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Wednesday, July 27, 2011

Friendliest country in Asia for entrepreneurs? Try Indonesia.

A recent BBC Global Survey ranked it just behind the US as one of the world's friendliest countries for entrepreneurs.

High-rise buildings under construction rise behind a market in Jakarta on July 5.
Bay Ismoyo/AFP/Newscom


More comfortable in a T-shirt and sandals than a suit, the recent Harvard Business School graduate conceived the idea for his company while zooming through Jakarta’s gridlock on an ojek, one of Indonesia's ubiquitous motorcycle taxis.

“I figured that there was this huge idle capacity within Jakarta that needed to be taken advantage of,” says Mr. Makarim, referring to demand for efficient transportation coupled with the need for more jobs among Indonesia’s low-skilled workers.

Makarim is one of the winners of a business plan competition sponsored by the State Department’s Global Entrepreneurship Program, USAID and private partners in Indonesia.
His ambition to create a social enterprise that takes advantage of a market gap shows where Indonesia is headed as tech-savvy, often Western-educated youths build businesses catered toward improving their country.

“Their business plans are well thought out, they are frequently very creative, in many cases they are addressing problems that need to be solved and identifying situations where they believe they can make a difference,” says Loretta McCarthy, the founder of angel investor group Golden Seeds and part of an 11-member delegation of top US investors that visited Indonesia over the weekend as part of an entrepreneurship program.

 

'New Beginnings'

First outlined by US President Obama during his “New Beginnings” speech in Egypt in 2009, the program supports entrepreneurs in Muslim majority emerging economies by linking them with mentors and access to financing.

Indonesia is the second country after Egypt to implement the pilot, which officials say supports stable democracy by creating jobs and growing local economies.

“It makes for a more prosperous, peaceful, stabler more secure world,” said US Secretary of State Hillary Clinton at an Asia-Pacific regional entrepreneurship summit in Bali over the weekend.

In Cairo the program hosted a “boot camp.” In Jakarta, hundreds of budding entrepreneurs participated in “speed dating” sessions where they pitched their business idea to potential investors.
The 500 participants in the business competition included Rinny, the creator of an integrated waste management system that produces organic fertilizer and Donald Wijardja from Indomog, an online payment system that lets people buy digital goods and services using gaming vouchers.

A few have already received investment offers.


High-tech, low tech

With a large population of youths who are social, tech enthusiasts eager to spend newfound disposable incomes, Indonesia has what it takes to support innovative start-ups, delegates said.

That is one reason a BBC World Service poll released in May ranked Indonesia among the countries most friendly to entrepreneurship, along with the US and Canada. The poll, based on ease of starting a business and respect for creativity, ranked Egypt and Turkey at the bottom.
Entrepreneurs here say they agree with the assessment.

“But the challenges come later on as you’re trying to grow and scale the company,” notes Makarim.
A lack of infrastructure and access to finance, unfriendly regulations, and weighty bureaucracy pose some of the biggest hurdles to entrepreneurs. Companies, such as Go-Jek, exist to deal with those obstacles, while others are building their businesses online to taking advantage of low startups costs, increasing connectivity, and the popularity of social media.

Indonesia is Facebook’s number two market outside the US and its third-largest Twitter base. The growth of affordable Internet-enabled mobile phones has only sped up the tech boom in a country whose 40 million Web users still account for less than 20 percent of the population.

Rama Mamuaya, the founder of tech blog DailySocial.com, estimates that the country currently counts more than 700 tech startups and adds a new one each week.

Many of the most successful are spin-offs of established US companies, but that hasn’t stopped them from drawing investor enthusiasm. Yahoo recently acquired location-based platform Koprol for a fraction of the $100 million cost of its US version Foursquare.

Pioneering companies have more to gain, since they can essentially create the market, said Leonard Theosabrata, the co-founder of Whiteboard Journal, an online space that incubates small businesses by helping them promote their products.

“That’s the beauty of being in a country like this. It’s almost like the Wild West, it’s a frontier,” says Mr. Theosabrata.

 

Effecting change

Indonesia still has a long way to go if its small businesses are to create the growth officials hope to achieve. Entrepreneurs account for less than 0.2 percent of the country’s workforce, hardly enough to create the jobs that will generate widespread prosperity.

But Indonesian Trade Minister Mari Pangestu says social enterprise will allow Indonesia to “leapfrog” development, and growing interest from investors who don’t want to get left out may prove her right.
“I think the horizon for Indonesia is a 10 to 20 year window for huge success,” says US entrepreneur Arthur Benjamin, a recent investor in Go-Jek.

http://www.csmonitor.com/World/Asia-Pacific/2011/0725/Friendliest-country-in-Asia-for-entrepreneurs-Try-Indonesia?cmpid=tweet_count

Global Ad Spend Up 8.8% in Q1 2011 as Advertisers Increase TV Spend

Global Ad Spend Up 8.8% in Q1 2011 as Advertisers Increase TV Spend

July 5, 2011

Global advertising rose 8.8 percent year-on-year in Q1 to total USD 118 billion based on published rate cards, as advertisers spent more on television and continued to invest in booming consumer Asian and Latin American markets. According to the new Nielsen Global AdView Pulse report, television advertising rose 11.9 percent year-on-year and increased its share among other traditional media (radio, magazines, and newspapers) from 63.5 percent to 65.3 percent in both developed and many emerging economies.

“With USD 6.50 of every ten dollars being spent on television, it’s clear that TV remains the most important and cost effective advertising medium for companies looking to reach new consumers, especially in booming emerging markets,” said Randall Beard, Global Head of Advertiser Solutions for Nielsen. “In fact, according to two Nielsen reports released last month, women globally said they preferred to find out information on new products and services via television more than any other medium, and the Q1 Nielsen Cross-Platform Report showed that Americans are watching more TV than ever before.”

media-change-advertising

Advertising in the world’s largest market, USA, rose 5.9 percent to reach nearly USD 27 billion in Q1 with stable increases for TV, radio and magazines; however, newspaper advertising dropped by more than 10 percent in another blow to the domestic newsprint industry. Newspaper advertising also declined -1.6 percent in Western Europe in Q1.

Emerging regions of Asia-Pacific (+12.4%) and Latin America (+11%) drove global ad growth in Q1, followed by Middle East/Africa which still increased 10.4 percent despite a 51.3 percent decline in Egypt’s ad revenue as most companies temporarily halted advertising during the country’s social and political upheaval. Western Europe posted the lowest growth rate of all global regions in Q1 of 2.9 percent as the region’s divergent economic performance sent ad spend in Greece, Ireland, Italy and Spain into negative territory – in contrast to double-digit growth in Europe’s more robust markets of Turkey (+12.9%), France (11.6%), and Norway (+10.2%).


regions-change-advertising

Argentina (+37%) and South Africa (+34.8%) posted the highest year-on-year gains, while other emerging markets of China, India, Indonesia, Malaysia, Philippines and Saudi Arabia had double-digit gains in Q1.


http://blog.nielsen.com/nielsenwire/global/global-ad-spend-up-q1-2011-as-advertisers-increase-tv-spend/

Vietnam’s Banks Have Room to Grow

Vietnam’s Banks Have Room to Grow

July 7, 2011
Darin Williams, Managing Director, Nielsen Vietnam

With inflation and the cost of food, fuel and other basic necessities taking a bigger share of Vietnamese consumers’ wallets, it might not seem to be the best time for the country’s banks to think about expanding. But despite the fairly cloudy economic environment, Vietnamese continue to try to save money, whether for their own security, their children’s education or for the future, according to the new edition of the Nielsen Vietnam Personal Finance Monitor. With the number of Vietnamese consumers using banks is still relatively low, banks have ample opportunitiy for growth – provided they communicate with consumers in ways that resonate with them given the current mood.

