© GfK 2014 | January 2014 1
CONSUMER CLIMATE 2014 –
OPPORTUNITIES AND RISKS OF DIGITIZATION
Matthias Hartmann, CEO GfK SE
Vienna, Hofburg | January 29, 2014
© GfK 2014 | January 2014 2
1. Global economy 2014 – how does the consumer climate develop?
2. How consumer behaviour is shifting
3. Digitalization – Transformation of business models via Big Data
4. Data, data, data – The effects of recent data scandals from a consumer perspective
Agenda
2
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GfK Group: a strong heritage in market research
1934Founded as GfK-Nürnberg e.V. (the GfK Verein)
1984Operations hived off into a limited liability company;GfK Association to retain status as a non-profit organizationFirst contract for TV audience measurement
1990Legal change to unlisted stock corporationFocus on internationalization
1999 GfK shares start trading on the Frankfurt stock exchangeGlobally active pure market research player
2005Acquisition of NOP WorldMajor step towards global business
2009 Change to a European joint stock company Societas Europaea (SE)Represents internationalcorporate culture
1957Start of panel research with 1.000 German householdsFirst contract with Henkel
1970Start of retail panel researchClients from food, photo and automotive industry
1. Business overview 1.2 GfK at a glance
2012Own the FutureNew strategy for global integration of GfK
© GfK 2014 | January 2014 5
GfK Group: a strong heritage in market research
1934Founded as GfK-Nürnberg e.V. (the GfK Verein)
1984Operations hived off into a limited liability company;GfK Association to retain status as a non-profit organizationFirst contract for TV audience measurement
1990Legal change to unlisted stock corporationFocus on internationalization
1999 GfK shares start trading on the Frankfurt stock exchangeGlobally active pure market research player
2005Acquisition of NOP WorldMajor step towards global business
2009 Change to a European joint stock company Societas Europaea (SE)Represents internationalcorporate culture
1957Start of panel research with 1.000 German householdsFirst contract with Henkel
1970Start of retail panel researchClients from food, photo and automotive industry
1. Business overview 1.2 GfK at a glance
2012Own the FutureNew strategy for global integration of GfK
1972Cooperation with GfK
1950Dr. Fessel and Dr. Geppert found “Berechnungsbüro für Wirtschaft und Industrie“
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Source: DIW (as of: 18.12.2013)
Global economy – Confirmed recoveryChange in gross domestic product vs. previous year [in %]
Global Economy Euro Zone UK USA
3.0 3.6
20142013
-0.4 1.0 1.3 1.7
2013 2014
1.8 2.6
20142013
Russia Japan China India
1.83.3
20142013
1.5 1.9
20142013
7.6 7.6
20142013
2.8 3.6
2013 2014
20142013
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Source: DIW (as of: 18.12.2013) , * P, A, GR: Projektgruppe Gemeinschaftsdiagnose (17.10.2013)
2012
+0,4
+0,2
-1,8
+1,3
-1,2
-4,2*
-1,0
+0,4*
-1,5*
2013
+1,6
+0,6
+0,6
+1,7
+1,0
-1,0*
0,3
+1,7*
0,6*
2013 2014
Economical situation in Western-EuropeChange in gross domestic product vs. previous year [in %]
© GfK 2014 | January 2014 8
Source: GfK, EU-Commission
Income prospects in Europe still mostly clouded, but in all countries (mostly) above previous yearIncome expectation
Average 2. half-year 2013
+39
-43
-20
-4
-43
-31
+8
-34 -15
Euro zone-18(2012: -52)
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Source: GfK, EU-Commission
Germans are still the consumer optimistic of Europe, followed by AustriansWillingness to buy
Average 2. half-year 2013
+44
-33
-22
-24
-29
-23
+6
-40 -16 Euro zone-14
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Source: GfK, EU-Commission
... but also clear upward tendency in EuropeWillingness to buy
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+107
Source: OECD Economic Outlook 94 database (Stand: 24.01.2014)
Accordingly, 2014 growth improvement for private consumptionis expected in all countries
in %
Private consumption, real [change compared to last year in %]
0,90,5
20142013
1,81,7
1,11,8
0,0
0,8
-0,4
-2,6
-2,1 -1,6
-6,4
-2,6
-0,6
-2,3
0,5
-0,2
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Digitization and big data
CO
MM
OD
ITIZ
ATIO
N
PASSIVE MEASUREMENT
SELF-CANNIBILIZATIONC
ULT
UR
AL
CH
AN
GEBIG
DATAAnalytics
Data Federation
HYBRID MODEL
CU
RR
ENC
Y
NEUTRAL Trus
t
PRIVACYANONYMISATION
DIGITAL TRACES OFF
LIN
E &
O
FFLI
NE
Brick &
Click
SPEED
RESISTANCE
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The digital opportunities are changing the consumer behaviour
GfK Consumer Panel Non-Food/ROPOs
2011
12,1% 16,2%
2010 2012
14,4%
2011
7,9% 8,5%
2010 2012
7,9%
2011
78,9% 73,8%
2010 2012
76,4%
2011
1,1% 1,5%
2010 2012
1,3%
Online becoming more important as well in information search as purchase
The exclusive offline purchase process is less and less important
Information search
Purchase behaviour in % of expenditure for non-food consumer goods
Pur
chas
e
Online Offline
Offl
ine
Onl
ine
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1 2 3 4 5 6 7 8 9 10
70.8
61.9 60.4 59.0 57.0 56.7 56.4 55.9 53.8 52.6
*Rather don‘t trust them/ Don‘t trust them at all I Source: GfK Verein, Studie „Daten & Schutz“, November 2013 I Basis: total sample, n=2014
Top 10 – Mistrust* in institutions/Businesses regarding treatment of your personal datain %
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Source: GfK Verein, Studie „Daten & Schutz“, November 2013 I Multiple answers possible I Basis: Internet users, n= 1547
Non-users because of data security
Non of the above
Online shopping
Locations services and maps with location services
Communication apps on Smartphone/Tablet PC/PC/Laptop (WhatsApp, Skype, ...)
Social networks (facebook, studiVZ, XING, linkedIn ...)
Online auctions
Online payment methods like bank transfer , EC-/ credit cards or other (e.g PayPal, sofortueberweisung.de, etc)
Online games on Smartphone/ Tablet PC/PC/Laptop via the internet
Bonus programs
Online banking
Online sweepstakes
0 10 20 30 40 50 60
22
15
19.8
20.7
21.5
27
28.9
29.7
34.9
36.5
54.6
in %
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Privacy
…
Incentives
Functionality…
Misuse of data
PrivacyConvenience
Espionage
This balance is shifting over time
Generational differences, predicting where future could go Trade off between convenience and privacy resulting in new business models Shift of power increases need of protection and opens opportunity for neutral parties
© GfK 2014 | January 2014 17
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