TURNING SILVER INTO RETAIL GOLD - Nielsen · 2 TURNING SILVER INTO RETAIL GOLD ˜ MARCH 2016...

T URNING SILVER INTO RE TAIL GOLD MARCH 2016

S IN G A P O RE CO N SUME RS A BOV E 55 Y E A RS O LD A RE THE …

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PIONEERGENERATION

SILENTGENERATION

SILVERGENERATION

1Copyright © 2016 The Nielsen Company

REG A RDLE SS WH AT YO U C A LL THE M , THE Y…

J US T 3 RE A SO N S WH Y YO U S H O ULD N OT NEG LEC T

THI S G ENER ATIO N …..

A ND A RE P OS SIB LY YO UR B IG G ES T SPENDERS

H AV E DEEPER P O CKE T S

A RE WISER CO NSUMERS

2 TURNING SILVER INTO RETAIL GOLD | MARCH 2016

WELCOME

Singapore is one of the “oldest” nations in Asia Pacific and

the silver generation accounts for 40% of the nation’s grocery

shopping, making it an extremely important segment for

the Consumer Packaged Goods (CPG) industry. On the

other hand, shopping environments and CPG products are

generally not designed with the elderly in mind, so their needs

are not met. This represents golden opportunities for both

manufacturers and retailers.

At Nielsen, we have identified approaches which have worked.

There is no secret formula when it comes to innovating and

catering to the silver generation. Manufacturers should look

to adapting packaging and product innovation to meet the

specific requirements of the aging consumers. Products

should be customized to satisfy their special nutritional and

other aging-related needs. Product packaging can be adapted

to ease their purchasing moments and product navigation.

Retailers should also adapt the four Ps – People, Place,

Promotion and Product, based on the desired needs to

encourage a conducive shopping environment which is

attractive to these mature consumers. Providing delivery

options will further sweeten the deal and win their

loyalty and wallets.

JOAN KOH

MANAGING DIRECTOR,

SINGAPORE AND MALAYSIA

JOAN KOH


Mrs Tan is a retiree at the age of 62. She and her husband live with

her daughter, son-in-law and their children. Due to her daughter’s busy

lifestyle, they rely on her to do the household groceries. With more free time

on her hands, grocery shopping has gradually become a hobby of hers, as

she enjoys spending time at the supermarkets browsing through the aisles

Mrs Tan makes a special effort to get to the supermarket on days with

Pioneer Generation discounts as she tries to save money for the household.

When shopping, she seeks out specialised dairy products that could help

her osteoporosis condition but usually she has to settle with generic high

calcium milk. While there are many promotions available, she finds it

difficult to understand what the offer is as she is not f luent in English.

PioneerGeneration discounts

IN T RO DUC T IO N


G ENER AT ION V IPMrs Tan is not alone in her grocery shopping habits. The silver generation

plays an extremely important role in Singapore’s Consumer Packaged Goods

(CPG) industry. Currently consumers aged 55 years and above account for

40% of household grocery shopping for the nation1 and they are spending

more on groceries each year – growing at 18% while the younger generations

spend less.

With Singapore being one of the “oldest” nations in Asia Pacific, and the

65-year-olds projected to grow to 24% in 20302, the importance of the silver

generation has been recognized by the Singapore government as seen from

the launch of the Pioneer Generation initiative in 2015 and the recently

unveiled $3 billion Action Plan for Successful Ageing3. However, while the

growing importance of this generation is starting to be recognized, the CPG

industry at large continues to focus on the young and family demographics.

The silver generation faces a number of challenges when navigating the retail

landscape in search for products and services that meet their specific needs.

Nielsen undertook a specific study of the mature market to understand these

challenges and discover if their needs were being met by manufacturers and

retailers today.

