generation s - kantar

© Kantar Worldpanel

Korean Consumer Pulse 2012 1st Half

Generation S

1


Generation G

G stands for ‘Global & Green’ People in their 20s, born after ’88 Seoul Olympic

Generation N

N stands for ‘Net’ People in their 30s, who find internet or network more familiar than TV

Born after 1988

Baby Boomers

People in their 50s, born right after WW2

Generation X

X stands for ‘Unknown’ People in their 40s, that have different Values & behavior

from their parents

Born in 1977-87

Born in 1966-76

Born in 1950-65

3


2013

Generation G

Generation N

Generation X

Baby Boomers

Generation S

4


We are all Generation S

5


We Are All Generation S: Now

GEN

ERAT

ION

S

BABY BOOMERS GENERATION X GENERATION N GENERATION G

{NOW}

Strategy

Sluggish

Seize the Opportunity

6


Strategy: The year of ‘Strategy’ has passed… what’s next?

STR

ATE

GY S

TRATEGY

ustainability

rade Imbalance

isk

bnormal Climate

hreat and Change

conomic

reen

ounger Senior

What’s Next?►

7


Sluggish: Low GDP growth continues in 2013

8

5.3

-4.2

8.7

2.4

07Q2 08Q2 09Q2 10Q2 11Q2 12Q2

Korea QoQ GDP Growth

Source: National Statistical Office (NSO) Basis: Korea quarter-on-quarter GDP growth rates (%)


Seize the Opportunity: In such stagnating economy, What can our strategy be?

5.8

Korea

15.8

China (urban national)

6.1

Taiwan

8.4

Thailand (national)

15.4

Vietnam (4 key cities)

16.1

Indonesia

Source: Kantar Worldpanel Asia Basis: FMCG market growth rates in each country (%, latest 1 year)

5.6

Malaysia (peninsula)

4.6

Philippines (national)

9


BABY BOOMERS

We Are All Generation S: Baby Boomers

GEN

ERAT

ION

S

GENERATION X GENERATION N GENERATION G

{NOW}

Strategy

Sluggish


10

{Baby Boomers}

Self-Sustaining

Silversumer

Stay Beautiful


Self-Sustaining: Leading Baby boomers to head back to work

07Q1 08Q1 09Q1 10Q1 11Q1 12Q1 12Q2

# of Employees by Age Generation G

Generation N

Generation X

Baby Boomers

11 Source: National Statistical Office (NSO)

Basis: Number of employees by age


Silversumer: A Consumer group with much potential to further grow

2011 2012

Total FMCG Market Value by Age

Generation G

Generation N

Generation X

Baby Boomers

12 Source: Kantar Worldpanel Korea

Basis: Total FMCG market value by age (mil. KRW, latest 1 year)


Stay Beautiful: Growing desire to age “Beautiful”

-5.9 -6.3 -5.3

0.8 1.8

-2.8

-1.6 -2.7

2.6

7.8 7.5

9.2

Total Skincare Makeup Total Skincare Makeup Total Skincare Makeup Total Skincare Makeup

Total Cosmetics Market Value YoY Growth

Baby Boomers

Generation X Generation N

Generation G

Source: Kantar Worldpanel Korea Basis: Total Cosmetics market value year-on-year growth rates by age (%, latest 1 year) 13


14

{Baby Boomers} With increased life expectancy, 50s has become a starting point of a new chapter. Retirement therefore, is defined in many forms - heading back to workforce or opening up a new business to sustain better quality of life. (Self-Sustaining). They are now the rising consumer group who have significant influence to the market. (Silversumer). As a result, there are growing products targeting the rising seniors to aid in overall well-aging lifestyle, ranging from health to beauty products (Stay Beautiful). Retail & Service industry is another fast rising sector that is customizing to meet the true needs of rising Silver consumers.


