BEIJING, Nov. 12, 2018 /CNW/ -- Nielsen's latest research shows that consumers have great enthusiasm for the 11.11 shopping festival, with 94% of online consumers in China having participated in online shopping sprees. 18-35 year old consumers were the main purchasing force, and the most likely to make impulse purchase decisions, with 56% of online consumers born in the 1980s and 58% born in the 1990s saying they have "made unplanned purchases."
While shopping during discount season is like a holiday for many Chinese consumers, merchants invest significant manpower and resources for shopping festivals like 11.11. In terms of return on investment (ROI), Nielsen research shows that the investment return rate for brand owners on 11.11 is, on average, one third of the ROI achieved on non-festival days.
Despite the reduced ROI, online shopping events provide ample opportunity for brands to enhance awareness among consumers and create purchase and consumption habits that will continue to pay dividends in the months and years ahead. Shopping festivals also provide an opportunity to attract new customers through promotion, and create a window for merchants to launch new products.
However, while new product launches can help manufacturers drive growth, maintaining growth over time can be challenging, and the first 100 days following a new product launch is critical as it often determines whether a product will survive. Around one out of every 10 new products succeed beyond the first year and nearly two-thirds experience sales declines in their second year.
In October of this year, Nielsen and the Tmall Innovation Center reached a strategic cooperation, releasing an omni-channel New Product Performance Index subscription solution, which monitors the performance of recently launched products in the market and offers insights so brands can make better decisions on their product innovation strategy. The joint data product is rooted in Tmall's rich online data resources and Nielsen's leading offline retail data resources, enabling brand enterprises to have a clearer picture of new product trends in the market for R&D and marketing strategy.
At the "11.11" Tmall media event, John Burbank, President of Nielsen Global Enterprise Development and Strategic Cooperation, once again expressed the major changes that this innovative product will bring to the market:
"Nielsen has been deeply involved in the Chinese retail market for more than 30 years. No company can rival our comprehensive offline retail data and market insights. Tmall has also committed to being an omni-channel retail enabler. This collaborative solution is an FMCG innovation milestone and will offer never before seen insights on China's omni-channel retail development. This solution is the result of our dedication to delivering the most accurate picture of the evolving China market for our clients and the industry as a whole."
"The current omni-channel environment in China shows huge opportunity. We can see that among the 60 FMCG categories in the Chinese market monitored by Nielsen, local small and medium-sized enterprises are seeing strong growth rates of around 10% offline. That 10% represents an additional RMB 8.8 billion in offline sales growth that was added to the total market last year. This opportunity for these brands is also present in online channels. There are nearly 50,000 FMCG brands on the Tmall platform, of which many are small and medium-sized enterprises. This solution from Nielsen and the Tmall New Product Innovation Center will also allow us to investigate deeper into the demands of consumers, understand emerging innovation trends, and drive product innovation and marketing strategy through omni-channel big data insights," Burbank concluded.
For further information: Lucille Liu, +86-18910187260, [email protected]