NOVEMBER 2018

CONNECTED COMMERCE
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 CONNECTIVITY IS
ENABLING LIFESTYLE
EVOLUTION
Today, 4 billion1 people (53% of the global population) are connected
to the internet, and nearly all of them (92.6%1) do so using their mobile
devices. Everyday, 85% of users (3.4 billion) connect to the internet and
spend, on average, six and a half hours online. Consumers are spending
more time, with increasing frequency, on an expanded range of diverse
digital activities. It is undisputed that internet accessibility, mobile
technology and digital innovations are redefining consumers’ every
interaction and will continue to enable and disrupt many aspects of
consumers’ lifestyles well into the future.

The “connected life” is well established and the proliferation of access and
utility continues to transform how consumers incorporate information,
interfaces and exchanges, not only to simplify their lives, but also to add
flexibility and personalization, into their increasingly demanding lives.
Conventional connected usage has multiplied across communication
platforms, social engagement spaces, information portals, financial
transactions, gaming and video content, to include a burgeoning appetite
for online shopping.

Companies recognize the influence and impact that their online presence
(via branded digital properties—websites, advertising and social media)
has had on their in-store sales growth, and for other companies this
sparked the origins of e-commerce retailing. Development in retailing has
quickly become greater in scope than either the physical or virtual store.

Success and sustained growth for manufacturers and retailers will

be about creating strategic advantages across converged channels,
touchpoints and experiences along the path to purchase, in both
developed and developing markets, and evolved and emerging categories.

E-commerce advancement hinges on the consumers—their online usage

behavior and habits, adoption drivers, tipping points and challenges. The
Nielsen Connected Commerce report provides insights into the global
connected consumer, shopping traits, category evolution and barriers, to
identify future growth prospects.

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 PAVING THE WAY FOR
E-COMMERCE
Connectivity today brings the convenience of hassle-free shopping - anytime,
anywhere. At no point in time could this be more apt than now, considering
the merging of multiple factors impacting the complexity of consumers’
lives—and shaping new found shopping experiences.

Busy City Dwellers – urban, on-the-go lifestyles call for simpler, quicker and
easier ways to perform regular shopping activities.

Retail Transformation – new players, investment in technology and beyond-

the-border retailers have opened up additional avenues to browse and buy.

Native Digital Shoppers – Generations Y (Millennials) and Z, accustomed to

using digital devices and services, are early adopters of e-commerce.

Global online sales in 2017 totaled US$2.3 trillion2 or 10.2% of total retail sales
and is expected to reach 17.5% by 2021. Online retail development correlates
strongly with constantly improving internet access, especially in mobile-first
communities. With connectivity and digital development exploding in Asia, it
is no surprise that the fastest growing e-commerce markets are located there.

In 2019, online retail trail blazer, Amazon, will turn 25 years old. It is easy
to overlook the fact that e-commerce is still in a nascent stage, despite
considerable advances in online retail subscriptions, augmented and virtual
reality services, addressable, personalized advertising, mobile connected
payments and drone delivery. With continued technological innovation
ecommerce growth is set to outpace traditional formats for years to come.

Around the globe, the number of consumers who are connected and making
online purchases will continue to multiply every year as newly connected
consumers enter the online retail environment.

THE COMBINATION OF EXISTING CONNECTED CONSUMERS SPENDING MORE, MORE

OFTEN, AND NEWLY CONNECTED CONSUMERS PURCHASING FOR THE FIRST TIME
WILL PROPEL E-COMMERCE GROWTH.

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CATEGORY PERFORMANCE

STARS AND
STARTOUTS
In markets around the world categories such as TOP ONLINE CATEGORY
travel, entertainment (books, music, events) and
durable goods (fashion, IT/mobile, electronics)
PURCHASING
are the front runners for consumers to enter % Global Consumers Claimed
the online retail sphere. After two decades of Purchasing, 2018
e-commerce retailing, these categories have
higher online purchasing penetration and
frequency of purchasing than most consumer FASHION 61%
goods categories.