GENERATION X

{Generation X}

Stressed Out

“Sale” Hunter

Small Luxury

We Are All Generation S: Generation X

GEN

ERAT

ION

S

GENERATION N GENERATION G

{NOW}

Strategy

Sluggish


15

BABY BOOMERS

{Baby Boomers}

Self-Sustaining

Silversumer

Stay Beautiful


Stressed Out: Suffering the tightest squeeze on “Education”

16

23.4

25.3

21.5

20-30s 40s 50s

Average Private Education Cost per Month

Generation X

Source: National Statistical Office (NSO) Basis: (1) Household spending costs by age of householders (2011, %),

(2) Average private education cost per month by age of householders (2011, 10 thousand KRW)

12.3%

19.4%

Importance of Education Cost in Total Household Spending

Total Households

Householders at 40s


“Sale” Hunter: Financial pressure made them “Price sensitive”

17

19.8%

22.5%

24.6%

17.8%

20s

30s

40s

50s

Promotion % by Age in Total FMCG Market

ALE

58.2

52.4

38.7

31.7 31.0 28.7

23.3

18.7

Bleach Cooking Oil Soap ProcessedMilk

Sesame Oil MSG Beef Fresh Fruit

Promotion % of 40s by Category

Total

40s

Source: Kantar Worldpanel Korea Basis: Promotion volume % by age (%, latest 1 year)


Small Luxury: Selective spending on personal care for themselves & family

18

ELECTIVE CHOICE

15.6

21.2

40's functional toothpaste YoY penetration changes

20.7

23.3

40's hair treatment YoY penetration changes

FOR SMALL LUXURY

Shiseido Tsubaki Damage care treatment & hair mask were hit in Korea, not only among 20s, but also 40s.

Not only Wash-off, but also Leave-on products attracted more 40s, esp. via damage care & hair loss function.

Source: Kantar Worldpanel Korea Basis: Penetration of 40s in each segment (%, last 1 year vs. latest 1 year)


19

{Generation X} 40s are under much pressure both in & outside of household, stemmed from squeezed budget for high education cost for children coupled with growing stress from work (Stressed Out). Financial pressure on 40s make them sensitive to promotional activities (“Sale” Hunter) in overall FMCG market. They seek for second-hand market to maximize utility at less cost especially with books, digital devices, and sports apparels. Need for outdoor activities with family increases as a way to relieve stress which leads to growing desires for new outdoor products. Various in-home entertainment devices are also capturing their wants to have fun & relaxing time at home with family or by themselves. In short, Generation X make selective shopping choices to maximize where there may be a limited resources through “Promotion” or “Second-hand” items. On the other hand, they have the urge to invest on certain premium segments, items that offer quality family time or on children education (Small Luxury). Generation X truly knows how to be a Smart shoppers!


We Are All Generation S: Generation N

GEN

ERAT

ION

S


{NOW}

Strategy

Sluggish


{Generation N}

Speed Up

S&S: Shop & Ship

Subscription

20

BABY BOOMERS

{Baby Boomers}

Self-Sustaining

Silversumer

Stay Beautiful

GENERATION X

{Generation X}

Stressed Out

“Sale” Hunter

Small Luxury


Speed Up: Convenience is another element they strive for

21

LG Robo-King Dual Eye 2.0

Loofen Waste-disposal Unit Philips Air Fryer

HanKyunghee Dual-steam Handy cleaner

LG Magic Space Refrigerator

Kenwood Food Processor

LG Drum Washing Machine

HanKyunghee Steam Iron Machine

Source: Kantar Worldpanel Korea Basis: Penetration in each category by age (%, latest 1 year)

26.6

34.7 34.2 32.1

31.1

40.9 38.7

36.2 34.8 34.6

31.1 30.0

Value % of 30s in Each Category of Convenience Food, Breakfast Substitutes


S&S-Shop and Ship: Online is the best way to save some of that time

2011 2012

Internet Value of Total FMCG by Age

Generation G

Generation N

Generation X

Baby Boomers

22 Source: Kantar Worldpanel Korea

Basis: Internet channel value of total FMCG market by age (Mil. KRW, latest 1 year)