8%

2004

12%

2014

24%

2030 forecasted


UNMET NEEDS FOR AN OLDER CROWD


PRODUCT RELATED

UNMET NEEDS

Products with clearly labelled nutritional information

CALORIES

PROTEIN

SUGAR

SODIUM

TEA

**g

**g

**g

**g

咖啡

Products with easy-to-read labels

Local language on packaging

67%

44%

30%


PRODUCT RELATED

FULFILLED NEEDS

MUST-HAVES

NICE-TO-HAVE

Product availability in the frequented channels

Healthier food options

Products with easy-to-use product packages

Products with easy-to-open product packages

Food products that meet my special nutritional diet needs

Personal care products that meet my special needs

Foods with smaller-sized portion

46%

38%

46%


UNMET NEEDS

FULFILLED NEEDS

SHOPPING ENVIRONMENT

SHOPPING ENVIRONMENT

Ample lighting

Promotional posters in local language

Wheelchair-friendly facilities

Wide range of product categories to meet elderly needs

Attentive staff

40%

48%

63%48%


Staff that communicate in local languages

Large print signage/posters

MUST-HAVES

NICE-TO-HAVE

Free delivery and online retail options

Aisles dedicated to aging-needs products

Promotions that are geared towards smaller families

Benches to sit down

43%

65%

72%

36%


UNMET NEEDS

F U L F I L L E D N E E D S


Trouble f inding food products to meet specif ic dietary requirements.

While there are many healthy food

alternatives in the market, more than one

in three (38%) elderly consumers have

trouble finding food products that meet

their special dietary needs. The Singapore

Health Promotion Board has identified some

of the common problems faced by the silver

generation, including lactose intolerance,

difficulty in chewing, and a poor appetite.

With a limited range of offerings that cater

specifically to these needs, many elderly

have to settle with alternatives like baby

foods, or general food products that do

not address their actual issues.

Lack of innovation in personal care products for the aging consumer.

As we age, our needs evolve – our hair

becomes thinner and more brittle; our skin is

drier and less elastic. While hair and beauty

products exist in the market for specific

needs, there is little focus on how these

needs differ for the elderly consumer.

Product packaging and labelling are not “elderly-friendly”.

Product packaging is another area that

represents a challenge to many elderly

consumers. Small print and lack of clarity

on nutritional information are cited as some

of the common challenges that the elderly

have when purchasing consumer packaged

goods. Adjusting these features would make

it easier for senior grocery buyers to navigate

through the wide array of products and help

improve their purchasing journey.

Retail environment is not “elderly-friendly”.

Age takes a toll on the physical body, and

mobility issues become a daily concern

for many elderly. Lack of elderly-friendly

facilities (e.g. benches for resting) is one

of the common problems faced. Like Mrs

Tan, many elderly consumers may not

understand promotional communications

written in English and therefore, assistance

or translation in their known language is

required. Unattentive retail staff is also

a challenge in many retail environment.

CHALLENGES ABOUND FOR THE SILVER GENERATION, AS THEY SEEK PRODUCTS AND SERVICES THAT MEET THEIR REQUIREMENTS. THESE INCLUDE:


INN OVATE TO WIN

HOW TO WIN T HE HE A RTS A ND C A RTS OF T HE

SILV ER G ENER AT ION

WHE N IT COME S TO A DV E R TI S IN G , S PE A K THE IR L A N G UAG E

G O FA R THE R WITH THE S H O PPIN G C A R T


INNOVAT E TO WIN

Innovation opportunities lie within many product categories, but those

that cater specifically to senior consumers’ unmet needs are most likely

to succeed.

It is worth noting, that not all purchasing is done for an elderly end

consumer. Often, as with the case of Mrs Tan, they may be buying for the

broader household group. For these categories, manufacturers should

focus more on ease of purchasing and product navigation rather than

specific product benefits.


SPOTLIGHT ON: PACKAGED FOODS & DRINKS

Senior grocery shoppers account for 51% of sales in the Health Supplement

categories. Examples include Chinese herbs & tonics, multi-vitamins & minerals,

and Essence of Chicken, which are all supplements for the elderly’s health

and wellbeing. Other “healthy” categories like soya milk, yogurt, hi-fibre and

wholemeal breads are also becoming popular as awareness of healthy eating

grows among senior shoppers in Singapore.

Traditional formats, such as Bar Soap and Roast/Ground Coffee have a larger

following from senior shoppers (52%), probably due to their familiarity with

traditional formats. These tried-and-tested formats are more important to the

senior shopper than other consumer groups.

Ready-to-eat items such as cakes and pastries are other examples of

categories that are more likely to be bought by senior shoppers (52%).

These categories, along with a few other food categories including bread, buns,

and biscuits are also growing fast among the elderly shoppers, who look for

convenience or “no cooking options” as well as satisfying sweet cravings

as their taste buds change.

While these categories currently satisfy the silver generation, opportunities

abound for companies who can address the unmet needs of these elderly

consumers. Innovation in food categories is required to address specific

aliments such as lactose intolerance, difficulty in chewing, and a poor appetite5.

Manufacturers that take into account of these requirements and offer nutritional

healthy options are destined to win.