Consumers are aware of the basic services offered by banks such as transactional and savings accounts, ATM/debit cards and loan services, but the number of people actually using them is limited. Just 32 percent said they maintain a transactional account and 31 percent use an ATM/debit card. Only 12 percent use banks for deposit accounts.

When it comes to other services, consumer awareness and usage drop significantly. For example, fewer than half (42%) are aware of credit card services, and they are used by just one percent of Vietnamese consumers. If the experiences of other countries in the region serve as an example, however, it’s just a matter of time before credit cards take off. In Indonesia, which has seen rapid economic growth like Vietnam has, credit card usage stands at five percent. In Hong Kong, 60 percent of consumers currently use one or more credit cards. Plastic has only been popular in Indonesia for the past 10 years, but the number of cards has been increasing at an average rate of 10 percent, while the value of transactions charged has gone up 28 percent each year. The grocery channel is the top place Indonesians swipe their cards, which are used primarily for routine household and personal expenses.

But banks in Vietnam are going to have to do some work to increase awareness and use of credit cards: over half the market does not fully understand what a card is and for those who do, there are some significant barriers to entry. More than one-third (36%) said they don’t see a need for one, while 19 percent were not knowledgeable about how they work. Another 18 percent thought that credit cards were complicated and inconvenient to use.

According to Nielsen research, consumers said they started using their banks because they featured “simple and quick procedures,” their prestige or the interest rates they offered. On the other side of the coin, they also identified several barriers that prevented them from using banks, saying that bank procedures were “lengthy” or that the financial/income information required was onerous.

Effective marketing and advertising can help overcome these perceptions. Currently, banks’ ad campaigns seem limited to building brand awareness, but beyond achieving that one goal, efficacy is limited in terms of differentiating brands. Those banks that focus on telling consumers how they are different from others, or dispel some of the myths about doing business with them will likely break through.

Another area of growth potential is the rural market. More than two-thirds (70%) of Vietnamese live outside of major cities, and while the income levels are currently well below those of urban denizens, the growth levels are actually very similar.

vietnam-banking-growth

With three-quarters of rural families claiming to save every month and just eight percent using any sort of financial product (primarily savings accounts or insurance), the market is ripe for banks to expand their presence in these areas. Presently, there are only two major banks making a serious play in this sector.

These are unsettled times in Vietnam, but banks that create an easy customer experience and let consumers know they understand their concerns will be well positioned for continued growth now and even more so once uncertainty subsides.

In Asia Pacific Region, Adding Extras to Water Can Fortify the Bottom Line

In Asia Pacific Region, Adding Extras to Water Can Fortify the Bottom Line

July 13, 2011
Richard Hall, Managing Director, Retail Measurement Services – APMEA, Nielsen

Water is the essence of life. So it should be little surprise that among the top brands in Indonesia is the bottled water brand whose name is a synonym for water, according to a “top of mind recall” consumer survey conducted by Nielsen in the first quarter of 2011 in Asia Pac across several categories. From still to sparkling, from flavored to fortified, there is something for every consumer of bottled water in Asia, catering to basic hydration as well as lifestyle needs.

The many attempts by manufacturers to move consumers up the mineral water value chain beyond just basic needs have generally yielded limited results, as it looks like Asian consumers still tend to prefer their bottled water “still” and au naturel. Consumers across several markets in Asia prefer “home-grown” brands; private labels are also popular, especially where consumers view this category as a commodity like sugar. In South Korea, almost all of the mineral water retail sales are domestic brands; the same trend holds true in Taiwan. Meanwhile in Hong Kong, the clear market leader is a brand produced by the local outlet of a major soft drink company.

Even as mineral water sales continue to grow, some markets are reaching the saturation point, and this has provided the impetus for manufacturers to focus their efforts in search for new growth. In Taiwan, flavored water currently accounts for just about 1 percent of total sales value. In Singapore, the market has remained stagnant between 6-8 percent over the past three years. The lackluster growth could be due to the higher price tags placed on flavored and sparkling waters, and consumers are not seeing the “pay-off” by paying extra.

The payoff for manufacturers who continue to innovate can be significant. While water with “extras” has relatively small market shares currently, the upside potential is clear. Based on Nielsen’s analysis in Singapore, flavored water only represents about 3 percent of retail sales volume, but accounts for 8 percent of sales value. In other words, one unit of sales volume will see a corresponding increase in sales value by a factor of more than 2.5 times. We found similar results when it comes to sparkling water. Imported brands command an even higher “multiplier effect.”

Manufacturers that connect with consumers by injecting marketing finesse into the equation have been rewarded with “new” growth. Take the example of a leading flavored fortified water brand that was launched in Singapore in November 2010. The brand gained almost 1 percent share of retail sales volume and a corresponding 2.5 percent share of sales value in just four months. The campaign, featuring innovative bottle packaging in a variety of flavors and catchy copy, offered to hydrate consumers while providing the nutrients they may be missing. At the same time, it provided an emotional connection with celebrities who have endorsed the product.

Going beyond the “commodity” bottled water, the sparkling and/or flavored versions can satisfy certain taste buds as well as lifestyle or emotional needs as we saw in the case of the brand in Singapore.  In addition, these “premium” waters, often accompanied by more appealing packaging and promising benefits beyond hydration, can serve to expand the category by drawing new consumers who do not currently buy bottled water.

http://blog.nielsen.com/nielsenwire/consumer/in-asia-pacific-region-adding-extras-to-water-can-fortify-the-bottom-line/

Smartphone Penetration in Asia Set to Boom

Smartphone Penetration in Asia Set to Boom

July 12, 2011

Hanis Harun, Global Executive Director, Telecom Practice, Nielsen

Penetration of smartphones stands at more than 40 percent in Western Europe and 38 percent in the U.S. as consumers snap up the latest models and download apps. While fewer than 20 percent of Asia Pacific mobile users currently have smartphones, interest in upgrading is high: nearly half of consumers intend on buying a smartphone in 2011, according to Nielsen research.

In our recent brand surveys, iPhone was second amongst all handset brands in Vietnam in terms of top-of-mind recall, while in Indonesia BlackBerry was in fourth place, ahead of many longer established handset brands. Mind share will likely play a key role in determining which brands will do well in the region, and the iPhone and BlackBerry have much higher mind share relative to their current market positions. For example, in Malaysia, Apple and BlackBerry only have 3 percent and 1 percent share of the smartphone market respectively. But 17 percent and 11 percent of smartphone users would choose Apple and BlackBerry, respectively, as a first choice for their next phone.

Higher smartphone ownership will drastically change how mobile data is consumed by mobile users in Asia Pacific. Nielsen data from the United States show that smartphone users are typically three times more likely to access the Internet (86% vs. 30%), and four times more likely to access their e-mails (80% vs. 21%) via their handsets, compared to non-smartphone users. They are also much more likely to download applications onto their handsets, with iPhones users averaging 48 apps on their handsets and Android phone users 35 apps. Some smartphone users spend a quarter of their time with their mobile phones simply accessing Facebook.


Two other developing trends will also have an impact on data usage:
  1. Tablets: Sales in the U.S. and Western Europe have been surpassing expectations, and there is no reason for this trend to be different in Asia Pacific. As the substitution effect of tablets tends to be against laptops, PCs and netbooks, many — if not most — tablet owners will also own a smartphone. This creates an attractive niche group of “super consumers” who can be reached through an additional high-engagement screen, but who will also have an additional need for seamless service and content mobility in order to remain satisfied and loyal.
  2. Multimedia phones: Phones with touchscreens but lacking open, high-end operating systems provide an opportunity for other players in the mobile ecosystem to ride on the excitement generated by smartphones. While they are technically not smartphones, multimedia phones have many similar features, and often the average mobile user cannot distinguish one from the other. In Latin America, the market share of multimedia phones is growing dramatically as they satisfy consumers who want the features offered by smartphones but are unable to afford them. In India, local brands such as Spice and MicroMax are already making huge splashes in the market.

