quarterly update · country 2010-q2 us the economy germany the economy france increasing utility...
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Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Nielsen Economic Current
Nielsen Economic CurrentQuarterly Update
Nielsen GlobalCommunications Team
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Nielsen Economic Current
NielsenGlobal
ConsumerConfidence
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9298 96
99 9794
8884
77
928785
82
93
1Q05 3Q05 1Q06 3Q06 1Q07 3Q07 1Q08 3Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10
2Q10 Results
LA 102
AP 101
MEAP 89
NA 88
EU 79
Regional Summary:Emerging Driving Growth
Global Consumer ConfidenceContinues to Grow Slowly
Source: Nielsen Global Online Consumer Confidence and Opinion Survey 2Q10
Consumer Confidence Index
+1 pt
Emerging
Developed
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13 Countries with a Nielsen ConsumerConfidence Index Over 100
Source: Nielsen Global Online ConsumerConfidence and Opinion Survey 2Q10
Index >100in Three
DevelopedCountries
Index >100in Ten
EmergingCountries
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Slight to Moderate ImprovementsOutside of Western Europe
707580859095100105
Canada U.S.
North America BRIC Nations
020406080100120140
Brazil Russia India China
Asia-Pac
0
20
40
60
80
100
120
Japan Korea Singapr Aust
Europe
0102030405060708090100
Germany UK Italy France
Source: Nielsen Global Online Consumer Confidence and Opinion Survey, 2Q10
1Q10 NCCI Results 2Q10 NCCI Results
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Increasing Utility BillsCanada
Increasing Food PricesIndia
The EconomySpain
The EconomyChina
The EconomyRussia
The EconomyUK
Country 2010-Q2
US The Economy
Germany The Economy
France Increasing Utility Bills
Italy Job Security
Brazil Health
The table considers biggest concern asthe sum of Q7a. What is your biggestconcern over the next six months? andQ7b. What is your second biggest concernover the next six months?
The Economy Continues to Be aMajor Concern Across Countries
What is yourbiggest concernover the next sixmonths?
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0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Savings PayingDebts
No sparecash
HomeImprov
Out ofHome Ent.
Vacations Apparel RetirementFunds
TechProds
Investing
Global Avg - 4Q09Global Avg - 1Q10Global Avg - 2Q10
Once you have covered your essential living expenses,what do you do with your spare cash? I spend it on…
Source: NielsenGlobal On-Line Consumer Omnibus
Nielsen Global Online Consumer Confidence and Opinion Survey, 2Q10
Saving Remains a Top PriorityAmong Consumers
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Spend & SaveItaly
France
Germany
Russia
Brazil
Spending Saving
Once you have covered your essential living expenses,what do you do with your spare cash? I spend it on…
U.K.
India
Canada
U.S.
Source: Nielsen Global Online Consumer Confidence and Opinion Survey, 2Q10
Apparel 41%Out-of-Home Ent. 39%
Apparel 62%Vacation 46%
Out-of-Home Ent. 47%Apparel 42%
Savings 37%Vacation 31%
Savings 57%Vacation 56%
Savings 38%Vacation 34%
Savings 40%Out-of-Home Ent. 35%
China
Savings 63%Investing 46%
Savings 45%Pay Off Debt 37%
Pay Off Debt 37%Savings 27%
The Desire to Spend Varies WidelyAcross Countries
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37%
22% 22%20% 20%
13% 12%
7% 7%
Save on gas& utility
Cut downtake away
meals
Spend lesson clothes
Cut down out-of-home ent.
Switch tocheaper groc
brands
Delayupgrading
tech
Delayreplacementof major HH
items
Cut downannual
vacations
Cut down athome
entertainment
Global Avg 2Q10
Ongoing ShiftsIn Behavior
TemporaryAdjustments
When economic conditions do improve,which of these do you expect you will continue to do?
Source: Nielsen Global Online Consumer Confidence and Opinion Survey, 2Q10
Recession Leaving a Lasting MarkOn Spending Habits
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Nielsen Economic Current
GlobalAdvertisingSpending
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Key Findings
• 1Q advertising is showing positive global trends• 25 of 31 countries are experiencing gains in ad
spending >= 5%• Comparisons are vs a weak year ago result• Overall improving economic conditions and sentiment is
being reflected in ad spending• Major events in 1Q10 helped to push the ad results
including:– Winter Olympics– FIFA World Cup (and pre-event advertising activities)
Source: Global AdView Pulse Q1 2010
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Global Summary of AdvertisingSpending
CanadaAustraliaChinaHong KongIndiaIndonesiaMalaysiaNew ZealandPhilippinesSingaporeSouth KoreaTaiwanThailand
BelgiumFranceGermanyItalyNorwayPortugalSwitzerlandUKArgentinaBrazilMexicoSouth Africa
Countries WithAd Spending Up 5+%
JapanIrelandSpain
Countries WithAd Spending Up 1-4%
USANetherlandsSweden
Countries WithAd Spending Flat
or Declining
Advertising spend is benchmarked versus the corresponding quarter last yearSource: Global AdView Pulse Q1 2010
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Nielsen Economic Current
CountrySpendingScorecard
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Are retailers selling moreon promotion?
