ISSUE 92 April 2000
Kids Market Revelations
New GenerAsians – the most comprehensive youth study ever done in Asia Pacific
Marketers need to
understand the key drivers
affecting young people
in the region
Latest research into the attitudes and aspira-
tions of kids aged 7 to 18 across 14 countries
shows surface similarities to be highly deceptive.
They do not reveal the motivations that influence
the way young people think and feel, and more
importantly, how they can be expected to act.
New GenerAsians, a regional survey conducted
by ACNielsen for Cartoon Network and sponsored
by Optimedia, penetrates the veneer covering the
region. Despite some common attraction to top-line
brands, especially footwear and soft drinks, there
are striking divisions between countries.
The lack of consistent attitudes is one of the
key findings of the research, which surveyed
more than 7,700 young people, an equal num-
ber of boys and girls, across four age-breaks:
7-9, 10-12, 13-15 and 16-18.
While international sports stars Michael
T H E G L O B A L L E A D E R I N M A R K E T R E S E A R C H , I N F O R M AT I O N A N D A N A LY S I S
Jordan and David Beckham command respect in
half-a-dozen countries, they do not match the
appeal of local personalities in Japan, Korea,
New Zealand or Vietnam. This is important for
marketers seeking pan-regional role models to
talk to young people at their own level.
Likewise, sports and socialising may be pop-
ular pastimes in Australia and New Zealand,
but they do not reflect the overwhelming sense
of responsibility towards work and study felt
across the rest of Asia.
In other categories, deep analysis is required
to find the triggers that affect buying behaviour,
the key to successful advertising and marketing
strategies aimed at this highly sought-after
demographic group.
INSIDE
A number of factors make New GenerAsians
the most comprehensive youth study ever done
in Asia Pacific, including:
• 14 countries – two more countries and 12
more cities surveyed than the previous
study two years ago
• Increased focus on the Internet and new
technology
• Increased focus on brands
• Cross-referenced analysis with similar studies
in the US and Latin America
The survey looked at attitudes towards
major consumer items (fashion, toys, food) as
well as aspirations and lifestyle (hobbies, enter-
tainment, trends). ■
More details, see Pages 8 and 9.
MTV Deal
ACNielsen appointed to
provide key research in Asia
MTV has appointed ACNielsen Media
International to provide media research services
for the next three years in China, Taiwan, India,
Indonesia and the Philippines.
The recently signed contract also provides
for expanded TV ratings services to track cable
and satellite viewing in other Asian markets.
“MTV is dedicated to understanding the youth
market and proving the value of this audience to
our advertisers through the best available
research. We do this by ensuring our program-
ming is continually being monitored and evalu-
ated,” said Frank Brown, president, MTV Asia.
ACNielsen considers the contract a mile-
stone. “It brings together two global leaders in
their respective fields in a very powerful
partnership,” said Steven Yung, president,
ACNielsen Media International. ■
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 boost from new products launched by existing
Hair Tonic Tops and new manufacturers and water’s overall per-
formance was almost certainly helped by year-

Japanese Growth Charts
Sales of consumer goods Image-conscious Japanese shoppers spent a
massive 83% more on hair growth tonic in
took off in Japan last year 1999 than the year before, even though over-
all growth in the food/toiletry/OTC drug sec-
tor was a mere 3.3%.
Other prime movers were health drinks
(25%), sunscreen (23%), mineral water (19%),
yogurt (16) and salad dressing (10%).
Of the 131 major categories tracked by
ACNielsen ScanTrack(tm), all with a minimum
of 10 billion yen in sales (US$9.2 million), 75
showed growth while 56 contracted.
It is no coincidence that new product launch-
es contributed to the growth of the top three
market movers. The new-product contribution
to hair tonic sales growth was 57%, with 44%
Hair today gone tomorow. Growth tonics up for health drinks and 63% for sunscreen.
a massive 83% Fourth-ranked mineral water received a 12%
end bulk purchases related to fears about Y2K.
Digging deeper into the health drink catego-
ry, it is clear that the recent deregulation of the
pharmaceutical industry had a major impact on
channel weighting. Since April 1999, certain
health drinks are now distributed through con-
venience stores and food channels and are no
longer considered as prescription drugs dis-
pensed through drugstores and pharmacies.
While sales of health drinks were down 11%
through the drugstore/pharmacy channel, total
sales through all channels, including the food
channel, were up 28%.
One area yet to have a substantial impact
on retailing in Japan is private label. Whereas
private label can control up to 40% of the
market in the UK, Switzerland and other
European countries, their share in Japan is a
minuscule 1.4%. It remains to be seen whether
this share will increase substantially in the
years to come. ■

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The launch of ACNielsen’s new account plan-
ning tool, Trade Planner, means ACNielsen’s retail
ScanTrack data can be combined with ACNielsen’s
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analysis by the Advanced Analytics team.
This integrated information offers the most
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identifies business development opportunities. It
also gives suppliers and manufacturers a better
understanding of their retail partners’ businesses
and reinforces key strategic alliances.
All value-chain partners stand to benefit from
Trade Planner because they gain access to pur-
chasing behaviour information, in addition to in-
formation on what is going through the checkout.

Trade Planner helps to:

• Identify opportunity gaps based on a category’s
performance within a specified chain compared to
the category’s performance across all chains
• Assess whether gaps exist be-cause chain shop-
pers buy certain brands/segments and are store
loyal
• Look at how closely aligned retail chain shop
pers are to brand buyers using demographic
Trade Planner also provides access to purchasing behavior information
and life-stage profiles extra quantity free and taste testing
• Compile appropriate promotional programmes • Determine the most important shopping days
including effective trade promotions such as and times of the week in terms of volume
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• Initiate promotions retail chain shoppers buy deliveries to store and in-store demonstra
ing the category prefer, including multi-buys, tions. ■

2
 Total TV spend accounted for 54% of total
advertising measured.
In all markets, TV had the largest share of
total adspend. Its dominance is most evident in
China, where 70¢ of every advertising dollar
goes to TV.
Of the US$4.3 billion worth of TV advertis-
ing in China, almost 10% came from tonics and
vitamins (US$4 billion) and 8% from personal
products such as skin and hair care (US$344
million). Other prominent categories included
soft drinks (US$127 million) and Chinese wines
and spirits (US$146 million). ■
For more information on ACNielsen AdEx,
see Response Card on Page 12.

Note: Figures in this article identify gross spending based on

published rate cards. Actual ad spend and market shares may
differ due to undisclosed advertising industry discount rates. All
foreign exchange rates are as of December 1999. Figures for
Japan are not included in this report.

