Nielsen generated $269 million for in Q3 revenues in for the Buy product segment in emerging markets, contributing towards 35.6% of global earnings for the business unit. In a release, Nielsen said that emerging market revenues for Buy decreased 9.4% primarily driven by pressure on multinational client spend and continued softness in China.
According to Nielsen’s 10-Q filing with the Securities and Exchange Commission, within the Buy product segment, enterprise customers are split between two geographic groups, namely developed markets and emerging markets. The latter comprises of Africa, Latin America, Eastern Europe, Russia, China, India and Southeast Asia.
Providing a comprehensive view of the customer through information and insights, Buy is a service offered by Nielsen to CPG manufacturers and retailers. Given the disconnect between CPG suppliers and retailers with regards to sharing data on buying behavior, Buy helps both parties with new product development, pricing & promotion, placement & assortment, and concept testing.
According to Patrick Dodd, president of global markets group at Nielsen Holdings, the China market represents approximately $200 million in revenue and is a critical piece the emerging market geo-segment.
“We now have a new management team firmly in place [in China] and they’re focused on a few things: first, expanding our e-commerce measurement and analytics solutions with relationships with JD.com, Tencent, and we’ve most recently signed a new deal with Suning, the third largest FMCG online retailer in China,” said Dodd. “Second, enhancing and expanding our core retail measurement to include now over 6 million retail stores which
will measure the consumption of 1.3 billion Chinese consumers. This significant coverage enhancement will be available mid-next year to all of our clients.”
Through multiple measurement partners in the country, Dodd claims that Nielsen covers 90% of all eCommerce sales in China, adding that the measurement company continued its relationship with Alibaba, despite co-developing two products that failed to gain traction. These were the Omni Channel application and the New Offer Advisor, the latter of which was dubbed a game changer.
“[Alibaba] have yet to give us their data to go into our syndicated product, but we work on consumer source measures and data science techniques to make sure that we include all the Alibaba sales in our overall measurement,” said Dodd. And that allows us to cover 90% of the e-commerce market in China today, along with 90% of the offline that we cover today as well.”
The product performance index launched by Nielsen and Alibaba in October blends offline data of Buy with the online data of Tmall to help marketers in all verticals understand new product success all across China.
“We are the undisputed leader in international markets,” said Dodd. “With these initiatives under way, we have the confidence that will sustain and strengthen our leadership position over the long term.”