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Moving Targets The New Global Consumer Landscape. Insights from Global TGI. THE WORLD IS CHANGING … FAST!. THEMES. The macro picture: the shift of consumer power to the BRICs The impact at the consumer level Global brand owner activity in the BRICs Next after the BRICs: the “CIVETS”?
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Moving Targets The New Global Consumer Landscape Insights from Global TGI
THE WORLD IS CHANGING… FAST!
THEMES • The macro picture: the shift of consumer power to the BRICs • The impact at the consumer level • Global brand owner activity in the BRICs • Next after the BRICs: the “CIVETS”? • The rush to digital • The impact of digital on media behaviours • A prediction for the future: it’s all about mobile internet
THE MACRO PICTURE: THE SHIFT OF CONSUMER POWER TO THE BRICs
GROSS DOMESTIC PRODUCT – 2008 – US$ (TRILLIONS)TOP 10 MARKETS Source: Goldman Sachs
GDP – 2050 FORECAST – US$ (TRILLIONS) TOP 10 MARKETS Source: Goldman Sachs
COMPARATIVE GROWTH: DEVELOPING vs. DEVELOPEDHAVE CAR IN HOUSEHOLD (%) +0.2% +3% +8% +92% Base: Total measured adult population (note: India like-for-like comparison using metro class only ) Source: Global TGI
COMPARATIVE GROWTH: DEVELOPING vs. DEVELOPEDOWN A MICROWAVE OVEN (%) +13% +3% +148% +50% Base: Total measured adult population (note: India like-for-like comparison using metro class only ) Source: Global TGI
COMPARATIVE GROWTH: DEVELOPING vs. DEVELOPEDHAVE A CREDIT/DEBIT CARD (%) +7% +4% +189% +84% Base: Total measured adult population (note: India like-for-like comparison using metro class only ) Source: Global TGI
COMPARATIVE GROWTH: DEVELOPING vs. DEVELOPEDHAVE A CREDIT/DEBIT CARD +14% +14% +274% +123% Base: Total measured adult population (note: India like-for-like comparison using metro class only ) Source: Global TGI
COMPARABLE CATEGORY SIZESPENETRATION IN MILLIONS Base: Total measured adult population Source: Global TGI
THE DOMINANCE OF MULTI-NATIONALS TOP BRANDS/PRODUCTS BY PENETRATION Red boxes = brands owned by international companies Source: Global TGI
GLOBAL BRAND OWNER STRATEGY IN THE BRICs: CATEGORY FLOODING
DETERGENT BRANDS BY SOCIO-ECONOMIC LEVEL: RUSSIA Source: Marketing Index Russia 2010 Base: Total measured adult population
TOILET SOAP BRANDS BY SOCIO-ECONOMIC LEVEL: INDIA Source: TGI India 2010 Base: Total measured adult population
DEODORANT BRANDS BY SOCIO-ECONOMIC LEVEL: BRAZIL Source: Target Group Index Brazil 2010 Base: Total measured adult population
THE “CIVETS” • The countries where the next-highest growth rates after the BRIC economies are expected. • They are: • Colombia • Indonesia • Vietnam • Egypt • Turkey • South Africa
GROWTH IN THE “CIVETS”COLOMBIA +935% +166% +180% +146% +23% Base: Total measured adult population Source: TGI Colombia
GROWTH IN THE “CIVETS”EGYPT +101% +54% +9% +17% Base: Total measured adult population Source: TGI Egypt
GROWTH IN THE “CIVETS”TURKEY +31% +127% +11% +23% +29% Base: Total measured adult population Source: TGI Turkey
GROWTH IN THE “CIVETS”SOUTH AFRICA +62% +69% +93% +12% +35% Base: Total measured adult population Source: TGI South Africa
Average penetration of nine digital items: MP3 Player DVD Player PC Mobile Phone Internet Broadband Internet on phone Digital Camera Digital Camcorder DIGITAL ADVANCEMENT INDEX
DIGITAL ADVANCEMENT INDEX SELECTED MARKETS Base: Total measured adult population Source: Global TGI
HAVE INTERNET ACCESS AT HOME (%)SELECTED MARKETS Base: Total measured adult population Source: Global TGI
MOBILE PHONE OWNERSHIP (%)SELECTED MARKETS Base: Total measured adult population Source: Global TGI
TREND IN INTERNET USAGE (% OF POPULATION)SELECTED TGI COUNTRIES Base: Total measured adult population Source: Global TGI
TREND IN MOBILE PHONE OWNERSHIP (% OF POPULATION)SELECTED TGI COUNTRIES Base: Total measured adult population Source: Global TGI
TREND IN RADIO LISTENING (% OF POPULATION)SELECTED TGI COUNTRIES Base: Total measured adult population Source: Global TGI
TREND IN NEWSPAPER READING (% OF POPULATION)SELECTED TGI COUNTRIES Base: Total measured adult population Source: Global TGI
TREND IN MAGAZINE READING (% OF POPULATION)SELECTED TGI COUNTRIES Base: Total measured adult population Source: Global TGI
A PREDICTION FOR THE FUTURE: IT’S ALL ABOUT MOBILE INTERNET
“The biggest thing happening at the moment is not social networking. It is the shift to computing on cellphones” Simon Silvester, Young & Rubicam
MOBILE INTERNET ACCESS (%) Source: Global TGI Base: Total measured adult population
PCs, INTERNET USE AND MOBILE PHONES (million)BRICs vs. US/JAPAN: 2009 BRICs US + Japan Source: Boston Consulting Group
PCs, INTERNET USE AND MOBILE PHONES (million)BRICs vs. US/JAPAN: 2015 FORECAST BRICs US + Japan Source: Boston Consulting Group
INDIA: A CASE IN POINT • Total population is 1.16bn, but only 81m Indians (7%) regularly use the internet • But 507m own mobile phones • Calls can cost as little as $0.006 per minute • 20m new subscribers sign up every month • 3G services arrive next year
PERSONAL COMPUTERS AND MOBILE PHONE SIM CARDS INDIA AND CHINA, FORECAST TO 2015 (million) Source: Boston Consulting Group
JAPAN: SITE TYPES VISITED – MOBILE INTERNET % OF MOBILE INTERNET USERS Source: ACR (TGI Japan) Base: All who access internet via mobile
CHINA: MOBILE INTERNET BEHAVIOURS% OF MOBILE INTERNET USERS Base: All who access internet via mobile Source: CNRS (TGI China) 2009
CONCLUSIONS • The macro picture: the shift of consumer power to the BRICs • The recent large-scale growth at the consumer level will continue • The BRICs remain a major growth opportunity for global brand owners • Watch out for the emergence of the “CIVETS”! • The rush to digital • The impact of digital on media behaviours has already been dramatic • A prediction for the future: it’s all about mobile internet • As well as being the new engines of global growth, the BRICs are the sources of the most dynamic changes in digital consumption
Moving Targets The New Global Consumer Landscape Insights from Global TGI