GLOBAL HIGHLIGHTSQUARTER BY NUMBERSQ3 2018Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.CONTENTSWELCOME . 3REGIONAL HIGHLIGHTSASIA-PACIFIC . 4NORTH AMERICA . 10EUROPE WEST . 14EUROPE EAST / CENTRAL . 19LATIN AMERICA . 24AFRICA AND MIDDLE EAST . 293Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.WELCOMEAcross the globe, how companies do business is changing. Consumer behaviors are evolving as demographics shift and advances in technology are opening up new avenues for people to engage with content and brands.These new connections are unlocking opportunities for marketers to reach consumers. But knowing how and where to connect with consumers in this increasingly complex marketplace can be challenging. As multinationals seek growth across the globe and local companies look beyond their borders, they need help identifying the opportunities that are right for their business.Our Quarter by Numbers reports help our clients do just that. Our third-quarter 2018 report covers 65 countries across five regions. This quarterly series provides a global snapshot of whats going on in our markets today. We produce five reports to help clients zero in on specific regions of the world. The series is available free of charge to all Nielsen clients. They are also for sale to non-clients. This lite report represents an overview of the insights detailed in the five regional reports.Our five market-level reports are as follows: Asia Pacific (15 countries), North America (2), Latin America (7), Africa seven of the top 10 most optimistic2countries in the world are also in the region. Some market commentators are suggesting that the trade tensions will actually have a positive impact on the region, especially if Southeast Asia sees a boom in foreign direct investment as companies shift production capacity from China to neighbouring markets like Vietnam, Thailand and Malaysia.While export opportunities have a significant impact on many of these markets, the domestic scenario of many Asia countries is what highlights the enormous potential in the region. Notably, we see a number of markets with continued strong GDP growth, optimistic consumers and double-digit average wage growthall strong indicators of a growing consumer class that is looking to improve their quality of life. In some markets, inflation is creeping up to higher levels than weve seen in the past, and this may be affecting consumer perceptions about now being a good time to buy the things they want and need. But across the region, the sentiment around purchase intentions remains steady.Consumers are still spending more than they have in the past, and this is reflected across the FMCG landscape, where value growth for the region is up 5.3%, compared with 4.7% a year ago. However, we see the greatest promise in the latest quarter, with value growth recorded at 6.5% for the region, driven by volume consumption. China and India lead this domestic consumption growth. The reduction in import tariffs contributed to a surge in consumption of personal care categories in China and in India; retailers special events and promotions are driving volume consumption in modern trade as the channel evolves.“Where will growth come from?” remains the most-asked question among multinational and local companies alike. As our markets continue to evolve and become more urban, consumer lifestyles are rapidly changing along with their needs and wants. The challenge rests with retailers and manufacturers to keep pace and find the best way to service these new requirements.Online shopping is one such way, and its here to stay. Its no longer a question of “if,” but rather “how” companies will evolve and morph to accept this new channel that will determine its longer-term impact and potential. Across the region, of consumers surveyed3, 98% of Asia-Pacific consumers have made a purchase online at some timewith travel, fashion and IT/mobile leading the charge.Laura McCulloghMarketing Effectiveness and Sales Effectiveness Practice Leader: Developing Markets6Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.THE BIG PICTURE: ASIA-PACIFICBut its the categories where online purchasing growth is strongest that makes for the most interesting story, showcasing the enormous potential of the channel. Forty-four percent of Asia-Pacific consumers have bought packaged groceries online (up 4% from two years ago), followed by 40% buying fresh groceries and personal care online (up 5% and 3%, respectively). This showcases that consumers are moving beyond the traditional categories of travel and books in their online purchasing and accepting this channel as a normal retail outlet for their daily shopping needs.The biggest barrier to consumers purchasing online in Asia-Pacific is unstable internet connection, with 44% of consumers around the region agreeing that internet connectivity