The ability to search and compare product

and service specifications, product availability
TRAVEL 59%
and prices, as well as access to products from
beyond home borders, has contributed to
the success of these categories. Additionally,
BOOKS & 49%
for many durable goods, entertainment and
MUSIC
service categories, consumers make a one-time
purchase or replenish less frequently than they IT & 47%
do for most fast-moving consumer goods (FMCG) MOBILE
categories. While the individual transaction
value may be higher, these combined factors EVENT 45%
have made them more attractive to consumers TICKETS
to experiment with.

Consumers are, however, also looking for

e-commerce options for an increasing range of
categories, as their more immediate needs for
convenience and ease expand. The availability of
suppliers, quality products, broader assortment,
competitive pricing, alternative fulfilment and
delivery, payment options, simpler website/
application interfaces and increasing user
trust and confidence are all aligning to entice
more consumers online, more often. These
factors point to significant opportunities for
FMCG categories, which need to be replenished
weekly or daily, and take up a sizeable portion of
consumers’ time to shop in physical stores.

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CATEGORY PERFORMANCE

SIMILARITY IN
REGIONAL ADOPTION
The trajectory of e-commerce categories has followed similar evolutionary
paths in markets around the world. The categories with the highest
online purchasing penetration are comparable across the regions, albeit
at differing levels, depending on the market’s development factors.
Markets at earlier stages of e-commerce development, such as Latin
America, Africa/Middle East and parts of Southeast Asia, are still growing
purchasing penetration across services, entertainment and durables
categories, while more established ecommerce markets enjoy increasing
online purchasing incidence and frequency, as well as expansion into
consumables categories.

ONLINE PURCHASING – TOP 3 CATEGORIES BY REGION

% Global Consumers Claimed Purchasing, 2018

ASIA PACIFIC NORTH AMERICA WESTERN EUROPE

TRAVEL 70% TRAVEL 55% TRAVEL 62%

FASHION 69% BOOKS & MUSIC 55% FASHION 57%

IT &
MOBILE 55% FASHION 54% BOOKS & MUSIC 54%

EASTERN EUROPE AFRICA & MIDDLE EAST LATIN AMERICA

FASHION 53% FASHION 38% TRAVEL 47%

TRAVEL 44% TRAVEL 38% FASHION 44%

IT &
EVENT TICKETS 44% MOBILE 31% BOOKS & MUSIC 41%

Source: Nielsen Connected Commerce Global Survey 2018

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CATEGORY PERFORMANCE

Markets in North America, Pacific and North Asia are benefitting from
increases in online purchasing in FMCG categories — personal, health
and household care, as well as packaged grocery products. Strong online
purchasing markets, China and South Korea, are further advancing from
e-commerce growth in dry and fresh grocery products. The growing
acceptance of edible consumable products highlights the transforming
FMCG dynamics and opportunities for markets around the world in the
years ahead.

ONLINE PURCHASING - EVOLVING PRODUCT CATEGORIES BY REGION

% Global Consumers Claimed Purchasing, 2017 - 2018

ASIA PACIFIC NORTH AMERICA

FRESH
GROCERY 35% 5% VIDEO GAMING 31% 3%
PACKAGED PACKAGED
GROCERY 40% 4% GROCERY 19% 2%
MEDICINE/
VIDEO GAMING 30% 3% HEALTH 25% 1%
ALCOHOLIC
HOME CARE 37% 3% BEVERAGES 9% 1%
MEDICINE/
HEALTH 29% 3%

EASTERN EUROPE WESTERN EUROPE

FASHION 49% 4% PERSONAL CARE 34% 2%
EVENT
TICKETS 41% 4% FURNITURE 28% 2%
RESTAURANT
TRAVEL 40% 4% DELIVERIES 18% 2%
RESTAURANT CONSUMER
DELIVERIES 24% 3% ELECTRONICS 36% 2%
PERSONAL CARE 33% 3% MEDICINE/ 22% 1%
HEALTH

AFRICA AND MIDDLE EAST LATIN AMERICA

FASHION 35% 3% PERSONAL CARE 28% 4%
VIDEO ALCOHOLIC
GAMING 17% 3% BEVERAGES 9% 3%
PERSONAL CARE 22% 2% PET 10% 3%
RESTAURANT
DELIVERIES 23% 2% TRAVEL 42% 2%
BABY &
CHILDREN 10% 2% HOME CARE 9% 2%

2017 CHANGE 2018

Source: Nielsen Connected Commerce Global Survey 2018

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CATEGORY PERFORMANCE

The need for efficiency in consumers’ lives will be an essential determinant in driving further growth in
online purchasing. This is already evident in the largest increases in online purchasing, over the last year,
coming from consumables categories. Packaged grocery penetration increased by three percentage
points and fresh groceries, restaurant/meal kit deliveries, medicine/health care, products for babies/
children, pet food and wine/alcoholic beverages all increased by two points.

