1. 17 th September 2015 Craig Henry CRACKING THE CONNECTED DIGITAL CONSUMER ENGAGEMENT

2. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 2

3. 3

4. “” In retailing we should cater to the individual rather than the masses. Specialize by product, lifestyle, pursuit, service or convenience. The Times, Oct 17, 1985

5. WE ARE MANY THINGS 54% 44% 90% Increasingly urbanConnected anytime, anywhere In-store 194,000 Households access Branded CPG Retail 96%

6. Copyright ©2012 The Nielsen Company. Confidential and proprietary. 6 AN EVOLVING POPULATION SA’s population is growing, becoming more mature, affluent and urbanized : Source: AMPS 2011 and 2014 MaturingUrbanisingAffluent

7. CONNECTIVITY IS OUR UNIVERSAL DNA Online 42% World Access 2 Billion 2015 Influence 73% Global Consumers Trust Online Comments Source: internetworldstats.com and Nielsen online Dec 2013 33% Use mobile to shop

8. CONNECTIVITY DRIVING THE GROWTH IN DIGITAL RETAILING Over 1,000,000,000 global consumers willing to grocery shop online 25% already grocery shopping online

9. THE DISCERNING SHOPPER Loyalty Price sensitive Promo sensitive Private Labels

10. GLOBAL CONSUMER CONFIDENCE REMAINS STABLE 4578 87 99 101107 108 120 122 131 India Indonesia PhilippinesUAE China USA UK SA Denmark South Korea Global consumer confidence remains very stable, led by APac LATAM declined 3 points driven by Chile and Brazil Tier II Developing Tier I DevelopingDeveloped

11. Copyright ©2012 The Nielsen Company. Confidential and proprietary. 11 CLAIMED IMPACT ON PURCHASE BEHAVIOR Price remains the priority 34% (Increased from 25%) buy in BULK to get lower prices 85% actively look to buy groceries at the lowest prices 1 in 4 downgrades to CHEAPER BRANDS 54% cut down on LUXURY categories

12. Nielsen Retail Measurement Data; Value in USD Adjusted for Inflation – Latest 12 Month Europe 8% 6% 17% 4% 11% 4%1% Large Supermarket Hypermarket Traditional Convenience Small Supermarket Drug Hard Discounter Other Bar Kiosk Specialty 25% 24% China 33% 4% Latin America Africa / Middle East 13% 11% 34% 1% 18% 9% 4% 6% 5% 1% 42% 4% 6% 5% 4% 1% CHANNEL PREFERENCES ARE REGIONAL North America 41% 32% 20% 7% 1%

13. North America TOTAL CONSUMER WALLET DEVELOPED REGIONS Housing 25% Food & Beverage 19% Communication Services 11% Europe Housing 25% Food & Beverage 20% Transportation 9% Latin America Africa/Middle Eastern Asia Pacific DEVELOPING REGIONS Housing 11% Food & Beverage 22% Education 11% Food & Beverage 15% Education 10% Savings 12% Food & Beverage 17% Housing 12% Education 12%

14. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 14

15. Copyright ©2012 The Nielsen Company. Confidential and proprietary. 15 NEW SHOPPER AGENDA : Source: AMPS 2011 and 2014 Different NOWWellness

16. FLEXIBLE RETAILING IS ABOUT ADDING VALUE AND DIFFERENTIATION Retail (B&M) Add value Make it easy Consider channel differences Know your shoppers R/D Digital

17. THROUGH AN UNDERSTANDING OF WHAT DRIVES CONSUMERS Retail (B&M) R/D Digital Catalysts: 68% Price 61% Enjoyable 55% Quality 46% Convenience 36% Selection Catalysts: Anytime, anywhere, Digital touch points Finding stores Making lists Checking prices Researching Sharing Purchasing

18. DIFFERENTATION OFTEN PROVIDED BY DIGITAL TOOLS Hand held barcode scanner Login to WIFI while in-store to get more offers RETAIL + DIGITAL Use in-store computers to view extended retailer ranges online Scan QR code with mobile while in-store Download retailer app/loyalty program to phone to receive offers while in-store Order online and use drive thru pick-up Virtual Supermarket DIGITAL Order online for delivery to home Order online pick-up curb side Online automatic subscription Order online pick-up in-store Self check-out RETAIL Online or mobile shopping lists Online or mobile coupons

19. Copyright ©2012 The Nielsen Company. Confidential and proprietary. 19 90% BELIEVE GOING TO THE GROCERY STORE IS AN ENJOYABLE AND ENGAGING EXPERIENCE

20. Copyright ©2012 The Nielsen Company. Confidential and proprietary. 20 ONLINE OR MOBILE COUPONS (18%) AND MOBILE SHOPPING LISTS (15%) ARE THE MOST CITED FORMS OF IN- STORE DIGITAL ENGAGEMENT AMONG GLOBAL RESPONDENTS

21. Copyright ©2012 The Nielsen Company. Confidential and proprietary. 21 &

22. Copyright ©2012 The Nielsen Company. Confidential and proprietary. 22 Winners will find the harmony between R & D Solutions vs product will create distinction Format relevance will have to rethink itself ‘Connected’ Shoppers will be the reason you succeed lines between B&M and Digital will continue to blur THE RETAIL ROAD AHEAD

23. THANK YOU Nielsen.com@NielsenCraig.henry@nielsen.com