Shopper Culture

Retailers and Singapore Public Transit Use Incentives To Change Behavior

Monetary incentives are powerful when it comes to changing behavior. Brands and retailers typically use incentives to change drive trial or push sales. The Singapore Metro Rail Transit (SMRT) appears to be taking cues from the retail space and using incentives to change commuter behavior to drive efficiencies. 

Crowded trains and buses are a reality for most big cities, and common work schedules across large populations mean the majority of people are commuting during narrow time periods. SMRT is using discounts to get more people to ride public trains and buses during off-peak hours. They currently offer a 50 cent discount for early bird commuters who arrive at their destination before 7:45am on weekdays, thus avoiding the morning rush.

Shopper Culture 2012: A Year in Review

In case you missed it; here’s what happened on Shopper Culture during 2012.

Market Posts Demonstrating Seasonal Agility

In this digital age, shoppers are thirsty for real-time ‘newness’ in the market. Seasonal fun appears to be one way retailers and brands are keeping things fresh. This year we saw more Super Bowl activity in store, innovative Valentine’s Day merchandise in Asia, retailers embracing less publicized holidays (National Mom’s Night Out) and brands playing in to current events like the election.

Shopper Posts Highlighting Behavioral Economics in Marketing

Psychological concepts such as social proof became hot topics for shopper marketers this year. Various posts demonstrate how these concepts have manifested in the market in the form of popularity and scarcity messaging—especially during the holidays.

Natural Brands Take Off in Asia, But Not Without Retail Challenges

At most U.S. and European grocery and drugstores, it’s easy to find at least an aisle or two devoted to organic and natural products like soy candles and organic body lotions. Asia was perhaps a bit slower to jump on the bandwagon, but. these days, the Asian market for natural and organic personal care products is growing—by more than 15% a year, in fact.

Few Asian companies appear to be capitalizing on shopper demand and are facing hurdles such as lack of standardization and high certification costs (to be able to claim a product is organic, for example). Conversely, American, Australian, and European brands have established credibility and are moving into the Asia market. But they are learning firsthand the challenges of playing in emerging retail markets. 

To start, a diverse retail environment and the prevalence of traditional channels such as markets and bodega-like storefronts complicate the distribution process. As a result, many natural brands are finding the best solution to be “going it alone,” and are opening their own concept stores where Asian shoppers can truly experience and learn about the brands and products. 

How Will Brands Partake in the Social Olympics?

With Olympic coverage in high gear, many brands seem to be part of the action—from NBC and Visa to P&G and Subway. However, there are only eleven worldwide Olympic partners and NBC, Subway and many other brands are not among them. But that has not stopped them from making a presence and gaining mindshare among shoppers watching the games.

Having Olympic ties (official or unofficial) is powerful. Personally, Subway’s ties to Apolo Ohno and other Olympians has reminded me to stop by my local Subway.  And the heartfelt P&G ads remind me of the importance of the little things in life—from hugs to paper towels and batteries. As I follow the games this year I expect to see messages from the usual sponsors as well as many other “unofficial” ones. Why? Because this year the games go beyond the television set and become the “social games.” One in which athletes, fans and brands will be leveraging Facebook, Twitter and other social platforms to connect and follow the games.

So, how will brands choose to use social media? And will it affect shoppers?

Strappy Technology Helps Brands Reach Tokyo Commuters

Many subway riders spend their commutes glued to their mobile phones, which makes in-transit mobile media a lucrative opportunity for brands to connect with shoppers. 

Until recently, underground signal issues might have impeded this type of technology in subways. But networks are working to overcome this hurdle, and advertisers are already tapping in to this mobile opportunity. 

The latest in-transit media technology, Strappy, comes from printing company Shunkosha. Strappy is a cover that fits over subway hand straps and uses a near-field communication (NFC) reader to give passengers access to content simply by holding their mobile phones over it. Advertisers can provide various types of content to passengers including websites, coupons, and videos. 

Because the Tokyo subway transports over 8 million passengers daily, Strappy could be a great way for brands to reach a very wide—and captive—shopper base.