Total Viewer
In China, 70% of every advertising dollar goes to TV
Under-standing
The importance of TV adspend in China – the

Advertising Surge biggest medium in the biggest market in the

region – underscores the strategic soundness
of ACNielsen’s investment in peoplemeters.
Signals Full Recovery Peoplemeter information provides the curren-
cy for TV advertising industries worldwide.
In China, ACNielsen has been pioneering
The US$24 billion adspend completed a stunning turnaround from peoplemeter TV ratings since 1998.
a 25% slump the year before. There are now more than 3,000 peopleme-
advertising market in Asia ters in China’s 10 most important advertis-
“Growth was everywhere in South Korea:
Pacific has almost fully 46% in TV, 27% in newspapers, 31% in maga- ing markets: Beijing, Chengdu, Fuzhou,
recovered from the regional zines and 32% in radio,” Martell said. Guangzhou, Hangzhou, Nanjing, Shanghai,
China remained the biggest advertising mar- Shenyang, Tianjin and Wuhan.
economic crisis ket in the region, capturing US$6.1 billion of For more on TV in China, see Page 16.
All major advertising markets except gross spend, followed by South Korea at Gross Spend Year-on-Year
Taiwan have returned to or exceeded pre-crisis US$4.2 billion, Australia at $3.1 billion and (US$ million) Growth
levels, according to latest AdEx figures com- Hong Kong at US$3 billion. China saw 15%
China 6,132,80 815%
piled by ACNielsen Media International. growth and Hong Kong 14%.
The rebound was led by Indonesia (40%), Taiwan suffered a 24% contraction as a result Korea 4,239,684 33%
South Korea (33%) and Thailand (31%). of a sharp 42% decline in newspaper advertising,
Australia 3,117,892 4%
Taiwan was the only market experiencing nega- 33% drop in magazine advertising and 18% dip
tive growth but still reached almost 90% of the in TV. Total adspend fell to US$1.9 billion, 12% Hong Kong 3,043,315 14%
1997 expenditure level. below the 1997 benchmark.
Taiwan 1,874,544 -26%
“Last year was a great recovery year and The Philippines was the biggest advertising
some solid grounds were laid for accelerated market in Southeast Asia, accounting for Philippines 1,289,516 15%
growth in 2000,” said Frank Martell, chief US$1.3 billion, followed by Thailand at US$1.1
Thailand 1,093,347 31%
operating officer, ACNielsen Asia and Japan. billion. The Philippines grew 15%, Indonesia
Pre-crisis levels were exceeded in China, 40%, Thailand 31%, Malaysia 16%, Vietnam Indonesia 813,000 40%
Hong Kong, Indonesia, Philippines, Thailand, 4% and Singapore 3%.
New Zealand 950,767 13%
Vietnam and New Zealand. In the Pacific, Australia grew 4% to US$3.1
The 1999 figures are in sharp contrast to 1998 billion and New Zealand grew 13% to US$950 Singapore 730,392 3%
when five markets suffered contraction between million.
Malaysia 662,959 16%
7% and 25% and another four managed just sin- Across the region, TV remained the predom-
gle-digit growth between 2% and 8%. inant advertising medium. TV grew 46% in Vietnam 76,000 4%
South Korea’s 1999 performance was per- South Korea, 37% in Indonesia, 25% in
haps the most significant. The 33% surge in Thailand, 20% in China and 18% in Malaysia. Source: ACNielsen Media International

3
 Internet chat is a common form of escape from the pressure
Young Adults Struggle
for Identity and Success
Success, instant achievement
and recognition are the
major forces driving
young adults in Hong Kong
and India
Young adults in Hong Kong, facing greater
competition from mainland China for fewer jobs
instead of the stable environment of previous
decades, feel helpless and insecure about the future.
In India, meanwhile, increased materialism
and individuality is fusing with age-old values
to create a generation with a distinct set of
desires and aspirations.
These are some of the key findings from an
indepth study of the attitudes and aspirations of
young adults in the region, the most up-to-date
study of this age group in Asia. The study was
conducted among young adults aged 18-23 by
ACNielsen’s specialist qualitiative research divi-
sion, ACNielsen Activate(tm).
In Hong Kong, there is a growing sense of
individual isolation amid concern over spiralling
overcrowding and growing social pressure.
“Job cutbacks caused by the recent econom-
ic instability and intense competition from
mainland professionals have shaken the confi-
dence of Hong Kong youth,” said Anna Mak,
director, ACNielsen customised research, Hong
Kong. “There is a feeling the pace of life is too
fast, too cramped, increasingly overpopulated
4
and that nothing is being done to stop it.”
To escape the pressures, young adults are
increasingly seeking diversions through social
excitement and stimulation with shopping,
Internet chat, karaoke, bars/pubs and ball games
most popular.
“They’re looking for temporary respite - secu-
rity, companionship and freedom from the pres-
sures of their environment. Karaoke provides a
venue for large groups to gather, although it seems
to be losing its ‘trendy’ appeal in favour of bars
and pubs where a relaxed atmosphere allows them
to speak freely about their problems,” Mak said.
Hong Kong people long for control and
power over their own destiny. They hold home,
family, friends and achievement most dear and
feel that money, pre-eminence and clear goals will
be key to their success in the new millennium.
The outlook is not completely bleak, howev-
er, with optimism that technological and med-
ical advances will provide improved quality of
life and convenience, and the Internet will bring
greater contact with the rest of the world.
In India, similar emotions have been dis-
played, brought about by an influx of multina-
tional companies and growing exposure to lux-
ury goods via cable and satellite television.
“We are nurturing a materialistic, self-cen-
tred younger generation whose primary goals in
life are success, fame and recognition. They’re
impatient and want it now,” said Sarang
Panchal, executive director, ACNielsen cus-
tomised research, India. “Age-old Indian values
such as responsibility and respect for ones eld-
ers are all that holds them back from whole-
heartedly adopting a western lifestyle.”
Shrugging off tradition has become com-
monplace. All-time favourite professions such
as medicine, engineering and teaching are being
ditched in favour of careers in information tech-
nology and business management, and politics
has become synonymous with corruption with
very few aspiring to it other than as a means of
making money quickly.
Looking ahead, India’s young adults are con-
cerned that political instability, corruption and a
lack of opportunity will offset any positive
advances from new technology. Many envisage
leaving India at some point because of the lack
of a secure future. ■
For further information on ACNielsen
Activate, see Response Card on Page 12.
Spot the Difference
Research into young Indian adults in the four
key cities of Mumbai, Delhi, Calcutta and
Madras identifies clear regional differences.
In the north, image-conscious residents like
to show off, while in the south they’re more
traditional and place greater emphasis on
education and doing things the right way.
In the east, young adults exhibit a philo-
sophical attitude towards life - they’re high-
ly intellectual and willing to let life take its
own course - while in the west they’re care-
free and confident, sure they will get what
they want in life.
The message to marketers is clear: be pre-
pared to consider regional campaigns rather
than cover-all themes that try to capture the
entire market.
China Study Shows
Growth in Retail Outlets
Distribution and effective
supermarket strategies are
key drivers of success for
producers of consumer
goods in China
However, while the world’s largest retail
universe has grown in sheer numbers at a rate
of 9.3% per annum for the past two years,
FMCG sales have increased at just 8.9% per
year. As a result, sales per outlet are lagging.
These figures are contained in ACNielsen’s
recently published 1999 China Retail Market
Study, which shows there were 8.7 million
shops handling FMCG products in cities, towns
and villages in 1999, up from 7.3 million in
1997. Total turnover was worth RMB 436 bil-
lion (US$53 billion) in 1999.
The most obvious explanation for lower
sales per outlet is that most new store openings
were at the bottom end of the retail chain. Small
grocery stores and kiosks, all under 20 square
metres in size, accounted for more than 60% of
new outlets, with almost 90% of newcomers
measuring less than 100 square metres.
The results pose a challenge for FMCG man-
ufacturers in China: companies must achieve dis-
tribution in a growing number and type of stores
to retain the same share of consumer spending.
Despite the decline in sales per outlet over-
all, supermarkets have increased in importance,
especially in cities.
Supermarkets increased their share of urban
FMCG sales from 13.7% in 1997 to 22.4% in
1999, fueled by an increase of outlets from 15,000
to 40,000 in urban areas over the past two years.
And within the supermarket sector itself,
several key developments have occurred, most
notably the expansion of both local and inter-
national hypermarkets. These one-stop-shops
account for 7% of total urban FMCG sales and
almost one-third of urban supermarket sales.
Not surprisingly, hypermarkets have sub-
stantially reduced the share of sales previously
held by conventional supermarkets of all sizes.
Chainstores remain dominant in the super-
market sector. In Shanghai, for example, chains
control about 75% of the supermarket business.
With the development of chainstores has
come the implementation of product barcode
scanning. Almost 90% of Shanghai’s more than
1,000 chain stores have scanners installed,
although not all retailers are actively capturing
Two charts will accompany this
story. See Excel file slugged ‘Retail
Charts’, \worksheets 2 and 3.
Invaluable China data
Answers to many important marketing and
sales issues have emerged from the 1999
China Retail Market Study.
ACNielsen’s fourth study was designed to
estimate the size, structure and sales
turnover of retail FMCG outlets in cities,
towns and villages across China.
Among the questions addressed were:
• Is the growth momentum of retail outlets
being maintained?
• Are FMCG sales growing in line with
growth in retail outlets or are sales per
outlet declining?
• How are supermarkets developing
across the country?