INCREASES IN ONLINE CONSUMABLE CATEGORY PURCHASING

% Global Consumers Claimed Purchasing, 2017 vs. Change in 2018

RESTAURANT/
MEAL KIT DELIVERY 31% 2%
PACKAGED
GROCERY FOOD 27% 3%
MEDICINE/
HEALTH CARE 25% 2%
FRESH
GROCERIES 24% 2%
BABY/CHILDREN'S
PRODUCTS 18% 2%
WINE/ALCOHOLIC
BEVERAGES 16% 2%
PET FOOD 14% 2% 2017 CHANGE 2018

Source: Nielsen Connected Commerce Global Survey 2018

As consumers gain confidence in purchasing online, shopper penetration, volume and frequency of
online purchases have continued to grow, and the relationship between online and in-store shopping
has started to shift in favor of online activity for more mature categories. Consumers indicate that
they are purchasing entertainment (61%) and services (56%) categories more often online than in-
store. Durable categories have a greater proportion of consumers (40%) purchasing online and in-
store at the same frequency as augmented and virtual reality services become more widely available.
As consumers are increasingly able to realistically “try-out” clothing and furniture in their home
environments, the frequency is likely to tip in favor of further online shopping.

ONLINE PURCHASING INCIDENCE

% Global Consumers Claimed Purchasing Frequency, 2018

ENTERTAINMENT SERVICES DURABLES FMCG

Event Tickets, Books, Music, Travel, Restaurant/Meal Kit Fashion, Furniture/Décor, Dry/Fresh grocery, Beauty/
Video/Gaming Deliveries, Flowers/Gifts Electronics, IT/Mobile Personal, Household, Health,
Pet, Baby, Alcoholic Beverages

10% 14% 22%

32% 32%
38%
30%
30% 56%
61%
40% 37%

MORE ONLINE ABOUT THE SAME MORE IN-STORE

Source: Nielsen Connected Commerce Global Survey 2018

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FMCG PERFORMANCE

ONLINE FMCG IS GAINING

MOMENTUM
“THE PATH OF E-COMMERCE GROWTH IN SOUTH KOREA WAS SIMILAR TO WHAT WE
ARE SEEING IN MANY MARKETS TODAY. INITIALLY THERE WAS HIGHER PENETRATION
IN TRAVEL AND FASHION, BUT AS CONSUMERS BECAME MORE FAMILIAR AND
CONFIDENT, AND RETAIL OFFERINGS IMPROVED, THEY VENTURED INTO BEAUTY,
INFANT PRODUCTS AND GROCERIES, AND THEN INTO AREAS THAT MANY THOUGHT
WOULDN’T SUCCEED IN E-COMMERCE, SUCH AS FRESH PRODUCE.

TODAY SOUTH KOREAN ONLINE FMCG SALES ACCOUNT FOR 20% COMPARED TO 6-7%
GLOBALLY - THE TRANSFORMATION AND OPPORTUNITIES ARE CLEARLY EVIDENT”

Ji Hyuk Park - E-Commerce Leader, Nielsen Korea

FMCG e-commerce has masses of potential in the majority of markets around the world. Nielsen reviewed 34 global
markets and current online sales account for 6-7% of FMCG sales, but compound annual growth (+22%) over the next
five years will outpace offline retail sales (+4%) and global GDP growth (+3%) by nearly five times3. By 2022, FMCG
e-commerce will swell to in excess of US$400 billion and comprise 10-12% of all FMCG sales3. Online FMCG sales will
grow twice as fast in developing markets compared to developed nations.

