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23% of Chinese households plan to reduce grocery bills in 2009

Household grocery shoppers are changing where they shop and are shifting to cheaper brands due to concerns about the economy.

Shanghai, Jan 11th, 2009: A study among 1,000 household grocery buyers conducted by Data Driven Marketing Asia (DDMA) reveals that the current economic climate is having an impact on general grocery shopping across China. The study was conducted across Shanghai, Beijing, Guangzhou, Chengdu and Shenyang.

Spending on specific categories is being reduced.

For example, in Shanghai over 20% of household grocery decision makers have reduced the amount which they spend on groceries for the household. Sweet items, such as desserts and snacks, top the list of the categories which have been cut back, however, spending is also being reduced on everyday items such as seafood and fish and milk and dairy produce. The food categories that spending is being reduced on varies across the five markets and different demographic sub groups included in this study.

Consumer behavior is also changing. Consumers are either
looking for bargains or changing where they shop.

In the city of Guangzhou, almost 24% of those that buy grocery for
the household have reduced their spending. Shopping patterns are also changing across categories as grocery shoppers become more price sensitive. A relatively high portion of shoppers are now delaying purchases in certain categories to wait for special offers and discounts, while a relatively high proportion of grocery shoppers have moved their customer to cheaper stores as they try to save money. For example, 9% of grocery shoppers in Guangzhou have reduced spending on Milk and Dairy. They have changed their shopping behavior for this category as follows:


How do you save money on Milk & Dairy purchases?

Total

Reduce the amount I purchase each time

58%

Buy same amount but wait for special offers

35%

Buy same amount but have switched to cheaper stores

14%

Buy same amount but have switched to cheaper brands

7%

Source: DDMA China Household Grocery Spending – 2009 – Base size is 80 grocery shoppers in Guangzhou.

The state of the economy now tops the list of concerns. Concerns about job security are also on the rise. Overall, 30% of respondents believe that jobs are now difficult to get, however, results vary greatly across the five cities included in the study.

Source: Data Driven Marketing Asia (www.ddm-asia.com)

Official Presentation of Results: The core results will be presented on January 16th and the Portman Ritz Carlton, Shanghai. Please contact Claire.Ma@ddm-asia.com to attend this presentation.

About DDMA:
Data Driven Marketing Asia (DDMA) provides market research and business consultancy services to our clients across the globe.  Founded in 2002 with offices in Singapore and Shanghai, DDMA Market Research & Consulting has two branches to offer our clients premium services. DDMA Market Research & Consulting’s core management team has over 50 years of combined experience in Asia working with many of the world’s largest companies.  Our clients include many Fortune 500 companies spanning multiple sectors.

For further Information about DDMA please contact:
Sam Mulligan
Director
Tel: (+86 21) 6289 1138

Sam.Mulligan@ddm-asia.com