Subscription: Subscription is another way to save some more time

Eight Point Nine, Customized coffee blending weekly subscription www.eightpointnine.com

Dum & Dummerce, Every month service www.dummerce.com

35% of 30s use subscription

77.4

26.3 3.1

16.8 34.9

InternetMall

DirectSales

Catalogue TV Home-shopping

Subs-cription

Non-Store Penetration of 30s

Milk, 62%

Yogurt, 28%

Healthy Breakfast Box

Truelife, Homeal www.etruelife.com

Necessities for busy 30s

‘Beauty Box’ for busy 30s

Glossy box, Men & Women box www.glossybox.co.kr

Mimi box, Men & Women box www.memebox.co.kr

Baby products for busy moms

Mimi box, Baby box www.memebox.co.kr

••••••••••••••••••• Food •••••••••••••••••••••••••••••••••• Personal Care ••••••••••••••••••••••••••••••• Culture & Life ••••••••••••••••

Little Peanut, Baby toy box www.littlepnuts.com

Sentimental Items for sentimental 30s

Socks by Post Socks subscription www.sockstaz.com

Turntable Kitchen, Pairings Box curated food and music discovery experience www.turntablekitchen.com

Mantry Monthly subscription of food & drink with story www.mantry.com

Gotham box Monthly parcel of assorted location-inspired foods www.gothambox.com

Wanash, Beauty box www.wannash.com

‘Food box’ for Beauty & Health

Wanash, Food box www.wannash.com

23

The Chaeum, One day nut http://www.e25gram.com

CJ Onmart Subscription http://www.cjonmart.net

Dum & Dummerce Survival Box www.dummerce.com

Convenience-Noodle, retorte, etc.


24

{Generation N} It’s not difficult to find singles or newly weds in their 30s these days. With hectic lifestyle and growing dual-income households, family size is becoming smaller. As family gets smaller, more compact products are gaining popularity; mini home appliances, functional furniture, and small-packaged foods are some to name a few. In relation to above trend, Convenience is another keyword for the Generation N (Speed Up). Balance between work and home has made them to become supermoms and as a result, “convenience” categories and services that help to cope with such life is in fast growth. These attributed in change in Shopping behavior – growing online (S&S: Shop & Ship) and subscription services (Subscription) , and RTE or RTD categories. Generation N live the most hectic days, but they have the greatest desire to catch & feel small sentiments in daily lives.


We Are All Generation S: Generation G

GEN

ERAT

ION

S


{NOW}

Strategy

Sluggish


{Generation N}

Speed Up

S&S: Shop & Ship

Subscription

{Generation G}

Self-Conscious

Slim Down

Sensitive Listener

25

BABY BOOMERS

{Baby Boomers}

Self-Sustaining

Silversumer

Stay Beautiful

GENERATION X

{Generation X}

Stressed Out

“Sale” Hunter

Small Luxury


Self-Conscious: Most aware about their appearance

26

20s 30s 40s

% of men who choose their cosmetics on their own

Greater # of Men in 20s make conscious decision when purchasing Cosmetics for themselves

20s 30s 40s

# of cosmetics brands bought by men

Men in 20s try out various cosmetics brands

20s 30s 40s

# of cosmetics types in men

Men in 20s use various types for facial care

20s 30s 40s 50s

# of make-up types

Women in 20s apply more make-up

20s 30s 40s 50s

Nail Care Penetration

Fashion is completed with Nails for women in 20s

Generation G

Women & Men

%

#

%

#

#

Source: Kantar Worldpanel Basis: Penetration of men or women in each segment (%, Latest 1 year),

# of cosmetics types of men or women in each segment (#, Latest 1 year)


Slim Down: Wanna-be Slimmer

18.9

25.9

% of Non-sweet cereal in total cereal

11.2 13.3

% of low-fat & skim milk in total whitemilk

Non-sweet Cereal Share%

Low-fat & Skim Milk Share%

14% of 20s have tried Special K in Latest 1 Yr.