Increased data usage has a number of implications for the mobile ecosystem. For example, service providers may find it difficult to monetize mobile applications beyond providing data plans, and may lose out to application providers (e.g. Facebook, Google) and app stores. If they are unable to monetize the content coursing through their pipes, they must monetize access both to the pipe, and to the users of the pipe. This means ensuring they have the fastest data speeds and the most attractive subscriber profiles to make themselves a compelling advertisement platform for brands.

Meanwhile, operating system (OS) providers will seek to own all of the “intelligence” in a mobile phone, from the operating system to the middleware, to apps and app stores. Consumers will increasingly tie their personal information to one nexus (e.g. Google Gmail, iTunes ID) and attach various functions to it (communications, information, payments, location, social networking). OS providers need to come out of the background; they need to ensure that their brand is relevant and generates deep loyalty amongst consumers across the entire mobile usage spectrum.

The depth of smartphone user engagement with their devices clearly creates exciting new advertising opportunities. While mobile advertising can provide superior cut-through and impact with consumers, it can also be viewed as intrusive. Mobile advertisers must provide real value or entertainment to consumers within the parameters of the ad campaign itself and reward them for taking the time to engage.

But before all this happens, more subscribers need to use data services, and for that to occur mobile service providers in many markets need to restructure their pricing plans. In many parts of the Asia Pacific region, mobile handset owners are still “under-using” the full features on their handsets as concerns about the affordability and transparency of data pricing linger. In developed markets, generous and unlimited data plans have played a critical role in the surge of data application usage. While unlimited data plans may not be the right solution in all markets, operators nonetheless need to provide better pricing plans with which consumers are comfortable if they want to hasten their adoption of data services.

http://blog.nielsen.com/nielsenwire/global/smartphone-penetration-in-asia-set-to-boom/

Tuesday, July 26, 2011

Internet Melampaui Media Tradisional

Internet Melampaui Media Tradisional

by sigit kurniawan, Jul 26, 2011


David Jeffs, Suresh Subramanian, dan Pontus Sonnerstedt. Foto: Sigit Kurniawan| The Marketeers

Internet semakin menjadi tren di kalangan kaum urban—entah untuk mencari informasi maupun berjejaring sosial.  Satu kesimpulan ini diambil dari hasil riset Yahoo! Indonesia yang dirilis pada Selasa pagi (26/07) di kantor Yahoo! Indonesia, Sentral Senayan II lantai 8.  Rilis yang tertuang dalam studi Net Index Ketiga ini juga menyimpulkan bahwa jangkauan internet di Indonesia telah melampaui media tradisional dan menduduki peringkat kedua setelah televisi.  Studi ini merupakan hasil kemitraan Yahoo! Indonesia dengan TNS Indonesia.

“Pertumbuhan internet yang cepat ini dan melampaui  media tradisional menjadi momentum bagi para pemasar untuk mengarahkan kembali strategi mereka yang didasarkan pada dinamika online Indonesia,” kata Pontus Sonnerstedt, Country Manager Yahoo! Indonesia.

Studi Yahoo! Net Index ini, sambung Pontus, menyediakan wawasan konsumen yang mendalam dan bisa membantu pemasar dalam membentuk strategi pemasaran yang lebih jitu dan membuahkan hasil nyata.

Ada beberapa penemuan riset ini. Jejaring sosial, misalnya, menjadi aktivitas online paling populer (89%), disusul dengan aktivitas lain, seperti mengunjungi laman internet (72%), dan membaca berita (61%). Ini menunjukkan pertumbuhan sejak tahun 2009. Sementara itu, penyebab perubahan tren ini adalah kelompok masyarakat Indonesia berusia 15-30 tahun yang mengakses internet untuk mencari hiburan, informasi, games, maupun mengunduh musik. Namun, uniknya, saat jangkauan media online sangat sangat tinggi di kelompok usia muda, tapi secara frekuensi kelompok setengah baya justru lebih tinggi.

Temuan lain, perangkat ponsel menjadi platform dominan untuk akses internet. Akses internet melalui warung internet (warnet) menurun dari 64% ke 60%. Sementara, akses internet melalui perangkat mobile meningkat dari 48% ke 58% dalam kurun waktu dua tahun terakhir. Perangkat mobile telah menjadi katalisator untuk memenuhi kebutuhan orang untuk terkoneksi dengan yang lain dalam jejaring sosial.

Yahoo! Net Index ini juga menemukan kemunculan sosialisasi selektif.  Penggunaan jejaring sosial meningkat 30% sejak 2009. Pengguna jejaring sosial pun lebih selektif dan spesifik dalam memilih lingkaran pertemanannya (39%). Sementara, mail dan mesengger masih relevan dengan tingkat penggunaannya yang stabil.

Penggunaan internet untuk jual beli juga mengalami peningkatan. Yahoo! Net Index mengatakan masyarakat internet Indonesia semakin percaya untuk melakukan riset, perbandingan, dan melakukan pembelian secara online.  Meski demikian, model pembayaran utama masih dilakukan secara offline melalui ATM/transfer bank (70%) dan tunai (39%). Sementara, internet banking mengantongi angka 14%, disusul deposito di bank cabang (9%), debit card (9%), credit card (8%), dan cek (1%). “Masalah kepercayaan dan kebiasaan menjadi faktor mengapa penggunaan kartu kredit di sini boleh dibilang masih kecil,” kata Suresh Subramanian, Deputy Managing Director TNS Indonesia.

Asal tahu saja, riset Yahoo! Net Index ini di kalangan masyarkat urban, seperti Jakarta, Botabek, Surabaya, Bandung, Medan, Semarang, Palembang, dan Makassar. Pada tahun 2011, ditambah dengan kota Yogyakarta dan Denpasar.  Respondennya, laki-laki dan perempuan usia 15-50 tahun dari kelas sosial ABCDE. Periode survei antara Januari-Maret 2011.

~ Twitter: @sigit_kurniawan ~

http://the-marketeers.com/archives/internet-melampaui-media-tradisional.html

 

Monday, July 18, 2011

More Consumers Worldwide Slip Back to Recessionary Sentiment Levels in Q2

More Consumers Worldwide Slip Back to Recessionary Sentiment Levels in Q2

July 17, 2011

  • USA Consumer Confidence Drops
  • Asia Pacific and Middle East/Africa Regions Suffer Declines, but Remain Most Optimistic
  • Cash-Strapped Consumers Plan Further Cuts in All Discretionary Spending

Global online confidence declined to its lowest level in six quarters to 89 as economic recovery hit a stumbling block and recessionary jitters again reverberated around the world, according to Nielsen’s quarterly Global Online Consumer Confidence Survey. Confidence in the U.S. fell five index points to 78, two points lower than the 80 points recorded in the first half of 2009 at the height of the global recession.

“There wasn’t enough positive news to inspire confidence among global online consumers in the second quarter,” said Dr. Venkatesh Bala, Chief Economist at The Cambridge Group, a part of Nielsen. “Weak economic figures, slowing manufacturing performance and inflation in Asia, an intensifying debt crisis in Europe and continuing political instability in the Middle East combined with rising household expenses in the U.S. have taken their toll on consumers’ fragile confidence. Hopes for full global recovery in the next 12 months substantially weakened in Q2 as the majority of consumers around the world remained in a recessionary mindset.”