and managing the data.

At the lower end of the scale, convenience
stores have also boomed, increasing 20-fold in
cities since 1997 to more than 4,000 outlets and
now accounting for 4% of urban supermarket
FMCG sales.
Regionally, there were only minor shifts in
the importance of FMCG sales. No single region
experienced more than a one-point shift in its
share of sales between 1997 and 1999. ■
For more information about ACNielsen’s
The number of urban supermarkets in China increased from 15,000 to 1999 China Retail Market Study, see
40,000 over the past two years Response Card on Page 12.

5
 Banking, Brokerage to
Lead E-Commerce Surge
Asia’s continuing love affair
with the Internet will lead
to e-commerce transactions
worth at least US$5
billion this year
Leading the way will be increased take-up of
online shopping, Internet and mobile phone bank-
ing, and Internet and mobile phone brokerage.
While the US$5 billion figure sounds
impressive, it is a conservative estimate only
covering the market value of transactions in
Hong Kong, Singapore and selected cities of
Japan, Taiwan and India.
The findings are contained in the just-
released ACNielsen eFinance Survey covering
five key markets.
The survey shows Japanese spending
presently riding highest in the region, with 2.2
million adult residents of Tokyo and Osaka
processing transactions worth an estimated
US$2 billion online in the past year.
Other results include:
• In Hong Kong, 235,000 users spent
US$87 million
• In Singapore, 112,000 users spent
US$59 million
• In Taiwan (Taipei, Taichung, Kaohsiung),
159,000 users spent US$56 million
• In India (Delhi, Mumbai, Hyderabad,
Bangalore), 20,000 users spent US$11 million
The Japanese average of US$893 is well
ahead of the amount spent per user in India
(US$548), Singapore (US$529), Hong Kong
(US$370) and Taiwan (US$355).
The eFinance survey projects multiple growth
in market size in the next 12 months, both in terms
of online shoppers and value of transactions.
“To put it conservatively, we will see the
online shopping community growing between
50% and 3,500% in the next 12 months, depend-
ing on markets,” said Vivien Pau, executive direc-
tor, ACNielsen International Research, Hong
Kong. Leading the push will be banking and bro-
kerage via the Internet and mobile phone. The
potential for these areas appears almost limitless,
judging by the number of people currently with
access to the facilities but not yet using them.
In Hong Kong, 14% of people interviewed
indicated an interest in using Internet banking
in the next 12 months, while 18% said they
would try mobile phone banking.
6
Digital Age Arrives in China
China has embraced the digital age with
booming popularity in Internet and mobile
communications.
Modern consumers cite convenience as the
main reason driving them to high technology.
The latest ACNielsen China: The Millennium
Report identifies strong technology growth
across all major cities, especially Shanghai,
Guangzhou and Beijing.
In 1999, ownership of computers doubled in
Shanghai and Guangzhou, reaching 12% and
20% respectively. Computer ownership in
Beijing reached 18%, representing an impres-
sive 60% growth.
The three most important cities also saw
24%-66% growth in mobile phone ownership,
with Guangzhou reaching 21%, Beijing 15%
and Shanghai at 12% (population aged nine
years and over).
“In this new economic era for China, infor-
mation is wealth. Chinese consumers have been
keen to accumulate this ‘new’ wealth,” said
Frank Martell, ACNielsen chief operating offi-
cer, Asia and Japan.
Although ownership rates of computers and
mobile phones are growing fast, they still lag
behind developed markets such as Hong Kong
and Singapore. A significant structural change
can be seen, however, in the consumer market
where most sought after consumer products
have shifted from home electrical appliances to
digital communications equipment.
“We expect this growth to continue with
enormous market potential,” Martell said.
The number of Internet users in Beijing,
Shanghai and Guangzhou has exceeded 1.2 mil-
lion (7%) as of May 1999, but the boom is by
no means limited to these top cities. In the top
30 cities across the country, there are more than
Mobile phone banking and brokerage will form
a major sector of the growth
3 million Internet users, representing a penetra-
tion rate of 6%. In Xiamen, the number of
Internet users has jumped from 8,000 in 1997
to 45,000 in 1999, an almost six-fold growth,
making the coastal city the leading city in
Internet usage with 12% penetration.
There is every indication the boom will con-
tinue. Consumers show strong buying inten-
tions and penetration is expected to reach high-
er levels as new products offering more features
and greater value for money come on to the
market. According to the Millennium Report,
16% and 8% of consumers claim they will buy
computer and mobile phone respectively within
the coming year.
*For more information on China: The Mill-
ennium Report, see Response Card on Page 12.
Biggest Internet Market
Japan has been confirmed as the largest
Internet market in Asia Pacific, far out-stripp-
ing other leading wired economies such as
Australia, New Zealand, Singapore, Hong
Kong and Taiwan.
Findings jointly released by ACNielsen and
NetRatings show Japan currently has more
than 15 million surfers, compared to 9 million
in the other five Asia Pacific markets combined.
The significance of the Japanese Internet
market is further underpinned by a strong 13%
penetration rate, not far behind Hong Kong
(16%) and Taiwan (14%). Singapore, Australia
and New Zealand have exceptionally high