Categories which

the elderly shopper

contributes to the

majority of category

sales4:

• Health Supplement

categories

• Traditional formats

within categories

• Ready-to-eat food

categories

51% 52% 52%


SPOTLIGHT ON: PERSONAL CARE

Personal care products that specifically target and

address elderly needs are also an area of opportunity.

For centuries, marketing of health and beauty categories

has focused on younger audiences, but whilst not an easy

feat, those that include and innovate to the mature audience

are ahead of the pack! While there is no secret formula to

success, Nielsen has observed some specific examples

that have worked.

Specialized solution that meets specif ic aging needs featuring a mature talent – Pantene Japan

Pantene Extra Volume is a range of hair care products

that caters to the mature audience in Japan. Before

Pantene Extra Volume was launched, its predecessor

Pantene Natural Care was positioned as offering fullness

and life to hair through natural ingredients. The relaunch

focused on mature hair that is prone to volume loss

and requires a specialized solution to boost volume and

the communication featured a mature model. Since the

relaunch, sales have grown by +90% in the first year6. This

example demonstrates that the brand understands mature

consumers’ specific hair care needs and featuring a mature

model in the ad provides the authenticity that makes the

product more relatable to a mature audience.


Nostalgic packaging – Bigen Speedy Singapore

Hoyu, the Japanese hair coloring giant showcased an alternative

route to appeal to gray-coverage users. Bigen Speedy Hair Color

Conditioner is a popular hair colorant sold in Singapore. Its colorant

promises to cover grey hair in 5 minutes with the applicator comb.

Instead of featuring older talents, this product uses an eye-catching

and nostalgic-reminiscent packaging that resonates with mature

audiences, achieving a stable 14% market share in the Hair Colorant

category in Singapore7.

Counter-stereotypical approach – Hoyu Men’s Bigen Japan

Another innovative approach from Hoyu showcased the idea of

“embracing aging” rather than “chasing youth”. Hoyu Men’s Bigen

Grey Hair is a hair colorant manufactured by Hoyu and sold in Japan.

Instead of covering grey hair with black, this product leaves the

impression of grey and provides a natural-looking, even-toned and

“attractive grey” hair. It endorses the belief that aging is nothing to

be ashamed of; and as a society we should embrace and enjoy aging.

While it is too early to see if it has been successful, it showcases

a liberating approach from the youth stereotypes of the past.

Capturing the aff luent silver generation

Specialized premium innovation that caters to the more

aff luent silver generation provides an even greater opportunity to

manufacturers. To effectively target the aff luent mature shoppers,

ensure ready distribution in Convenience stores, Personal care stores

and Western Pharmacies as these channels are frequented more

by the aff luent older consumers. Additionally, engage the aff luent

mature audience online as they consume more digital content

than the less-aff luent.

1 min 2 min 3 min 4 min 5 min


WHEN IT COMES TO A DV ERT ISING , SPE A K T HEIR L A NGUAG E

Mature brains are different from their younger counterparts in many ways, including how

they react to advertising messages. Nielsen Consumer Neuroscience sheds insights on how

to communicate effectively with the elderly.

Focus on the positive. With age, comes wisdom and experience. Recognize the strengths

of older consumers in advertising, instead of the limitations. Mature brains tend to avoid

negative emotions while they are on the constant look out for positive emotions.

Familiar settings. Engage with the mature brains more easily than foreign and quirky

settings (e.g. robots, animals talking). As we age, our ability to process new information

starts to decline as certain networks in the brain become less f lexible. Familiar settings in

advertisements make it easier for the mature brain to process information.

Simple is best. Use clean, clutter-free messaging in advertisements. The ability to retain

and act on multiple pieces of information declines as we age. Distraction and complex story

lines impair attention and memory with the potential for the key message to be lost. Using

a simple, clutter-free message helps the mature brain to navigate and recall advertising

far better.


GO FA RT HER WIT H T HE SHOPPING C A RT

People – Improve attentiveness of staff

“Attentive staff” is considered highly important by the elderly consumers, yet

difficult to come by. Few retail environments today have sufficient staff to

assist shoppers in need. In this new digital age of automation and self-service,

the mature shopper appreciates the personal touch and assistance that only

dedicated staff can bring. Stores that embrace this traditional service delivery

will win the “hearts” of the silver generation.