US CA FR DE UK IT ES BR TW HK IN CN
Nielsen MarketIndex Volume*
Nielsen MarketIndex Value**
Are consumers movingto Store Brands?
Are shoppers shiftingto value channels?
Are consumers shoppingmore frequently?
Are consumers spendingmore per trip?
Advertising Spending
Nielsen GlobalConsumer Confidence^
1Q2010 Nielsen Global Scorecard
*Nielsen Market Index Volume defined as unit change vs. YAGO**Nielsen Market Index Value defined as dollar change vs. YAGO^ Nielsen Global Consumer Confidence measure is benchmarkedvs. the Global Confidence average
Very Strong Growth: >= +5%
Growth: between +1 and + 4%
Neutral: between -1 and +1%
Negative: between -1 and -4%
Very Negative: < -4%
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Advertising Spending
4Q 20091Q 2009 2Q 2009 3Q 2009 1Q 2010Nielsen MarketIndex Volume*Nielsen MarketIndex Value**Are consumers movingto Store Brands?Are shoppers shiftingto value channels?
Are retailers sellingmore on promotion?
Are consumers shopping morefrequently?
Are consumers spending more per trip?
Nielsen Global Consumer Confidence^*Nielsen Market Index Volume defined as unit change vs. YAGO**Nielsen Market Index Value defined as dollar change vs. YAGO^ Nielsen Global Consumer Confidence measure is benchmarkedvs. the Global Confidence average
United States
See Notes onFollowing Page
Very Strong Growth: >= +5%
Growth: between +1 and + 4%
Neutral: between -1 and +1%
Negative: between -1 and -4%
Very Negative: < -4%
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Notes on the United States Scorecard
• Low U.S. consumer confidence reflected in continuedspending restraint as consumers continue to reduceoverall shopping trips – even with better prices &increased promotion support.
• Store brand growth slowing with increased promotional &advertising support from brands.
• Trips to value channels slowing as heightened retailerprice competition provide more value opportunities forshoppers.
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Advertising Spending
4Q 20091Q 2009 2Q 2009 3Q 2009 1Q 2010Nielsen MarketIndex Volume*Nielsen MarketIndex Value**Are consumers movingto Store Brands?Are shoppers shiftingto value channels?Are retailers sellingmore on promotion?Are consumers shopping morefrequently?
Are consumers spending more per trip?
Nielsen Global Consumer Confidence^
*Nielsen Market Index Volume defined as unit change vs. YAGO**Nielsen Market Index Value defined as dollar change vs. YAGO^ Nielsen Global Consumer Confidence measure is benchmarkedvs. the Global Confidence average
Canada
See Notes onFollowing Page
Very Strong Growth: >= +5%
Growth: between +1 and + 4%
Neutral: between -1 and +1%
Negative: between -1 and -4%
Very Negative: < -4%
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Notes on the Canadian Scorecard•Retail dollar sales growth is slowing as prices start to
stabilize. Q1'10 inflation is currently +1.4% versus +6.1%Q1'09.•Despite the increase in consumer confidence, consumers
are still focused on value, shopping more a discountretailers and buying more on promotion. National Brandsare a key driver of promotions which are currentlyoutperforming Private Label.•Consumers continue to shop less, taking advantage of
the one-stop-shop while basket growth levels due tostabilizing prices.
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Advertising Spending
4Q 20091Q 2009 2Q 2009 3Q 2009 1Q 2010Nielsen MarketIndex Volume*Nielsen MarketIndex Value**Are consumers movingto Store Brands?Are shoppers shiftingto value channels?Are retailers sellingmore on promotion?Are consumers shopping morefrequently?
Are consumers spending more per trip?
Nielsen Global Consumer Confidence^
*Nielsen Market Index Volume defined as unit change vs. YAGO**Nielsen Market Index Value defined as dollar change vs. YAGO
France
^ Nielsen Global Consumer Confidence measure is benchmarkedvs. the Global Confidence average
Very Strong Growth: >= +5%
Growth: between +1 and + 4%
Neutral: between -1 and +1%
Negative: between -1 and -4%
Very Negative: < -4%
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Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Advertising Spending
4Q 20091Q 2009 2Q 2009 3Q 2009 1Q 2010Nielsen MarketIndex Volume*Nielsen MarketIndex Value**Are consumers movingto Store Brands?Are shoppers shiftingto value channels?Are retailers sellingmore on promotion?Are consumers shopping morefrequently?