In the latest round of the survey, conducted between May 20 and June 7, 2011, regions of the Middle East/Africa and Asia Pacific posted the steepest declines of 12 and nine points respectively compared to last quarter, but current figures are aligned with year-ago trends. And confidence levels in Europe (74) and Latin America (91) remained largely unchanged edging up one index point each. Despite its nine point dip, Asia Pacific remained the most optimistic region at 98 points, followed by Middle East/Africa at 94 points.




Key Takeaways from the Q2 Report:

  • 58% of global online consumers said they are still in a recession – the most in the past year. More than half believe they will still be in a recession in a year’s time.
  • 31% of U.S. consumers said they have no spare cash for discretionary spending, along with 25% of Middle East/Africa consumers and 22% of Europeans.
  • U.S. fell five index points to 78, two points lower than the 80 points recorded at the height of the recession in the first half of 2009.
  • Indian consumers, despite a five point quarterly decline, remained the most positive.
  • Largest confidence declines in Q2 were recorded in Egypt and Saudi Arabia, which had enjoyed the biggest increases in Q1 2011.
  • Increasing utility bills and inflation again eclipsed the economy and job security as main concerns in Europe.
  • Latin America consumer confidence edges up one index point to 91.



http://blog.nielsen.com/nielsenwire/consumer/more-consumers-worldwide-slip-back-to-recessionary-sentiment-levels-in-q2/?utm_source=twitterfeed&utm_medium=twitter&utm_campaign=Feed%3A+NielsenWire+%28Nielsen+Wire%29

Wednesday, July 13, 2011

TNS Digital Nation 2011: Welcome to the Rapidly Digitizing Indonesia…

TNS Digital Nation 2011: Welcome to the Rapidly Digitizing Indonesia…

08.06.2011

How to understand and make the most of this rapid change.


TNS Indonesia believes that the 3 big drivers of change in the next 5-10 years would be:

1. Increasing Digitizing (Internet revolution)
2. The Growing & Changing role of the Mobile Phone, and
3. The Youth of Indonesia

In order to help marketers understand better, these 3 pillars of change, TNS Indonesia organized TNS Digital Nation 2011, where interesting findings from 3 large global studies, TNS Digital Life, TNS Mobile Life & TRU Teenz Life were presented.

Some of the interesting findings coming out of the event and the studies were:

Social Networking & the Power of Social Media in Indonesia – We ain’t seen nothing yet!!!

Indonesia is already the world’s 2nd biggest Facebook and 3rd biggest Twitter market in terms of number of members. However research by the global market research firm TNS reveals that although a huge 87% of those who go online, have access Social Networking sites, only 14% of them access these Social Networking Sites on a daily basis compared to the Global average of 46%.

This is based on findings from TNS Digital Life, one of the largest studies done Worldwide to understand Digital attitudes & behavior

Speaking from Jakarta this week, James Fergusson TNS’ Global Technology Sector Managing Director said, “Currently many Indonesians rely on either Warnets or Older generation smart phones to access the Internet. The inconvenience of getting to a Warnet and the cluttered operating systems of older phones compromise the user experience and frequency of Internet access and Social Networking usage.”

Fergusson went on to say, “This will change and rapidly! Over the coming months we will see an increase in Chinese manufactured new generation smart phones using the extremely user friendly and intuitive Android operating system in the market at a relatively lower price point. As is happening elsewhere in rapid growth markets, we will see this drive a flood of more frequent Internet access.”

“The subsequent increase in Social Networking usage represents a huge opportunity for businesses operating in Indonesia, where 30% of these consumers welcome online brand content”

Also, more than 60% of Social Network users Post or Read about Brands on Social Networking sites.

“Brands are treated as friends, currently, and it is important that marketers keep this in mind while designing their Digital strategies”, feels Rina Ivandriani, the coordinator of the TNS Digital Nation 2011.

Jhoni Tuerah, the TNS Indonesia Digital Champion added, “Now is the time for marketers to be planning their mobile digital strategies. The future of Digital in Indonesia is very much mobile!”

Key Findings from TRU Teenz Life

A global study done by one of the leading global experts on understanding Teens & Youth has thrown up some interesting findings:

1 . Faith & Pluralism-strong characteristic of Indonesian Teens. Riko Rahman, TNS Indonesia’s Youth champion said that ‘Religion is very important to Indonesian teens, but at the same time they are more Pluralistic than other Asia Pacific countries.

a. 95% of Indonesian Teens say that Religion/ Faith is one of the Most important Aspects of My life as compared to an average of 54% across Asia Pacific, but

b. 58% of Indonesian Teens also have close friends who are from a Different religion as compared to 32% in Asia Pacific as a whole.

2. Higher Education is Essential for Future Success but I Cant Afford it. Like in other APAC countries, majority of Indonesian Teens consider Higher Education to be critical for future Success, however,

a. 24% of all Indonesian Teens say that they will not go to College after School.

b. Irene Ariyani, Associate Client Advisor at TNS Indonesia adds that, ‘Education loans and support and making Higher Education Affordable would become very important to ensure that Indonesian youth realize their full potential’

3. Love International Brands, but like Indonesian Ads better.

a. International brands such as Nokia, Yamaha, Honda emerge as the Top3 most liked brands by Indonesian Teens, but

b. Advertising from Indonesian brands Mie Sedaap & XL emerge as the advertising they like the most.

c. Robert Hutchison, TNS Regional Youth Champion adds that “The clear message to International brands is to make advertising that connects better with the Indonesian culture in order to drive better brand engagement”

http://www.tnsglobal.com/research/key-insight-reports/3A9A8278B8834AB787FD62F74C1E734C.aspx

RI highly dependent on mobile Internet

RI highly dependent on mobile Internet
The Jakarta Post, Jakarta | Tue, 07/12/2011 12:24 PM

Indonesia has emerged as the country with the highest dependence on mobile Internet access in Southeast Asia, with almost half of all citizens surfing the web via their mobile phones, a Nielsen report says.

According to the report, although mobile Internet use is high in Indonesia, the country has the lowest level of overall Internet penetration in the region.

“Internet-capable handheld devices, such as mobile phones and tablets, offer easy access to the Internet for many Indonesians without having to rely on the availability of high speed broadband services at their home,” Nielsen Indonesia media division managing director Irawati Pratignyo said in a statement released to The Jakarta Post on Monday.

The report, which contains data from Nielsen’s Southeast Asia Digital Consumer Report, which will be available on Sept. 30, found that 48 percent of Internet users in Indonesia used a mobile phone to access the Internet, while another 13 percent used other handheld multimedia devices.

The trend is set to continue, according to the report, with an additional 5 percent of Indonesian Internet users indicating they will access the Internet through mobile phones and another 17 percent through Internet-capable handheld devices within the next 12 months.

“All indications suggest certain and significant growth of Internet access using mobile phones and other handheld devices over the next 12 months and beyond,” Irawati said.

The percentage of Indonesian citizens using their mobile phones to access the Internet far surpasses those in other countries in the Southeast Asia region, with the next two highest being Thailand with 36 percent and Singapore with 35 percent.

Vietnam comes in fourth in the report with 29 percent, while the Philippines and Malaysia are next with 24 percent and 21 percent respectively.

The report does not state the numbers for other countries in the region: Laos, Cambodia, Myanmar, and Brunei.

The report also states that although mobile Internet use is high in Indonesia, the country has the lowest level of overall Internet penetration in the Southeast Asia region.

Only 21 percent of Indonesians aged between 15 and 49 use the Internet, 17 percent lower than the regional average of 38 percent and 46 percent lower than Singapore’s 67 percent Internet penetration.

