Niq Global Intelligence Plc · NYSE:NIQ

Niq Global Intelligence — NielsenIQ — Conference Presentation (October 2022)

33 slides from Niq Global Intelligence's conference presentation, Oct 27, 2022

  1. Slide 1: E-commerce Success in 2023 and Beyond

    E-commerce Success in 2023 and Beyond October 27, 2022 © 2022 Nielsen Consumer LLC. All Rights Reserved.

  2. Slide 2: Meet your presenters

    Meet your presenters Vaughan Ryan Cansu Sever Brandy Niu Didem Sekerel Erdogan MD, E-commerce, APAC E-commerce Director Vice President MD, Turkey and Analytics Leader AME NielsenIQ Coca-Cola Icecek (CCI) JD.com NielsenIQ Roberto van Taunay Prafull Babar Cindy Yang Commercial Lead, E-commerce, Direct

  3. Slide 3: Acceleration of e-commerce

    Acceleration of e-commerce Vaughan Ryan Managing Director, E-commerce, Asia Pacific 3 © 2022 Nielsen Consumer LLC. All Rights Reserved.

  4. Slide 4: E-commerce has been the indisputable winner during Covid

    E-commerce has been the indisputable winner during Covid E-com Value Split in FMCG Sales (%) 2020 2021 S. Korea 31,6% 34,8% China 31,1% 31,6% USA* 9,0% 15,0% UK 11,5% 13,4% Mexico* 3,0% 12,0% Taiwan 8,1% 9,8% France 7,8% 8,3% Brazil* 4,0% 8,0% Turkey 4,0% 5,7% Sweden 4,6% 5,7% Russia 3,3% 5,4% Nethe

  5. Slide 5: Everything is pointing to e-commerce continued acceleration

    Everything is pointing to e-commerce continued acceleration Top factors when buying online Inflation driving further growth CPI Q1 2022 (%) Pricing 0,58 Discounts/Promotions 0,51 Brazil 10.7 Delivery time 0,42 United States 8.0 Availability 0.40 OECD Total 7.9 Ratings/text reviews from user 0,39 Ger

  6. Slide 6: Heavily impacted by lockdowns, On Premise rebound as restrictions are lifted

    Heavily impacted by lockdowns, On Premise rebound Grocery Convenience as restrictions Drug are lifted, but eCommerce continues to grow, Traditional On Premise Trade Discounters eCommerce 40.0% FMCG channel performance 35.0% %Growth vs YA 30.0% 26.4% 25.0% 20.0% 9.6% 15.0% 7.5% 10.0% 6.5% 6.3% 5.0% 3

  7. Slide 7: ...And after the rapid increases of the pandemic, e-commerce continues to grow

    ...And after the rapid increases of the pandemic, e-commerce continues to grow over most regions Channel performance % value growth vs YA Europe WE EE APAC & CN NA 46.4% 14.5% 0.8% -2.9% -5.8% Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Source: NielsenIQ RMS FMCG MAT and quarterly Q2 2022 - Ecom

  8. Slide 8: FMCG Channel performance across regions

    FMCG Channel performance across regions 6.9% North America -0.2% West Europe 11.6% East Europe Grocery -0.9% Grocery 12.3% Grocery 6.0% Convenience Convenience 1.8% 11.9% Convenience 3.2% Drug 6.6% Drug 12.4% Drug 8.5% Traditional Trade -2.3% Traditional Trade 8.0% eCommerce 15.0% Discounters -0.4%

  9. Slide 9: What is the ceiling on e-commerce?

    What is the ceiling on e-commerce? ■ South Korea is the world’s largest Share of online sales, South Korea vs US in % online FMCG market by value share ■ SK’s e-commerce trend is typically about 10 years ahead of 80% the rest of the world ■ The global pandemic 72% fueled online sales in SK which rel

  10. Slide 10: It's not online or offline but OMNI

    It's not online or offline but OMNI 50% of global E-Commerce sales comes from Asia & continuing to grow even with slower pace vs the start of the pandemic, it is clearly the 2nd biggest channel in Asia behind Traditional Trade Value share of trade in Asia Pacific Online importance MAT 2YA MAT LY MAT

  11. Slide 11: Accelerating growth with essential data

    Accelerating growth with essential data Roberto van Taunay Commercial Leader, E-Commerce, Western Europe 11 © 2022 Nielsen Consumer LLC. All Rights Reserved.

