Targeting Profitable Consumer Trends In Brazil, Russia, India and China
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1 A Datamonitor report Targeting Profitable Consumer Trends In Brazil, Russia, India and China Insights into Emerging Groups & Behaviors in BRIC Providing you with: Published: Dec-06 Product Code: DMCM4581 Detailed analysis of consumer lifestyles and needs and the future development of trends for consumer packaged goods players to target Unique consumption data by demographic segment across food, beverage, alcoholic drinks and personal care sectors Use this report to... Gain insight into the key issues and future development of an established consumer society in the BRIC region Detailed analysis of consumer lifestyles, attitudes and needs affecting the packaged goods sectors and the influence of these on buying behavior Detailed Action Points pinpointing how to fine tune your strategy and devise effective marketing concepts in this region
2 Targeting Profitable Consumer Trends In Brazil, Russia, India and China DMCM4581 Introduction Brazil, Russia, India and China (BRIC) markets have huge potential for the development of a stable consumer society that can be profitably targeted by consumer packaged goods players across the globe. Although the BRIC region requires further social cohesion and economic development to fully stabilize, players that act quickly and tailor their offering can reap significant rewards. Many demographic and lifestyle trends that are associated with developed Western markets are increasingly applicable to consumers in the BRIC region. For instance, aging populations and changing family dynamics are trends playing out in at least 3 of the 4 countries. The core consumer trends of convenience, health and sensory orientated consumption are also beginning to emerge. This suggests that successful branding concepts from Western markets have the potential to appeal to the huge consumer base that exists via the BRIC nations. The insights and actions within this report provide a foundation for this. Key findings and highlights The potential for a burgeoning middle class is positive yet variable across the BRIC countries. For example, Brazil and India have the most stable middle class potential, whereas in China this group is concentrated in urban areas, however, even in China the middle class is forecast to be larger than the entire US population by Health problems, such as hypertension and obesity, will prove major challenges to BRIC countries as their population s age. Although hypertension prevalence exhibits lower growth rates than obesity, it is a larger problem overall in Brazil, India and China. In China and India it affects 21% and 22% of the total population respectively. Product branding and packaging will need to be unique and tamper-proof to overcome the counterfeit problem. Selling trust and product quality to the growing consumer society in any BRIC market will be arguably more important than in developed markets where safety and quality of products is now often taken for granted. Reasons to buy Gain insight into the key issues and future development of an emerging consumer society in the BRIC region Identify which consumer groups and unmet needs to target for profitable future growth Improve your marketing strategy by tailoring your offering to the most important consumer trends Contact us... From Europe: tel: fax: cmmarketing@datamonitor.com From Germany: tel: fax: cmmarketing@datamonitor.com From the US: tel: fax: cmmarketing@datamonitor.com From Asia Pacific: tel: fax: apinfo@datamonitor.com
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4 Targeting Profitable Consumer Trends In Brazil, Russia, India and China DMCM4581 Table of contents EXECUTIVE SUMMARY The hot topic The future decoded - The middle class is emerging as a significant group in the BRIC region - The BRIC region will have an increasingly aging population in the future - Health will become an increasingly important issue - BRIC countries have distinct national traits Action points THE FUTURE DECODED Context - understanding the BRIC region - The emergence of the 'BRIC' moniker - PESTLE analysis of the BRIC region - Socio-demographic overview TREND: There is a burgeoning middle class emerging in the BRIC markets - The potential for middle class expansion varies by BRIC market - Brazil's open and relatively stable democracy bodes well for the future development of the middle class - The once precarious state of the middle class in Russia is now stabilizing - Of all BRIC markets, India's knowledge economy has the most stable middle class potential - China's middle class is strongest in urban areas TREND: There is an aging of BRIC populations - The rapid evolution of middle classes, combined with a demographic shift in favor of seniors, will enable BRIC countries to emulate Western markets - BRIC countries have broadly enjoyed young population bases in the past - Overall there is an aging of the BRIC region but there is some important