Internet penetration amongst Indonesians aged 50 and beyond is also the lowest in the region, with only 1 percent of consumers online.

The report shows that Malaysia’s Internet penetration is at 38 percent, while the Philippines is 33 percent and Thailand is at 31 percent.

For the majority of Indonesian citizens, or around 66 percent, Internet cafes are the most popular location to access the Internet, which is in contrast to the majority of other countries in Southeast Asia, where most Internet access, or around 67 percent, is done from home, the report says.

Only 19 percent of all Indonesians surf the web from home, the report says. Another 22 percent access the Internet at work, while another 14 percent do so at their schools or universities. (mim)

http://www.thejakartapost.com/news/2011/07/12/ri-highly-dependent-mobile-internet.html

Monday, July 11, 2011

Mobile Habits Change

Mobile habits change

LONDON: Mobile internet users around the world are increasingly utilising their phones to research products and make purchases, a study has found.

The MEF, the trade body, commissioned OnDevice Research to poll 8,530 people from its specialist mobile survey panel.

Contributors were based in nine countries: Brazil, Egypt, India, Indonesia, Qatar, Singapore, South Africa, the UK and the US.

Overall, the number of participants looking for information about, or actually buying, goods and services via wireless devices reached at least 72% in each of the markets analysed.

Figures hit 91% in the UK, where 82% of interviewees also logged on to the mobile internet every day, and 34% now used the fixed-line web less than was the case 18 months ago.

In the US, 41% of respondents had paid for something via mobile in the last six months, standing at 38% when it came to purchasing goods through the network provider's storefront.

Another 11% completed such transactions from a retailer's m-commerce portal, and 9% had leveraged social media properties for this reason.

Some 84% of respondents in Singapore had employed wireless handsets to research or buy goods, and 74% accessed the mobile internet every day.

At present, 40% of acquisitions made in this way are for digital offerings, but 15% of relevant adults had bought electronics products in the same fashion.

Mobile banking is also gaining ground, as 32% of the sample in Singapore regularly check their balance on a wireless device, and 18% pay bills.

Elsewhere, 63% of Indonesians had sent airtime remittances - purchases of prepaid mobile credits often serving as an informal type of money transfer - on a phone.

Among the Indonesian shoppers who had bought something on a handset in the last six months, 19% used a retailer's mobile site, and 41% did so via their network operator.

In Brazil, 79% of people engaged in activities related to m-commerce, the study revealed.

Over 20% of contributors in the country would also be willing to spend more than £200 on mobile purchases, doubling the 10% yielded by India, in second place on this measure.

Moreover, 41% of Brazilians claimed to use the fixed-line web less often than 18 months ago, whereas 84% log on from a phone on a daily basis, and 37% connect for at least five hours per day.

Meanwhile, although 72% of individuals in Qatar and 67% of their Egyptian counterparts had looked to the mobile internet for commercial purposes, purchase levels lagged considerably behind these totals.

"This global research clearly demonstrates that consumers across the world are embracing mobile as a key access point for their content and commerce needs," Andrew Bud, the MEF's global chairman, said.

"It also illustrates that mobile is an essential platform for companies wishing to drive consumer engagement and monetise their goods, services and digital products."

Data sourced from MEF; additional content by Warc staff, 11 July 2011

http://www.warc.com/LatestNews/News/EmailNews.news?ID=28527&Origin=WARCNewsEmail

Women of Tomorrow

Report: Women of Tomorrow
June 28, 2011

Women around the world are expanding beyond traditional roles to influence decisions in the home, in business and in politics, creating a massive opportunity for marketers to better connect them with the products they buy, the media they engage with and the technologies they use to do so.

For a new report, Women of Tomorrow, Nielsen surveyed women across generations and from both developed and emerging economies, and while women across the world don’t necessarily agree on how to, for example, utilize increasing incomes, one sentiment prevails: women everywhere believe their roles are changing for the better, and in emerging economies, women are confident that this trend will continue and create opportunities for future generations.






But how can marketers effectively reach women in this changing climate? The answer is, it depends.

Mothers in developed markets are heavy internet users and rely on texting and email to communicate. The same is true for their daughters. They are likely to take to the Web in search of promotions and discounts, and buying products with good value is important. In contrast, mothers in emerging economies rely more heavily on television for advice as to what to buy.

Across generations, differences in shopping and media are most apparent. Young women are the most tech savvy, and are most likely to be influenced by media, regardless of its form. Mothers, on the other hand, are more likely to take planned shopping trips and seek value through promotions and discounts.

http://blog.nielsen.com/nielsenwire/global/women-of-tomorrow/

Friday, July 8, 2011

How to reach Indonesia's digital consumers

How to reach Indonesia's digital consumers

Low Lai Chow


How does one make sense of the fact that internet access through cafés in Indonesia declined from 83% in 2009 to 64% in 2010?

At ad:tech Singapore 2011, Danny Oei Wirianto, Chief Marketing Officer of Indonesian online community Kaskus Networks, had an explanation: Indonesians love the web so much, they've simply pocketed it along with their mobile devices.

For Indonesian netizens, the personal computer isn't a computer, it is a smartphone.

So engrained is the digital habit that they "don't realise (that) they connect with the Internet", said Wirianto.

Wirianto even went as far as to declare that Indonesian consumers' love affair with their BlackBerry handsets (the popularity of which has driven mobile web usage) have single-handedly kept its parent company alive.

Indonesia has 37.9 million users on Facebook – though "surprisingly [it] doesn't have an office [there]" – second only to the United States. A comScore report released last August recognised Indonesia as the world's most Twitter-addicted nation, with the highest score of 20.8% of home and work internet audience accessing Twitter in the month of June 2010.


The rise of the everyday geeks

In the 1990s, as the internet radically reshaped the world, Indonesia was going through a transition of its own: democracy. The timing was perfect.

"We use it for freedom to speak," said Wirianto. "Normally we don't have a chance to speak properly or even to voice our opinion, the truth."

Today, more than half of Indonesian journalists have a Twitter account and obtain their news stories from the internet. There is another reason for this. Pointing to Indonesia's geographical make-up as the world's largest archipelago (over 17,000 islands), Wirianto said, "We have a hard time sometimes finding out what's going on, because we are islanders. We have so many islands across Indonesia. It is hard to get that information across the nation. So we use digital and the Internet to gather all the information that is possible. Everybody is tweeting about what they see."

Wirianto defined five attributes of Indonesian digital consumers for brands looking to connect with them:

1. Curious: "We are very curious. We're like a sponge. We are hungry for information. Everything that is information that we can find, we'll look. Google helps us so much. The first thing we do is type and find it in a search engine."

What this means for businesses: Intrigue your consumers. Offer information readily. If 'dirt' about your business is floating in cyberspace, address it. Chances are, the Indonesian consumer will find that dirt.

2. Wants to be entertained: "You know why Facebook is going up so [quickly] in Indonesia? It's not because they're connected. It's the free games there. Because we like some things free, and we entertain ourselves."

What this means for businesses
: Wirianto stressed the need for brands to spice things up. "When you create a campaign, you'd better try to entertain them."

3. Lazy and likes ease of use: "We are so lazy, we don't even type 'facebook.com' on our mobile, all we do is just click a button to go to Facebook."

What this means for businesses: "Think about making it as easy as possible if you want to penetrate the Indonesian market."

4. Wants to be heard: "We like to chat. We like to talk. BlackBerry has survived because of Indonesians. Without the Indonesian market, I don't think they could survive. Why? Because Indonesians love BlackBerry Messenger."

What this means for businesses: Consider a platform for them to discuss your brand. "Give something for them to speak about your brand, your product. They will talk about you."