ONLINE FMCG SALES FOR GLOBAL MARKETS

SWEDEN 2.5% RUSSIA 1%

NORWAY 1%
DENMARK 2% BELGIUM 1%
CANADA 2% UK 6.3% GERMANY 1.4%
FRANCE 6.1% SWITZERLAND 1.8%
SPAIN 1% ITALY 1.6%
PORTUGAL <1%
US 5.6% TURKEY 2%
CHINA 18%
JAPAN 3.4%
SOUTH KOREA 20%
INDIA <1% TAIWAN 5.6%
UAE 0.7%
MEXICO 2%
COLOMBIA <1%
MALAYSIA 2%
SINGAPORE 3%
BRAZIL 1% INDONESIA 1%

AUSTRALIA 3.1%
SOUTH AFRICA <1%
ARGENTINA <1%
NEW ZEALAND 2.9%

*Regions highlighted in blue indicate advanced online FMCG market conditions.

Source: Nielsen Future Opportunities in FMCG e-commerce report, September 2018

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FMCG PERFORMANCE

The growth potential and opportunities for FMCG manufacturers and

retailers are reinforced by the increasing purchasing rates of categories, as
well as by consumers’ online purchase intentions for the coming year. On
average, 26% of global online shoppers purchased FMCG products in the last
year, representing a 2% increase compared to 2017, and in 2018 one third of
consumers say they are now purchasing more often online than in-store.

Seventeen percent of consumers are purchasing FMCG products on a

regular basis, while 11% have previously purchase online, but not recently.
In addition, 30% of consumers are not currently buying groceries online but
are willing to consider doing so in the near future. In developing markets
this intent is just as important, with 29% of African and Middle Eastern
consumers and 42% of Latin American consumers open to online purchasing.

A CONSIDERABLE 41% OF POTENTIAL CONSUMERS COULD BE ENTICED ONLINE,

OR BACK ONLINE FOR FMCG PRODUCTS, SUCCESS WILL BE DEPENDENT ON
INFRASTRUCTURE AND RETAIL ENABLEMENT.

CONSUMER OPENESS TO ONLINE PURCHASING

% Global Consumers Claimed Purchasing, 2018

11% BOUGHT IN THE PAST, GLOBAL

NOT BUYING ONLINE, 30%
BUT NOT RECENTLY BUT WILL CONSIDER

15% ASIA PACIFIC 26%

8% WESTERN EUROPE 24%

7% EASTERN EUROPE 34%

9% AFRICA & MIDDLE EAST 29%

11% LATIN AMERICA 42%

4% NORTH AMERICA 32%

Source: Nielsen Connected Commerce Global Survey 2018

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FMCG PERFORMANCE

BRINGING
FRESH ON BOARD
Fresh foods (fruit, vegetables, dairy, meat, fish and poultry) are a large
proportion of the FMCG basket as consumers’ focus on health and wellness
intensifies. Previously, this category had one of the lowest global online
penetration levels, however, shopping for fresh produce has gained traction
with a two percentage points increase into 2018.

There are a number of specific fresh food purchase enablers that would
encourage more consumers to purchase online. Daily freshness ratings,
detailed product descriptors and labels indicating how many days products will
last for are important quality indicators to help consumers overcome the
physical aspects of assessing freshness. In addition, where consumers’
expectations are not met, refunds and same day replacements will also
alleviate the reluctance of purchasing these items.

ENABLERS TO ENCOURAGE ONLINE BUYING OF FRESH PRODUCTS

% Global Consumers Who Would Be Encouraged by the Following Offers, 2018

SAME DAY REPLACEMENT FOR PRODUCTS

NOT MEETING EXPECTATIONS 49%

REFUNDS FOR PRODUCTS

NOT MEETING EXPECTATIONS 47%

FRESHNESS LABELS 41%

DETAILED PRODUCT DESCRIPTIONS 39%

DAILY FRESHNESS RATING BY THE RETAILER 38%

Source: Nielsen Connected Commerce Global Survey 2018

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E-COMMERCE BARRIERS

CONNECTIVITY AND
SECURITY HURDLES
Obstacles to online purchasing have become fewer as connectivity,
technology and security have advanced. Internet connectivity in many
developing markets remains one of the biggest barriers, with 55% of
Africa/Middle East consumers, compared to 39% globally, in agreement
(strongly/somewhat agree) that internet connectivity is often unstable or
limited to make purchases online. As internet quality and speed improves,
and data costs decrease, more consumers will enjoy uninterrupted
connectivity that will facilitate e-commerce purchasing.

