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Copyright © 2018 The Nielsen Company. Confidential and proprietary.
NIELSEN OMNI-CHANNEL INTELLIGENCE SOLUTION Nielsen Korea
Junho Lee (Director, FMCG Industry Group)
+82 10 2384 9234
March 2018
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Copyright © 2018 The Nielsen Company. Confidential and proprietary.
KOREA
ECOMMERCE
LANDSCAPE
QUESTIONS? [email protected]
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44.6% 35.0%
26.6% 26.4% 21.3% 20.9% 19.4% 16.9% 11.1%
4.7%
Food
&Beverage
Total
E-commerce
+22%
4.8 7.6 0.3 1.7 10.7 7.4 1.8 2.5 4.1 2.9 In Trillion
Value Growth & Market Size
Total Online
Market Size
50 Trillion USD*
* Korea Statistics, Total online exclude Online Service(Travel, Rent and etc.)
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Online
Offline
81% 63% 57% 43%
30% Online
Offline
20% FMCG E-commerce
Value share
In South Korea
4% 9% 12%
Source : Nielsen E-com Index
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Y’16 Q4
57.2% Y’17 Q4
63.1%
Mobile importance in E-Commerce
Source : Nielsen E-com Index
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E-RETAILER SHOPPER MANUFACTURER
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0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
#1
#2
#3
#4
#5
#6
#7
#8
#9
#10
#11
#12
#13
#14
#15
#16
#17
#18
#19
#20
#21
#22
#23
#24
#25
#26
#27
#28
#29
#30
Y2016
Sources : Nielsen Korean Click, Mobile Behavioral Data
Top 30 E-commerce Mobile Application Traffic
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Sources : Nielsen Korean Click, PC+Mobile Behavioral Data, Unit: Million Visitor
19.7
19.3
16.2
14.0 13.1
9.8 10.6
10.3
5
10
15
20
25
SE
P16
OC
T16
NO
V16
DE
C16
JA
N17
FE
B17
MA
R17
AP
R17
MA
Y17
JU
N17
JU
L17
AU
G17
SE
P17
OC
T17
11st Gmarket Auction
Coupang WeMakePrice Ticket Monster
Y2017 Avg. reach in Month Avg. web site visitors in million
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28.5
23.1 14.1
9.4
5.8
7.3
11.8 11st
Gmarket
Auction
Coupang
WeMakePrice
Ticket Monster
B&M
26.6%
21.3%
14.0%
8.5%
9.6%
5.9%
14.1% 11st
Gmarket
Auction
Coupang
WeMakePrice
TicketMonster
* Basis : FMCG = Grocery, Cosmetics, Fashion / Acc, Home Interior excluding Consumer Electronics, Travel / Ticket Services
Importance by major E-Retailers
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35% Online only product
30% Diversity in
assortment
20% Large size product
15% Quality /Genuine products
40% Lower price
35% Free shipping
30% Promotion
25% Event
40% Fun
35% Easy to navigate
30% Make consumer
cautious
20% Product information
50% Flexibility in delivery
45% Payment system
35% Bulky/Heavy Products
30% Time saving
Assortment Price Convenience Experience
Key Consideration Factors for E-Commerce Shopper
- 5%pt - 1%pt + 6%pt + 10%pt
•
Sources : Nielsen Korea Analysis
65% 60% 59% 48%
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•
Sources : Nielsen Korea Analysis
29.2%
0 9.9% 0
25.4%
0
29.3%
0
31.4%
0
23.9%
36.7%
33.6%
33.8% 39.1%
43.7% 49.1%
19.0%
29.3%
21.3% 17.2%
14.3% 15.6%
15.2% 27.2%
19.5% 14.4% 10.6% 11.4%
Total 10ties 20ties 30ties 40ties 50ties+
Luxury Cosmetic Category Share by Age
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74%
71%
54%
46%
99%
99%
98%
90%
Smart phone
penetration %
% of FMCG purchase
experience in
E-Commerce
Value growth vs. LY
In E-Commerce
50/60’s 35%
Sources : Nielsen Korea Analysis
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Copyright © 2018 The Nielsen Company. Confidential and proprietary.
NIELSEN
ECOMMERCE
SOLUTION
QUESTIONS? [email protected]
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Nielsen provide business insight based on E-commerce Data
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Covers over 90% of
FMCG E-Commerce
•
•
•
90%
10%
E-Commerce
FMCG E-Commerce
Nielsen E-Commerce Universe
* Source: Nielsen Koreanclick Mobile+PC Panel Data, Net User Traffic Basis, 100%=Total E-Commerce Retailers, FEB 17
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01 02 03 05 04
Nielsen covers Measurement with Activation solution and can give tangible solution to the manufacturers
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Copyright © 2018 The Nielsen Company. Confidential and proprietary.
CASE STUDY COFFEE CAPSULE
QUESTIONS? [email protected]
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In Korea alone,
consumers spend
more than USD 2.3
billion annually on
coffee.