Contributed by Integer Asia-Pacific

Photo Source: Shunkosha 

New Moms in Asia Change Online Shopping Habits

According to Mom Central Consulting, in the U.S., new moms go online at almost twice the rate they did before giving birth. They are also willing to spend more to make the best possible purchases for their babies, on everything from infant seats and strollers to baby formula.

The landscape in Asia is showing signs of a similar trend, as evidenced by brands and websites zeroing in on the new-mom audience, in particular in the social and e-commerce space.

For new moms, social networks are places to seek advice and support, while sharing knowledge and experiences. For example, Webtretho.com in Vietnam, the largest women’s and parenting portal in Vietnam, boasts 4 million monthly visits. 

It seems that many of their conversations revolve around brands and products, and as a result, moms are assuming a role of brand ambassador with growing influence. According to “Secret online lives of Asia’s mothers,” a research study by Microsoft^® and Starcom MediaVest Group^®, 80% of surveyed moms agree that, “good brands are worth talking about.” Furthermore, 59% of Asian moms say they could “always” persuade their family and friends to buy the same items they buy, with 72% Indian and Malaysian moms saying the same. Interestingly, mothers in China even trust online communities more than their own friends and relatives when it comes to product recommendations for children.

eCommerce in Asia: On the Verge of Something Big

Although Internet penetration in Asia lingers at only 26%, it seems likely that Asians will be faster to adopt online shopping habits than their counterparts in Western Europe and the United States. In fact, according to eMarketer, ecommerce sales in China are expected to lead global growth with a forecasted 94.2% compound annual rate from 2010 to 2015, in contrast to the U.S., which is forecast to grow 12% during the same period, despite boasting an Internet penetration rate of 78%.

Clearly, what Asia lacks in penetration, it makes up for in sheer volume.  Emerging markets with huge populations like China, India, and Indonesia help Asia account for nearly 50% (44.8%) of all Internet users in the world. And each active online shopper in the Asia-Pacific region spends an average of $607, up almost $80 from 2011 (eMarketer).

Brands and e-retailers might struggle with the vast disparity between emerging and developed markets throughout Asia, but the affordable access mobile technology provides is sure to help close the gap. While smartphone penetration varies throughout Asia (currently 20% in Japan and 30% in China), a 2011 Nielsen study indicated that nearly 50% of respondents in South East Asia planned to purchase a smartphone in the next twelve months.

Growth is inevitable in the eCommerce space, and opportunities abound in Asia. Is your brand ready?

Contributed by Integer Singapore

 

In Booming Skin-Care Market, Korea Takes a Unique Approach

Skin-care is a booming market all across Asia, but nowhere more so than in Korea, where female beauty regimens on average include as many as 18 different products. This focus—or perhaps obsession—with flawless skin dates back to royal aspirations of yore, according to Dr. Seung Yoon Celine Lee, a dermatologist based in Seoul. “Bright skin meant that you came from a noble family. The concept carries on,” she explains.

Korean manufacturers respond to this demand, and as a result, the rest of the world has begun to look to Korea for skin-care trends and technologies. “They're [South Korea] about 12 years ahead of the States in terms of technology,” said Mary Schook, New York-based owner of M.S. Apothecary.

On a recent visit to Korea, we noticed an interesting category trend: brands using male celebrities and models in female skin-care retail communication, even packaging. Additionally, we observed that the salespeople employed by these brands were often male. Certainly it’s feasible that male celebrities are being used in skin-care communication simply because they have great skin, but we suspect brands and retailers might be employing some different strategies to motivate their female shoppers. And, seeing as Korea is the top market for men’s skin-care, there is a good chance that these brands might be looking to appeal to male shoppers as well.

Contributed by Integer Singapore

 

Integer Nordic Releases The Checkout 2012, Part 1

The Nordic Checkout 2012, Part 1 is the second iteration of The Nordic Checkout study. This release is the first of four parts for 2012. The study was conducted in partnership with Research Insight in Finland, Sweden, Norway, and Denmark. All in all, 2,000 shoppers were interviewed in March of 2012. This issue covers Nordic shopper profiles (the Price Seeker is shown below), as well as digital and mobile behaviors. 

