market with over 1.4 million traditional trade outlets and vast
geographic spread presents a huge challenge to marketers to distribute
their products to the last mile. However the growing consumer demand in
far-flung areas and accessibility challenge provides some retailers a
chance to double up as wholesalers to cater to need of small and medium
retailers in those remote areas.
According to Nielsen definition
and classification, the semi-retailer outlets are the stores whose part
of their sales (10% - 90%) serves as supply to secondary retailers.
just Vietnam, it has been observed that these semi-retailer outlets
also find relevance in other similar traditional trade markets with
vast geography like India & Indonesia. In fact, according to
Nielsen Retail Establishment Survey in 2015, there is over 25,000 such
semi-retailers stores across our nation. They are quite similar to the
traditional grocery stores except having a larger space to accommodate
larger stocks given that their nature of business which involves 30-60%
of bulk sale to other retailers. Not surprisingly, they also handle a
much larger product assortment to serve various needs from consumers.
As a result, they have a very high volume turnover.
to the wholesaling activity and high volume turnover, semi-retailer
store was excluded from regular Retail Store Audit of Nielsen to avoid
duplication. However, the dipstick studies and market sources pointed
to the growing significance of this channel to the end consumer sales.
Hence, there was a need to track this channel in addition to the
existing retail store audit. And it was found that the semi-retailer
channel for Home and Personal Care categories in 36 key cities grew at
over 5% in 2016 compared to less than 3% in the rest of urban area.
Furthermore, according to Nielsen Nationwide Audit for semi-retailer
stores in 2016, this channel accounted for 16% share of the trade in
the tracked categories. Especially, home and personal care category
found even higher relevance in this channel. It is also observed that
the larger packs hold higher fair share in this channel which could be
explained by shopper turning to this channel for monthly bulk purchase
given the price benefit of 2-5% compared to Traditional Groceries.
semi-retailer channel thus presents the marketers a set of “Super
Retailers” which can provide a great ROI beyond only the high volume
turnover. Similar to the existing gold outlets, the semi-retailer
outlets provide the opportunity to push a larger portfolio/ assortment
and the dual business model also makes it a hotspot for high-impact
trade activation. Last but not least, it can also serve as the
secondary distribution network to help penetrate into the hinterlands
without additional investment.
We are looking forward to hearing
from you for exchanging the knowledge and experiences in the effort of
understanding this channel landscape and its potentials. Should you
want to have a further discussion with Nielsen, let us know. We are
more than happy to have a conversation with you.
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