Size of The Prize: Big & Getting Bigger
Source : Nielsen Retail Index data, FY 2017 (RTD Coffee, Coffee Mix, Instant Coffee, Roasted & Ground Coffee, Capsule Products)
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30%
34%
21%
26%
55%
25%
16%
32%
13%
9%
7%
23%
1%
4%
4%
5%
-4%
-5%
**FOOD**
NON-ALCOHOLIC BEVERAGES
WATER
TOTAL COFFEE
CAPSULE PRODUCTS
COFFEE BEANS
COFFEE MIX
INSTANT COFFEE
RTD COFFEEONLINE GROWTH
OFFLINE GROWTH
Online vs Offline Sales Growth by Category
Source : Nielsen Korea Homescan – Value Growth % MAT Dec 2017 vs LY
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OFFLINE ONLINE
0% 8.4%
Source : Nielsen RI ,Nielsen Korea Online KAD – Value Share in 2017
VALUE SHARE
15 32 ACTIVE # OF
BRANDS
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HOW DID STARBUCKS
CAPSULE, A BRAND NOT
PRESENT IN OFFLINE,
MANAGE TO BE #2?
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COUPANG (13.7%) GMARKET (25.9%)
11 STREET (33.7%)
Dolce Gusto 44.2%
Starbucks 20.0%
Illy 12.4%
Nespresso 8.4%
No Name 2.9%
Dolce Gusto 67.3%
Nespresso 13.2%
Starbucks 4.1%
Illy 3.7%
Dongsuh Food
Dolce Gusto 89.8%
Nespresso 7.4%
Illy 1.2%
Ecaffe 0.4%
Caffitaly 0.3%
Top 5 Brands in Top 3 Channels
Source : Nielsen Korea Online KAD – Share contribution of channels in 2017
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By searching for
Nespresso on
11th street,
Starbucks capsule
coffee comes up as #1
in the search results
Source : Screenshot of 11th street.com
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Copyright © 2018 The Nielsen Company. Confidential and proprietary.
CASE STUDY INFANT FOMULA
QUESTIONS? [email protected]
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39.5
60.5 FY17 Total
Annual Market Portion(%)
Source: Nielsen Retail Index, Nielsen eCommerce Index / Basis: Total Infant Formula, Sales Value(Million KRW)
Online & Offline Market Size
Online Offline
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OF
FL
INE
O
NL
INE
M/S comparison between On & Off in FY 17
33.9 29.5 11.9 24.7 FY 17
35.5 24.1 19.7 20.7 FY 17
Namyang Maeil Ildong Others
Source: Nielsen Retail Index, ,Nielsen KAD / Basis: Total Infant Formula=100%, Sales Value Share(%)
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THEN HOW DID MAEIL
WIN ONLINE?
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38.9 46.6 43.4 35.0
Total Infant Formula Maeil Yueop Namyang Yueop Ildong Foodis
Others
TMON
Wemakeprice
Coupang
Auction
11st
G market
Manufacturer Online Channel Portfolio
Source: Nielsen Retail Index, ,Nielsen KAD / Basis: Total Infant Formula=100%, Sales Value Share(%)
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Share of Purchase Ratings of Infant Formula by Channel
Packing Status
Delivery Service
3.3 2.8
17.5 2.2
10.2 10.4
25.0
6.3
21.5 30.4
4.1
23.2
13.5
11.3
13.7
6.6
12.8
74.6
54.2 43.5
87.4
21.5 5 points
4 points
3 points
2 points
1 point
Which Channel has got good reputation among online shoppers?
Analyzing competitiveness on digital shelf
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11ST(23%) G MARKET(15%)
BRAND M/S
Maeil Yueop Absolute 32.1%
Namyang Yueop Imperial 15.8%
*Milupa aptamil 8.2%
BRAND M/S
Maeil Yueop Absolute 26.0%
Namyang Yueop Imperial 15.9%
Namyang Yueop I Am Mother 6.9%
COUPANG(39%)
BRAND M/S
Maeil Yueop Absolute 40.6%
Namyang Yueop Imperial 21.2%
Namyang Yueop I Am Mother 7.3%
OPEN MARKET (45%) SOCIAL COMMERCE (54%)
Y17 Top Selling Brands by Channel
Source: Nielsen Online Shopping Diary Panel / Basis: Total Infant Formula=100%, Sales Value Share(%)
*Imported Brand
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23.2
19.7
9.0
6.3
3.2
32.5
15.5
13.0
9.0
9.0
Maeil Absolute
Namyang Imperial
Pasteur With Mom
LG H&HCBabience
Ildong Truemom
Offline Distribution Share
Online Distribution Share
32.5
15.5
13.0
9.0
9.0
41.5
9.5
14.0
11.0
4.5
Maeil Absolute
Namyang Imperial
Pasteur With Mom
LG H&HCBabience
Ildong Truemom
Total Distribution Share(Numeric)
Golden Zone Distribution Share(Weighted)
How well exposed my brand is compared to Offline? How well exposed my brand is on Golden Zone?
Analyzing competitiveness on digital shelf
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NON ZERO PLAY UNIQUE ASSORTMENT
TARGET SEARCH & GOLDEN ZONE
MARKET & SHOPPER MONITORING
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Copyright © 2018 The Nielsen Company. Confidential and proprietary.
PLEASE SEND
YOUR QUESTIONS
TO BELOW ADDRESS
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Copyright © 2018 The Nielsen Company. Confidential and proprietary.
Nielsen Korea
Junho Lee (Director, FMCG Industry Group)
+82 10 2384 9234