variance - Brazil is experiencing a rapidly aging population - Russia - declining life expectancy and birth rates create a worrying population decline - India - the aging population is a concern for the longer term rather than the medium term - China - rapid aging of the population is having a fundamental impact - An aging population brings with it new needs INSIGHT: Dietary patterns in the BRIC countries are highly diverse - Meat and fish consumption varies between BRIC countries - Fruit and vegetable consumption and preferences vary widely - Bottled water consumption is rising rapidly in India and China with slower growth in Russia and Brazil INSIGHT: Health is a growing concern, particularly as 'Western' diseases proliferate in this region - Obesity and hypertension are increasingly prevalent in the BRIC countries - Sales of nutraceuticals and dietary supplements are growing across the BRIC region INSIGHT: Convenience is of growing importance to select consumers on select occasions - BRIC consumers are beginning to embrace convenience focused meal solutions - Consumer attitudes towards frozen foods are developing as such foods become more widely available - A large proportion of BRIC consumers function without washing machines and dryers - Outsourcing laundry to domestic helpers remains prevalent in all BRIC countries - Approaches to washing and use of detergents varies between countries - Clothing odor and hygiene is a problematic issue for BRIC consumers - Dishwashers are seen as aspirational and are rarely used by BRIC consumers INSIGHT: Sensory and pleasure focused consumption is increasingly prominent - Consumption of pleasure orientated food and drink is growing as more consumers are able to trade up - Food and drink flavor preferences vary slightly by country - Consumer packaged goods marketing claims highlight shifting preferences among BRIC consumers - Takeaway food occasions are becoming popular in BRIC countries - Local foods are the most heavily consumed while other ethnic dishes are gaining in popularity INSIGHT: Consumption of food, drinks and personal care reveal significant age and gender differences - Personal care consumption by age and gender - Alcoholic drinks consumption by age and gender...markets such as Brazil, China, India and Russia (BRIC) should be seen within the context of a transitional period, moving in the direction of developed markets and experiencing a marked aging of their populations in coming years... Datamonitor Analyst
5 - Soft drink consumption by age and gender - Confectionery and savory snacks consumption by age and gender - Prepared meals consumption by age and gender Conclusions ACTION POINTS Introduction ACTION: Prepare for the future with higher premium products as the middle classes broaden and deepen - Link aspirational brands with aspects of popular culture and fashion ACTION: Take existing mature brands into new BRIC markets to develop as "cash cows" in select cases ACTION: Take steps to protect intellectual property - Work with regulating authorities and joint venture partners to ensure the integrity of their brands ACTION: Target aging populations via product development and marketing communications - Target the older consumer group - their strategic importance will only grow - Make older consumers more inclusive with "ageless marketing" - Respond to the veneration of seniors in certain societies - Companies that adapt the quickest will thrive ACTION: Target the health and wellness trend - Look to re-formulate existing products and market them as better-for-you alternatives - Introduce consumer education programs about healthy eating and to build long-term brand trust ACTION: Target the need for time-saving devices and services - Incorporate convenience orientated product attributes into your offerings - Promote convenient products as a way of allowing consumers to enjoy more family time APPENDIX Definitions Research methodology How to contact experts in your industry LIST OF TABLES Table 1: Population growth in the BRIC region (millions), Table 2: Population by family status in the BRIC region (% of total population), Table 3: Population by ethnic background in the BRIC region (% of total population), Table 4: GDP per capita (US$), , Brazil and the US Table 5: Gini co-efficient, , Brazil Table 6: Income quintile distribution (US$), 2005, Brazil Table 7: Home occupancy ownership (%) and average home price (US$), , Brazil and the US Table 8: Gini co-efficient, , Russia Table 9: Income quintile distribution (US$), 2005, Russia Table 10: GDP per capita (US$ 1995), , Russia and the US Table 11: Home occupancy ownership (%) and average home price (US$), , Russia and the US Table 12: Gini co-efficient, , India Table 13: Income quintile distribution (US$), 2005, India Table 14: GDP per capita (US$), , India and the US Table 15: Home occupancy ownership (%) and average home price (US$), , India and the US Table 16: Gini co-efficient, , China Table 17: Income quintile distribution (US$), 2005, China Table 18: GDP per capita (US$), , China and the US Table 19: Home occupancy ownership (%) and average home price (US$), , China and the US Table 20: Brazil population forecast (millions) by age band, Table 21: Brazil population by age and gender (%), 2006 and 2010 Table 22: Brazil life expectancy by gender, Table 23: Russia population forecast (millions) by age band, Table 24: Russia population by age and gender (%), 2006 and 2010 Table 25: Russia life expectancy by gender, Table 26: India population forecast (millions) by age band, Table 27: India population by age and gender (%), 2006 and 2010 Table 28: India life expectancy by gender, Table 29: China population forecast (millions) by age band, Table 30: China population by age and gender (%), 2006 and 2010 Table 31: China life expectancy by gender, Table 32: Meat and fish consumption per capita in the BRIC region (kilograms), All of the BRIC markets have massive potential for overcoming their past economic underperformance and establishing the most stabilizing of forces a prosperous and egalitarian middle class... Datamonitor Analyst
6 Targeting Profitable Consumer Trends In Brazil, Russia, India and China DMCM4581 Table 33: Fruit and vegetable consumption per capita in the BRIC region (kilograms), Table 34: Most popular five vegetables and fruits by consumption, Brazil 2005 Table 35: Most popular five vegetables and fruits by consumption, Russia 2004 Table 36: Most popular five vegetables and fruits by consumption, India, 2005 Table 37: Sales of bottled water in Brazil by type (Liters, millions), Table 38: Bottled water consumption in Russia (Liters), Table 39: Sales of bottled water in Russia by type (Liters, millions), Table 40: Sales of bottled water in India by type (Liters, millions), Table 41: Sales of bottled water in China by type (US$m), Table 42: BRIC countries, incidence of obesity (millions), Table 43: BRIC countries, incidence of hypertension (millions), Table 44: Nutraceutical and OTC vitamin & mineral sales in the BRIC region (US$ millions), Table 45: Nutraceutical and OTC vitamin & mineral expenditure per capita in the BRIC region (US$/head), Table 46: Ready meal sales per annum, Brazil, Table 47: Ready meal sales per annum, Russia, Table 48: Ready meal sales per annum, India, Table 49: Ready market value by type (US$ m), China, Table 50: Frozen food sales per annum, Brazil, Table 51: Frozen food sales per annum, Russia, Table 52: Frozen food sales per annum, India, Table 53: Frozen food sales per annum, China, Table 54: Clothing detergent sales by type in Brazil (US$m), Table 55: Clothing detergent sales by type in Russia (US$m), Table 56: Product features of clothing detergents launched in India, Jan Aug 2006 Table 57: Consumption of pleasure orientated food and drinks by volume in the BRIC region, liters million, Table 58: Brazil: Top 15 flavors in new food and drinks launches (% of total launches), Dec Table 59: Russia: Top 15 flavors in new food and drinks launches (% of total launches), Dec Table 60: India: Top 15 flavors in new food and drinks launches (% of total launches), Dec Table 61: China: Top 15 flavors in new food and drinks launches (% of total launches), Dec Table 62: Brazil: Top ten on-pack marketing claims in new food and drinks launches (% of total launches), Dec Table 63: Russia: Top ten on-pack marketing claims in new food and drinks launches (% of total launches), Dec Table 64: India: Top ten on-pack marketing claims in new food and drinks launches (% of total launches), Dec Table 65: China: Top ten on-pack marketing claims in new food and drinks launches (% of total launches), Dec Table 66: Takeaways in Brazil, Table 67: Takeaways in China, Table 68: Definitions of terms used in the report LIST OF FIGURES Figure 1: PESTLE analysis of Brazil Figure 2: PESTLE analysis of Russia Figure 3: PESTLE analysis of India Figure 4: PESTLE analysis of China Figure 5: Brazil's economy is based on services and commodity resources Figure 6: Over 50s as a proportion of total population (%), BRIC countries and Western Europe, 1990 Figure 7: Over 50s as a proportion of total population (%), BRIC countries and Western Europe, 2006 Figure 8: Over 50s as a proportion of total population (%), BRIC countries and Western Europe, forecast 2010 Figure 9: Still water dominates China's emerging bottled water market, Figure 10: Clothing detergents in Brazil highlight the fact that they are designed for use in washing machines Figure 11: China's laundry detergent market is fragmenting into specialist products Contact us... From Europe: tel: fax: cmmarketing@datamonitor.com From Germany: tel: fax: cmmarketing@datamonitor.com From the US: tel: fax: cmmarketing@datamonitor.com From Asia Pacific: tel: fax: apinfo@datamonitor.com
