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NIQ Global Intelligence — NielsenIQ — FMI Transparency in Omnichannel Retail Webinar (February 2022)
32 slides from NIQ Global Intelligence's conference presentation, Feb 24, 2022
Slide 1: Transparency in omnichannel retail
Transparency in omnichannel retail February 24, 2022 partner logo © 2021 2022 Nielsen Consumer ConsumerLLC. LLC.AllAll Rights Rights Reserved. Reserved.
Slide 2: Today’s Speakers
Today’s Speakers Sherry Frey Krystal Register Steve Markenson NielsenIQ Health & MS, RDN, LDN PRC Expert, IPC Master Wellness Thought Leader FMI Health & Well-being Director FMI Research & Insights Director linkedin.com/in/sherry-frey linkedin.com/in/krystal-register-rdn linkedin.com/in/stevemarkens
Slide 3: FMI Antitrust Statement
FMI Antitrust Statement FMI believes strongly in competition. Our nation’s antitrust laws govern competition in the economy. It is FMI’s policy to comply in all respects with the antitrust laws. Association meetings or workshops by their very nature bring competitors together. It is expected that al
Slide 4: Today’s Agenda
Today’s Agenda Consumer outlook Health reprioritization Looking forward Changing landscape Nutrition information Movement to online Growing value of transparency Confusion implications How consumers shop online FMI/NIQ Transparency in an Evolving Omnichannel World Report 2022 4 © 2022 Nielsen Consum
Slide 5: Value, quality, price are top purchase drivers
Value, quality, price are top purchase drivers but interest in nutrition, manufacturing and company values in consideration Good value for the money 86% Product quality 83% Price 80% Brand reputation 61% Health benefits product offers 59% Source of ingredients 56% Dietary claims a product makes (fat
Slide 6: Transparency is important to most consumers
Transparency is important to most consumers 72% Extremely Important Importance of transparency 36% 36% 20% 6% 2% Somewhat Not important Not at all 0% 20% 40% 60% 80% 100% FMI/NIQ Transparency in an Evolving Omnichannel World Report 2022 6 © 2021 Nielsen Consumer LLC. All Rights Reserved.
Slide 7: Indicators of transparency range from ingredients to sourcing
Indicators of transparency range from ingredients and nutrition to how products are sourced and produced Ingredients/Nutrition Provides a complete list of ingredients 59% Production practices Plain English description of ingredients 49% In-depth nutritional information 45% Certifications and claims
Slide 8: Desire to be informed driven by many reasons
Desire to be informed driven by many reasons, from personal to planet Consumers would like to know more about products they purchase 78% 78% 69% For family well-being In general To support a better planet FMI/NIQ Transparency in an Evolving Omnichannel World Report 2022 8 © 2021 Nielsen Consumer LLC
Slide 9: Labels receiving more attention and driving behavior
Labels receiving more attention and drive purchase and switching behavior Response to confusing labels Read product labels Look at another product to see if you understand its ingredients 42% better Less 7% Research the ingredients online 40% Same 52% Accept that you do not understand 22% the ingred
Slide 10: Health reprioritization
Health reprioritization 10 © 2021 Nielsen Consumer LLC. All Rights Reserved.
Slide 11: Health is being reprioritized
Health is being reprioritized 89% say general nutrition facts about a product are at least somewhat important, while 66% find this important or extremely important 48% Expect to eat healthier moving forward 45% say showing in-depth nutritional information is an indication of transparency FMI/NIQ Tra
Slide 12: Nutritional information consumers look to avoid
Nutritional information consumers look to avoid when purchasing or eating food products Consumer Interest Sales Growth Low sugar 38% Low sugar 19% Top F&B Online Low sodium 33% Low sodium 18% Searches No added sugar 31% No added sugar 26% Organic Fresh Low fat 27% Low fat 7% Energy Diet Low carb 25%
Slide 13: Nutritional information consumers look to include
Nutritional information consumers look to include when purchasing or eating food products Consumer Interest Sales Growth High fiber 31% Excellent source of fiber 18% Whole grain 29% Whole grain diet 7% Vitamin-enriched 26% Vitamin-enriched 9% Healthy fats, Omega-3 24% 15% such as Omega-3s Reduces ri
Slide 14: Omnichannel world
Omnichannel world 14 © 2021 Nielsen Consumer LLC. All Rights Reserved.