Place – Install benches in stores

Senior shoppers tire more easily, and often require a short rest during shopping

trips. Many retailers today do not have adequate benches in their stores to

address the mobility issues of this growing shopper demographic. Retailers that

provide “rest spots” with comfortable seats and wheelchair-friendly facilities

will enable mature shoppers to spend more time in store. For example, in the

United States, an increasing number of retail outlets are providing in-store

cafés which allow shoppers to rest and get recharged before continuing their

shopping journey. These retailers know that a “well-rested” shopper will stay

in store longer and have a greater likelihood of increasing their expenditure

in store!

Within the retail environment, there are many potential minefields for the mature consumers.

Retailers that address the unmet needs of the silver generation and tailor their service offering to this

growing and inf luential segment will win their loyalty and wallets.


Promotion – Offer promotions in local languages & for smaller families

For many elderly consumers in Singapore, English may not be their first

language and as people age, they often revert back to what they know best.

Providing options to communicate promotional offers/displays in local languages

would improve understanding and effectiveness. With technology becoming

an increasing reality in many retail environments, explaining promotions and

offerings in local languages is only a “touch screen” away.

Although many elderly in Singapore today reside with family members, one

in four still lives alone or with their spouse. In today’s retail environment, many

promotional offers target bulk purchases which may not be relevant to smaller

households. Retailers should consider offering cross-category bundling, total

dollar store savings, or promotions on smaller pack sizes to appeal to smaller

elderly households.

Product – Meet demand for aging related products

The silver generation can have specific needs and often mobility issues.

Having a dedicated product section or aisle would certainly be more convenient

for them. Infants make up 3% of the Singapore population8, and have their

dedicated aisles in supermarkets, so why not do the same for the elderly

consumers who are four times more? For example, retailers can consider setting

up a special aisle with products suitable for the elderly consumers with common

health issues such as diabetes, osteoporosis and heart disease.

Delivery and online shopping

Offering free delivery unlocks the option of bulk buying for the elderly, as they

are no longer limited by what they can physically carry home. By lowering the

minimum spend for the elderly to qualify for free delivery, retailers, especially

larger format stores can win their loyalty and encourage them to spend more.

While still in its infancy, online shopping is fast becoming a reality for

tomorrow. Close to four in five9 (78%) elderly consumers access the internet

today, although online grocery shopping is not yet common to the silver

generation. Retailers need to build trust among these elderly shoppers with

regards to payment options as well as to help them master online shopping

through easy, step-by-step user guide on the e-commerce websites.


OL D IS GOL D

The world’s oldest population, Japan, is blazing the trail in actively exploring opportunities within

the silver segment. Aeon, Japan’s largest supermarket chain, recognizes the elderly consumers as

an extremely important source of growing revenue for the future and has taken direct actions to

respond to the needs of their senior shoppers.

Welcome to Aeon Mall Funabashi, a shopping mall specifically targeted at the silver segment.

Besides shopping, senior citizens can access medical facilities, partake in one of the many

leisure activities ranging from calligraphy lessons to hula dancing and even find love through the

shopping centre’s “Begins Partner” programme. Aeon launched a trial, round-trip free bus service

to transport people from their homes to the local Aeon supermarket. This initiative has been

well received as it not only reduces the physical hassle of getting to the shops for the elderly, but

has also become an important social networking experience as people anticipate meeting and

interacting with their neighbors during the bus ride. Aeon has indicated that the financial services

partner it collaborates with in their elderly-friendly mall has seen 20% more consultations as

compared to a conventional bank branch.

With one in four Singaporeans falling into this demographic by 2030, Singaporean retailers can look

to Aeon’s playbook, and continue to explore innovative ways to serve the rising silver generation.


Mrs Tan goes grocery shopping and is greeted by a shop assistant. With the assistant’s

help, she finds the specialized dairy drink easily, which helps keep her osteoporosis

condition under control. She reads the large print label for nutritional content and taps

the in-store screen to view the promotional offer in her preferred language. She takes

a short rest in the supermarket café before finishing her shopping. With the free home

delivery, she is able to stock up and take advantage of a number of promotional offers

without having to worry about how she will get them home. This is Mrs Tan’s future –

the opportunity is ripe for manufacturers and retailers to embrace what lies ahead.

Nielsen surveyed 300 respondents in an island-wide study. The sample is limited

to those above the age of 55 and has quotas based on gender and ethnicity to

ensure sufficient representation of the various demographics. The study aims to

understand the sentiments of elderly regarding the retail environment and products

attributes in Singapore, while giving insights into their shopping behaviour.

