THE NEXT GENERATION OF BALTIC SHOPPERS
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1 THE NEXT GENERATION OF BALTIC SHOPPERS Getting the buzz? Maris Dreimanis GfK 2012 The next generation of Baltic shoppers: getting the buzz? 08. November
2 GfK 2012 The next generation of Baltic shoppers: getting the buzz? 08. November
3 Population density Source: GfK GeoMarketing GfK 2012 The next generation of Baltic shoppers: getting the buzz? 08. November
4 Purchasing Power, 2011/2012 Purchasing power - the amount of disposable income available for a particular period of time. As such, this value is THE benchmark of consumer potential for a given region. Source: GfK GeoMarketing on behalf of the European Shopping Centre Trust. Key European retail data, 2011 review and 2012 forecast GfK 2012 The next generation of Baltic shoppers: getting the buzz? 08. November
5 Retail Spending as a Share of Total Private Spending Source: GfK GeoMarketing on behalf of the European Shopping Centre Trust. Key European retail data, 2011 review and 2012 forecast Retail spending as a share of private consumption - related spending declined in the EU- 27 in 2011 despite the retail turnover growth in absolute terms. The reasons for the declining share of retail expenditures are increasing energy costs and economic uncertainty. However, the reasons for consumer behavior must be considered on a country-bycountry basis, as they are dependent upon the specific price structures and consumer climates in the various countries under review. Inhabitants of countries with low per-capita income must spend a greater proportion of their retail income on meeting basic needs (e.g., inhabitants of Bulgaria, Croatia and Hungary); some countries are also still trying to catch up after weathering the crisis period (e.g., Russia and Estonia). GfK 2012 The next generation of Baltic shoppers: getting the buzz? 08. November
6 Retail Turnover Forecast for 2012 In the European countries under review, GfK GeoMarketing anticipates a nominal retail turnover growth of approximately 1.4 percent in It is also expected that Greece, Ireland, Portugal, Spain, Italy, and Hungary countries affected by the structuring and austerity measures will be impacted by the repercussions of the debt crisis. A very positive development is forecasted for the Baltic states. Turnover growth between +5.1 percent and +6.3 percent is anticipated, an indication that the so-called Baltic Tiger has awakened from its winter slumber. Source: GfK GeoMarketing on behalf of the European Shopping Centre Trust. Key European retail data, 2011 review and 2012 forecast GfK 2012 The next generation of Baltic shoppers: getting the buzz? 08. November
7 Per Capita Sales Area and Sales Productivity, 2011 Source: GfK GeoMarketing on behalf of the European Shopping Centre Trust. Key European retail data, 2011 review and 2012 forecast The per-capita sales area in the 32 European countries increased by a total of approximately 1 percent in 2011 compared to This is explained by the fact that, on the one hand, many projects were halted during the crisis and, on the other, current vacancies can now be filled again. However, it should be remembered in the case of the per-capita evaluations that the population of all countries under review increased by +0.5 percent (EU-27 = +0.3 percent). In this regard, Lithuania, France, Latvia and Slovakia have the highest per-capita sales area growth rates. As such, the sales area growth rate is below-average compared to the 2011 turnover growth of +2.4 percent. The rate of the sales area increase has therefore once again significantly slowed, although GfK GeoMarketing anticipates that it will again accelerate considerably in the coming years. GfK 2012 The next generation of Baltic shoppers: getting the buzz? 08. November
8 Households with broadband access (%) Estonia Latvia Lithuania Eurostat (isoc_r_broad_h) GfK 2012 The next generation of Baltic shoppers: getting the buzz? 08. November
9 Households with internet access (%) Estonia Latvia Lithuania Eurostat (isoc_r_iacc_h) GfK 2012 The next generation of Baltic shoppers: getting the buzz? 08. November
10 Online purchase (% of persons who ordered goods or services over the internet for private use) Estonia Latvia Lithuania Eurostat (isoc_r_blt12_i) GfK 2012 The next generation of Baltic shoppers: getting the buzz? 08. November
