nielsen-asia2020-webinar-deck · big data/API/predictive analytics personal devices/the internet of things FOCUSED & SWIFT virtual & augmented reality crowdsourcing. 15 DEVELOPING

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PROGRESSING,PREPAREDORPESSIMISTIC?

ReganLeggett9March2016

ASIA2020

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TODAY’SPRESENTER

[email protected],ThoughtLeadership&ForesightNielsen

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PROGRESSING,PREPAREDORPESSIMISTIC?

ReganLeggett9March2016

ASIA2020

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2016TheNielsenCompany.Confidentialandproprietary.

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CHANGEISINEVITABLEButconnecting thedotsandapplyingaforesightmodelcanbeashining light

Fromlinearandone-way Tomulti-dimensional,connected&all-ways

Brands

Organisation

Industry

Economy

Society Global&macro

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“ ”Wedidn’tdoanythingwrong,butsomehow,welost.

CEOOFNOKIA

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HOWTONAVIGATEACCELERATINGCHANGE?It’scomplicated,complexandchallenging…

OVERNIGHTOVERDECADES

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CHANGEISACCELERATINGBUTAREWEREADY?

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population growth

demographic spread

ASEANsecondarycities

changing regionalbusiness framework

ASIANmega-cities

middle incomeemergence

infrastructureinvestment

BROAD&SLOW

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Australia+5.4Mto28.7MIndonesia +32.2to282MMalaysia+5.2Mto34.9M

Philippines +20.9Mto119.2MSingapore+0.9Mto6.3MThailand+0.9to67.9MVietnam+8.2Mto99.8MCambodia+3Mto18.1M

Laos+1.5Mto8.2MMyanmar+4.4Mto57.6MChina+63Mto1448MIndia+166Mto1418M

ADDITIONAL327.6MILLION TO3,586.9MILLION

POPULATIONGROWTH– 2013TO2025

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TWOSEGMENTSATOPPOSITEENDSOFTHEAGESPECTRUMYOUSHOULDBEOPPORTUNISTICABOUT

30

23

25

19

17

15

15

14

15

12

64

69

66

70

70

69

67

63

61

58

6

8

10

11

13

17

18

23

24

30

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Philippines

India

Malaysia

Indonesia

Vietnam

China

Thailand

Korea

Singapore

Japan

PopulationShare(%)ByAge- Projected2030

LITTLEEMPERORS

AGEINGCONSUMERS

Source:NielsenResearch

0-15 16-60 60+

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THEGLOBALMIDDLECLASSISEMERGINGINNEWPLACES

Source:NielsenEstimates|GlobalMiddleClassdefinedas$16to$100perdayin2005PPP

28%

190MILLIONSouth EastAsia

17% 210MILLIONIndia

61%

800MILLIONChina

GlobalMiddleClass2012$16to$100perday

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55%

400MILLIONSouth EastAsia

39%

540MILLIONIndia

71%1BILLIONChina

GlobalMiddleClass2020$16to$100perday

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SUPER- ANDMEGACITIES

5M+

34.9M

52.2M

2015 2025 % CHANGE

MIXED-DENSIT Y

CITIES1–5M

SMALLCITIES

500,000–1M

LARGETOWNS

<500,000

RURALAND

SMALLTOWNS

196.2M

17.7M

330.6M

TOTAL POPULATION

52.6M

69.0M

231.8M

16.8M

324.3M

+51%

+32%

+18%

-5%

-2%

MEGACITIES19%

MIXED-DENSITY14%

SMALL CITIES5%

LARGE TOWNS63%

URBANPOPULATION

ASEAN69m

32%

52.7m

51%

16.8m

-5%

231.8m

18%<500K

500K–1M

5M+

1–5M

2025:OPPORTUNITYISINTHEMASSES

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consumerstratification

foodstress

health&wellness/functional&performancefoods

premiumisationsocialresponsibility

autonomous cars

dronedelivery

pollution

energy

genY

3Dprinting

bigdata/API/predictiveanalytics

personaldevices/theinternetofthings

FOCUSED&SWIFT

virtual&augmentedreality

crowdsourcing

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DEVELOPINGTECHNOLOGIESWITHVERYPRACTICALAPPLICATIONS

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CONSUMERSTRATIFICATIONACROSSASIA

AGE

WEALTH

HOUSEHOLDSIZE

LOCATION

EDUCATION

ACCESSTOTECHNOLOGY

ACCESSTOPRODUCTS

MILLENNIALS

LOWINCOME

SINGLEUNIT

RURAL

LOW

LIMITED

SILVERTIDE

TRADITIONAL/MODERNTRADE

MILLIONAIRES

FAMILYUNIT

URBAN

HIGH

24/7

E-COMMERCE

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INCREASINGFOCUSONHEALTHANDWELLNESS