5. Thinks about what they can gain: "We like something free. If you give something free, we're all there, no matter who you are in Indonesia."

What this means for businesses: Evaluate the 'carrot' your business is willing to give to consumers. "Is it information? Is it the content? Is it the game? Will you give it to them?"

6. Likes to flock and be in groups: "There are Yahoo! mailing list groups, and the BlackBerry has groups (a function on its BlackBerry Messenger) - that's why we love them."

What this means for businesses: Community is the buzzword here. Think about providing group-friendly tools that allow consumers to gather.

Love for sharing and all things social aside, Wirianto also observes a shift in behaviour among Indonesian digital consumers regarding their need for speed. Wirianto said it was imperative for businesses to deliver information fast as Indonesian consumers are brutally unforgiving of inefficiency.

"We don't want to wait for information. If your site takes about a minute or two minutes to download, we are out of there. We are not going to be visiting your site."


Social commerce, meet e-commerce

While consumer power is at a high as the Indonesia economy picks up, fears about seller fraud persist. The consumers don't quite trust the sellers. The sweet spot for an online transaction, according to Wirianto, is between ten dollars and fifty dollars. "Anything above that, we will feel afraid to use e-commerce. If we lose ten dollars, fifty dollars, we don't care." Offline interaction is especially important when it comes to delivery and communication about the product.

Indonesian consumers are also more influenced by online reviews compared to their Asia-Pacific counterparts. According to a Nielson survey, 45% of Indonesian consumers will not buy electronic products without consulting online reviews, compared to 41% of total Asia-Pacific respondents.

The survey also showed how "digital becomes the influencer" for many Indonesians with their strong reliance on online sources for making purchase decisions. This can be seen in their ranked trusted sources of recommendations. Family ranks first with 70%, while friends come in second with 67%. The third (online product reviews: 29%), fourth (discussion forums: 26%), fifth (product websites: 17%) and sixth (social media sites: 14%), though, are all situated online.

Wirianto theorises that smart Indonesian consumers are cutting through marketing pitches and watching their own backs by conducting careful research online.

"Everyone is saying, 'We are the cheapest'. So we don't have a clue on which one is the best, except when we know it from our friends, or except when we know it from Twitter."

Digital savvy may be the factor behind Indonesian consumers' readiness to make online purchases: according to the Nielsen survey, 49% of female Indonesian consumers intend to purchase clothing online in the next six months while 34% of male Indonesian consumers intend to purchase books online in the next six months.

The e-commerce scene in Indonesia is currently dominated by SMEs, which make up about 90% of the market and operate compactly without stores or portal sites. Instead, these SMEs are on Facebook, have a mailing group and BlackBerries to communicate with customers.

Yet this e-commerce market is huge: Wirianto estimated that about US$320 million of transactions are going through the Kaskus site alone.

Notorious for suffering from "time-deficit disorder", Indonesian consumers can be tough to reach out to. Wirianto therefore advises businesses looking at social commerce in Indonesia to:

1. Focus on the three Cs of connection, conversation, and conversion: "When brands campaign on our site, most of them try to talk first. They try to force it onto people. But I think it's very simple. You have to listen first. You don't know what people say about you, about your brand. So if you don't listen to the conversation, you don't monitor the conversation, it doesn't get through."

2. Engage with presence: "It's how you create an experience instead of selling products or services. The people going online are not dumb. If you go online in Indonesia, you have to pay attention on the forums and social media."

3. Accept the consumers are in control: "Most brands in Indonesia think that if their company has money, they can control the media and what people think. Not any more. It's switched to become consumer-controlled. Consumers control what they want to say, what they want to hear."

4. Go to the community instead of building one: "If you are a brand manager, you'll try to build a community… it's just useless. You cannot buy people to make a community for you. But you can pinpoint which community you want to go to and provide tools for your brand."

http://www.warc.com/Content/ContentViewer.aspx?MasterContentRef=1fd14ed4-2b53-4e11-8906-d2edf2b038df

10 truths about Millennials

10 truths about Millennials

J Walker Smith
The Futures Company

The Millennial Generation is all about adaptability and using technology to invent new ways to play, share and consume, says The Futures Company's J Walker Smith

For all the attention and headlines they get, the Millennial Generation (also known as Generation Y) are misunderstood. Much of what is said about them is anecdotal – good stories, not good theory. A great deal of what is reported about them from surveys is simplistic. Advanced analysis and long-term tracking data are needed to tease apart what is true of all youth from what is special about Millennial youth. A lot of the criticism directed at them comes from middle-aged experts pining for a bygone era that was stitched together with a yarn that has little bearing on the crazy-quilt complexity of life today. The Futures Company 2010 Global Monitor interviewed 27,000 people in 20 countries, and with this research a detailed assessment of the received wisdom about Millennials was completed. A new report, Unmasking Millennials:The Truth Behind a Misunderstood Generation, by Yannis Kavounis, a director at The Futures Company, and consultant Sophie Stringer, sets the record straight, including these ten truths about Millennials.


1. MILLENNIALS ARE NOT BABY-FACED TEENAGERS

There is no consensus on the exact generational boundaries of Millennials, but roughly speaking, this is the cohort born in the early 1980s to mid-1990s. This range of years includes some teens, but the bulk of Millennials are in their early twenties to early thirties. Millennials are young adults, facing adult decisions, responsibilities and anxieties. They are caught up in a life-stage transition to adulthood, and they are struggling to find a place for themselves in a world ill-designed for the 21st Century challenge of sustaining prosperity in the face of limits and scarcity.


2. MILLENNIALS DO NOT HAVE AN ETERNALLY OPTIMISTIC OUTLOOK

The optimism so often attributed to them has been nothing more than the buoyant enthusiasm that always characterises youth. Now that Millennials have become parents, with more obligations and a wider range of life experiences, their optimism is fading, just as it does for every generation. This is entirely consistent with research about happiness, which shows a U-shaped curve when plotted by age. Cheerful youth become stressed adults, who look forward to a contented retirement. Millennials are aging into a time of pressure and strain that will take the edge off their celebrated optimism and good cheer. What's remarkable about Millennials is not that they are a disproportionately upbeat generation, but that they remain able to keep their wits about them and pass through the ordinary progression of sentiment and outlook, notwithstanding the extraordinary times in which they live.


3. THE OPEN, EXPANSIVE, PRO-SOCIAL MINDSET OF MILLENNIALS IS CLOSING AS THEY MATURE

The focus of Millennials is shifting from the world at large to their own worlds as the demands of their personal situations become greater and more pressing. Making a difference matters to Millennials, but not as much or in the ways that all the hype would lead one to believe. Growing up with sustainability as a fact of life means it's no big deal for Millennials to do their bit, and they expect brands to do the same. But taking it on as a cause is another matter entirely. Unfortunately, painting them green is the sort of Millennial typecasting that has the potential to do the most damage. Many expect Millennials to step up and take charge of planetary priorities in areas such as climate change, deforestation, depletion of fishing stocks, overcrowding and water shortages. Name a problem and Millennials are the hope for the future of the planet. Unfortunately, passing the buck like this to Millennials gives older generations psychological permission to delay taking any action themselves when immediate action might be exactly what is required.

Millennials are tied to technologies that are always changing, upgrading and leapfrogging from one to the next


4. MILLENNIALS ARE NOT USHERING IN A WORLD DEVOID OF MATERIAL AMBITIONS AND LIFESTYLES

Certainly, they are post-materialistic in their interests in experiences, creativity and contentment. Happiness is higher on their agenda than it has been for their immediate predecessors. But many Millennials remain utterly motivated by material things, and for all Millennials, material comfort is not something they are willing to forego in order to find satisfaction or to make a difference.


