s to re
I a lw a y s ta k e a d v a n ta g e o f a s p e c ia l o ffe r o r d e a l to s to c k u p o n m y
I usually make a point of looking at circulars and clip coupons on grocery products Although I plan beforehand, I usually end up buying additional grocery items once in-store
a d d itio n a l g ro c e ry ite m s o n c e in -s to re if th e y a re w o rth b u y in g
Iu s u a lly m a 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
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 s u a lly e n d u p b u y in g
I usually compare the prices of store brands with leading brands to decide if they are worth buying
Iu s u a lly c o m p a re th e p ric e s o f s to re b ra n d s w ith le a d in g b ra n d s to d e c id e
Anything that saves me time is worth paying extra for When shopping for groceries, customer service is very important to me I make a real point of buying healthy options I have a strict budget for household groceries and only buy the grocery items that I need
ite m s th a t I n e e d
An y th in g th a t s a v e sm e tim e is w o rth p a y in g e x tra fo r
Wh e n s h o p p in g fo r g ro c e rie s ,c u s to m e rs e rv ic e is v e ry im p o rta n t to m e
Im a k e a re a l p o in t o f b u y in g h e a lth y o p tio n s
Iha v e a s tric t b u d g e t fo r h o u s e 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
I make a real point of buying products that are friendly to the environment
Base: All respondents (n=1200)
Im a k e a re a l p o in t o f b u y in g p ro d u c ts th a t a re frie n d ly to th e e n v iro n m e n t
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 m y g ro c e rie s a t th e lo w e s t p ric e s
I usually stick to my plan when grocery shopping
Ius u a lly s tic k to m y p la n w h e n g ro c e ry s h o p p in g
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shopper trends
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.
Shoppers Profile
Females
Males
Gender
60%
40%
2010 2010 18%
59% 33% 34%
41% 15%
Age by gender
2010
20%
29%
34%
18%
Base: All respondents (n=1200)
14
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
Price off 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 Instant prizes Opportunity to collect points
1st preference
2nd
3rd
59 28 4 18 23 22 38
14 11
4 10 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
20
Base: All respondents who declare to be influenced by promotions (n=922)
16
shopper trends
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
16%
23%
21%
Know all the prices of items bought regularly
38%
40%
44%
Know prices of most items and notice when price changes
Dont know all prices but do notice when prices change
32%
31%
33%
Dont know or notice prices
8%
Nov 2009
7%
Nov 2010
8%
Nov-11
Base: All respondents (n=1200)
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shopper trends
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 I usually compare the price of Private Labels with leading brands to decide if it is worth buying Private Labels may be cheaper but overall manufacturer branded products are better value for money Private Label packs look just as good as manufacturer branded products Private Label quality is generally just as good as the quality of leading brands 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 I don't know enough about Private Labels to consider buying them instead of my usual brands If someone buys a lot of Private Labels, I think they made the smart choice
% Agree 2011 (Nov) 63 64
72 71
+ +
66 68 68 65 66 63 58 60 54 54 55 52 55
Significantly different compared to Nov 2010
59
19
Base: All respondents aware of PL (n = 1067)
shopper trends
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
Hypermarkets Supermarkets Discounters Traditional Cash & Carry 53% 19% 16% 6% 5%
2010
50% 22% 18% 6% 4%
2011
55% 21% 17% 3% 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) 2010 (Nov) 2011 (Nov)
Large Modern Trade
21
20 18
10
10
11 11 11
5 4 2 2 2
6 6 6 4 4 4 3 2 3
5 5 5 3 3 3 2 2
HypermarketSupermarket
Cash & Carry
Discounter
Petrol station
Bakery
Kiosk
Traditional Grocery
Open market
Vegetable vendor
Butcher
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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shopper trends
Copyright 2012 The Nielsen Company. Confidential and proprietary.
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