You can download The Nordic Checkout here.

Contributed by Integer Nordic

Virtual Pinboards Take Asia by Storm

In recent months, Pinterest has emerged as the fastest growing social network not only in the U.S. but Asia as well. Though Singapore and other other Asian countries account for <1% of traffic, volume has grown over 800% in Singapore since 2011 (Experian Hitwise).

Renren, China’s largest Facebook-like social network, has also launched a social pinboard mechanism called Renren Plaza, which adds in an e-commerce component. Most “pins” have a ‘go buy in the store’ link that takes viewers directly to the site where the product is available for purchase online.

While the role of sales is clear on Renren Plaza, all virtual pinboard sites offer unique opportunities for brands by providing consumers with a new visual forum to share product recommendations and ideas. One way for brands to leverage this platform is to curate and provide consumers constant snippets of inspiration. One great example is Whole Foods Market, which continuously feeds timely, relevant content onto its Pinterest board in the form of images and culinary ideas. How is your favorite brand visually inspiring you?  

Photo Sourced from: Yahoo Finance Singapore

Contributed by Integer Singapore

Disney Characters Come to Life in Singapore Malls

To promote the upcoming ice-skating show Disney on Ice, Disney set up interactive playgrounds themed “Let's Celebrate!” at malls throughout Singapore.

The promotion incorporated augmented-reality technology to allow children to interact with and virtually ice-skate with Mickey Mouse and other Disney characters. In addition to the augmented-reality experience, the playground also offered various activities like real-life ice-skating, dancing, and a coloring station for children to create their own Disney art.

Creating unique experiences for shoppers is a great way to not only gain immediate awareness and promote purchase but also build brand advocates—children in this case. For many parents, it is hard to resist their child’s request, and it is likely that Mickey Mouse, Disney, and Disney on Ice were topics of conversation well after this mall experience was over.

Contributed by Integer Singapore

Stayed tuned for more from Integer Singapore next week.

Sustainability Gains Traction in Southeast Asia

While going green has become mainstream practice in Europe and North America, sustainability as a mass movement has yet to catch on in Southeast Asia. However, signs of a green trend are surfacing, and
grocery retailers are leading the way.

In Malaysia, No Plastic Saturdays were launched in 2010 by multiple retailers, and have since been supported by the local governments. In Singapore, grocery chain Fair Price is implementing Bags From the Heart from April 22 through May 9, 2012, that combines sustainability with a charity angle. The initiative coincides with Earth Day and each purchase of a reusable grocery bag will result in a donation to the Rainbow Centre, a non-profit organization for children with special needs. Fair Price has a track record for supporting sustainability, as exhibited by opening Singapore's first eco-friendly supermarket,
complete with a recycling center, located in City Square Mall.

The approach Fair Price is taking is a wise one: involving shoppers in the process while encouraging them to adopt sustainable behaviors.

Contributed by Integer Singapore

 Stay tuned for more from Singapore in the next week.

Photo Sourced from Fair Price

 

 

Introducing The Checkout India

We are pleased to present The Checkout International: Indian Shoppers, in support of Integer India, the newest addition to the Integer network. This study, conducted by The Integer Group India and Ipsos Marketing, India, is a shopper study designed to understand motivations and attitudes, rituals, and other factors that influence this fascinating retail economy. 

• Indian shoppers place quality of goods highest of all values, more important than price (a close second), shopping experience, and saving time. 
• Even as India advances quickly as a technology market, Western innovations like credit-card purchasing, retailer loyalty programs, and online shopping tend to lag behind more developed markets.
• Shoppers in India's largest cities (Urban A) tend to set aside a shopping budget; those living in second-tier cities (Urban B) are more likely to use a written shopping list.
• The predominant shopping style in Rural India, where refrigeration and personal transportation are less common, is to make regular trips to small, local vendors.

Please click here to download The Checkout International: Indian Shoppers.