Nationwide Growth
ACNielsen’s latest report on the world’s
most populous country, China: The Millennium
Report, integrates capabilities in media, retail
and customised research to provide a compre-
hensive picture of Chinese consumers, their
media habits, Internet usage, shopping habits
and brand preferences.
In 1999, ACNielsen conducted 44,000
interviews with consumers aged nine years
and over in 30 cities of most economic
significance, covering 2,000 brands in 50 cat-
egories. ACNielsen plans to expand its sam-
ple size to 50,000, covering more than 4,000
brands in 90 categories in 2000.
The report indicates that growth in the
consumer market is not confined to the mega
cities of Beijing, Shanghai and Guangzhou,
but has spread to provincial centres like
Chengdu, Fuzhou, Hangzhou, Chongqing and
beyond.
penetration rates of around 30%.
“Businesses and advertisers here and else-
where have always wanted a clear picture of the
Internet user market in Japan,” said Tatsuzo
Uewaki, executive director, ACNielsen Japan.
“We now have it and the numbers position
Japan comfortably among the leading Internet
economies in the region. The findings also show
just under half of PC’s in Japan as Internet capa-
ble. Moreover, nearly 4% of households have
mobile phones that are Internet capable.”
The survey is the first step by ACNielsen
and NetRatings to present accurate and reli-
able data on Internet usage in Japan through a
Nielsen//NetRatings panel currently being
established.
Nielsen//NetRatings has also been launched in
Australia, New Zealand, Singapore, the UK and
Ireland. By the end of next year, Nielsen
//NetRatings will provide measurement information
on more than 90% of the world’s Internet users.
Australian Web Data
Nielsen//NetRatings, the new global Internet
measurement service offered by ACNielsen
eRatings.com, has had an impressive rollout in
Australia. Early adopters include leading Inter-
net players Euro RSCG, LookSmart, Yahoo!
Australia & NZ, emitch, BMCMedia.com,
Optimedia and Turner International.
Clients have been impressed by Banner-
Track, Nielsen//NetRatings’ unique advertising
post analysis system, and by the depth of drill-
down analysis into website audiences.
Client comments include:
Allan Dib, marketing manager, LookSmart:
“We’re looking for a greater understanding of
how audiences behave on our site, where they
are being referred from and where they go
afterwards so we can maximise the return on
our advertisers’ spend. Since Nielsen//Net-
Ratings software sits in the middle of the data
stream, it promises to provide that capability.”
Ann Morrison, media director, Euro RSCG:
“After looking at the various Internet measure-
ment tools coming on to the market, it was
clear to us that the functionality, flexibility and
breadth and depth of data available made
Nielsen//NetRatings our preferred partner.”
Jason Aldworth, chief operations officer,
emitch: “The service is a significant step forward
for Internet research and the Internet industry as
a whole. Its RDD (random digit dialing) sam-
pling technique and Java-based software ensure
the best quality sample of Internet users running
on different platforms.” ■ have operations in China.
HK Business
Survey
Cautious optimism
in the wake of the
economic crisis
ACNielsen’s 1999 Business Outlook Survey,
sponsored this year by the American Chamber
of Commerce (AmCham), found cautious opti-
mism the dominant theme two years after the
Asian economic crisis hit the region.
“After a painful two-year process of corpo-
rate downsizing and lower profits, this is
encouraging news for the American business
community and for Hong Kong,” said Jason
Felton, AmCham chairman.
Future expectations are bright with 84% of
respondents foreseeing a “good” or “satisfactory”
outlook for 2000, compared with only 54% fore-
cast for 1999. Moreover, the survey results sug-
gest the SAR’s business environment will improve
sharply next year with the positive mood contin-
uing until 2004.
Against this backdrop, AmCham member
companies are beginning to consider expanding
their Hong Kong operations ag ain – 53% in
1999 compared to 46% in 1998 – which will
result in an increase in hiring. This bodes well for
the SAR’s unprecedented unemployment situation
and affirms positive long-term views of its future.
Of the 75% of respondents with regional
headquarters in Hong Kong, 81% said they
would retain their regional
base. There was clear sup-
port for Hong Kong’s geo- pic of
Business
graphical location, com-
outlook survey
munications network, tax- cover
ation system, free port sta-
tus and infrastructure.
Among business con-
siderations, the highest
priorities were mainte-
nance of a strong legal and regulatory system,
and the availability of high quality personnel.
Areas of weakness overall were noted as
quality of the environment, costs of doing busi-
ness, and human resources quality and costs.
Looking across the border, a stirring 97% of
respondents said the outlook for business in
China over the next five years will be favorable
(up from 91% in 1998), with a huge increase in
the proportion of respondents predicting a
“very favorable” outlook (up from 19% to
61%); three out of four respondents currently
■
7
 By drilling down into the results, marketers
can see which age groups have strong prefer-
ences about products and brands, and which
ones are undecided, in a detailed look at the
changing tastes of children through to teenagers.
One of the most striking features is a cultur-
al divide separating Australia and New Zealand
from the rest of the region. The two Pacific
countries have embraced Western culture, with
preferences for Hollywood movie stars and
international sports stars, at a time when most
Asians prefer home-grown identities.
When asked about the “best thing in life”,
Australians and New Zealanders are happy to
name friendship and social life, whereas nine of
the remaining 12 countries put schoolwork and
exams at the top of the list.
Such results highlight the problem of finding
common themes and attitudes across young
people living in a diverse set of countries at var-
ious stages of development.

Friendship and social life are the “best things” for Australian and New Zealand kids Media and Entertainment
New GenerAsians allows marketers to check
the effectiveness of their message. They can see

Kids Offer Diverse whether a particular TV commercial translates

to a favourite brand, and track acceptance by
age and gender.

Views in Regional Poll When it comes to choosing celebrity

endorsements, forget Hollywood outside the
Pacific. Apart from the popularity of Adam
Results from Cartoon Network’s New GenerAsians
Sandler, Jim Carrey and Will Smith in Australia
can help marketers gain a deeper understanding of and New Zealand, young people in every other
a key target demographic group country prefer local stars.