Non-sweet Cereal grew by +64.8% Low-fat & Skim Milk increased by +24.6%

Amore Pacific, Sulloc Water Plus(+)

Hankook Yakult, R&B Slim-fit Diet Look

Smoothie King, Slim & Light Series

I’m Dieting, Diet Lunch Box Tous-les-jours, Calorie Box

27 Source: Kantar Worldpanel

Basis: Importance changes of each category in total segment (%, Last year vs. Latest 1 year), Penetration of each category (%, Latest 1 year)

Pulmuone, Muesli time variaties

Velz Slimming Fragrance PRENDS-MOI

14 13 13 10

20s 30s 40s 50s

Skim milk was picked up by about 18% of 20s in latest 1 Yr.

18 15

17

11

20s 30s 40s 50s

Special K penetration by age Skim milk penetration by age


Sensitive Listener: Even with small budget, all Ears are open for new Styles!

28

20s 30s 40s 50s

Total Cosmetics Penetration

20s 30s 40s 50s

Brand-shop Penetration

20s 30s 40s 50s

Drugstore Penetration

“Word of Mouth”

20s

30s

40s

50s

Women

20s

30s

40s

Men

% of purchase related to word-of-mouth

Source: Kantar Worldpanel Basis: Penetration of each segment by age (KRW, Latest 1 year)


29

{Generation G} In part of building a strong sense of identity, 20s are highly self-conscious about their appearance (Self-Conscious). However, they’ve gone smarter and now want to be Slim and healthy (Slim Down) which is developing a new vogue for Health-conscious Beauty industry. The limited purchasing power is leading the generation to be information sensitive (Sensitive Listener) to make the most out of their spend. In Generation G, Health & Beauty is focused on knowing different ways to pamper themselves and to build numerous competencies for oneself. This is most valued attribute as it is what they believe to be measured by.


We Are All Generation S: Future

GEN

ERAT

ION

S


{NOW}

Strategy

Sluggish


{Generation N}

Speed Up

S&S: Shop & Ship

Subscription

{Generation G}

Self-Conscious

Slim Down

Sensitive Listener

{FUTURE}

Shifting Landscape

Standing Out

Shifting Paradigm

So What

Shaping New Strategy

30

BABY BOOMERS

{Baby Boomers}

Self-Sustaining

Silversumer

Stay Beautiful

GENERATION X

{Generation X}

Stressed Out

“Sale” Hunter

Small Luxury


Giftyshow

Samsung TecTiles

UK Chirp, P2P Sound QR Code

Shifting Landscape: Boundary between online & offline is getting more Blurred

31

Tesco: 3D Virtual Store with Kinect

ON OFF

Tesco: 3D Virtual Store with QR Code

QR Code Marketing

Giftycon

Gift Coupon

Virtual Store QR Code

Brazil C&A Fashion, “Fashion Like”

GS Super, The Grandeur purchase

Austria: Virtual e-book Library SonicNotify, B2C Sound QR Code

Social Commerce New Technology

Emart: Sunny Sale QR Code

SNS Marketing VenueSeen, Online buzz for offline Retailer


32

Standing Out: Blurred classification of Soft & Hard

SOFT

HARD

Image

Machine

Product & Technology

Contents

Vibration Foundation/BB Cream Hard (Vibration machine) & Soft (Natural skin-fit)

LG Frostine Hard (New source-Ramaliv & new tech) & Soft (Zero toxic, zero preservatives, cold storage required)

Vibration Cleanser Hard (Vibration machine) & Soft (Deep pore cleaning)

IOPE Effector+ Hard (Ion machine) & Soft (Cos-medical)

White Soup Ramen Hard (New ingredient in soup) & Soft (Not red, but white soup)

Not-fried Ramen Hard (New recipe for noodle) &

Soft (Low-calorie with not-fried noodle)