DRUGSTORES&PERSONALCARESTORESINCREASINGSHARE

84%OFCONSUMERSWILLPAYMOREFORFOODSWITH

HEALTHBENEFITS

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IFSOUTHEASTASIAFOLLOWSCHINA,SIGNIFICANTLYMOREOPPORTUNITYTOEXPANDPREMIUMSEGMENT

23%

6%11%

CHINA

Source:NielsenAnalysis:10countriesvs6countries16categories

SOUTHEASTASIA

GROWTH

GROWTH

16SOUTHEASTASIA

21%

8%10%

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150PERSPECTIVESAgoda toZalora

FMCGtoFinancialServices

MyanmartoKorea

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POLL1:TOWHATEXTENTDOYOUTHINKYOURORGANISATIONWILLHAVETOCONTENDWITHAMAJORCHANGEINYOURINDUSTRYORCOUNTRYINTHENEXT5YEARS?

A:HIGHLYUNLIKELY

B:UNLIKELY

D:LIKELY

C:NEUTRAL

E:HIGHLYLIKELY

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OURLEADERSKNOWITISHAPPENING

Extentyourorganisation willhavetocontendwithmajorchangeinindustry

Whatisthebiggestchangeofconcerninthenext5years?

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POLL2:HOWCONFIDENTAREYOUTHATYOURORGANISATIONHASTHENECESSARYSYSTEMS&TOOLSINPLACETOSPOTEARLYINDICATORSTHATCHANGESMAYBEAPPROACHING?

A:NOTVERYCONFIDENT

B:NOTCONFIDENT

D:CONFIDENT

C:NEUTRAL

E:VERYCONFIDENT

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BUTARETHEYREADY?

Abilitytospotearlyindicators

Preparedforthefuture

Changeinbusinessmodel

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MOSTLEADERSAREABREASTOFSLOWMOVINGCHANGE

Top3prioritymarkets

VIETNAM INDONESIA CHINA

Impactoftradeagreements

Expandintonewmarkets

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ITISHARDERTOKEEPUP

59%areconcernedaboutthreatofnewcompetition

84%agreenewtechnologywillimpactorganisationsinnext5years

SEEDSOFTOMORROWAREALREADYPLANTED

INTERNETOFTHINGS 3DPRINTING DRONES/ROBOTICS

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WHATWILLRETAILENVIRONMENTOFTOMORROW

LOOKLIKE?

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E-COMMERCEWILLCHANGETHERETAILLANDSCAPE

31%believee-commercewillaccountfor30%or

moreoftheirorganisation'sgrowthinnext5years.

Top5factorsinretailenvironmentofthefuturethatwillbemostimportanttoyourorganisation?

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CONSUMERACCEPTANCEISGROWING

Source:NielsenGlobalE-Commerce andFutureofGrocerySurvey,Q32014Globalsurveygenerallyreflectsurbanpopulation.BasedonInternetusers.

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MORECONSUMERTOUCHPOINTSCREATESMOREDATA

WELCOMESTHEAGEOFCUSTOMISEDPERSONALISATION

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Thinkingabouthowyourbusinesswillengagewithcustomersinthe

future,doyouthinktherewillbe…

COMPANIESBELIEVEGREATERFOCUSONINDIVIDUALS

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WHATCONSUMERBENEFITSAREIMPORTANTFORTHEFUTURE?

PRODUCTIVITY/TIMESAVING

CONVENIENCE HEALTH&WELLNESS

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POLL3:COMPARED TOYOURORGANISATION’SAREAOFFOCUSTODAY,WHICHOFTHEFOLLOWINGWOULDBEYOURBIGGESTPRIORITYINTHENEXT5YEARS?

A:BIGDATA/PREDICTIVE ANALYTICS

B:RETAILERPARTNERSHIPS

D:DIGITAL

C:SUPPLYCHAINIMPROVEMENT

E:NEWMARKETS&EXPANSION

F:PARTNERSHIPS&ACQUISITIONS

G:INNOVATION

H:OTHERS

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STRATEGIESFORTOMORROW?Whatbusiness leaderssay…

INNOVATION BIGDATA&PREDICTIVEANALYTICS

DIGITAL SUPPLYCHAINIMPROVEMENT

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EMERGINGECOSYSTEM:THECONNECTEDCONSUMER

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QUESTION&ANSWER

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THEFUTUREISALREADYHEREIT’SJUSTNOTEVENLYDISTRIBUTED“

WilliamGibson ”

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