Consumer Insights and Marketing Strategies
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1 Consumer Insights and Marketing Strategies
2 Comparative consumer analysis in Asia: Aging in Japan, changing in India Speaker: Rieko Shofu, President and CEO, Sensing Asia Ltd (Japan)
3 Comparative Consumer Analysis between Japan and India 11 September 2018 Rieko Shofu President and CEO, Sensing Asia Sensing Asia
4 What is Sensing Asia Ltd.? Marketing consulting company supporting business development in Asia region Affiliate partners in 13 countries in the region 1. Consulting and M&A advisory services 2. Efficient and cost-effective support (online & offline services) 3. Hands-on approach 4
5 Basic Services Service Overview We provide 4 types of services to support each step of your international business development. Covers regulatory information, investment environment, consumption, living and business cost information Trend Sensing Provides future insights for business strategy planning and development of goods, services and technologies Analyzes signs of new trends and changes in market trends in the target market. Advanced Services For detailed research for international business expansion Covers industry structure, regulations, market, customers, competitors and also searches the potential business partners 5
6 Table of Contents 1. Market overview and consumer trends 2. Marketing strategies case studies 1.1 Japan 2.1 Japan 1.2 India 2.2 India 6
7 Pupulation Pyramid Japan India Source: Population Pyramid net 7
8 Average Household Income and % of Food Expenditure Per Capita Income 2016 % of Food Expenditure USD % India 1,670 1,670 India 30.3% Japan 17,137 17,137 Japan 14.2% 0 10,000 20,000 0% 10% 20% 30% 40% Source: World Bank, Ceicdata, Knoema, World Bank 8
9 Table of Contents 1. Market overview and consumer trends 2. Marketing strategies case studies 1.1 Japan 2.1 Japan 1.2 India 2.2 India 9
10 Market Overview: Japan Regulatory System Pharmaceutical Products Food for Specified Health Uses Food with Nutrient Function Claims Government approval required. Permitted to bear claims such as Slows cholesterol absorption. To supplement the nutrients (vitamins, minerals, etc.) No need to submit a notification to the government, as long as the food contains certain amounts of nutrient Food with Health Claims Food with Function Claims Food in General Under the business operator's own responsibility, can bear function claims based on scientific evidence. No need of pre-approval by the government, but the supporting evidence needs to be submitted. Source: I.B ヘルスケア, Consumer Affairs Agency 10
11 Market Overview: Japan Market Size and Growth 7 USD Billion E 2018P Food for Specified Health Uses Food with Nutriend Function Claims Food with Function Claims Source: Fuji Keizai Note : 1. 1USD = 107.6JPY as of Apr
12 Market Overview: Japan 2017 Market Highlight Sales of Foods with Function Claim continued to showed strong growth in Messages from functional claim have a stronger product appeal than food for specified health use Price range is easy on the pocketbook New drinks and supplements with functional claim contributed to the sales increase Coca Cola introduced a series of drinks with functional claim Suntory Wellness renovated the existing product to functional foods Source: Fuji Keizai, 12
13 Market Overview: Japan Market Share by Health Benefit Market Share of Health Food and Supplement by Health Benefit (FY2017): 1 st Maintaining Health and Improving Physical Strength 2 nd Beautiful Skin and Skin Care 3 rd Recovery from Physical Exhaustion 4 th Nutrient Balance Source: Intage 13
14 Market Share Health Foods and Supplement Market by Age Group Over 50 s accounts for Market overview: Japan Market Share by Age Group 60's 27% 10's 1% 20's 70's 6% 30's 22% 10% 10's 20's 50's 18% 40's 16% 30's 40's 50's 60's 70's Source: Intage Note : 1. 1USD = 107.6JPY as of Apr
15 Annual Average Purchase Amount for Health Foods and Supplement per Gender and Age Group USD Market overview: Japan Purchase Amount per Gender and Generation 's 20's 30's 40's 50's 60's 70's Male Femaie Source: Intage Note : 1. 1USD = 107.6JPY as of Apr