5. MILLENNIALS ARE ALL ALIKE, YET WHOLLY UNALIKE

Analysis of The Futures Company Global Monitor data identified four overarching attitudinal segments among Millennials. In this way, Millennials are different. But these segments hold together tightly and reliably across different countries. So, in this way, Millennials are alike. The same four value and lifestyle segments show up everywhere. These findings are a reminder that differences abound, so it is tricky to generalise about Millennials. But despite differences, certain dynamics hold true for all Millennials – not just commonalities of opinion, but commonalities of the defining dimensions that cleave Millennials everywhere into comparable segments.


6. THE STEREOTYPICAL DEPICTION OF MILLENNIALS IS TRUE, BUT ONLY IN A SMALL WAY

When looking at the distribution of the Millennial segments across the globe, there is one segment that fits the bill as an optimistic, open, creative and group-minded generational cohort. But, globally, this is the smallest segment. It is bigger in Western markets, but even in those markets it is still not the biggest.


7. TECHNOLOGY IS THE DEFINING CHARACTERISTIC FOR MILLENNIALS

It is central to every aspect of their lives. It is the facilitator and portal for every interest and passion and the way in which they define themselves as unique from other generations.


8. MILLENNIALS USE TECHNOLOGY TO CREATE NEW SPACES AND INVENT NEW WAYS TO PLAY SHARE AND CONSUME

Technology is about more thanconverting every offline experience into an online format. Like everything, however, technology usage occurs across a spectrum of engagement. At one extreme, it is a palette for radical creativity; at the other, an instrument of productivity. Similarly, an intensely personal, insular style of using technology is just as prevalent among Millennials as the extensive, unabashed social style of sharing, connecting, revealing and exposing that gets all the headlines.


9. MILLENNIALS ARE REDRAWING GEOGRAPHIC BOUNDARIES IN UNEXPECTED WAYS

Markets that are wholly dissimilar in almost every other way look strikingly alike when it comes to Millennials. Their closest neighbours are other Millennials, who share attitudes, not checkpoints. For example, Argentina and France are first cousins when it comes to Millennials. The generational scaffoldings in Argentina and France more closely resemble one another than they do those of neighbouring countries in Latin America and Western Europe, respectively. The ratios of the four Millennial segments are virtually identical, making these two countries tribal mirror images of one another. Local differences matter, but the mix of attitudes and motivations makes for a similar cocktail of brand opportunities in both markets. While this could be said about any generational cohort, it matters more when marketing to Millennials because of their prowess with information and social technologies that expose them to a greater range and diversity of cultural influences. Millennials in Argentina and France, for example, are not only alike in the distribution of their attitudes, but in their exposure to gadgets, styles, fashions and designs. They are connected by a broad outlook of motivations and lifestyle aspirations that unifies them as a coalition of motive, impulse and inspiration.


10. WHATEVER YOU KNOW ABOUT MILLENNIALS IS LIKELY TO CHANGE TOMORROW

Don't take anything you know about Millennials as the final word. More than any generation in recent history, Millennials live in a fluid world that requires an unprecedented mutability of mind and action, and plasticity of identity and disposition. Millennials expect to live their lives in constant transition. They anticipate holding many jobs. They are tied to technologies that are always changing, upgrading and leapfrogging from one to the next. They have ridden a roller-coaster market of stratospheric highs and ruinous lows. They have witnessed overnight overthrows of long-standing regimes by people their own age, transforming their countries in a flash. Millennials will fashion more fluid lives in response to a more protean world. What works for Millennials in one category or context is not assured of working in another. Millennials are defined now by possibility not closure, by engagement not detachment, by developing not finishing. Life has become a matter of relentless transitions. Flex, adaptability and responsiveness are the keys to success in marketing to Millennials.

http://www.warc.com/Content/ContentViewer.aspx?MasterContentRef=145aaa27-91f1-42bb-b4f9-319510818c8c

Thursday, July 7, 2011

The Social Media ProBook
View more presentations from Eloqua

NIELSEN: WOMEN EMPOWERED YET STRESSED

NIELSEN: WOMEN EMPOWERED YET STRESSED
 
Women Across the Globe Believe They Have Greater Opportunities than Their Mothers; Women in Developed Markets Believe Outlook Different For Their Daughters
Women Prefer to Get Information about Products on TV; Quality Most Important Driver of Brand Loyalty

Women’s control over spending decisions coupled with their gains across the working world and politics, point to women of tomorrow being in a position to exert more influence than ever. Nielsen, a leading provider of insights into what consumers watch and buy, today released findings from a study that identified spending and media habits of women across continents. According to the study, which spanned 21 developed1 and emerging2 countries, while women across the globe are stressed, women in emerging markets are more stressed than those in developed countries. And, while women across countries surveyed believe they have greater opportunities than their mothers, women in developed markets believe their daughters have the same level of opportunity.

The Nielsen Women of Tomorrow Study is one of the most comprehensive examinations into what women watch and buy. The survey was fielded using an online methodology in developed countries and a mixed field approach of online, central location and door-to-door interviewing in emerging countries, February - April 2011.

“Women across the globe are achieving higher levels of education, joining the workforce in greater numbers and contributing more to the household income,” said Susan Whiting, vice chair, Nielsen. “Women are increasing their spending power, and with that they gain more control and influence over key household decisions. As a result the women of today and tomorrow are powerful consumers and understanding their habits and attitudes is critically important for marketers and advertisers.”
 

Empowered yet Stressed

Nearly 80 percent of women in developed economies indicated they believe the role of women will change and of those, 90 percent believe it will change for the better. While female respondents say they are pressured for time and feel stressed and overworked, women in emerging countries indicated they feel the pressure even more so than women in developed countries. Women across the world are managing multiple roles, but a contributing factor in the higher stress levels reported by women in emerging markets is that there is little spare cash remaining after the basic essentials to spend on themselves or take vacations.

Among female respondents in emerging markets, women in India (87%), Mexico (74%) and Russia (69%) said they were most stressed/pressured for time; while among developed countries, women expressed feeling this pressure most in Spain (66%), France (65%) and Italy (64%).

“Women tell Nielsen they feel empowered to reach their goals and get what they want, but at the same time, this level of empowerment results in added stress,” said Whiting. “Companies marketing to women should consider highlighting ways their products can ease stress and provide convenience.”
 

Extra Funds, Different Allocations

When asked how women expect to allocate additional money they earn or expect to earn over the next five years, differences emerge. More than half (56%) of women in emerging countries said they plan to allocate funds for their children’s education, contrasted to 16 percent of women in developed countries. Women in Nigeria (85%), India (76%) and Malaysia (63%) gave the most importance to saving for their children’s education.

Overall, developed market women said they plan to spend their extra money on vacations (58%), groceries (57%) and savings or paying off credit cards/debts (55% each) while emerging market women said they were looking to spend extra money on everyday essentials such as clothing (70%), groceries (68%) and health and beauty items (53%). In emerging markets, vacation ranked seventh among women, with 40 percent indicating they would spend extra money on it.
 

A Plateau of Hope

Across countries surveyed, women believe they have more opportunities than their mothers. Women in emerging markets believe their daughters will have even more opportunities than they did relative to their mothers. However, in developed countries, women surveyed believe their daughters will have the same opportunities, not more.

Less than half (40%) of women in developed countries surveyed believe their daughters will have greater financial stability while 54 percent believe their daughters will have a better education. And 34 percent believe their daughters will be less likely to retire when they choose to compared to today’s standards. Nearly three-quarters (74%) of female respondents in developed countries, however, believe their daughters will have better access to technology.

In emerging markets, 80 percent of women surveyed believe their daughters will have greater financial stability, 83 percent believe their daughters will have a better education and 84 percent believe their daughters will have better access to technology.

