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Redefining Convenience

Released at: 13:12, 03/08/2018

Redefining Convenience

Photo: Viet Tuan

New Nielsen report reveals six factors that drive consumers' quest for convenience.

by Nghi Do

Fifty-six per cent of Vietnamese consumers prefer to eat out for breakfast instead of eating at home, according to a new report by performance management company Nielsen.

Consumers around the world are displaying a burgeoning demand for convenient solutions that help simplify their lives, now that busy lifestyles and rising connectivity are playing an increasingly pivotal role in buying decisions.

The Nielsen Quest for Convenience Report, which explores changing global consumer needs, highlights the rapidly growing demand for convenience in markets around the world. More than one quarter of global consumers say they seek out products that make life easier (27 per cent) and are convenient to use (26 per cent). Around one in five consumers look for products that are suitable for small households (20 per cent) and tailored to a specific need (19 per cent).

“Convenience means different things to different consumers around the world, depending on their circumstance, culture, location, market maturity, and access to technology,” observes Ms. Nguyen Huong Quynh, Managing Director of Nielsen Vietnam. “These are the key influencers that drive the need for FMCG companies to offer solutions that address the growing need for convenience.”

“Omnipresent technology adoption, which is equally important, provides an ever-increasing array of consumer data and enables greater customization,” Ms. Quynh continues. “FMCG players need to adapt to their circumstances and provide integrated shopping experiences that allow consumers the greater choices for solutions that meet their needs.”

While the demand for convenience varies somewhat by region, the Nielsen report reveals that these are the six key factors that drive the increasing need for convenience that are consistent globally - urbanization, shrinking household sizes, crowded urban transport, evolving gender roles, generational needs, and the increasing use of technology.

These drivers of convenience, along with the increasing demand for products and solutions that help to simplify lifestyles, have an impact across myriad industries, particularly the FMCG sector which is highly dependent on consumers.

The Nielsen report illustrates that when it comes to grocery and packaged goods, consumers' choices are underpinned by their experiences in three areas, namely shopping, consumption, and brand engagement. This evolving demand for convenience has given rise to a slew of life-simplifying products such as ready prepared and on-the-go meal solutions, home or office grocery delivery offerings, and tech-driven “on-demand” services. In fact, one third (33 per cent) of all global consumers use restaurant or meal delivery services (11 per cent at least once a week).

Grab-and-go meals from quick-service, fast food, and street vendors are also on the rise . In fact, 57 per cent of consumers globally have visited a fast food outlet in the past six months. Lunch and dinner are the meals most likely to be substituted with out-of-home dining options, with 39 per cent of global online consumers opting to eat outside on a weekly basis, and as many as 48 per cent of consumers in Asia-Pacific and 47 per cent in North America grabbing meals on the go.

Shopping experiences for global consumers are driven by an evolving retail landscape, e-commerce, and omnichannel facilities.

A Nielsen e-commerce study across 30 countries indicates that FMCG online sales are growing an estimated five times faster than offline sales and that by 2020, global FMCG e-commerce will be worth more than $400 billion and will comprise 10-12 per cent of the overall FMCG market share. Mobile devices and digital platforms are also shaping consumer experiences and transforming brand-to-consumer engagement.

Seventy-five per cent of all global consumers say that they enjoy the freedom of being connected anytime, anywhere, and that this prevalence of connectivity provides multiple touchpoints for FMCG companies to interact with its consumers, and leverage localization to improve engagement through personalized and authentic recommendations.

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