Almost one quarter (21%) of Egypt consumers use restaurant or meal delivery services, according to the Nielsen Quest for Convenience newly released report on Tuesday, adding that Grab-and-go meals from quick-service, fast food and street vendors are also on the rise.
“ 55% of Egypt consumers have visited a fast food outlet in the past six months,” mentioned the report, noting that consumers in Egypt are displaying burgeoning demand for convenient solutions that can help simplify their lives, with busy lifestyles and rising connectivity playing an increasingly pivotal role in buying decisions, according to the new report by performance management company.
Pushed by the economic reforms which were agreed with the International Monetary Fund (IMF) in November 2016, the Egyptian consumers witnessed great prices fluctuation, the CPI inflation declined steadily from 33% in July 2017 to 11.4 % in May, while core inflation (excluding volatile food items and regulated prices) also fell from 35.3% to 11.1% in May, according to Egyptian governmental data.
The report, which explores changing global consumer needs, highlights the rapidly growing demand for convenience in markets around the world including Egypt. More than one in four of Egypt consumers say they seek out products which are convenient to use (26%), make their life easier (15%) and are suitable for small households (22%). Consumers are also looking for products whichare tailored to a specific need (15%).
While demand for convenience varies somewhat by region, the Nielsen report reveals six key factors driving consumers’ increasing need for convenience which are consistent globally as Urbanization, Shrinking household sizes, Crowded urban transport, Evolving gender roles, Generational needs, Increasing uptake of technology, noted the report.
The six drivers of convenience and increasing demand for products and solutions which help to simplify lifestyles are having an impact across myriad industries, particularly the highly consumer-dependent FMCG sector.
The Nielsen report illustrates consumers’ grocery and packaged goods product choices are underpinned by their experiences in three areas which are shopping, consumption and brand engagement.
This evolving demand for convenience has given rise to a slew of life-simplifying products such as ready prepared and on-the-go meal solutions, home or office grocery delivery offerings, and tech-driven “on-demand” services.
Moreover, Shopping experiences for global consumers are driven by an evolving retail landscape, e-commerce andomnichannel facilities, said the report.
A Nielsen e-commerce study across 30 countries indicates FMCG online sales are growing an estimated five times faster than offline sales, and by 2020 global FMCG e-commerce will be worth more than $400bn and comprise 10%-12% of overall FMCG market share.
Additionally, Mobile devices and digital platforms are also shaping consumer experiences and transforming brand-to-consumer engagement. Around seven in 10 consumers say they enjoy the freedom of being connected anytime, anywhere (68%) while 70% feel that mobile connected devices have made their lives better.
“Consumers are in a constant search of how to make the most of both time and money, and would likely pledge their loyalty to those who provide it. With the right balance between the provision of convenience and value for money, both manufacturers and outlets can make great wins,” noted Tamer ElAraby, Managing Director, Nielsen North Africa & Levant.
“Staying relevant requires both innovation and an exploration of the plethora of technology and artificial intelligence based tools available nowadays. Budgets might be restricted, and luxuries can be foregone, but convenience is no longer a luxury, rather it’s a necessity,” added ElAraby.
”Convenience means different things to different consumers around the world, depending on their circumstances, culture, location, market maturity and access to technology,” observes Ailsa Wingfield, Executive Director, Thought Leadership, Global Markets, Nielsen.
These are key influencers that are driving the need for FMCG companies to offer solutions that address the growing need for convenience, added the report
“Equally important, omnipresent technology adoption is providing an ever-increasing array of consumer data, enabling greater customization,” Wingfield continues, noting ,“FMCG players need to adapt to circumstances and provide integrated shopping experiences that allow consumers the freedom of greater choice of solutions that meet their needs.”
The Nielsen Quest for Convenience report looks at changing consumer needs around the world, specifically focusing on factors driving consumers’ increasing need for convenience, such as high-density urban living, increasing commuting times and changing roles in our society. Around the globe, consumers need and look for different types of convenience – whether simplicity, time-saving or suitability.
The report combines global perspectives, regional deep dives, and a number of market highlights to compare and contrast interesting and noteworthy differences in convenience trends around the world.
Worth mentioning that Nielsen Holdings plc (NYSE: NLSN) is a global measurement and data analytics company that provides the most complete and trusted view available of consumers and markets worldwide.
Nielsen’s approach marries proprietary its data with other data sources to help clients around the world understand what’s happening now, what’s happening next, and how to best act on this knowledge. For more than 90 years Nielsen has provided data and analytics based on scientific rigor and innovation, continually developing new ways to answer the most important questions facing the media, advertising, retail and fast-moving consumer goods industries. An S&P 500 company, Nielsen has operations in over 100 countries, covering more than 90% of the world’s population.