Consumer Insights and Marketing Strategies · Raw Pressery Background Solution Appeal Point • India is the largest market for juice • But juice is not healthy drink in India •

Consumer Insights and Marketing

Strategies

@2018 Sensing Asia

Comparative consumer analysis in Asia: Aging in

Japan, changing in India

Speaker:

Rieko Shofu, President and CEO, Sensing Asia Ltd (Japan)

@2017 Sensing Asia

11 September 2018

Rieko Shofu

President and CEO, Sensing Asia Ltd.

Comparative Consumer Analysis

between Japan and India

@2018 Sensing Asia4

• Marketing consulting company supporting

business development in Asia region

• Affiliate partners in 13 countries in the region

1. Consulting and M&A advisory services

2. Efficient and cost-effective support (online &

offline services)

3. Hands-on approach

What is Sensing Asia Ltd.?

@2018 Sensing Asia5

We provide 4 types of services to supporteach step of your international business development.

Basic Services

Covers regulatory information, investment •

environment, consumption, living and business cost information

Trend Sensing

• Provides future insights for business strategy planning and development of goods, services and technologies

• Analyzes signs of new trends and changes in market trends in the target market.

Advanced Services

For detailed research for international •

business expansion

Covers industry structure, regulations, •

market, customers, competitors and also searches the potential business partners

Service Overview

@2018 Sensing Asia6

Table of Contents

1. Market overview and consumer trends

1.1 Japan

1.2 India

2. Marketing strategies case studies

2.1 Japan

2.2 India

@2018 Sensing Asia7

Pupulation Pyramid

Source: Population Pyramid net

Japan India

50

20

80

50

20

80

@2018 Sensing Asia8

Average Household Income and % of Food Expenditure

17,137

1,670

0 10,000 20,000

Japan

India

Per Capita Income 2016

17,137

1,670

14.2%

30.3%

0% 10% 20% 30% 40%

Japan

India

% of Food Expenditure

Source: World Bank, Ceicdata, Knoema, World Bank

USD %

@2018 Sensing Asia9

Table of Contents


1.1 Japan

1.2 India


2.1 Japan

2.2 India

@2018 Sensing Asia10

Market Overview: Japan

Regulatory System

Pharmaceutical

Products

Food for Specified

Health Uses

Food with Function

Claims

Food with Nutrient

Function Claims

Food in General

Food

with

Health

Claims

• Government approval required.

• Permitted to bear claims such as

“Slows cholesterol absorption.”

• Under the business operator's own responsibility, can

bear function claims based on scientific evidence.

• No need of pre-approval by the government, but the

supporting evidence needs to be submitted.

To supplement the nutrients (vitamins, minerals, etc.) •

No need to submit a notification to the government, as •

long as the food contains certain amounts of nutrient

Source: I.Bヘルスケア, Consumer Affairs Agency



Market Size and Growth

Source: Fuji Keizai

3.64 3.58 3.62

1.04 1.11 1.15

0.97 1.59 1.84

0

1

2

3

4

5

6

7

2016 2017E 2018P

Food for Specified Health Uses

Food with Nutriend Function Claims

Food with Function Claims

USD Billion

Note :1. 1USD = 107.6JPY as of Apr2018



2017 Market Highlight

Source: Fuji Keizai,

• Sales of Foods with Function Claim continued to showed strong growth in 2017.

• Messages from functional claim have a stronger product appeal than food for

specified health use

• Price range is easy on the pocketbook

• New drinks and supplements with functional claim contributed to the sales

increase

Suntory Wellness renovated

the existing product to

functional foods

Coca Cola introduced a series

of drinks with functional claim


Source: Intage

Market Share of Health Food and Supplement by Health Benefit (FY• 2017):

1st – Maintaining Health and Improving Physical Strength

2nd – Beautiful Skin and Skin Care

3rd – Recovery from Physical Exhaustion

4th – Nutrient Balance


Market Share by Health Benefit


Market Share Health Foods and Supplement Market by Age

Group

10's1%

20's6% 30's

10%

40's16%

50's18%

60's27%

70's22% 10's

20's

30's

40's

50's

60's

70's

Over 50’s accounts for

Source: Intage


Market overview: Japan

Market Share by Age Group


Annual Average Purchase Amount for Health Foods and

Supplement per Gender and Age Group

58.5

133.9159.8

194.4230.9

318.3

373.3

41.8

146.6159.9

219.6

305.0

451.3

389.3

0

100

200

300

400

500

10's 20's 30's 40's 50's 60's 70's

USD

Male Femaie

Source: Intage



Purchase Amount per Gender and Generation


Health Benefit Top 5 Female Consumers seek for (1) (2)