Are consumers spending more per trip?
Nielsen Global Consumer Confidence^
*Nielsen Market Index Volume defined as unit change vs. YAGO**Nielsen Market Index Value defined as dollar change vs. YAGO
Germany
^ Nielsen Global Consumer Confidence measure is benchmarkedvs. the Global Confidence average
Very Strong Growth: >= +5%
Growth: between +1 and + 4%
Neutral: between -1 and +1%
Negative: between -1 and -4%
Very Negative: < -4%
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Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Advertising Spending
4Q 20091Q 2009 2Q 2009 3Q 2009 1Q 2010Nielsen MarketIndex Volume*Nielsen MarketIndex Value**Are consumers movingto Store Brands?Are shoppers shiftingto value channels?Are retailers sellingmore on promotion?Are consumers shopping morefrequently?
Are consumers spending more per trip?
Nielsen Global Consumer Confidence^
*Nielsen Market Index Volume defined as unit change vs. YAGO**Nielsen Market Index Value defined as dollar change vs. YAGO
United Kingdom
^ Nielsen Global Consumer Confidence measure is benchmarkedvs. the Global Confidence average
Very Strong Growth: >= +5%
Growth: between +1 and + 4%
Neutral: between -1 and +1%
Negative: between -1 and -4%
Very Negative: < -4%
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Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Advertising Spending
4Q 20091Q 2009 2Q 2009 3Q 2009 1Q 2010Nielsen MarketIndex Volume*Nielsen MarketIndex Value**Are consumers movingto Store Brands?Are shoppers shiftingto value channels?Are retailers sellingmore on promotion?Are consumers shopping morefrequently?
Are consumers spending more per trip?
Nielsen Global Consumer Confidence^
*Nielsen Market Index Volume defined as unit change vs. YAGO**Nielsen Market Index Value defined as dollar change vs. YAGO
Italy
^ Nielsen Global Consumer Confidence measure is benchmarkedvs. the Global Confidence average
Very Strong Growth: >= +5%
Growth: between +1 and + 4%
Neutral: between -1 and +1%
Negative: between -1 and -4%
Very Negative: < -4%
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Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Advertising Spending
4Q 20091Q 2009 2Q 2009 3Q 2009 1Q 2010Nielsen MarketIndex Volume*Nielsen MarketIndex Value**Are consumers movingto Store Brands?Are shoppers shiftingto value channels?Are retailers sellingmore on promotion?Are consumers shopping morefrequently?
Are consumers spending more per trip?
Nielsen Global Consumer Confidence^
*Nielsen Market Index Volume defined as unit change vs. YAGO**Nielsen Market Index Value defined as dollar change vs. YAGO
Spain
^ Nielsen Global Consumer Confidence measure is benchmarkedvs. the Global Confidence average
Very Strong Growth: >= +5%
Growth: between +1 and + 4%
Neutral: between -1 and +1%
Negative: between -1 and -4%
Very Negative: < -4%
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Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Advertising Spending
4Q 20091Q 2009 2Q 2009 3Q 2009 1Q 2010Nielsen MarketIndex Volume*Nielsen MarketIndex Value**Are consumers movingto Store Brands?Are shoppers shiftingto value channels?Are retailers sellingmore on promotion?Are consumers shopping morefrequently?
Are consumers spending more per trip?
Nielsen Global Consumer Confidence^
*Nielsen Market Index Volume defined as unit change vs. YAGO**Nielsen Market Index Value defined as dollar change vs. YAGO
Brazil
• Growth of all the baskets Nielsen, an average of6.3%
• There was a revision of economic growth, raisingthe estimate to 6.5%
• Heating of the economy has generated pressure oninflation which also grew beyond planned for theperiod (2.65%). There was also increased interestrates to 9.5%
^ Nielsen Global Consumer Confidence measure is benchmarkedvs. the Global Confidence average
Very Strong Growth: >= +5%
Growth: between +1 and + 4%
Neutral: between -1 and +1%
Negative: between -1 and -4%
Very Negative: < -4%
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Copyright © 2010 The Nielsen Company. Confidential and proprietary.
1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010Nielsen MarketIndex Volume*Nielsen MarketIndex Value**Are consumers movingto Store Brands?Are shoppers shiftingto value channels?Are retailers sellingmore on promotion?Are consumers shopping morefrequently?
Are consumers spending more per trip?