16 Market overview: Japan Health Benefit TOP5 Consumers Seek For Health Benefit Top 5 Female Consumers seek for (1) (2) Female 50 s Female 60 s Female 70 s 1 Skin Care Eye Health (3) Eye Health (3) 2 Eye Health (3) Health Maintenance and Promotion Health Maintenance and Promotion 3 Fatigue Recovery Articular Health Articular Health 4 Intestine Maintenance and Prevention of Constipation 5 Health Maintenance and Promotion Skin Care Bone Health Bone Health Intestine Maintenance and Prevention of Constipation Source: Intage Note : 1. Female over 50 s 2. Sort by Purchase rate of Health Foods and Supplement with Health Benefit 3. Excludes Eye Dry prevention 16
17 Table of Contents 1. Market overview and consumer trends 2. Marketing strategies case studies 1.1 Japan 2.1 Japan 1.2 India 2.2 India 17
18 Market Overview : India Percentage of Millennial population 40% 35% 30% 34% 33% 31% 25% 26% 20% 15% 10% 14% 5% 0% Source: Deloitte Database (Thomson One) and Analysis India Brazil China USA UK Note : 18
19 Market Overview : India Voices from Millennial Social good and ethical consumption is the right thing to do I check SNS everyday I am always busy. Convenience is important I want to have a healthy lifestyle Source: Deloitte, economic time, Morgan Stanley, Goldman Sachs 19
20 Market Overview : India Premium Millennials want to pay High Quality Standards Superior Performance 31% 35% 55% 48% 47% 42% Organic/Natural Ingredients Sustainable Materials 31% 29% 47% 42% 44% 39% Millennials Baby Boomers Global Average Uniuque Offering 20% 34% 40% Source : Deloitte 0% 10% 20% 30% 40% 50% 60% Note : 20
21 Market Overview: India Organic Packaged Foods and Beverage Market Size CAGR 10.8% From 2017 to Note : 21
22 Table of contents 1. Market overview and consumer trends 2. Marketing strategies case studies 1.1 Japan 2.1 Japan 1.2 India 2.2 India 22
23 Consumer trends: Japan Functional Instant Food Convenient but Healthy Functional Instant Food Increasing demand, especially 60 s Seniors can no longer cook as before Seniors need small portions of foods as family size gets smaller Seniors are health conscious Instant foods does not spoil quickly Source : Nikkei Trendy Net 23
24 Case Study: Japan Frozen food to Maintain Memory Maintain Memory DHA+EPA, Reduce Sodium by 30% 1 Background Widely known that memory is diminished as getting older. But few people cope with it. 2 Solution 450mg of DHA is mixed DHA has a good effect on keeping cognitive function Easy to cook and take in DHA 3 Appeal Point Maintain Memory Source : Nissui, Nikkei tredy net 24
25 Case Study: Japan Instant Soup to Take in Protein Soup enable to take in enough protein Protein, Vitamin D, Calcium 1 Background 1 out of 5 seniors is short of protein Difficult to take in sufficient amount of protein especially on breakfast Strong demand for high quality and delicious foods among senior 2 Solution 8 times the amount of protein to the regular type is mixed Powdery Soup Easy Cook Creamy soup with rich taste Carefully selected and elaborate ingredients 3 Appeal Point Take in enough protein 25
26 Consumer trends: Japan Chocolate for Health Delicious Sweets, but Healthy Chocolate for Health Chocolate market is led by seniors over 50 s. Purchase amount of chocolate by seniors has increased by 50% in the past 15 years Seniors are willing to pay more to high quality products Functional Chocolate accounts for 10% market share in chocolate market 10% 26
27 Consumer trends: Japan Chou-Katsu ( 腸活 ) Chou-Katsu is intestine activity if literally translated Chou-katsu Become popular these days Aims at having a lifestyle, exercises and diet to create a better intestine environment e.g.) Starting a day with a glass of water or drinking a spoonful of olive oil to activate the workings of intestines Treats constipation, makes skin beautiful and makes people healthier 27
28 Case Study: Japan Lactic Acid Chocolate Megahit Product 20 million units was sold in 1 year since its release Improve Intestinal Environment Lactic Acid T Background Widely known that lactic acid support health maintenance. Few delicious lactic acid sweets available Chocolate is considered to be hard on stomach. Solution Changed image of Chocolate Turn bad image to health to good. Wrapping lactic acid by chocolate to bring to stomach Appeal Point Delicious chocolate for guts health 28