Slide 15: Online had dramatic gains through the pandemic
Online had dramatic gains through the pandemic In-store to online shift “ I like shopping online. It was hard when things were out of “ I want to touch the products stock because of the in-store, check the dates and pandemic. see new things. I can’t really do this shopping online” But if it wasn’t f
Slide 16: Convenience and pandemic prompted online shopping
Convenience and pandemic prompted online shopping 64% What Prompted Start Convenience 50% Saving time 44% Started shopping Pandemic/COVID-19 43% online in the last Discounts/Coupons 23% 6-18 months Recommended by friend/family 22% Car issues 15% Advertising/Promotion in the store 15% Illness/Injury
Slide 17: Omnishoppers are here to stay
Omnishoppers are here to stay Consumers will largely retain their online habits Orders per buyer for online Omni sustains its importance 40% Of CPG shoppers are omnishoppers $160 Billion Online CPG sales in the last year 44% Of e-commerce dollar share is CPG food and beverage NielsenIQ E-Commerce So
Slide 18: Online v. In-store Transparency Needs and Challenges
Online v. In-store Transparency Needs and Challenges Search product labels Meets product needs 10% 6% 26% 14% 37% 21% 48% 27% 44% 28% Not challenging 80% Never 31% Somewhat Rarely challenging 32% 23% 47% Challenging 25% Sometimes Always Extremely 16% 12% challenging In-store Online In-store Online F
Slide 19: Consumers believe online is good for production and sourcing information
Consumers believe online is a good way to find more information about production and sourcing 31% 18% Sourcing of ingredients Company’s sustainable practices 26% 16% Manufacturing process Company’s labor practices 20% 14% Company practices on Company’s social animal welfare responsibility programs F
Slide 20: Consumers want transparency in manufacturing, sourcing, company values
Consumers want transparency in manufacturing, sourcing, company values $ Volume Total Store Chg. vs 2YA +12.8% +13.5% +16.5% +2.8% +12.6% +24.9% Social Responsibility Sustainable Farming Environmental Sustainable Forestry Sustainable Packaging Animal Welfare Sustainability +31.7% +37.6% +17.5% +19.5
Slide 21: Smartphones are most used devices for grocery shopping
Smartphones are most used devices for grocery shopping 87% Any purpose Any grocery shopping Online grocery shopping 63% 64% Do not use devices for 44% any purposes 1% 36% 22% 23% 25% 15% 15% 10% 8% Smartphone Tablet/iPad Computer/Laptop Smart devices FMI/NIQ Transparency in an Evolving Omnichannel W
Slide 22: Opportunity to improve user experience with personalized filters
Opportunity to improve user experience with personalized filters and searchable attributes Product search: Filter or search bar first? Product type 51 59 84% 44 Of products fail to claim at Brand least 1 of their top 3 most 43 searched attributes 42 Department 32 33 Product claims 92% 23 33 Personal
Slide 23: Consumers desire improved user experience in online shopping
Consumers desire improved user experience in online shopping 45% of shoppers say online shopping has been much improved, but want more ease Faster delivery 42% Often-used online features • Zoom in on package label Easier to use web site 37% • Product details • List-building tools • Nutrition facts l
Slide 24: Implications for the Industry
Implications for the Industry Packaging Online grocery shopping Claiming attributes -With limited packaging space, ✓ Continued user experience ✓ Brands must ensure need to improve trust and eliminate improvement (site functionality, searchability by all relevant confusion search, product content) at
Slide 25: Thank you.
Thank you. Read through the Transparency in an evolving omnichannel world report here For more on our thought leadership, visit our Total Wellness page 25 © 2021 Nielsen Consumer LLC. All Rights Reserved.
Slide 26: Appendix
Appendix 26 © 2021 Nielsen Consumer LLC. All Rights Reserved.
Slide 27: Bridge the shopper insights gap
Key benefits ■ Analyze trends with Image placeholder trustworthy insights ■ Answer key questions to propel business decisions ■ Understand buyer behavior across key competitors “ NielsenIQ Omnishopper Since March 2020, Bridge the shopper insights gap Lorem over ipsum dolor sit amet, 22 millionconsec
Slide 28: Don’t settle for ‘good enough’ insights
Don’t settle for ‘good enough’ insights Today, every shopper is an Complete data accuracy A holistic omnishopper. And in order to ■ view make confident, strategic ■ Product-level analysis decisions, you need to understand ■ Broad blind spot coverage exactly how and where your shoppers make purchases
Slide 29: Discover attribute-based search trends
Trending attributes measures multichannel product attribute-based What is it? search performance to provide insight into top ranking, fastest growing and seasonally relevant search insights – integrated into one dashboard. Image placeholder Uncover growth opportunities, bring in products relevant to
Slide 30: Line of sight into consumer product attribute searches
Line of sight into consumer product attribute searches For more information about Trending Attributes, contact your NielsenIQ representative. Perform attribute-based search analysis into: ■ Top product attribute rankings by category ■ Top category rankings by product attribute ■ Unclaimed product at
Slide 31: Dive into ingredients to find growth
What is it? Understand growth drivers through the lens of product attributes. Use the performance of stated & qualified attributes together and in comparison to unlock opportunities to promote claims on product packaging and target additional markets. Image placeholder ■ Lead with on-trend ■ Query y
Slide 32: Drive growth by understanding demand with 1,000+ attributes
Drive growth by understanding demand with 1,000+ attributes Base Package Includes Natural & Organic + most relevant essentials group Covers products across total store Natural & Organic group Essentials group (choose one) Includes the most used attributes Includes category-specific, relevant from We
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