Advertising Spending
Nielsen Global Consumer Confidence^
The latest Taiwanese CCI reaches a new high in 1Q 2010. However,total FMCG sale value remains almost the same (-0.1% actually)comparing to 1Q2009 while sales unit’s slightly increase . This meansconsumers buy more with lower price manufacturers offer viaincreasing 35 percent advertising spending investment. At the sametime, the total private label market share drops 2 percent. Thisindicates when branded products provide slashed-price promotions,the trade-off for Taiwanese consumers is less purchasing privatelabel goods but looking for ‘value for money’ branded products.
*Nielsen Market Index Volume defined as unit change vs. YAGO**Nielsen Market Index Value defined as dollar change vs. YAGO
Taiwan
^ Nielsen Global Consumer Confidence measure is benchmarkedvs. the Global Confidence average
Very Strong Growth: >= +5%
Growth: between +1 and + 4%
Neutral: between -1 and +1%
Negative: between -1 and -4%
Very Negative: < -4%
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Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Advertising Spending
4Q 20091Q 2009 2Q 2009 3Q 2009 1Q 2010Nielsen MarketIndex Volume*Nielsen MarketIndex Value**Are consumers movingto Store Brands?Are shoppers shiftingto value channels?Are retailers sellingmore on promotion?Are consumers shopping morefrequently?
Are consumers spending more per trip?
Nielsen Global Consumer Confidence^
*Nielsen Market Index Volume defined as unit change vs. YAGO**Nielsen Market Index Value defined as dollar change vs. YAGO
Hong Kong
Due to increasing out-of-homeoccasions, FMCG with many as dailystaples consumed in-home, wasbeing impacted with slowed downgrowth vs. same period last year.
Food & Beveragescategories (e.g. packagedfood, beverages)observed softening in thefirst quarter of 2010.
^ Nielsen Global Consumer Confidence measure is benchmarkedvs. the Global Confidence average
Very Strong Growth: >= +5%
Growth: between +1 and + 4%
Neutral: between -1 and +1%
Negative: between -1 and -4%
Very Negative: < -4%
Under more positive economicoutlook, consumers are more willing tospend on holidays with more out-of-home entertainment / occasions.
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Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Advertising Spending
4Q 20091Q 2009 2Q 2009 3Q 2009 1Q 2010Nielsen MarketIndex Volume*Nielsen MarketIndex Value**Are consumers movingto Store Brands?Are shoppers shiftingto value channels?Are retailers sellingmore on promotion?Are consumers shopping morefrequently?
Are consumers spending more per trip?
Nielsen Global Consumer Confidence^
*Nielsen Market Index Volume defined as unit change vs. YAGO**Nielsen Market Index Value defined as dollar change vs. YAGO
India
Consumer Confidencehighest in India in Q1 2010
^ Nielsen Global Consumer Confidence measure is benchmarkedvs. the Global Confidence average
Very Strong Growth: >= +5%
Growth: between +1 and + 4%
Neutral: between -1 and +1%
Negative: between -1 and -4%
Very Negative: < -4%
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Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Advertising Spending
4Q 20091Q 2009 2Q 2009 3Q 2009 1Q 2010Nielsen MarketIndex Volume*Nielsen MarketIndex Value**Are consumers movingto Store Brands?Are shoppers shiftingto value channels?Are retailers sellingmore on promotion?Are consumers shopping morefrequently?
Are consumers spending more per trip?
Nielsen Global Consumer Confidence^
*Nielsen Market Index Volume defined as unit change vs. YAGO**Nielsen Market Index Value defined as dollar change vs. YAGO
China
“Upward trend in FMCG sales growth rates in Chinais highly correlated with an increase in consumerconfidence especially coming from the lower citytiers.
65% of total FMCG value Sales comes from Tiers3/4/5 and the pace of development in those areas isnow twice as fast as it is in the Tier 1 and Tier 2cities.“
^ Nielsen Global Consumer Confidence measure is benchmarkedvs. the Global Confidence average
Very Strong Growth: >= +5%
Growth: between +1 and + 4%
Neutral: between -1 and +1%
Negative: between -1 and -4%
Very Negative: < -4%
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Copyright © 2010 The Nielsen Company. Confidential and proprietary.
United StatesJames Russo, [email protected] Hale, [email protected] Pirovano, [email protected]
Western EuropeJean-Jacques [email protected]
CanadaCarman [email protected]
BrazilMargarita [email protected] [email protected]
LATAMEva [email protected]
IndiaJayashree [email protected]
ChinaPhoebe [email protected]
TaiwanCheryl [email protected]
Hong KongAcky [email protected]
Nielsen Global BuzzChelsea [email protected]
Ad Spending TrendsAlessandra [email protected]
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