REGIONAL CONNECTIVITY AND SPEED OF INTERNET

55%
44%
39%
34%
30%
29%
20%
$58.38

$48.99

$40.95
$32.04 $32.32
$30.71

$17.75

48.82 60.31 45.41 58.95 11.99 16.07 73.45

GLOBAL ASIA PACIFIC EASTERN EUROPE WESTERN EUROPE AFRICA & MIDDLE EAST LATIN AMERICA NORTH AMERICA

AVERAGE INTERNET AVERAGE MONTHLY CONNECTIVITY IS OFTEN

SPEED (MBPS) COST (USD) TOO UNSTABLE TO BUY

Source: Nielsen Connected Commerce Global Survey 2018, Numbeo Monthly Internet Price USD Dollars (2018), We Are Social &
Hootsuite | Fixed Internet Speed in Mbps by Country | Digital in 2018

Today, it appears that consumers are less concerned about the safety and
security of their personal information. Sixty-three percent of global online
consumers are confident that when buying online their personal information
on retailer websites is secure, 24% are still hesitant and 13% are not
convinced. Secure payment methods and alternate mobile wallets that are
being rolled out in many markets will further help overcome these obstacles.

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E-COMMERCE OPPORTUNITIES

GET AHEAD BY
ENGAGING CONSUMERS
Consumers’ first foray into connected commerce may not be to make a
purchase, but to browse for information, compare products and prices and
discover new stores or items of interest. They may click on an attention-grabbing
advertisement to view what’s on offer or read reviews in social media that may
prompt a purchase. Digital media assets are becoming a vital part of building
awareness and consideration, satisfying shoppers’ search needs and delivering
tangible links to generate purchase outcomes. Fifty-two percent of consumers
visit store websites for fashion product discovery, 44% visit brand websites for
consumer electronics, nearly one third, across categories, read online written
reviews and more than a quarter go to social media. How and where consumers
source information may vary by category, but currently FMCG continues to rely
on traditional mediums such as physical stores and word of mouth.

GLOBAL INFORMATION SOURCES TO AID DECISION MAKING

% Consumers Seeking Various Information Sources Before Online Purchase

PHYSICAL SHOP 40%

SHOP WEBSITE 35% FASHION ELECTRONICS
WORD OF MOUTH 30%
52% SHOP WEBSITE BRAND WEBSITE 44%
BRAND WEBSITE 29%
40% PHYSICAL SHOP SHOP WEBSITE 43%
WRITTEN ONLINE REVIEWS 27%
35% BRAND WEBSITE PHYSICAL SHOP 38%
SOCIAL MEDIA 25%
WEBSITES’ OFFERS 24%
TV OR RADIO 23% BEAUTY & FRESH
STAFF FROM SHOP 23% PERSONAL CARE GROCERIES
VIDEO ONLINE REVIEW 21%
38% PHYSICAL SHOP PHYSICAL SHOP 45%
NEWSPAPER OR MAGS 21%
31% WORD OF MOUTH WORD OF MOUTH 25%
BLOGS 20%
29% SHOP WEBSITE SHOP WEBSITE 21%
FLYERS OR MAIL 19%
E-MAILS 18%
DIGITAL TRADITIONAL

Source: Nielsen Connected Commerce Global Survey 2018

The start to any brand’s e-commerce journey is building multi-channel presence

and identifying the moments to immerse brands and retail triggers into
consumers’ online activities. Individualized, personal, relevant, interactive and
absorbing content across all touchpoints will lead to improved buying conversion.

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E-COMMERCE OPPORTUNITIES

ENRICH THE CONSUMER

EXPERIENCE
As e-commerce continues to evolve there are numerous areas to improve consumers’
overall online experience that will encourage trial and steer conversion to online. With
convenience as one of the primary motivators for connected commerce, shoppers
are looking for a frictionless experience which saves time, reduces obstacles and
provides an enjoyable experience. Consumers’ considerable willingness to try
different options for purchasing, payment or delivery has grown over the years.
Globally, 31% of consumers are already using online for home delivery, and a further
33% are willing to do so. In addition to this option, one in six consumers are using
other methods that incorporate virtual reality and automation for greater ease, and
benefitting from retailer loyalty applications.