SIN G A P O R E IN 2020

ME T H O D O LO G Y


Joan Koh is the Managing Director of Nielsen Singapore and Malaysia, leading

the entire portfolio of the Company’s business including Retail Measurement,

Consumer Insights, Media, Innovation and Marketing Effectiveness. She

has close to 20 years of experience in the information and insights industry,

assuming roles across various industry verticals – FMCG, Financial Services

and Retailers.

Joan was appointed to Managing Director, Singapore in 2010 where she has

successfully brought about a number of significant developments in the

business. Under Joan’s leadership, Nielsen Singapore has seen remarkable

growth of multi-country business – better helping our clients getting connected

and closer to their consumers. She has invested and effectively leveraged on

talent diversity to give Nielsen Singapore the edge to become a successful

international/regional research hub.

Joan also assumes Presidency of Market Research Society of Singapore (MRSS)

and is an experienced speaker on consumer insights and market trends.

A B O U T T HE AU T H O R

JOAN KOHMANAGING DIRECTOR,

SINGAPORE AND MALAYSIA


ED I TO R I A L T E A M

SPECI A L T H A NKS

ANIL ANTONY | RAPHAEL PEREDA | ABHINAV MAHESHWARI

BINOJ GOPAKUMARAN NAIR | ANTHONY CHUA | NICOLE CORBETT | RYP YONG | AKI TEOH

CECILIA LV XI SENIOR MANAGER

INNOVATION PRACTICE

LI YU LIN

MANAGER

CONSUMER INSIGHTS

TEO JINGSHENG

EXECUTIVE

CONSUMER INSIGHTS

REBEKAH KOH

SENIOR EXECUTIVE

RETAIL INSIGHTS

STANLEY NAM

ASSOCIATE DIRECTOR,

MARKETING AND

COMMUNICATIONS

GABRIEL KHOO

CREATIVE LEAD


FOOTNOTES

1. Based on Nielsen Singapore HomeScan Panel year ending June 2015

2. http://population.sg/whitepaper/resource-files/population-white-paper.

pdf http://www.straitstimes.com/singapore/singapores-population-

could-hit-69m-by-2030-0 The official forecast from Singapore

Government for elderly citizen in 2030 is done for people aged 65 and

above; however in this paper we define the silver generation as people

aged 55 and above

3. Straits Times article:

http://www.straitstimes.com/singapore/singaporeans-aged-65-and-

older-form-131-per-cent-of-citizen-population-as-society?xtor=CS3-18

4. Based on Nielsen Singapore HomeScan Panel year ending June 2015

5. Health Promotion Board, Dietary Guidelines for Older Adults:

http://www.hpb.gov.sg/HOPPortal/health-article/HPB042201

6. Based on Intage Data for Japan hair care category, year ending June

2015 vs. year ending June 2014 for the volume sales of Pantene Extra

Volume/Natural Care

7. Based on Nielsen Retail Measurement Services Data of Singapore hair

colorant category, for year ending July 2015 for the unit sales market

share of Bigen Speedy

8. Infants are defined as children under the age of 2. Singstats, Census of

Population 2010

9. http://www.straitstimes.com/singapore/majority-of-singapore-seniors-

are-web-savvy-says-global-study

DISCLAIMER

This publication has been produced by Nielsen. It is distributed for

informational purposes only. Nielsen makes no express or implied warranties

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all warranties, including but not limited to, any warranties of accuracy, non-

infringement, merchantability, quality or fitness for a particular purpose

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the circumstances of those who receive it. This publication may not be

redistributed or published, in whole or in part, without the prior written

consent of Nielsen.

ABOUT NIELSEN

Nielsen Holdings plc (NYSE: NLSN) is a global performance management

company that provides a comprehensive understanding of what consumers

Watch and Buy. Nielsen’s Watch segment provides media and advertising

clients with Total Audience measurement services across all devices where

content — video, audio and text — is consumed. The Buy segment offers

consumer packaged goods manufacturers and retailers the industry’s only

global view of retail performance measurement. By integrating information

from its Watch and Buy segments and other data sources, Nielsen provides

its clients with both world-class measurement as well as analytics that help

improve performance. Nielsen, an S&P 500 company, has operations in over

100 countries that cover more than 90 percent of the world’s population. For

more information, visit visit www.nielsen.com/apac.

Copyright © 2016 The Nielsen Company. All rights reserved. Nielsen and the

Nielsen logo are trademarks or registered trademarks of CZT/ACN Trade-

marks, L.L.C. Other product and service names are trademarks or registered

trademarks of their respective companies. 16/9565

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