29 Case Study: Japan Functional Chocolate The first Functional Chocolate 1.2million unit was sold in 1 year since its release Reduce Fat and Sugar absorption Background Love chocolate but worried about its calorie, feeling guilty when eating chocolate. No sugar added chocolate are not sweet enough and delicious Solution Reduce sugar and Scarcely-digestible dextrin is added instead Scarcely-digestible reduces sugar and fat absorption. Roasted cacao beans slowly to keep the taste delicious Appeal Point Keep Chocolate taste delicious while reducing sugar and fat absorption 29
30 Table of Contents 1. Market overview and consumer trends 2. Marketing strategies case studies 1.1 Japan 2.1 Japan 1.2 India 2.2 India 30
31 Consumer Trend: India Millennial Food Brand New food brand attracts Millennial who look for trendy and healthy Millennial Food Brand Hybrid and Updates products A lot of flavors Healthconscious Innovative package design Selected natural ingredients E-commerce Source : Rediff business, TNC Note : 31
32 Case Study: India Raw Pressery Background India is the largest market for juice But juice is not healthy drink in India Sugar is added as a reward Solution Uses unique cold pressed technology to avoid oxidation and preserves the nutrition of fruits and vegetable Excludes added sugar, preservatives, colours, chemicals, additives or artificial ingredients Appeal Point Offers a specific nutritional need of the body Source : Raw Pressury, economictimes Note : 32
33 Case Study: India KivaShots Background Ayurveda is 4,000 year old Indian system of medicine and people know it is good for health But it is complicated and old fashioned for Millennial Solution Produce candies and shots by picking up Ayurveda recipes, and adding a lot of taste Proactive Marketing on SNS to reach Millennial Appeal Point Healthy, tasty and stylish Source : Kiva shots, Craft Driven Note : 33
34 Case Study: India Wingreens Farms Background Food production systems is destructed and faces problems such as use of chemical fertilizers But India has a potential to grow many herbs and vegetables. Solution Train and hire underprivileged farmers, women and youth Develop products such as dips by using fresh vegetables and herbs Appeal Point Farm fresh and Healthy Social good and environmental sustainability Source : Wingreens Farms, Kulzy Note : 34
35 Case Study: India Veeba Background Sauces in the Indian market are mediocre Customer appreciation for western cuisine has increased Indian like creamy and gooey salads Solution Developed healthy dips, sauces and dressings Introduced authentic flavors from across the world and new exotic Indian flavors Appeal Point Fat free and Calorie free but tasty New and innovative flavor High quality products Source : Veeba, economictimes, finetrain, what she likes Note : 35
36 Consumer Trends: India Frozen Food MM USD Frozen Food Market Size E Note : 36
37 Consumer Trends: India Frozen Food Back Ground Behind Rapid Growth of Frozen Food Market 1 Change in Life Style 0.05" Urbanization is expanded More women do not have time and knowledge to cook traditional Indian foods and The population of young people is glowing The number of single person household is increasing to commute to work or school The number of working women is glowing 2 Change in Consumer Trend The demand in new various foods is increasing as consumers have more experience with new foods Convenient for cooking is more important than before Image of frozen food is changing to more healthy foods thanks to progress of processing technology Price of Frozen food keeps low in spite of a hike in prices Note : 37
38 Consumer Trends : India Frozen Food Frozen foods are regarded as one of the most healthy foods after fresh foods. Prevent outflow of nutritious ingredients New Product Coca Cola launched various frozen fruit dessert in major metro in 2018 summer Using local fruits such as santra (orange), guava, anar (pomegranate), litchi, and specific mango varieties Himsagar and Langra that are grown only in West Bengal Note : 38
39 Thank you 39
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