7 Figure 12: BRIC countries: value of personal care consumption by age group (% value), 2004 Figure 13: BRIC countries: value of personal care consumption by gender (% value), 2004 Figure 14: BRIC countries: value of alcoholic drinks consumption by age group (% value), 2005 Figure 15: BRIC countries: value of alcoholic drinks consumption by gender (% value), 2005 Figure 16: BRIC countries: value of soft drinks consumption by age group (% value), 2004 Figure 17: BRIC countries: value of soft drinks consumption by gender (% value), 2004 Figure 18: BRIC countries: value of Impulse consumption by age group (% value), 2004 Figure 19: BRIC countries: value of Impulse consumption by gender (% value), 2004 Figure 20: BRIC countries: value of prepared meal consumption by age group (% value), 2004 Figure 21: BRIC countries: value of prepared meal consumption by gender (% value), 2004 Figure 22: The affluence and needs of the middle class inevitably evolves Figure 23: Unilever's healthy ice cream, Kibon Ades, has been launched in Brazil Figure 24: Nestle's Maggi Na Zdorovye! Salad Seasoning was recently introduced in Russia Figure 25: Nestle Rice with Lotus Seed is a new type of nutritious baby food in China Figure 26: Instill these product attributes in offerings to capitalize on consumers' convenience related needs and behaviors Contact us... From Europe: tel: fax: cmmarketing@datamonitor.com From Germany: tel: fax: cmmarketing@datamonitor.com From the US: tel: fax: cmmarketing@datamonitor.com From Asia Pacific: tel: fax: apinfo@datamonitor.com
8 Targeting Profitable Consumer Trends In Brazil, Russia, India and China DMCM4581 Datamonitor: Your total information solution Datamonitor is a premium business information company helping 5,000 of the world's leading companies across the Automotive, Consumer Markets, Energy, Financial Services, Healthcare and Technology sectors. Our products and services are specifically designed to support our clients key business processes from corporate strategy to competitive intelligence. We provide an independent and trustworthy source of data, analysis and forecasts to improve these processes and ultimately, to help grow your business. Corporate Strategy & Business Planning Quality Data Make more effective strategic and business decisions Product Development & Commercialization Targeting & Influencing the Market Expert Analysis Accelerate delivery of commercial success Assess and influence your commercial and market environment HELPING TO GROW YOUR BUSINESS Market & Competitive Intelligence Future Forecasts Maintain or obtain critical competitive advantage Nothing speaks louder than our clients Allied Domecq Bacardi BP Cadbury Schweppes Campbell's Soup Carlsberg Coca-Cola Colgate-Palmolive ConAgra Cott Beverages Dairy Crest Diageo Del Monte Dow Corning Dr Oetker Elida Fabergé Ferrero Geest General Mills Givauden Rave Glanbia UK Griffith Laboratories H J Heinz Heineken Holsten Interbrew Intersnack J Sainsbury Jacobs Suchard Kraft Foods Lorenz Bahlsen Snackworld Luigi Lavazza LVMH Marks & Spencer Mars Master Foods McCain Foods Ltd Müller Dairy Nabisco Nestle Orkla Pepsi Reckitt Benckiser Rexam Sara Lee South African Breweries Tetra Pak Unilever United Biscuits Plc Wella Wrigley...93% of Datamonitor clients use our research to evaluate new products and for customer development... Source: Datamonitor Customer Research
9 Interested in this topic? To achieve profitable growth, a company needs to identify large addressable growth segments and create propositions to meet these consumers needs. The New Consumer Insight Strategic Planning Program helps subscribers to make a first evaluation of a consumer segment by providing concise, practical information and creative ideas. The SPP is a must-read for many client functions; Marketing, Consumer Insight, Strategic Planning, NPD, Sales. Other reports available in this series How to Exploit New Wellness Trends in Food Contains detailed data, analysis and best-practice recommendations covering the consumption of food driven by consumers' desire to improve mental and physical health. Published: Sep-06 Product code: DMCM2470 Trends in Novel versus Traditional Food Flavors Contains detailed analysis of the key trends in consumers' flavor preferences. It includes insights into the motivations and occasions that affect flavor choice, and best-practice recommendations for targeting changing consumer tastes. Published: Sep-06 Product code: DMCM2471 Developing Products With A Price Premium This report will deliver an understanding of how manufacturers can exploit consumer trends towards income complexity and post-materialism and successfully premiumize their food, drink and personal care goods. Published: May-05 Product code: DMCM2103 Evolution of Global Consumer Trends Datamonitor has identified the 10 global consumer trends, and the five rules governing these, that will determine the success of future product and marketing innovation. This report provides the essential insight in order to be "on-trend" in the future. Published: Jul-04 Product code: DMCM0683 For more information about our products visit Subscribe to Monitor A monthly update of Datamonitor's new consumer products, delivered to you by . cmmarketing@datamonitor.com
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