Favourite Actor Favourite Sport: Favourite Sport: Favourite Sports Star: Favourite Sports Star:
Boys Girls Boys Girls
Australia Adam Sandler/Jim Carrey Aussie Rules Football Netball Michael Jordan Cathy Freeman/
Michael Jordan

China Vicki Zhao/Jackie Chan Football Badminton Michael Jordan Michael Jordan
Hong Kong Andy Lau/Aaron Kwok/ Football Badminton Ronaldo/ David Beckham
Vicki Zhao Michael Jordan

India Salman Khan Cricket Badminton Sachin Tendulkar Sachin Tendulkar

Indonesia Jihan Fahira Football Jogging David Beckham/ Susi Susanti
Ronaldo

Japan Nanako Matsushima Football Badminton H. NakataH. Nakata

Malaysia Sharukh Khan/Ziana Zain Football Badminton David Beckham David Beckham
New Zealand Will Smith Rugby Netball Jonah Lomu Jonah Lomu
Philippines Jolina Magdangal Basketball Volleyball Michael Jordan Michael Jordan
Singapore Zoe Tay (heng Hui Yu) Basketball Swimming David Beckham David Beckham
South Korea Kim Hee-son Football Swimming Chan Park-ho Chan Park-ho
Taiwan Andy Lau Basketball Badminton Michael Jordan Michael Jordan
Thailand Num Sornram Football Swimming/Badminton David Beckham Sicco Kiatsak
Vietnam Minh Vuong Football Badminton Hong Son/Hyunh Duc Hong Son

8
 Now that youth have almost universal
access to TV sets at home, attention is turning
to newer forms of entertainment. From obscu-
rity two years ago, mini discs have appeared in
17% of homes, while the Internet has more
than doubled from 10% to 23%. Video games
and CD players have remained stable at
around 50%.
Watching TV is the most popular leisure
activity with 85% of young people tuning in
every day, while spending time with friends is a
distant second at 33%.
The least popular activities are going to par-
ties/dancing (3%), going to church/temples
(4%) and reading magazines (4%).
Computers & New Technology
Marketers are always asking questions such
as, “At what age do young people start owning
branded products, and do girls own at a
younger age than boys?” New GenerAsians
provides highly focused information at this level
in a number of key categories.
Not surprisingly, Hong Kong has the highest
rate of mobile phone ownership at 25%, fol-
lowed by Japan at 24% and Australia at 13%.
The lowest rate of ownership is in Vietnam,
where the figure fails to reach 1%.
Nokia is the favourite phone in 10 out of 14
countries, with only three other brands getting a
mention: Motorola (China, Vietnam), Samsung
(Korea) and RPG (Japan).
There are wide discrepancies when it comes
to personal PC ownership and Internet access.
Favourite Favourite
Fast Food Potato Chips
McDonald’s Lay’s
McDonald’s Lay’s
PC ownership ranges from a high of 33% in
South Korea to less than 1% in Vietnam.
The most wired location is Singapore where
19% of youngsters have personal Internet
access, more than double the second-highest fig-
ure in Korea.
Reasons for using the Internet vary from gen-
eral surfing in Australia to checking exam
results in India.
Sports
Boys and girls made the same choice of
favourite sports star in 11 out of 14 countries,
highlighting the ability of sports marketers to
bridge the gender gap.
Basketballer Michael Jordan and footballer
David Beckham were by far the most common
names on the list.
Latest Trends
The Pokemon phenomenon launched out-
side Japan last year remains the predominant
‘latest trend’ in four countries (Australia, New
Zealand, Singapore and Korea) while long-
standing cartoon counterpart Hello Kitty holds
firm as number one in Taiwan.
Other countries have entirely different
views. Fashion-conscious Indians and Filipinos
love trendy clothing, Japanese have moved on
from Pokemon and are now into Playstations,
and computers and the Internet are number one
in China, Hong Kong and Thailand.
Karaoke is tops among Vietnamese while
Indonesians prefer lasers and pellet guns.
Favourite Favourite
Chocolates Ice-Cream
Cadbury Peter’s
Dove Nestle
Toys and Games
Sony has surged to the lead in the highly
competitive games market with Playstation now
found in 29% of homes across the region, up
from 18% two years ago.
Every other major games manufacturer saw
contraction, however, including Gameboy
(down from 32% to 27%), Nintendo (27% to
18%), PC/Mac games (18% to 13%) and Sega
(17% to 10%).
Life Matters
Getting ahead in life remains important for
many young people. Achieving good grades is
considered most important by 94% of regional
youth, followed by gaining entry to a good col-
lege or university at 93%.
When asked, “What is the best thing in life”,
young people in Hong Kong disturbingly
replied: “Nothing”.
Money
Hong Kong’s world-weariness could possi-
bly be linked to high levels of pocket money,
with the highest weekly allowances in the
region. Youngsters receive handouts of
US$19.40 from their parents, about 20% more
than the next-placed Singapore (US$15.70) and
Taiwan (US$15.50).
Bottom of the pock-money list is India
where young people receive an average of
US$1.50 per week, almost half the US$2.90
received by second-lowest Vietnam.
Making up for reduced weekly allowances
are large gifts on special occasions in Taiwan,
where young people receive an average
US$155.70 per year in gift money, followed by
Japan (US$152.60) and Australia (US$128.40).
Hong Kong parents curtail annual gift money
to US$111.90, still well ahead of last-placed
India where the year-round figure is US$11.30.

McDonald’s Calbee Ferrero Rocher Dreyer’s

Fashion, Clothes and Grooming
Despite their meagre allowances, Indian
Local chains Uncle Chip Cadbury Wall’s youth lead the way in craving designer brands,
McDonald’s Chitato Silver Queen Wall’s with 84% describing them as very important or
quite important.
The next most devoted fashion lovers can be
McDonald’s Calbee Lotte Haagen-Dazs
found in the Philippines (71%) while the least
KFC Mr Potato Cadbury Nestle fashion-conscious are Hong Kong (17%) and
Bluebird McDonald’s Cadbury Tip-Top China (19%).
Jollibee Piatos Hershey Selecta Levi’s is the favourite jeans in seven out of
13 countries, with no other brand appearing
McDonald’s Jack & Jill M&M’s Haagen-Dazs
more than once.
Lotteria Pringle’s/Chitos Chic Chic Lotte Nike and Adidas dominate the sports shoe cat-
McDonald’s Poco’s Ferrero Rocher Swensen’s/Daddy Duo egory with 13 top spots between them. The only
KFC Lay’s Kit Kat Wall’s exception is India where Action leads the way. ■
For more information on New GenerAsians,
No favourite No favourite M&M’s Wall’s
see Response Card on Page 12.

9
 Roller Coaster Ride Motoring Economy To
Hit Speed Bump
Predicted for Australian New motor vehicle sales are always a
good indicator of economic strength.