Female 50’s Female 60’s Female 70’s

1 Skin Care Eye Health (3) Eye Health (3)

2 Eye Health (3) Health Maintenance and Promotion

Health Maintenance and Promotion

3 Fatigue Recovery Articular Health Articular Health

4 Intestine Maintenance andPrevention of Constipation

Skin Care Bone Health

5 Health Maintenance and Promotion

Bone Health Intestine Maintenance andPrevention of Constipation

Note :1. Female over 50’s2. Sort by Purchase rate of Health Foods and Supplement with Health Benefit 3. Excludes Eye Dry prevention


Health Benefit TOP5 Consumers Seek For

Source: Intage


Table of Contents


1.1 Japan

1.2 India


2.1 Japan

2.2 India


34%33%

31%

26%

14%

0%

5%

10%

15%

20%

25%

30%

35%

40%

India Brazil China USA UKNote :

Market Overview : IndiaPercentage of Millennial population

Source: Deloitte Database (Thomson One) and Analysis


Market Overview : IndiaVoices from Millennial

Source: Deloitte, economic time, Morgan Stanley, Goldman Sachs

I want to have a healthy lifestyle

I check SNS everyday

I am always busy.

Convenience is important

Social goodand ethical

consumption is the rightthing to do


34%

39%

42%

42%

48%

20%

29%

31%

31%

35%

40%

44%

47%

47%

55%

0% 10% 20% 30% 40% 50% 60%

Uniuque Offering

Sustainable Materials

Organic/Natural Ingredients

Superior Performance

High Quality Standards

Millennials

Baby Boomers

Global Average

Note :Source : Deloitte

Market Overview : IndiaPremium Millennials want to pay


100

160

300

380

460

520546

589.68

912

0

100

200

300

400

500

600

700

800

900

1000

2011 2012 2013 2014 2015 2016 2017 2018 2022

Note :

Market Overview: India Organic Packaged Foods and Beverage Market Size

CAGR 10.8% From 2017 to 2022


Table of contents


1.1 Japan

1.2 India


2.1 Japan

2.2 India


Consumer trends: Japan

Functional Instant Food

Increasing demand, especially 60’s

Seniors can no longer cook as

before

Seniors need small portions

of foods as family size gets

smaller

Seniors are health

conscious

Instant foods does not

spoil quickly

Convenient but Healthy ➡︎Functional Instant Food

Source : Nikkei Trendy Net


Case Study: Japan

Frozen food to Maintain Memory

Background

• Widely known that

memory is diminished

as getting older. But

few people cope with it.

1Solution

450• mg of DHA is mixed

DHA• has a good

effect on keeping

cognitive function

Easy to cook and take •

in DHA

2Appeal Point

• Maintain Memory

3

Maintain Memory

DHA+EPA, Reduce Sodium by 30%

Source : Nissui, Nikkei tredy net


Case Study: Japan

Instant Soup to Take in Protein

Appeal Point

• Take in enough protein

3Background

1 • out of 5 seniors is

short of protein

Difficult to take in •

sufficient amount of

protein especially on

breakfast

Strong demand for high •

quality and delicious

foods among senior

1Solution

• 8 times the amount of

protein to the

regular type is mixed

• Powdery Soup

• Easy Cook

• Creamy soup with rich

taste

• Carefully selected and

elaborate ingredients

2

Soup enable to take in enough protein

Protein, Vitamin D, Calcium


Consumer trends: Japan

Chocolate for Health

Chocolate market is led by •

seniors over 50’s.

Purchase amount of chocolate –

by seniors has increased by

50% in the past 15 years

Seniors are willing to pay more •

to high quality products

Functional Chocolate accounts •

for 10% market share in

chocolate market

Delicious Sweets, but Healthy ➡︎ Chocolate for Health

10%


Consumer trends: JapanChou-Katsu (腸活)

Become popular these days

Aims at having a lifestyle,

exercises and diet to create a

better intestine environment

e.g.) Starting a day with

a glass of water or

drinking a spoonful of

olive oil to activate the

workings of intestines

Treats constipation, makes

skin beautiful and makes

people healthier

Chou-Katsu is “intestine activity” if literally translated

Chou-katsu


Case Study: Japan

Lactic Acid Chocolate

SolutionBackground Appeal Point

Widely known that •

lactic acid support

health maintenance.

Few delicious lactic •

acid sweets available

Chocolate is •

considered to be hard

on stomach.