Liquid Laundry Detergent Hard (New type) & Soft (Not powder, but liquid)

Paper Detergent, Softener, towel Hard (New packaging) &

Soft (Convenience)

Washable kitchen towel, mattress Hard (New material) & Soft (Reusable clean)

Pull-out mask pack/Gel mask pack Hard (New packaging/texture) & Soft (Convenience/more effective)


Shifting Paradigm: ‘Diverse’ contact points encompassing On/Off & Soft/Hard

33

SOFT

HARD

ON OFF

{Soft & Hard}

Product

{On & Off}

Retail


So What: With ‘Consistent’ message delivery at all points of contact

34

ON OFF

SOFT

HARD

{After}

Balance & Stretch

{Before}

Choose & Focus


Shaping New Strategy: To maximize ‘Efficiency’ at each point of Sales

35

ON OFF

SOFT

HARD

Where to Stretch How to Balance


We Are All Generation S

GEN

ERAT

ION

S


{NOW}

Strategy

Sluggish


{Generation N}

Speed Up

S&S: Shop & Ship

Subscription

{Generation G}

Self-Conscious

Slim Down

Sensitive Listener

{FUTURE}

Shifting Landscape

Standing Out

Shifting Paradigm

So What


36

BABY BOOMERS

{Baby Boomers}

Self-Sustaining

Silversumer

Stay Beautiful

GENERATION X

{Generation X}

Stressed Out

“Sale” Hunter

Small Luxury



GEN

ERAT

ION

S


37

BABY BOOMERS GENERATION X

{NOW}

Strategy

Sluggish


{Generation N}

Speed Up

S&S: Shop & Ship

Subscription

{Generation G}

Self-Conscious

Slim Down

Sensitive Listener

{FUTURE}

Shifting Landscape

Standing Out

Shifting Paradigm

So What


{Baby Boomers}

Self-Sustaining

Silversumer

Stay Beautiful

{Generation X}

Stressed Out

“Sale” Hunter

Small Luxury


Generation S

38

{Generation S} In a stagnating economy, this report aims to understand changing consumers and find emerging opportunities by different consumer groups (Seize the Opportunity). Baby boomers are a rising consumer group who actively seek for well-aging lifestyle (Silversumer). Generation X are the Smart shoppers who seek for best Value under economic hardship (Small Luxury). Generation N put more importance in convenience to compensate for their hectic lifestyle. (Speed) Generation G try hard to stay competent following the latest vogue in terms of their appearance and personal development. (Self-Conscious). Although Generation G have greater tendency to be more adaptive to all changes, it is an attribute that is required for all generation to survive in the fast changing environment. From retail, such trend is led by blurred boundaries of Online and Offline channels & retail (Shifting Landscape) and from Product, it is led by undefined classification of the items being Software or Hardware. At the end, all things must be everything and at everywhere reaching every possible retail and product dimensions. This is what makes todays product Unique yet difficult (Standing Out). This special era is lived by the new consumer group ‘Generation S’. Generation S strive for diverse brand contact points that encompasses on/off/hard/soft sides throughout their experience. (Shifting Paradigm). “How to” find the right Balance and “Where to” reach out would be the most important question for us to answer. Let Kantar Worldpanel help you lead the new Generation S.


Generation S (Self-Conscious)

20s who are highly interested in self-development and actively respond to changing trends

Generation S (Speed)

30s who value convenience & time-saving to compensate their hectic lives

Born after 1988

Generation S (Silversumer)

Younger senior who are active in economic activities and seek for well-aging lifestyle

Generation S (Small Luxury)

40s who make selective choices in their spending under the high economic pressure

Born in 1977-87

Born in 1966-76

Born in 1950-65

39



D O Y O U W A N T T O K N O W H O W T O B A L A N C E

& W H E R E T O S T R E T C H T O A T T R A C T G E N E R A T I O N S?

Y O U R B E S T P A R T N E R

40

generation s - kantar

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