ADVANCED ONLINE SHOPPING EXPERIENCE

% Consumers Using Technology-Enabled New Features

USE A VIRTUAL USE ONLINE AUTOMATIC

SUPERMARKET SUBSCRIPTION

15% 36% GLOBAL 16% 30%

20% 42% ASIA PACIFIC 23% 37%

5% 21% WESTERN EUROPE 5% 15%

6% 27% EASTERN EUROPE 6% 20%

15% 36% AFRICA AND MIDDLE EAST 13% 31%

11% 43% LATINA AMERICA 9% 35%

8% 22% NORTH AMERICA 9% 19%

ALREADY USING DEFINITELY WILLING

Source: Nielsen Connected Commerce Global Survey 2018

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E-COMMERCE OPPORTUNITIES

Fulfilment and delivery options are also progressing to suit consumers’

preferences and circumstances. Alternative collection points better suited to
consumers’ needs are growing in usage and acceptance.

% CONSUMER OPENNESS TO ONLINE BUYING BEHAVIORS

1 ORDER ONLINE AND PICK UP INSIDE THE STORE

2017
13% 2018 GROWTH
18% 24% 18%
11% 10%
9%

26% 28% 18% 22% 29% 34% 23%

GLOBAL ASIA WESTERN EASTERN AFRICA & LATIN NORTH
EUROPE EUROPE MIDDLE EAST AMERICA AMERICA

2 ORDER ONLINE AND USE DRIVE-THRU PICK-UP

17% 2017
14% 15% 10% 2018 GROWTH
6% 10%
6%

29% 35% 17% 21% 30% 30% 21%

GLOBAL ASIA WESTERN EASTERN AFRICA & LATIN NORTH
EUROPE EUROPE MIDDLE EAST AMERICA AMERICA

3 ORDER ONLINE AND PICK-UP CURB SIDE OUTSIDE THE STORE

2017
2018 GROWTH
29%
25% 18% 25% 22%
16% 24%
13% 18% 5% 6% 13% 9% 10%
GLOBAL ASIA WESTERN EASTERN AFRICA & LATIN NORTH
EUROPE EUROPE MIDDLE EAST AMERICA AMERICA

Source: Nielsen Connected Commerce Global Survey 2018

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E-COMMERCE OPPORTUNITIES

Retailers can further solve consumers’ apprehensions via interactive services

and guarantees. Same day replacement, free delivery for high value orders,
responsiveness and money back for incorrect orders feature highly to
encourage online purchases of consumable products.

ENTICERS TO BUY ONLINE

% Global Consumers Who Would Be Encouraged by the Following Offers

GUARANTEE OF GET MONEY BACK FOR PRODUCTS

NOT MATCHING WHAT WAS ORDERED 49%
PROVIDE SAME DAY PRODUCT REPLACEMENT SERVICE
FOR PRODUCTS NOT AVAILABLE 45%
OFFER OF FREE DELIVERY FOR PURCHASES
ABOVE A MINIMUM SPEND
44%
OFFER FREE DELIVERY TUESDAY TO THURSDAY,
EVERY WEEK 43%
HAVE PRECISE DELIVERY WINDOWS (AT 30 MINUTE
INTERVALS) TO FIT CONSUMERS’ SCHEDULE 43%
RETAILERS’ WEBSITE PROVIDES REAL-TIME,
DETAILED PROGRESS ON THE STATUS OF THE ORDERS
41%
ENCOURAGE TO TRY ONLINE PURCHASE AND
RECEIVE FREE DELIVERIES SEVEN DAYS A WEEK 40%
HAVE A NUMBER OF CONVENIENT COLLECTION
POINTS AT TRAIN STATIONS 36%

SEND TO THE CONSUMER A TEXT/E-MAIL IN

CASE AN ORDERED PRODUCT IS UNAVAILABLE
35%
BUY AN ‘ANNUAL PASS’ TO ENJOY UNLIMITED
FREE DELIVERIES 7 DAYS A WEEK
33%

Source: Nielsen Connected Commerce Global Survey 2018

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SUCCEEDING IN E-COMMERCE

SATISFYING THE CONSUMER

THE CONSUMER IS AT THE CENTER OF THE CONNECTED COMMERCE OPPORTUNITY.
AN E-COMMERCE APPROACH THAT DELIVERS ON THE VARIOUS AND VARIED LOCAL
CONSUMER PREFERENCES AND CIRCUMSTANCES WILL HAVE A COMPETITIVE ADVANTAGE,
BUT THOSE WHO SOLVE CONSUMERS’ CONVENIENCE ASPIRATIONS WILL WIN.