  12. Slide 12: COVID-19 has resulted in an acceleration in e-commerce usage

    COVID-19 has resulted in an acceleration in e- commerce usage While for some countries 1H 2022 showed a slowdown vs. 2021, acceleration visible across all countries in 2H Source: NielsenIQ Foxintelligence e-commerce consumer panel of >1.3 million panelists 12 © 2022 Nielsen Consumer LLC. All Rights

  13. Slide 13: The oldest and youngest generation have shown the strongest increase in online spending

    The oldest and youngest generation have shown the strongest increase in their online spending compared to January 2020 Generation Z: ≤ 27 years Generation Y: 28 - 42 years Generation X: 43 – 62 years Generation B: ≥ 63 years Source: NielsenIQ Foxintelligence e-commerce consumer panel of >1.3 million

  14. Slide 14: Due to the 24/7 model, the key shopping moments have changed

    Due to the 24/7 model, the key shopping moments have changed Important to understand when consumer activation is most impactful #1 % of categories #2 % of categories France Monday 40% Friday 16% Germany Monday 42% Tuesday 27% Italy Monday 31% Tuesday 29% Spain Monday 32% Tuesday 23% UK Monday 32% Fr

  15. Slide 15: Zoom in to optimize your consumer activations

    Zoom in to optimize your consumer activations to ensure to be top of mind when consumers make their purchase decisions Example: salty snacks in France. While Friday and Thursday are the days where consumers spend most, there are other important timeslots to be top of mind Source: NielsenIQ Foxintell

  16. Slide 16: Quick commerce / rapid delivery: what to expect?

    Quick commerce / rapid delivery: what to expect? 16 © 2022 Nielsen Consumer LLC. All Rights Reserved.

  17. Slide 17: Consumer demand is clear: rapid deliveries is relevant however behind in Southern EU

    Consumer demand is clear: rapid deliveries is relevant however behind in Southern EU Share of quick commerce within number of orders in 2022 comparing total country versus capital city Source: NielsenIQ Foxintelligence e-commerce consumer panel of >1.3 million panelists * Note: Getir is excluded in

  18. Slide 18: …and there is more potential

    …and there is more potential Quick commerce is currently used more often for specific categories ▪ Alcoholic beverages ▪ Baby food ▪ Bread spreads ▪ Health care ▪ Confectionary ▪ Fruit & vegetables ▪ Home care ▪ Dairy ▪ Pasta, rice, sauces. ▪ Personal care ▪ Meat, fish, vegetarian, vegan ▪ Pizza, sa

  19. Slide 19: …another trend with potential: direct to consumer

    …another trend with potential: direct to consumer Available data shows D2C importance especially in coffee, cosmetics, nappies, perfumes, personal care, pet food, and vitamins, minerals & supplement 1 out of 18 orders 1 out of 71 orders 1 out of 59 orders DTC/All merchants ▪ DE: 33/159 ▪ ES: 23/108

  20. Slide 20: Top fastest growing brands in e-commerce per country

    Top 10 fastest growing brands in e-commerce per country Scope: FMCG top 100 brands (excl. private label) in value sales, YTD Oct 2022 vs. 2021 * Note: first selection criteria is size, and following growth. Above doesn’t imply that these brands are always the fastest growing brands in their respecti

  21. Slide 21: What lies ahead for e-commerce

    What lies ahead for e-commerce Cindy Yang Vice President, E-commerce, China Prafull Babar Director, E-commerce, India 21 © 2022 2022 Nielsen NielsenConsumer Consumer LLC. LLC. AllAll Rights Rights Reserved. Reserved.