is often unstable or limited to make purchases online. As connectivity improves and consumers access to technology grows, e-commerce will account for a bigger slice of the FMCG landscape.So whats the potential? How should your omnichannel strategy evolve?While consumer preference is polarised between a preference for buying fresh and household groceries in a physical store (30%) versus online (28%), its the potential to bring back lapsed online shoppers and new consumers considering itthat showcases its true potential (70% of total Asia-Pacific buyer base).An omnichannel strategy is fast becoming the new norm, and those players that make both the brick-and-mortar and online experiences engaging, easy and trustworthy will garner the trust and wallets of consumers in the future.FUTURE POTENTIAL OF ONLINE SHOPPINGSource: Global Connected Commerce Report 2018ASIA-PACIFICI am currently buying fresh and household groceries online regularlyI have bought fresh and household groceries online in the past, but havent recentlyI am currently not buying fresh and household groceries online, but will consider in the near futureI prefer to buy my fresh and household groceries at a physical store, and will not consider buying onlineGLOBAL11%17%28%15%26%30%30%41%7Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.The Conference Board® Global Consumer Confidence Survey is conducted in collaboration with Nielsen.Source: GDP and inflation reflects % change per annum to Q3 2018, Economist Intelligence Unit (EIU) / local governments where not available in EIUASIA-PACIFIC AT A GLANCEECONOMIC PULSE OF CONSUMERS AROUND ASIA-PACIFICThe Conference Board® Global Consumer Confidence Survey is conducted in collaboration with Nielsen and measures perceptions of local job prospects, personal finances and immediate spending intentions. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism, respectively.Q3 2018Q3 2018 vs Q2 2018GDP (% change pa)InflationMalaysia 127 10 4.4 0.5Thailand 112 10 3.3 1.5Vietnam 129 9 6.9 4.1Australia 101 8 2.8 2.0India 130 6 8.2 3.9Singapore 98 4 2.6 0.7Taiwan 79 3 2.3 1.7New Zealand 105 3 2.8 1.9Japan 85 2 1.0 1.0Hong Kong 106 1 2.9 2.7Q3 2018Q3 2018 vs Q2 2018GDP (% change pa)InflationKorea 50 -6 2.0 1.6Philippines 126 -1 6.1 6.2China 112 -1 6.5 2.1Indonesia 126 -1 5.2 2.9CONSUMER CONFIDENCE INDEX CONSUMER CONFIDENCE INDEXCONSUMERS AROUND THE REGION ARE INCREASINGLY OPTIMISTIC, WITH MALAYSIA, THAILAND AND VIETNAM MAKING SOME OF THE MOST SIGNIFICANT GAINS IN CONFIDENCE ACROSS THE WORLD.8Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.The Conference Board® Global Consumer Confidence Survey is conducted in collaboration with Nielsen.ASIA-PACIFIC AT A GLANCECONSUMER SENTIMENT IN ASIA-PACIFICWITH INCREASING ECONOMIC CERTAINTY AROUND THE REGION, CONSUMERS ARE BECOMING MORE CAUTIOUS WITH A FOCUS ON PUTTING SPARE CASH INTO SAVINGS.WHAT ARE THE TOP TWO CONCERNS IN THE NEXT SIX MONTHS? Q3 2018Type of concernWHOS SPENDING, SAVING, AND INVESTING? Q2 2018After living expenses, how is spare money spent?APAC AU CN HK ID IN JP KO MY NZ PH SG TH TW VNThe economy 1 1 1 3 0 1 -2 0 -2 2 0 2 -6 0 5Health -4 1 -7 3 5 1 -1 0 3 4 -1 2 7 5 -2APAC AU CN HK ID IN JP KO MY NZ PH SG TH TW VNPutting into savings -1 0 -1 -7 -3 1 5 -12 -9 0 -6 -5 -2 -8 2Holidays / vacations -4 5 4 -2 -14 -5 2 -2 -5 -6 -9 -3 -10 -1 -1Bars reflect Q3 2018. Table shows comparison to Q2 2018.Bars reflect Q3 2018. Table shows comparison to Q2 2018.% of respondents% of respondentsAPAC AU CN HK ID IN JP KO MY NZ PH SG TH TW VN50%40%30%20%10%0302616173533313032151923213128253817162122172619461839212740APAC AU CN HK ID IN JP KO MY NZ PH SG TH TW VN70%60%50%40%30%20%10%0635048366360652763325066654937553445382965 6446256234573272489Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.Colour coding indicates growth or declining trend compated to same six-month period year ago.Average volume growth of Q2 18 & Q3 18 vs Q2 17 & Q3 17. Average volume growth decreasing versus last periodAverage volume growth increasing versus last periodLOOKING THROUGH ASIA-PACIFICS FMCG LENSFAST-MOVING CONSUMER GOODS MARKET DYNAMICSWeighted average APAC 14 countriesUNIT VALUE GROWTHTHAILAND (-1.9%)HONG KONG (+1.3%)CHINA (+2.7%)JAPAN (+1.1%)KOREA (-0.9%)TAIWAN (-1.3%)PHILIPPINES (+0.9%)SINGAPORE (-1.3%)NEW ZEALAND (+1.6%)INDIA (+12.4%)MALAYSIA (+4.8%)VIETNAM (+2.3%)INDONESIA (-0.1%)AUSTRALIA (+1.0%)VOLUME GROWTH NOMINAL GROWTHWHERE ARE THE FMCG GROWTH OPPORTUNITIES?Average volume growth Q2 2018 and Q3 2018MAT YA4.6%5.3%4.2%3.7%1.5%2.3%2.4%3.6%5.9%4.8%2.8%2.0%2.3%2.5%2.8%2.0%4.8% 4.8% 4.9%2.9%2.0%2.1%4.4%6.5%2.1%2.1%3.1%2.2%2.4%2.3%MAT TY Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18NORTH AMERICAAt Nielsen, data drives everything we doeven art. Thats why we used real data to create this image. Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.