Sue Temple – VP, Global Consumer Insights Product Leadership, Nielsen

User Essentials
• Simple, easy, fast webpage/application navigation
• Detailed product descriptions, images, reviews
• Loyalty/reward schemes offering automation options (repeat orders, subscriptions)
• Secure payment methods to overcome security concerns
• Suitable delivery or collect options

Product Prospects
• Plan for product evolution – entice consumers into FMCG through slower purchase
cycle (skin care), large/bulky (diaper, pet food, toilet tissue) and regular, repeat products (sugar,
tea/coffee)
• Make premium, scarce, niche or out-of-country products available
• Provide fresh produce platforms to virtually assess quality and freshness

Moments To Actions
• Use generic digital for broad reach and bespoke digital to individually connect with consumers
• Omnichannel, including social, engagement with in-the-moment purchase enablers
• Include in-store digital touchpoints and frictionless payment technology

Consumer Contentment
• Save time, make it simple and easy
• Remove the barriers
• Supply it fresh
• Engage

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 SOURCES AND METHODOLOGY
1 We Are Social & Hootsuite, Digital in 2018, January 2018

2 eMarketer, Total Retail and E-Commerce sales, 2018

3 Nielsen Future Opportunities in FMCG E-commerce Report, September 2018

4 Nielsen Connected Commerce Survey, June 2018

About The Nielsen Connected Commerce Survey

The Nielsen Connected Commerce report provides an understanding of the global

connected consumer, their shopping traits along with product category evolution
and the barriers to identify future growth prospects. It also identifies consumers’
claimed online category purchases and the changes in category purchase
penetration. Further, the report presents consumers’ online purchasing behaviour
and expectations from their online shopping experience. The insights from this
report will assist FMCG companies in formulating strategies to enhance consumers’
shopping experiences in the digital world.

Survey Methodology

The Nielsen Global Connected Commerce Survey was conducted in May 2018,
and polled more than 30,000 online consumers in 64 countries throughout Asia-
Pacific, Europe, Latin America, the Middle East/Africa and North America. The
sample is based on Internet users who agreed to participate in this survey and has
quotas based on age and sex for each country. It is weighted to be representative
of Internet consumers by country. Because the sample is based on those who
agreed to participate, no estimates of theoretical sampling error can be calculated.
However, a probability sample of equivalent size would have a margin of error
of ±0.6% at the global level. The Nielsen survey is based only on the behavior of
respondents with online access. Internet penetration rates vary by country. Nielsen
uses a minimum reporting standard of 60% Internet penetration or an online
population of 10 million for survey inclusion.

While an online survey methodology allows for tremendous scale and global reach,
it provides a perspective only on the habits of existing Internet users, not total
populations—something particularly relevant when reporting an activity such as
e-commerce behaviors.

In developing markets where online penetration is lower, audiences may be younger

and more affluent than the general population of that country.

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 ABOUT NIELSEN
Nielsen Holdings plc (NYSE: NLSN) is a global measurement and data
analytics company that provides the most complete and trusted view
available of consumers and markets worldwide. Our approach marries
proprietary Nielsen data with other data sources to help clients around
the world understand what’s happening now, what’s happening next,
and how to best act on this knowledge. For more than 90 years Nielsen
has provided data and analytics based on scientific rigor and innovation,
continually developing new ways to answer the most important questions
facing the media, advertising, retail and fast-moving consumer goods
industries. An S&P 500 company, Nielsen has operations in over 100
countries, covering more than 90% of the world’s population. For more
information, visit www.nielsen.com.

THE SCIENCE BEHIND WHAT’S NEXT ™

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 THE SCIENCE BEHIND WHAT’S NEXT™

At Nielsen, data drives everything we do—even art. That’s why we used real data to create this image.
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Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.