  22. Slide 22: Consumers start to look for products from Omni channels

    Consumers start to look for products from Omni channels All METRO INDIA FMCG Online & Offline share and growth FMCG Value contribution% COVID I COVID II 6,5 8,4 8,6 7,4 7,1 8,5 7,5 7,8 7,1 7,7 93,5 91,6 91,4 92,6 92,9 91,5 92,5 92,2 92,9 92,3 40,55 39,63 29,90 26,85 24,78 25,35 25,19 23,34 22,65 20,

  23. Slide 23: Personal care/Necessities drove online migration in China, Beauty & Fashion in India

    Personal care/ Necessities drove online migration trend in China, while Beauty & Fashion gained momentum in India e-commerce FMCG growth trend Total e-commerce sales value contribution Online Growth Necessities/ Personal Care + 7% 7% Food & Beverage Others 11% 13% FMCG and Personal Care 5% 5% 33% 22

  24. Slide 24: Emerging channels, such as Quick Commerce and Social Commerce surge

    Emerging channels, such as Quick Commerce (O2O) and Social Commerce surge to meet different consumption scenario Product Variety 2021 Ecom Channel GMV Share & Growth Price Comparison Convenience Appealing Contents ‘Quick commerce’ and ‘Brick & Click’ Social/Content Ecom retailers promising deliverie

  25. Slide 25: Key festivals take important part of online sales

    Key festivals take important part of online sales Key online festival sales performance Online consumers are deal crazy Contribute ~40% sales of the whole year FMCG Monthly Order contribution% First 5 days of the month 6th- 15th day Growth in orders in the sale week vs. rest of the month 16th-25th d

  26. Slide 26: Focus on the fundamental and embrace the trends

    Focus on the fundamental and embrace the trends Fundamental Needs Upgrade with Innovation Most Valuable Consumers Promotion & Value for money Rising of health consciousness Gen Z & the Grey/ Silver Beauty & Fashion 26 © 2022 Nielsen Consumer LLC. All Rights Reserved.

  27. Slide 27: Value For Money - Promotion and livestream continuously strengthen

    Value For Money - Promotion and livestream continuously strengthen to attract consumers’ attention 71% 54% 44% vs. 2020 +3% vs. 2020 +10% vs. Global +20% Consumer attracted by the Consumer seek for lower Consumer prefer to choose promotion of Ecom festival discount in livestream products “Value for

  28. Slide 28: Spending per shopper grows as discounts increase

    Spending per shopper grows as discounts increase Personal Care 23% 1200 25% 21% 21% 1000 18% 20% 17% 954 800 852 865 862 787 15% 600 10% 400 Spends per shopper (INR) Average Discounts 5% 200 0 0% Mar'22 Apr'22 May'22 Jun'22 Jul'22 Source: Nielsen E-commerce Consumer Panel (eAnalytics), Average disco

  29. Slide 29: Upgrade opportunity - Consumers willing to pay premium for health-related products

    Upgrade opportunity - Consumers are willing to pay premium for health-related products. Consumer's attitude to health & wellness Top selling products with health concept - Food & Beverage Nutrition Management: 89% CSD Chocolate Liquid Milk Chinese consumers put nutrition as top priority ​ 0 Sugar 0

  30. Slide 30: 'Looking good' shows up in the booming Fashion and Beauty segments

    ‘Looking good’ shows up in the booming Fashion and Beauty segments Fashion Retailers Beauty Retailers Users for Jun 22 indexed to June 21 1.3x 1.2x 1.9x 0.7x Premium vs category, Jun 22 1.6x 0.6x 1.1x 1.6x Source: Nielsen E-commerce Consumer Panel (eAnalytics) , Premium based on spends per shopper 3

  31. Slide 31: New online consumption power

    New online consumption power Aging population GenZ’s Shopping Attitude Factors which impact shopping The elderly population over 60 are rapidly decision of GenZ expanding 68% Value for money 30,0 18,9 20,0 Willing to spend more for improving life quality Meet personal interests 2021 2025e 2035e Prov

  32. Slide 32: Play in Omni-channel

    Play in Omni-channel Focus on Upgrade with Look For Fundamental Innovation Most Valuable Value > Money Trends Consumers ▪ Consumers seek for better • Consumers are willing to pay • GenZ pursue quality and freshness quality with cheaper price, and premium for what they care are enthusiastic for promo

  33. Slide 33: Stay ahead by staying connected

    niq.com/global/en/insights/e-commerce Stay ahead by staying connected About NielsenIQ Arthur C. Nielsen, who founded Nielsen in 1923, is the original name in consumer intelligence. After decades of helping companies look to the future, we are setting the foundation for our future by becoming Nielsen

NielsenIQ — Conference Presentation (October 2022) on 6ix