16 April 2008
According to Nielsen ShopperTrends, 2007 was a good year for hypermarkets in Taiwan, recovering share of trade lost in the previous year with additional share gains made as a result of increased consumer spending and traffic flow. And with traditional stores and wet market shares continuing to decline, the modern trade sector in Taiwan continues to dominate the country’s grocery retail industry, according to Nielsen.
According to ShopperTrends 2007, the percentage of Taiwanese consumers shopping at Hypermarkets is on the increase. Over two thirds (68%) of Taiwanese shoppers claim to have visited a hypermarket in the past four weeks and more than one third (39%) made a purchase at one in the past seven days. Close to half (45%) said hypermarkets were the channels they spent most at, up from 39 percent in 2006.
“With Consumer Price Indices continuing to increase in 2007, consumers are scrimping and saving to make ends meet. Hypermarkets are leveraging this need to economize by successfully promoting their image of “value-for-money” to become the shopper’s outlet of choice,” said Jennifer Wang, Total Client Solutions Director, The Nielsen Company Taiwan Ltd.
Among other findings from ShopperTrends:
• Personal Care Stores can drive shopper frequency via ‘interesting and attractive promotions’ - with consumers seeing promotions as the 2nd most important factor in building a Personal Care Store’s image.
• Convenience Stores have become indispensable to Taiwanese consumers. 94 percent have visited a convenience store in the past four weeks and the frequency of visiting them is up from 14 times per month in 2006 to once every two days.
• Generally speaking, female shoppers continue to dominate the grocery shopping for the household. The consumer profile of hypermarkets and supermarkets are similar—35 to 49 year old middle class females. The majority of convenience store and personal care store consumers are 15 to 34 year old shoppers, however, men prefer to shop in convenience stores, and the bulk (78%) of personal care store customers are female.
ShopperTrends 2007 was conducted by Nielsen between September 27 and October 25, 2007 in Taipei, Taichung and Kaohsiung, interviewing 1,000 Taiwanese individuals aged 15 to 65 about their shopping habits.
Consumers Shop by Categories
Consumers purchase different products in different channels. According to Nielsen, convenience stores are the channel of shopper choice for soft drinks (64%) and snacks (57%) while hypermarkets are the shoppers’ choice when purchasing shampoo (60%) and detergents (56%). As for the purchase of face care products, one fourth would get them at personal care stores/pharmacies.
Convenience Matters, ‘Value-for-Money’ and Display key to winning the market
Location and convenience continue to influence where consumers choose to do their household shopping. Shoppers demand more than good prices. One-stop shopping, product availability, and ease of availability are the three must haves for retailers to attract consumers.
“Consumers are not just looking for price, convenience and good location, but they also need good product display and a good variety to fulfill their ‘one stop’ shopping needs,” Ms. Wang said.
About Nielsen ShopperTrends
Nielsen ShopperTrends is the most comprehensive report on the grocery retailing and shopper environment in Taiwan. Nielsen ShopperTrends offers essential insights into the behavior, thinking and perceptions of shoppers in relation to how they choose their stores. It covers: relationship between trade sectors and shoppers, and key shopping decision influences.
About The Nielsen Company
The Nielsen Company is a global information and media company with leading market positions in marketing information (ACNielsen), media information (Nielsen Media Research), online intelligence (NetRatings and BuzzMetrics), mobile measurement (Nielsen Mobile), trade shows and business publications (Billboard, The Hollywood Reporter, Adweek). The privately held company is active in more than 100 countries, with headquarters in Haarlem, the Netherlands, and New York, USA. For more information, please visit, www.nielsen.com
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