The grocery market in Asia is experiencing a dynamic shift, driven by changing consumer values and economic conditions. NIQ’s 2024 Shopper Trends report, a key resource in consumer intelligence, highlights notable shifts in shopper behavior regarding retail channels, basket sizes, and shopping frequency. This annual report identifies five major trends that can help manufacturers and retailers enhance customer experiences and succeed in this evolving market.
According to Gaurang Kotak, Consumer and Marketing Insights, Southeast Asia Modern Trade Leader at NIQ, “By staying attuned to these shifting shopper trends in Asia, manufacturers and retailers in the consumer packaged goods industry can adapt and thrive, while also preparing for the broader impact on regional markets. Developing proactive strategies that address these changing behaviors will be crucial for future success.”
The impact of inflation is evident in shopper behavior across Asia, with increased price sensitivity compared to 2019. In countries like Vietnam (60%) and Thailand (72%), a significant portion of shoppers are highly aware of price changes. This heightened sensitivity is reflected in more focused shopping habits, with over 80% of shoppers in Korea, Singapore, and Taiwan noticing price hikes. Shoppers are making more deliberate decisions regarding where they shop, how often, their basket sizes, and their willingness to switch stores and brands for better deals.
Key Shopper Trends in 2024
The NIQ 2024 Asia Shopper Trends report highlights five key trends shaping the region:
- Omni Shopper Behavior: Shoppers are blending online and physical store shopping to balance value and convenience. In China and Singapore, consumers have expanded their shopping channels, incorporating online stores, physical stores of various sizes, and emerging formats like fresh marts. Vietnam is seeing a similar trend, with a mix of online and traditional trade formats gaining popularity. This shift is also affecting shopping frequency, with Malaysians visiting online stores and hyper/supermarkets more often, while Hong Kong shoppers are frequenting supermarkets more. Conversely, Thailand is seeing an increase in shopping trips across most channels.
- Price and Promo-Conscious Shopping: Sensitivity to price and promotions is growing, necessitating more strategic approaches. Constant promotions are not sustainable; instead, targeted, purposeful promotions are recommended. Understanding different shopper segments and their priorities—whether they are value-conscious, quality-seeking, or innovation-driven—is key. Shoppers are increasingly willing to switch brands or stores for better deals, with varying degrees of openness across markets. For example, Malaysian shoppers are more likely to switch brands, while Thai shoppers are willing to switch both brands and stores. In China, there are two distinct shopper groups: those open to brand switching for promotions and those who only switch for familiar brands on offer.
- Shopping Mission Changes: Basket sizes are shifting, with some shoppers opting for smaller, more frequent trips and others seeking larger baskets for economies of scale. In China and Indonesia, there is a trend towards smaller baskets and lower spending per trip. However, shoppers in Taiwan and the Philippines are leaning towards larger baskets, indicating a potential shift towards bulk buying. Assortment optimization is crucial to meet these changing needs and basket sizes.
- Product and Brand Information Seeking: Consumers are becoming more research-oriented, seeking transparency and sustainability before making purchasing decisions. Brands need to focus on providing innovative and environmentally friendly products that align with evolving consumer values.
- Shopper Trade-Offs: The abundance of choices—channels, retailers, products, brands, and pack sizes—can lead to decision fatigue and trade-offs. Understanding shopping behavior at a fundamental level is essential to navigating these choices effectively and winning over shoppers.
Dolly Jitani, NIQ Global Shopper Leader, Consumer and Marketing Insights, comments, “The trends identified in the Shopper Trends report, including the rise of omnichannel shopping, the return to physical stores, and increased trade-offs, provide a clear picture of the changing shopper landscape. By leveraging these insights, manufacturers and retailers can develop targeted strategies to address diverse shopper needs and build lasting customer loyalty.”