“The difference in perceptions is striking, and reflective of the belief that women in developed countries have achieved a certain level of attainment and success,” said Whiting. “While women in emerging markets see tremendous growth in the opportunities for their daughters, a plateau of hope is evident in developed countries.”
 

In the Know

Nielsen found that the number one place women across continents prefer to get information about new products is television. In 10 of 10 emerging markets and in seven of 11 developed countries analyzed, television outranked 14 other sources of information. (In Germany and Spain word-of-mouth placed higher than television; in South Korea, Internet searches ranked highest; in Sweden, direct mail.)
After television? Word-of-mouth was listed as either the second or third choice in nine of 10 emerging markets and in eight of 11 developed markets. When it comes to getting information about stores, however, women surveyed in developed countries prefer word-of-mouth while women in emerging countries indicated they rely on TV.

“Worthy of note, is the disparity between the first and second information-seeking choices between women in emerging and developed countries for both new products and new stores,” said Whiting. “In emerging countries, the gap between TV and all other choices is significant, but in developed countries other media vehicles are increasing in importance – a critical marketing consideration when balancing strategic media plans.”
 

Quality Drives Loyalty

The most important driver of brand loyalty in 20 of the 21 countries examined, across 12 factors and across generations, is quality. (Women in the United Kingdom cited trust ahead of quality.) Additionally, Nielsen found that the most important drivers to bring women into the store (for products such as food, beverages, health and beauty products, pharmaceuticals and electronics) was good value and quality products.

“Women tell Nielsen that quality, not price, drives long-term brand loyalty,” said Whiting. “Though price and value are important, particularly to attract an initial purchase decision, marketers need to take note that long-term positioning must emphasize quality to earn her trust.”
 

Make it Social - - and Relevant

Nielsen reports that women talk 28 percent more and text 14 percent more than men every month; they are also heavier users of social features of phones and visit more Internet community sites than men. And, more than half of women in both developed (average 56%) and emerging (average 71%) countries say the computer, mobile phones and smart phones have changed their lives for the better.
Social networking is a fundamental part of a woman’s day-to-day digital life, with 65 - 70 percent of active, online female users age 18 plus in developed markets such as Australia, France, Italy, South Korea and Brazil visiting the leading social networking site in their market. In the U.S., 73 percent of online women visit the leading social networks while in Germany, 50 percent visit.

“To connect with women, strategies should be social and relevant,” said Whiting. “With social networking, women typically follow brands more so than men, making the social networking tool relevant for discounts, deals and coupons. Women are much more likely to engage with media that seamlessly integrates into and improves their day-to-day lives.”
 

Other Key Findings

When Nielsen compared results of the Nielsen Women of Tomorrow Study to its Q1 Global Online Survey3 it also found:
  • Across 22 forms of advertising “recommendations from people you know” is by far the most trustworthy advertising source for women surveyed in developed (73%) and emerging (82%) countries, followed by branded websites (60%, emerging countries) and consumer online opinions (49%, developed countries).
  • Women in emerging markets are more highly influenced by web ads shown on social media sites than those in developed countries. In emerging countries, women in India were the most highly influenced by web ads and women in South Africa and Russia were least persuaded. In developed countries, respondents in South Korea were most moved by social advertising and women in Australia and France were most impartial.
  • When it comes to life decisions, women respondents in developed markets want shared responsibilities on all matters from child care to major purchases. In emerging markets, some traditional roles continue, yet there is a desire for shared responsibility. Men in emerging countries are still viewed as the primary decision-making stakeholders when it comes to purchasing home electronics or cars, while women rule in the health and beauty department and all child care matters.
  • Across countries surveyed, some traditional sentiments remain: 31 percent of both men and women believe that men are the best fit to hold political office, maintain workplace positions of authority (29%) and make major purchases (22%).
“The next generation of female consumers will shop and use media differently, from men and generations before them, “said Whiting. “Consequently, companies marketing to women and working to capture women’s attention must rely on informed insights rather than assumptions about how they do business with this influential consumer.”
 
About The Nielsen Women of Tomorrow Study
The Nielsen Women of Tomorrow Study was conducted between February and April 2011, polling nearly 6,500 women in 21 developed and emerging countries throughout Asia Pacific4, Europe, Latin America, Africa and North America. The sample was fielded using an online methodology in developed countries and a mixed field approach of online, central location or door-to-door interviewing in emerging countries. The margin of error is ± two points. The countries in the study represent 60 percent of the world’s population and nearly 80 percent of the GDP.
 
http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsLang=en&newsId=20110628005338&div=-867702808

Monday, July 4, 2011

In a Shift, One in Four Indonesian Household Shoppers Now Men

In a Shift, One in Four Indonesian Household Shoppers Now Men

June 30, 2011
Febby Ramaun, Associate Director, Retailer Services, Nielsen Indonesia

In a sign of how times are changing, one-quarter of household shoppers in Indonesia are now men, according to Nielsen. And not all of these men are shopping because they have to, one-third said they “really enjoy” or “like” shopping, with just 15 percent saying they dislike the task. In 2010, 19 percent of men were the primary shoppers for their households. Nielsen’s Shopper Trends study also examined the purchasing behavior of consumers, retail channel trends and the impact of promotions.

Women still dominate shopping, accounting for 74 percent of Indonesian shoppers. Two-thirds said they “really enjoy” or “like” shopping, and for slightly more than one-third (37%), the task is still considered a chore (compared to 51% of men who said the same).

This shift in dynamics represents opportunities for manufacturers and retailers alike, provided they fully understand shoppers’ behaviors. To reach the male shopper, they may want to look at creating an “easy” shopping environment that appeals to the grab-and-go nature of men. They can also think about ways to convert that shopper into one who enjoys browsing the store more.


Impulse Shopping on the Rise, Traditional Channels Still Dominant

Impulse purchases are becoming increasingly common in Indonesia, with just five percent of consumers saying they never buy beyond their shopping list; 21 percent said they don’t make any list whatsoever! In 2003, 69 percent of shoppers said they might buy an additional item, but today 39 percent said they always buy additional items. This calls for manufacturers to develop more innovative products and collaborate with retailers to create effective in-store promotions and activities to build bigger basket sizes.

But while these core characteristics have changed significantly over the past eight years, others have not. The average Indonesian still shops at three or four channels depending on shopping mission. For example, 36 percent of minimarket shoppers visit the stores for top-up and emergency shopping, while 30 percent of wet market shoppers visit to buy food to prepare daily meals. Wet markets continue to play an important role in the country, with most consumers visiting them almost daily to purchase fresh vegetables, fruits and meats. This channel still accounts for half of household spending. Modern trade stores are used for personal care products and infant milk, while traditional stores are used to purchase basic food commodities such as soy sauce and powdered coffee.


indonesia-shopping


Getting Shoppers into Stores

Grocery shopping is a habitual behavior, and more than half of shoppers always go to the same store, with 85 percent saying that they visit the closest store. But 21 percent of shoppers said that they visit stores that offer attractive deals and coupons promoted in newspapers and flyers, a 16-point increase from just three years ago.

A strategic location near housing developments continues to be the critical factor in a store’s success, but retailers need to adopt other promotion tactics to attract new shoppers, particularly in the larger cities.

With Indonesia’s economy continuing to grow and its population becoming more affluent, retailers and CPG manufacturers are well-positioned to capitalize on these trends. But the companies that reap the greatest rewards are likely to be those who strive to understand as much as possible about who consumers are and what they are buying.

http://blog.nielsen.com/nielsenwire/consumer/in-a-shift-one-in-four-indonesian-household-shoppers-now-men