Consumer Market In Australia, sales this year aren’t expect-

ed to reach the level of 1999, which was
itself 2.6% down on the 1998 record. Sales
Australian retailers are in are expected to be slow in the first half of
terns under the new GST.”
the year as buyers defer purchase to take
Particular discrepancies are expected with
for a chaotic year as sales advantage of cheaper post-GST prices, but
fresh food and packaged food in supermarkets,
growth is disrupted by the vehicles and established housing.
should pick up in the second half of the year.
Despite the late run, overall volume will
legacy of Y2K stockpiling, For instance, more people believe the price
struggle, says Australia-watcher Charlie
of new and used cars will increase compared to
the introduction of a major those who think prices will go down, despite
Nelson.
new tax and the impact “The 1998 record will not be broken in
the fact that prices should fall by about 7%.
2000 or 2001. In fact, 2001 could be a very
of the Olympics A large segment of consumers believe simply
bad year if interest rates rise further and the
that all prices will rise. Other segments believe
Australian dollar remains weak, forcing up
These predictions come from a most reliable that some prices will go down, but across the 16
the price of imported vehicles,” Nelson said.
source, ACNielsen’s Charlie Nelson, whose items included in the research, all consumers
track record forecasting trends in the Australian have at least some inaccurate perceptions.
economy has been spot-on in recent years. In New South Wales, where the Olympics “It’s going to be absolutely vital for business
Nelson’s findings are contained in an will be held, up to 25% of consumers say their and government alike to use expert tracking
ACNielsen report Millennium Mullings, based spending patterns will be greatly affected during services to understand the underlying trends,”
on findings from 900 consumers surveyed the games in September. Nelson said. “This will be the only way to make
nationwide. His forecasts have implications for So what advice does Nelson have for retailers the best decisions.” ■
retailers and policy planners trying to build and decision-makers about the year ahead? For more information on Millennium
realistic models for the local economy. Quite simply, get the best information and Mullings, see Response Card on Page 12.
Overall, it will be another year of good analysis you can and be prepared.
growth for retailers, albeit unevenly distributed
across the year, with severe disruptions in
important sectors such as new cars and housing.
New car sales will be slow in the first half
but accelerate in the second. By contrast,
demand for housing finance will remain strong
for the first six months but may then contract.
“The fiscal and monetary policies in place
this year will disrupt spending patterns and
make it very difficult to discern the underlying
trends,” said Nelson, executive director,
ACNielsen Advanced Analytics.
Nelson warns Australians not to believe
reports that large price increases will occur as a
result of the Goods and Services Tax (GST) being
introduced on July 1. Offsetting the GST will be
A$12 billion (US$7.5 billion) in tax cuts which
will increase household disposable income by
3% and in turn increase retail spending by 0.6%.
“The confusion with GST is that it will lower
the prices of some items, raise some others,
while leaving still others unchanged. Many con-
sumers are quite simply confused,” Nelson said.
“The problem for retailers is caused not so
much by the tax rates themselves but by peo-
ple’s perception of how prices may change.
Unfortunately, many have inaccurate price per-
ceptions, leading them to purchase goods or
services out of line with expected purchase pat- Australian retailers are in for a chaotic year

10
 Despite the arrival of hypermarkets, old shopping habits still persist in Thailand

A marginal increase in the amount spent on

Shopping Habits groceries per month (up 2.5% to 3,398 baht, or
US$90) was the result of higher average spend

Die Hard in Thailand on food (up 15.4%) negating lower spend on

Wet markets continue to
dominate shopping
behaviour in Thailand
despite spirited competition
from hypermarkets,
supermarkets and
convenience stories
ACNielsen Thailand’s 1999 Shopping
Behaviour Study has shown that people are
shopping less frequently in all types of outlets,
with the exception of wet markets.
Information for the survey was gathered from
more than 500 face-to-face interviews conducted
in Bangkok homes with females aged 18-65.
Among the key findings:
• The average number of visits to supermarkets
has decreased from four times a month
to three
• Fewer people are shopping in provision
stores but more people, especially youth,
are shopping in convenience stores
• Less than half of shoppers are aware of
private labels
• Hypermarkets are becoming more popular
Shoppers say they are attracted to super-
markets because of the quality of fresh food,
cleanliness and wide range, while all shoppers
say they pay attention to pricing and promo-
tion. The most preferred promotion is a basic
price cut followed by free gift and free sample,
and shoppers are likely to be influenced by
shelf advertising.
As for consumer expenditure, shoppers
spent an average of 947 baht (US$25) in 1999,
about the same as the year before.
non-food (down 13.8%).
More than 50% of shoppers prefer to buy at
the weekend, with Sunday the most popular day.
The average time spent in a store is about an
hour and the average time taken to travel to a
store is 22 minutes.
Managers are warned to manage inventory
carefully given shoppers’ lack of forgiveness for
out-of-stock items. Missing food and non-food
categories are more likely to lead to a lost sale,
with up to 34% of shoppers changing stores.
Only 8% and 11% of shoppers will switch
brands if faced by out of stocks on baby milk
powder and facial moisturiser respectively.
Among convenience stores, 7-Eleven re-
mains the market leader in terms of shopper
awareness and penetration.
Convenience store average spend dropped
by 16% to 129 baht (US$3.40) while more than
70% of shoppers’ spend on their last visit was
100 baht (US$2.65) or less. ■

11
 essary for success in the packaged goods and
fresh produce industry.
The same households will be tracked over
time, enabling accurate monitoring of what’s
happening in the marketplace and what trends
are occurring.
Experts will then delve deeper into the diag-
nostics to better analyse market trends and
determine what consumer activities are driving
that behaviour.
Key clients have participated on a steering
committee guiding the panel offering including
representatives from BMS, Colgate, Campbell
Soup, CPC/AJI, Heineken, Johnson & Johnson,
Kao, L’Oreal, NestlÈ, Procter & Gamble and
Watson’s.
“As Asia recovers from the 1997 economic
downturn, being able to provide our clients
with such in-depth analysis of consumer buying
habits will greatly enhance their competitive
advantage,” said Frank Martell, chief operating
officer, ACNielsen Asia and Japan.
Panel installation has been progressing
quickly and live data for the service will be
available to clients later this year.
“Consumer diagnostics from ACNielsen’s
Homescan panel – information complemen-
tary to ACNielsen’s retail measurement serv-
ices – will soon be providing suppliers and
Live data from Hong Kong homes will be available to clients later this year. retailers with access to fast, accurate house-
hold-level information never before available

Household Panel to them” said David Crouch, executive direc-

tor, retail measurement services, ACNielsen
Hong Kong.

Launch a First for Asia
New levels of customer Manufacturers and retailers will be among
the first to benefit from a deeper understanding
understanding will result of consumer buying habits.
from the arrival of Using a handheld barcode scanner, Homescan
will capture weekly grocery purchase informa-
ACNielsen’s Homescan(tm)
tion from a panel of households, providing criti-
panel to Hong Kong cal answers on consumer buying behaviour nec-
The response from clients has been over-
whelmingly positive. “Through our parent
company, Bestfoods, we have had a long and
successful association with ACNielsen
Homescan in Europe and the US,” said Charles
Lloyd III, managing director of CPC/AJI
(Hong Kong). ■
For more information on ACNielsen
Homescan, see Response Card below.