11 The impact of social media Sony, P&G, Ford Age of manufacturing Age of distribution Walmart, Toyota Amazon, Google Age of information Age of Customer? 2010-? Facebook, Apple Sources of dominance GfK 2012 The next generation of Baltic shoppers: getting the buzz? 08. November
12 Image by Shanghai Web Designers ( GfK 2012 The next generation of Baltic shoppers: getting the buzz? 08. November
13 CONSUMERS IN CONTROL: the power to tell millions Image The conversation Prism 2.0 by Brian Solis and JESS3, GfK 2012 The next generation of Baltic shoppers: getting the buzz? 08. November
14 Tendency to Talk About Purchase Experiences How many people, apart from the employees of the business concerned, did you tell, in total, about the last positive / negative experience you had as a consumer? % Passing on negative experiences (to at least one person) 50% 56% 48% 50% Passing on positive experiences (to at least one person) 61% 70% 57% 63% European consumers tend to talk about purchase experiences to three - four other people, irrespective of whether these experiences were good or bad. In Baltic, Latvians are more open to spreading word of mouth, both, positive and negative. Source: Special Eurobarometer n 342 (2011) GfK 2012 The next generation of Baltic shoppers: getting the buzz? 08. November
15 Almost 2/3 of internet users are active on social networks Use social media LATVIA LV Every day/more than once a day LITHUANIA LT times a week ESTONIA EE Once in a week Share experience, knowledge and emotions LATVIA LITHUANIA ESTONIA 2-3 times in a month Once in a month or less Have tried, but don t use Never tried/used GfK Research, July 2012, Latvia n=1016; Lithuania n=723; Estonia n=960] GfK 2012 The next generation of Baltic shoppers: getting the buzz? 08. November
16 Estonians are more active when looking for company info on internet Visiting company page on the internet LATVIA LV Every day/more than once a day LITHUANIA LT times a week ESTONIA EE Once in a week Visiting/following companies on social networks LATVIA LITHUANIA ESTONIA 2-3 times in a month Once in a month or less Have tried, but don t use Never tried/used GfK 2012 The next generation of Baltic shoppers: getting the buzz? 08. November
17 In Latvia only 1 out of 10 uses QR code I know how to use this picture and use it quite often I know how to use this picture but don t use it often I know how to use this picture but never tried I don't know what to do with this picture, but have seen it before I don't know what to do with this picture, see it first time Respondents who know how to use QR code LATVIJA LV % LIETUVA LT % IGAUNIJA EE % GfK 2012 The next generation of Baltic shoppers: getting the buzz? 08. November
18 My External HDD buying experience GfK 2012 The next generation of Baltic shoppers: getting the buzz? 08. November
19 Choice criteria when buying food and beverages Which of these criteria is the most important for you personally when buying food and drinks? And which of them is the second most important when buying food and drinks? And which is the third? %, Multiple answers possible, >100% Base: All respondents; [Latvia, n=1016; Estonia, n=1021; Lithuania, n=784], GfK research June 2012 LATVIA ESTONIA LITHUANIA *Note: GMO - genetically modified organisms GfK 2012 The next generation of Baltic shoppers: getting the buzz? 08. November
20 Frequency of food buying Please state how often you buy food for yourself or for your family! LATVIA ESTONIA LITHUANIA %, Base: All respondents; [Latvia, n=1016; Estonia, n=1021; Lithuania, n=784], GfK research, June 2012 GfK 2012 The next generation of Baltic shoppers: getting the buzz? 08. November
21 Why would shopper to consider buying FMCG online? 7% 20% I can win time in the shop 44% It's easier for big baskets It allows to plan better I buy what otherwise I might forget 29% GfK survey in Belgium (n=8000) GfK 2012 The next generation of Baltic shoppers: getting the buzz? 08. November
22 Next Generation - Shopping behavior Stronger price orientation Yet want best-of-the-best Higher mobility/technology access Transparency and information access, online as a research and decision making tool Need for convenience and time pressure Social responsibility starting to be rewarded GfK 2012 The next generation of Baltic shoppers: getting the buzz? 08. November
23 THANK YOU! Maris Dreimanis GfK Custom Research Baltic GfK 2012 The next generation of Baltic shoppers: getting the buzz? 08. November
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