"By staying attuned to these shifting shopper trends in Asia, manufacturers and retailers in the consumer packaged goods industry have a unique opportunity to not only adapt and thrive in the current environment, but also prepare for the impact these trends will have on markets across the region,” states Gaurang Kotak, Consumer and Marketing Insights, Southeast Asia Modern Trade Leader at NIQ. “Developing proactive strategies that cater to these changing behaviors will be paramount for success in the future.”
Inflation's bite is evident in shopper sentiment. Across Asia, more shoppers report heightened price awareness compared to 2019. Notably, Vietnam (60%) and Thailand (72%) see over half their shoppers acutely aware of price changes. This awareness translates into sharpened focus at the store with over 80% of shoppers in Korea, Singapore, and Taiwan perceiving price increases. Due to this, shoppers are making deliberate choices to maximize their budgets —— which retail channels they shop at, how often they shop, their basket sizes, and their willingness to change stores and brands for promotions.
Key shopper trends in 2024
To help navigate the evolving shopper behaviors, the NIQ 2024 Asia Shopper Trends report pinpoints five key trends taking hold across the region.
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Omni shopper behavior: Shoppers are not just focusing on online stores but also bringing back physical stores in their choices for retail channels, blending online and physical store shopping. This omnichannel behavior is driven by the pursuit of both value and convenience. Shoppers in China and Singapore have added more retail channels to their repertoire compared to pre-pandemic times. This includes online stores, physical stores (big and small formats), and emerging traditional trade formats like fresh marts in China. In Vietnam, there is a shift towards adding a mix of online stores and traditional trade formats.
This shift in channel utilization has also impacted shopping frequency. Shoppers in Malaysia are showing increased visits to online stores and hyper/supermarkets, whereas shoppers in Hong Kong are adding trips to supermarkets. On the other hand, shoppers in Thailand are an exception, showing increased shopping trips across most channels.
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Price and promo-conscious shopping: Price and promotion sensitivity are on the rise, requiring targeted strategies. Constant promotions are not sustainable. NIQ recommends adopting a more strategic approach, which involves promoting with purpose. This means identifying the different shopper segments within the target market and their priorities. For example, some shoppers might be more value-conscious, seeking the best deals. Others might prioritize quality or be eager to try new innovations.
Shoppers today are more willing to switch brands and stores for better deals. The willingness to switch varies by market. Malaysian shoppers are more open to brand switching for promotions, while shoppers in Thailand are willing to switch both brands and stores. China presents a unique case with two sets of shoppers: those open to brand switching for promotions and those who purchase on promotions when their familiar brands are on offer.
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Shopping mission changes: Basket sizes are adapting – some prefer smaller, more frequent trips, while others seek economies of scale with bigger baskets. There is a decline in large baskets among shoppers in China and Indonesia, with shoppers opting for smaller baskets and lower spending per shopping trip. Conversely, more than half of shoppers in Taiwan and the Philippines see a trend towards bigger baskets, suggesting a potential focus on economies of scale.
Assortment optimization is crucial to cater to changing shopping needs and basket sizes.
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Product and brand information seeking: Savvy consumers are conducting thorough research before making purchasing decisions, driving demand for transparency and sustainability. Brands must now focus on delivering innovative, environmentally friendly products that meet the evolving needs and values of their customers.
- Shopper trade-offs: The wide range of choices bombarding shoppers – which channel, retailer, product, brand, and even pack size. This decision fatigue often leads to trade-offs with what they purchase, how often and from where. This underscores the critical need to go back to basics and get a comprehensive understanding of shopping behavior to win with shoppers.
“The trends identified in the Shopper Trends report, such as the rise of omnichannel shopping, return of shoppers to the physical stores, and increased tradeoffs that shoppers are making, paint a clear picture of the evolving shopper landscape," says Dolly Jitani, NIQ Global Shopper Leader, Consumer and Marketing Insights. "By leveraging these insights, manufacturers and retailers can develop targeted strategies to meet the diverse needs of shoppers and build lasting customer loyalty."
About Shopper Trends
NIQ’s Shopper Trends is an annual syndicated survey-based solution that leverages over a decade of trended data with comprehensive coverage across 50+ markets, delivering in-depth insights into shopper and category trends. In Asia Pacific the report is available in China, Hong Kong, India, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand, Vietnam.
About NIQ
NielsenIQ (NIQ) is the world’s leading consumer intelligence company, delivering the most complete understanding of consumer buying behavior and revealing new pathways to growth. NIQ combined with GfK in 2023, bringing together the two industry leaders with unparalleled global reach. Today NIQ has operations in more than 95 countries covering 97% of GDP. With a holistic retail read and the most comprehensive consumer insights—delivered with advanced analytics through state-of-the-art platforms—NIQ delivers the Full View™.
For more information, please visit www.niq.com