Response Card
We would like further information on the following Name:
item(s) in ACNielsen Insights 92 (please tick ✔):

❑ ACNielsen Activate Title:

❑ ACNielsen AdEx
Company/Organization:
❑ NewGenerAsians
❑ ACNielsen’s 1999 China Retail Market Study Telephone: Facsimile:

❑ China: The Millennium Report E-mail:

❑ ACNielsen Homescan
Address:
❑ Nielsen//NetRatings
❑ Millennium Mullings

12
Top Marketing Makes the Difference in NZ
Any marketer can produce
good results in a booming
economy but it takes real
skill to shine when market
conditions are flat
Top 10 Megabrands
1999 Brand
Rank
1 Wattie’s
2 Quality Bakers
3 Griffins
With such a market environment in New
Zealand, marketers have had to work extra
hard on rebranding and channel development
to make their mark in the past year.
The recent publication of ACNielsen’s ‘Top
10 Megabrands’ shows perennial market heavy-
weight Wattie’s leading the way with sales of
NZ$161 million, up NZ$4 million on the same
period a year ago.
The biggest mover was Quality Bakers
leapfrogging Griffins into second place with
1999 Sales
(NZ$m)
161
Top 10 New Entrants
107
Rank Product
101 (NZ$m)
sales of NZ$107 million. Quality Bakers made
its mark thanks to product innovation and
growth of Nature’s Fresh bread products, a
rebranding exercise that began two years ago.
The only new entrant in the top 10 was
Holiday, coming in ninth on the back of cigarette
smokers switching from premium brands to budg-
et brands following an increase in tobacco taxes.
ACNielsen’s 1999 survey of top supermarket
brands was compiled from scanned supermarket
sales throughout the country. ■
Manufacturer Category Sales

4 Anchor 101 1 Gillette Mach3 Gillette Razor blades 2.77

5 Cadbury 71 2 Bluebird Murphys Bluebird Snack foods 2.70

6 Bluebird 68 3 E2 Pepsi New-age beverages 2.0

7 Sanitarium 65 4 Griffins Absolutely Crackers Griffins Biscuits 1.5

8 Tegel 60 5 Griffins Mega Morsels Griffins Biscuits 1.5

9 Holiday 60 6 Uncle Toby’s Real Fruit Bar Bluebird Wrapped health bars 1.3

10 Arnott’s 59 7 Ambi-Pur Sara Lee Toilet cleaners 1.1

8 Ernest Adams Fab Slab Ernest Adams Cakes 0.9
Among individual products, seven newcom-
9 Ernest Adams Yum Bars Ernest Adams Cakes 0.8
ers secured at least NZ$1 million in their first
year, led by Gillette Mach3 razor blades 10 Teletubbies NZ Dairy Foods Yoghurt & Dairy
(NZ$2.8 million) and Bluebird Murphys snack Food/Desserts 0.7
food (NZ$2.7 million). Another highlight was
Total supermarket grocery sales went from NZ$7.3 million to NZ$7.7 million, an increase of about
E2, Pepsi’s entry into the new-age beverage
5%. A standout was the sales growth of alcoholic beverages which jumped 11.5%, the fastest
category, which took in NZ$1.9 million.
growing category in supermarkets. *Note: $NZ1 million = US$487,000

ASIA PACIFIC Beijing INDONESIA PHILIPPINES TAIWAN Hong Kong

REGIONAL OFFICE
Suite 5108
51/F Central Plaza
18 Harbour Road, Wanchai
Hong Kong, China
Tel: (852) 2802 1111
Fax: (852) 2564 2097
AUSTRALIA
Media & Customised
Level 6 168 Walker Street
North Sydney, NSW 2060
Tel: 61 (2) 9911 7200
Fax: 61 (2) 9959 4947
Retail
85 Epping Road
North Ryde, NSW 2113
Tel: 61 (2) 9978 3333
Fax: 61 (2) 9978 3222
CHINA
Hong Kong
2/F Warwick House, East Wing
Taikoo Place, 979 King's Road
Quarry Bay
Hong Kong, China
Tel: (852) 2563 9688
Fax: (862) 2564 2097
Rm 1201 Full Link Plaza
18 Chao Yang Men Wai Dajie
Beijing 100020
Tel : 86 (10) 6588 0188
Fax : 86 (10) 6588 0199
Guangzhou
3/F Ying Nong Building
174 Dong Feng West Road
Guangzhou 510180
Tel: 86 (20) 8108 2792
Fax: 86 (20) 8108 2987
Shanghai
17/F Central Plaza
227 Huang Pi Road North
Shanghai 200003
Tel: 86 (21) 6375 8118
Fax: 86 (21) 6375 8119
INDIA
Citi Towers
2nd Floor 61 0r. ss. Rao Rd.
Parel, Mumbai
Tel: 91 (22) 4158029
Fax: 91 (22) 415 8018
15/F Wisma Bank Dharmala 12-15/F Columbia Tower 12/F National Enterprise Centre Tel: (852) 2563 9688
Jl Jend Sudirman Kav 28 Ortigas Avenue 188 Nanking East Road Fax: (852) 2811 5454
Jakarta 12920 Mandaluyong City Section 5, Taipei
Tel: 62 (21) 521 2200 Tel: 63 (2) 727 3701 Tel: 886 (2) 2756 8668 Japan
Fax: 62 (21) 521 2203/4 Fax: 63 (2) 724 4019/20 Fax: 886 (2) 2764 8883 Tel: 81 (3) 5573 9300
Fax: 81 (3) 3585 1895
JAPAN ACNIELSEN-UNISEARCH THAILAND
Kurosaki Building 3/F Gloria Building 26/F United Centre Netherlands
4-1-4 Roppongi 109 Aguirre Street 323 Silom Road Tel: 31 (20) 556 6666
Minato-ku, Tokyo 106-0032 Legaspi Village, Makati City Bangkok 10500 Fax: 31 (20) 556 6555
Tel: 81 (3) 5573 9300 Metro Manila Tel: 66 (2) 231 1931
Fax: 81 (3) 5573 0601 Tel: 63 (2) 810 6057 Fax: 66 (2) 236 7747 Singapore
Fax: 63 (2) 893 4104 Tel: (65) 252 8595
VIETNAM Fax: (65) 252 0343
SINGAPORE Tecasin Business Centre
MALAYSIA 51 Newton Road 243-243B Hoang Van Thu St UK
19/F Menara MPPJ #09-01/12 Goldhill Plaza Tan Binh District Tel: 44 (1494) 424 642
Jalan Tengah Singapore 308900 Ho Chi Minh City Fax: 44 (1494) 424 620
46200 Petaling Jaya Tel: (65) 252 8595 Tel: 84 (8) 847 6300
Selangor Darul Ehsan Fax: (65) 253 4287 Fax: 84 (8) 842 3934 USA
Tel: 60 (3) 756 2311 Tel: 1 (914) 769 4444
Fax: 60 (3) 756 6490 SOUTH KOREA ACNIELSEN INTERNATIONAL Fax: 1 (914) 769 7760
4-6/F Sungbo Building RESEARCH
NEW ZEALAND 90-2 Nonhyun-dong Australia
Level 2, ACNielsen Centre Kangnam-ku, Seoul 135-010 Tel: 61 (2) 9911 7200
129 Hurstmere Road Tel: 82 (2) 546 1181 Fax: 61 (2) 9959 4947
Takapuna, Auckland Fax: 82 (2) 544 8101
Tel: 64 (9) 488 3188
Fax: 64 (9) 488 3189
http://acnielsen.com

