Market Research in Asia Pacific

1. Market Research in Asia Pacific • David Richardson(TNS 대표 이사)

2. where are the open roads ? where are the pit stops? KOSOMAR 세미나

3. Global Long Term Industry Growth 17.5b 9b KOSOMAR 세미나

4. In US dollar terms, has doubled over the past 10 years. 7.5% per annum But below 5% during the past 4 years. MR growth nearly doubled GDP growth Global growth KOSOMAR 세미나

5. market research growth Long term global growth to be 4-5% per annum considerably stronger than advertising growth KOSOMAR 세미나

6. Global Long Term Industry Growth 17.5b 9b KOSOMAR 세미나

7. Growth in Asia Pacific in US dollars (bn) 1998-2003 Doesn’t appear so spectacular in dollars ! KOSOMAR 세미나

8. Growth in local currency But better in local currency ! KOSOMAR 세미나

9. World Market Research Market US$mn 13% Total 17.5bn KOSOMAR 세미나

10. This is belowour fair share! KOSOMAR 세미나

11. Asia Share of worlds’ goods & services Automobiles 10% Travel 25% Advertising 25% and…. GDP  28% Population  58% KOSOMAR 세미나

12. countries in Asia Pacific spend their fair share on advertising ! KOSOMAR 세미나

13. Advertising Share of GDP (%) CHINA INDIA VIETNAM FRANCE ITALY DENMARK JAPAN SWEDEN GERMANY MALAYSIA MSCEE makea circle aroundKOREA TAIWAN SPAIN THAI LAND US , UK AUSTRALIA PHILIPPINES HONG KONG KOSOMAR 세미나

14. but not onmarket research KOSOMAR 세미나

15. Market Research Share of GDP (%) MSCEE makea circle aroundKOREA TWN/THAI JAPAN MALAYSIA PHILIPPINES HONG KONG SINGAPORE SPAIN US DENMARK NZ UK SWEDEN FRANCE INDIA CHINA VIETNAM INDONESIA GERMANY AUSTRALIA KOSOMAR 세미나

16. Research Market compared with GDP UK Germany France Japan Italy Spain Sweden Total GDP (trillion) KOSOMAR 세미나

17. Research Market compared with GDP Thailand Indonesia Australia China Singapore India Korea Taiwan Hong Kong NZ Malaysia/Philippines Vietnam Asia 2002 Market Research market (US$mn) Total GDP US$bn KOSOMAR 세미나

18. has been shown worldwide that market research growth exceedsGDP growth In Asia, significant GDP growth forecast for the next 3 years. KOSOMAR 세미나

19. Not too many pit stops for the industry in Apac Will be speedier than the rest of world First conclusion KOSOMAR 세미나

20. But where is the pack ? KOSOMAR 세미나

21. Four largest firms account for +43% of research revenues outside of JAPAN The big FOUR 2003 # Using industry association figures, annual reports, and estimates KOSOMAR 세미나

22. Drivers of growth KOSOMAR 세미나

23. The bottom line: Profit for Research Firms “The bottom line in market research is very low compared to other industries” Adrian Chedore,CEO of Synovate - Quote from Research World KOSOMAR 세미나

24. Low profits for research firms deprives our industry with the funds needed to invest in our people, our systems and our future If we fail to increase the profitability of our industry we will lose out to higher profit consulting, advertising, DB, CRM and other industries The bottom line: Profit for Research Firms KOSOMAR 세미나

25. Low profits are caused partly by low fees charged to clients but also due to an under appreciation of our most valuable asset: our peoples time • To rectify this, most major research firms are shifting to better time management systems to set prices and linking performance evaluations to a full time cost basis rather than simple revenue or contribution measures KOSOMAR 세미나

26. Focus on Usability “Today’s and tomorrow’sclients-are focusing not so much on services as on usability” Eric Salama, Chairmanand CEO of Kantar (Milward Brown – Research International) - Quote from Research World KOSOMAR 세미나

27. Clients do not care as much as they used to on how we do research... That’s our job Usability requires us as researchers to be experts in NPD, advertising and brand equity, stakeholder management and distribution More marketing expertise More experts in their industry More expertise in their company Better communicators Better leaders Focus on Usability KOSOMAR 세미나

28. From Description to Prediction “We have seen a move from research being used almost exclusively in the descriptive sense to increasingly it being used in the predictive sense and that is where the real value lies” Mike Kirkham, CEO TNS - Quote from Research World KOSOMAR 세미나

29. Reflecting today’s rapid pace of change, clients are demanding less of a snapshot of a market but more of a continuous moving picture The need of our clients for their research to enable them to answer predictive “What if…” questions From Description to Prediction and KOSOMAR 세미나

30. Growth beyond FMCG “About a decade ago, market research services were being used primarily by the FMCG industry In recent years the scope of actual and potential clients has widened enormously” Dr. Klaus Wubbenhorst,CEO of GFK - Quote from Research World KOSOMAR 세미나

31. Today - financial institutions, IT and telecom firms, healthcare organizations, durables and government services have become the global drivers of economic growth We as experts in marketing and understanding customer needs can play a leading role in creating best practices, transferred from the FMCG arena, to these new modern day marketers Growth beyond FMCG KOSOMAR 세미나

32. Clients are becoming global, are acting global and demand research firms to become global More research buying decisions in the centres Demand consolidated multi-country reports, more and more often in English Demand faster and faster time tables made possible only with globally synchronized systems Expect advanced research models executed globally Insist on better use of technology and cost efficiencies both within the research firm and in how the client accesses the research Globalization of the Marketing Arena KOSOMAR 세미나

33. Today’s the top 25 research firms account for 65% of the total world research Consolidation has been rapid. TNS for example has grown from $ 350million in 1997 to $1.700 billion in 2003 If one looks at concentration in the insurance, advertising and other industries plus actual past trends in our industry, the top 25 firms could account for 80% or 90% of the world total by 2010 Globalization Consolidation KOSOMAR 세미나

34. Globalization Consolidation “There are companies such as VNU(Nielson), TNS and ourselves, then a big fall to those like IPSOS, GFK, NOP and Synovate. I think that over time, they will merge, acquire or be acquired – but they will find it hard to thrive there in the middle ground” Eric Salama, Chairmanand CEO of Kantar (Milward Brown – Research International) - Quote from Research World KOSOMAR 세미나

35. The image of market research firms still tends to be of researchers sitting at desks with interviewers doing face to face interviews In the late 1980’s we added computers In the mid 1990’s we began replacing face to face interviewers with CATI, added servers and networked systems in our offices and invested in digital scanning and other automated systems By 2000 the major firms began linking their national systems together and integrating systems within their offices via ERP systems Today most major firms are eliminating borders and establishing global CATI, access panels, data processing, database centers in regional centers or places like India All these improvements require lots of capital and enable the researcher facing the client the power to command more and more of that firm’s global resources, to do the job better, faster and more economically Technology Investments KOSOMAR 세미나

36. The Future of our Industry “It’s a fantastic opportunity.What we’ll do in the end is add value by consultancy Value should be added every step of the way and I believe that is where the research sector has a great advantage over consultancies” Adrian Chedore,CEO of Synovate - Quote from Research World KOSOMAR 세미나

37. Thank you ! KOSOMAR 세미나