Food trends: cracking the convenience market
Asia’s convenience retail landscape
Charles Chan Senior Retail Analyst
© IGD 2018 We cover 18 markets and over 100 retailers in Asia
© IGD 2018 Source: IGD Research Page 2 Contents
Convenience landscape: IGD’s model and key trends
Leading retailers and market sales forecasts to 2022
Case study one: successful collaboration and new formats
Case study two: more space dedicated to fresh
Summary: how this impacts you and opportunities
© IGD 2018 Source: IGD Research Page 3 Forecourts CVS Pioneered in North America, with a focus on Led by retailers in Asia servicing densely Convenience landscape transient trade - snacking, foodservice and populated, congested urban areas, serving a food-to-go solutions demand for impulse, speed and time of day
Fastest brick-and-mortar channel growth channel
Convenience formats are emerging in many forms around the world
The model overlaps in some areas - fulfilling shopper missions is still the key Neighbourhood convenience 1k supermarket Influenced by leading supermarket operators in In many forms and locations, driven by the Western Europe, with a focus on fresh food, changing competitive landscape and shopper meal solutions and top up patterns, focused on top up ranges
© IGD 2018 Source: IGD Research Page 4 Key trends underpinned by convenience, difference and quality
© IGD 2018 Source: IGD Research Page 5 Contents
Convenience landscape: IGD’s model and key trends
Leading retailers and market sales forecasts to 2022
© IGD 2018 Source: IGD Research Page 6 6.6% Leading convenience retailers in 2022 CAGR growth to 2022 - US$5.1trillion (top 10)
© IGD 2018 Source: IGD Research, channel growth figures based on the top 10 Asian convenience retailers Page 7 Leading convenience markets in 2022
Note: bubbles represent convenience grocery market size in 2022 for leading retailers
© IGD 2018 Source: IGD Datacentre, World Bank, IMF, Note: retailer sales CAGR growth is calculated based on the performance of leading retailers Page 8
Contents
Convenience landscape: IGD’s model and key trends
Leading retailers and market sales forecasts to 2022
Case study one: successful collaboration and new formats
© IGD 2018 Source: IGD Research Page 9 Case study one: successful collaboration and new formats
© IGD 2018 Source: IGD Research, Chinaisgood Page 10 Case study one: successful collaboration and new formats
Yonghui Life has been Fresh produce is central to Satisfying and convenient expanding rapidly. Mobile app Yonghui's success. experience is vital. orders delivered in 30 minutes. Source: IGD Research
© IGD 2018 Page 11 Contents
Convenience landscape: IGD’s model and key trends
Leading retailers and market sales forecasts to 2022
Case study one: successful collaboration and new formats
Case study two: more space dedicated to fresh
© IGD 2018 Source: IGD Research Page 12 Case study two: more space dedicated to fresh
© IGD 2018 Source: IGD Research Page 13 Case study two: more space dedicated to fresh
Flagship SPAR store in Carrefour market in Taiwan, Carrying fruit and vegetables is Donguan, China. Almost 50% approx. 600 sq m, open 24 just one method FamilyMart of sales from fresh produce, hours. uses to drive differentiation in approx. 270 sq m. Vietnam.
© IGD 2018 Source: IGD Research, Carrefour Taiwan Page 14 Contents
Convenience landscape: IGD’s model and key trends
Leading retailers and market sales forecasts to 2022
Case study one: successful collaboration and new formats
Case study two: more space dedicated to fresh
Summary: how this impacts you and opportunities
© IGD 2018 Source: IGD Research Page 15
Key takeaways 1 Flex your thinking to the operator model
2 Use global healthy lifestyle trend to your advantage
3 Strengthen support and collaboration
4 Innovation and differentiation are a priority for CVS
5 Online and digital solutions should be a focus
© IGD 2018 Source: IGD Research Page 16
Thank you for listening!
Charles Chan Senior Retail Analyst [email protected] +44 (0)7388 376 409