• Changed image of

Chocolate –Turn bad

image to health to

good.

• Wrapping lactic acid by

chocolate to bring to

stomach

• Delicious chocolate for

guts health

Megahit Product20 million units was

sold in 1 year since its release

1 2 3

Improve Intestinal Environment

Lactic Acid T001


Case Study: Japan

Functional Chocolate


Love chocolate but •worried about its calorie, feeling guilty when eating chocolate.

No sugar added •chocolate are not sweet enough and delicious

Reduce sugar and •Scarcely-digestible dextrin is added instead

Scarcely• -digestible reduces sugar and fat absorption.

Roasted cacao beans •slowly to keep the taste delicious

• Keep Chocolate taste

delicious while

reducing sugar and fat

absorption

The first Functional Chocolate

1.2million unit wassold in 1 year since its release

1 2 3

Reduce Fat and Sugar absorption


Table of Contents


1.1 Japan

1.2 India


2.1 Japan

2.2 India


Note :

New food brand attracts Millennial who look for trendy andhealthy ➡︎“Millennial Food Brand

Hybrid and

Updates

products

Innovative

package

design

Health-

conscious

Selected

natural

ingredients

A lot of

flavors

E-commerce

Consumer Trend: India

Millennial Food Brand

Source : Rediff business, TNC


Note :

Case Study: India

Raw Pressery


India is the largest •

market for juice

But juice is not healthy •

drink in India

Sugar is added as •

a reward

• Uses unique cold

pressed technology to

avoid oxidation and

preserves the nutrition

of fruits and vegetable

• Excludes added sugar,

preservatives, colours,

chemicals, additives or

artificial ingredients

• Offers a specific

nutritional need of the

body

1 2 3

Source : Raw Pressury, economictimes


Note :

Case Study: India

KivaShots


• Ayurveda is 4,000 year

old Indian system of

medicine and people

know it is good for

health

• But it is complicated

and old fashioned for

Millennial

• Produce candies and

shots by picking up

Ayurveda recipes, and

adding a lot of taste

• Proactive Marketing on

SNS to reach Millennial

Healthy, tasty and •

stylish

1 2 3

Source : Kiva shots, Craft Driven


Note :

Case Study: India

Wingreens Farms


Food production •

systems is destructed

and faces problems

such as use of

chemical fertilizers

But India has a •

potential to grow many

herbs and vegetables.

Train and hire •

underprivileged

farmers, women and

youth

Develop products such •

as dips by using fresh

vegetables and herbs

• Farm fresh and Healthy

• Social good and

environmental

sustainability

1 2 3

Source : Wingreens Farms, Kulzy


Note :

Case Study: India

Veeba


• Sauces in the Indian

market are mediocre

• Customer appreciation

for western cuisine has

increased

• Indian like creamy and

gooey salads

Developed healthy •

dips, sauces and

dressings

Introduced authentic •

flavors from across the

world and new exotic

Indian flavors

Fat free and Calorie •

free but tasty

New and innovative •

flavor

High quality products •

1 2 3

Source : Veeba, economictimes, finetrain, what she likes


310

754

0

100

200

300

400

500

600

700

800

2017 2023E

Frozen Food Market Size MM USD

Note :

Consumer Trends: India

Frozen Food


Back Ground Behind Rapid Growth of Frozen Food Market

–0.05"

Note :

Consumer Trends: India

Frozen Food

Change in Life

Style• Urbanization is expanded

• More women do not have time and knowledge to cook

traditional Indian foods and

• The population of young people is glowing

• The number of single person household is increasing to

commute to work or school

• The number of working women is glowing

Change in

Consumer Trend

The demand in new various foods is increasing as •

consumers have more experience with new foods

Convenient for cooking is more important than before•

Image of frozen food is changing to more healthy foods •

thanks to progress of processing technology

• Price of Frozen food keeps low in spite of a hike in

prices

1

2


• Frozen foods are regarded as one of the most healthy foods after fresh

foods.

–Prevent outflow of nutritious ingredients

New Product

• Coca Cola launched various frozen fruit dessert in major metro in 2018

summer

–Using local fruits such as santra (orange),

guava, anar (pomegranate), litchi,

and specific mango varieties

—Himsagar and Langra

that are grown only in West Bengal

Note :

Consumer Trends : India

Frozen Food


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@2018 Sensing Asia

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Documents

Consumer Insights and Marketing Strategies · Raw Pressery Background Solution Appeal Point • India is the largest market for juice • But juice is not healthy drink in India •