13
 America Leads the way
General Electric and Microsoft
named the worlds most
admired places to work
The two monoliths were followed by Coca-
Cola and IBM in an American sweep of the
Financial Times’ annual World’s Most Respected
Companies survey.
The worldwide poll of chief executives was
commissioned by PricewaterhouseCoopers and
based on research collected by ACNielsen
across much of the world.
The aim was to identify companies and busi-
ness leaders most respected by their peers and
the reasons for those choices.
In a reflection of current stock-market senti-
ment, five of the top 12 most-admired compa-
nies are in information technology.
Eight of the top12 are American. The first
non-American entry is DaimlerChrysler in fifth
position, followed by Sony. The sole Australian
entry in the top 50 is News Corporation, sneak-
ing in at number 49.
Respect for American corporate practices
was reflected in the choice of most admired
business leader, with five of the top six heading
up US corporations. GE’s Jack Welch and
Microsoft’s Bill Gates come out on top.
The first non-American on the list of most
admired leaders is DaimlerChrysler’s Jurgen
Schrempp, of Germany, with Japan’s Hiroshi
Okuda (Toyota) and Nobuyuki Idei (Sony) sev-
enth and eighth respectively.
There are some surprising absentees in the
rankings. Marks and Spencer, long admired as
the epitome of British retailing, was equal 35th
on the list in 1998 but disappeared completely
this year. Also out are Philip Morris, Cargill,
Swiss Re, Motorola and Boeing.
Taking their place are newcomers such as
Berkshire Hathaway, Citigroup, Disney, Volks-
wagen and Goldman Sachs.
This is the second year the survey has been
conducted. After the success of the inaugural poll
in1998, coverage was expanded to take in more
chief executives in a greater number of countries.
This year’s survey attracted responses from
754 chief executives, compared to 648 in 1998.
The sample size was 4,400 (previously 3,500) in
75 countries (previously 53).
Respondents were asked which three com-
panies they most respected and why, which
three business leaders they most respected and
which attributes would be necessary to make a
company respected in the future.
Chief executives were also asked to identify
the most important business challenges for the
coming 12 months, which economy or econom-
ic region they most respected, and why. ■ broadcasting in these markets.”
Networks
Sign on
Partnerships reaffirmed
with ACNielsen
Multi-year TV ratings contracts have been
signed with ATV in Hong Kong and three major
players in New Zealand: TVNZ, TV3 and TV4.
Each agreement is for ACNielsen to provide
media measurement services tailored to individ-
ual strategies aimed at accelerating audience
and advertising growth.
The leading networks have long-standing
relationships with ACNielsen Media Inter-
national. They have been subscribers to
ACNielsen’s industry-leading peoplemeter TV
Ratings services since their inception in 1990 in
NZ and 1991 in Hong Kong.
“The readiness of clients to enter into multi-
year contracts truly reflects the confidence
they have placed in our continued partnership
and our state-of-the-art peoplemeter technolo-
gy,” said Steven Yung, president, ACNielsen
Media International.
“To demonstrate our technological leader-
ship in TV ratings for the 21st century, all con-
tracts have digital TV measurement built in to
cater for the eventual introduction of digital
■

World’s Most Respected Companies World’s Most Respected Business Leaders

Rank 1999 Rank 1998 Company Country Rank 1999 Rank 1998 Leader Company
1 (1) General Electric US 1 (1) Jack Welch General Electric
2 (2) Microsoft US 2 (2) Bill Gates Microsoft
3 (3) Coca-Cola US 3 (4) Lou Gerstner IBM
4 (4) IBM US 4 (3) Jurgen Schrempp DaimlerChrysler
5 (6) DaimlerChrysler Germany 5 (–) Michael Dell Dell
6 (24=) Sony Japan 6 (8) Warren Buffet Berkshire Hathaway
7 (27=) Dell US 7 (15) Hiroshi Okuda Toyota
8 (7=) Nestle Switzerland 8 (7) Nobuyuki Idei Sony
9 (17=) Wal-Mart US 9 (10) John Browne BP Amoco
10 (5) Toyota Japan 10 (6) Percy Barnevik Investor
11 (14) Hewlett-Packard US
12 (9) Intel US Most Important Business Challenges in 2000
13 (35=) DuPont US Rank Challenge
14 (35=) Nokia Finland 1 Recruitment of skilled staff
15 (24=) 3M US 2 Increased pressure from stakeholder groups
16 (–) Merck US 3 Increased environmental demands
17 (11) General Motors US 4 Increased world trade friction
18 (7=) ABB Switz/Sweden 5 Currency volatility
19 (17=) McDonald’s US 6 Access to finance
20 (35=) Unilever Neth/UK 7 Re-emergence of inflation

14

Media Paper Wins
International Award
A research paper put together by ACNielsen’s
Hong Kong office has been honoured at an inter-
national meeting of media professionals.
“When Late Left Beats Early Right” won the
Chairman’s Award as the best paper at the
Worldwide Readership Symposium in Italy. The
paper was a joint effort by Steve Garton from
ACNielsen Hong Kong and Tim Foley,
regional research director of Optimum
Media Direction (OMD), who commis-
sioned the research.
The original report was prepared by
the ACNielsen team in Hong Kong, led
by Garton and Bega Ng, who brought
together information from a series of
projects in Hong Kong, China and
Singapore.
The report contained fresh insights
into how print advertising works, espe-
cially effective use of pages, sections and
placement types. Among the interesting
findings was that left-hand pages scored
better than their right-hand equivalents,
despite hefty premiums charged by pub-
lishers for right-side placements.
The survey has already prompted a
follow-up in China and more surveys
are planned in other countries.
Bring On the Games
Everyone knows the Olympic
Games is the world’s biggest sporting
event, but just how far the goodwill
spreads from this year’s extravaganza
in Sydney is about to be quantified.
The task will be undertaken by
ACNielsen New Zealand, who have just
entered into a partnership with the New
Zealand Olympic Committee.
The aim is to establish overall awareness of
the Olympic Games and values associated with
the Olympic brand.
The research is part of an ongoing relation-
ship that includes analysis of the Common-
wealth Games.
The results are certain to be eagerly scruti-
nised on both sides of the Tasman Sea.
People on the Move
ACNielsen is pleased to announce a number
of recent appointments:
Frank Martell takes up the newly created
position of chief operating officer, Asia, with
responsibility for North Asia, Southeast Asia
and Japan.
Martell was previously managing director,
North Asia and chief financial officer, Asia
Pacific. Prior to joining ACNielsen Asia Pacific
in 1997, he was vice president and treasurer of
ACNielsen Corporation, Stamford, USA, play-
ing a significant role when ACNielsen was spun
off from Dun & Bradstreet.
Left or right — which one is right?
David McCallum becomes group chief exec-
utive, Japan as well as managing director,
Customised Research, Asia Pacific.
McCallum has more than 23 years’ market
research experience and is one of Asia’s leading
researchers, having moved from the UK to Asia
in 1985. He has a long history with ACNielsen
including a leading role setting up ACNielsen
Singapore’s TV audience measurement panels
and its first national retail audit in grocery and
drug stores.
Vivien Pau has been appointed executive
director, ACNielsen International Research,
Hong Kong. Pau is a highly experienced
research professional with more than 22 years’
international experience in research in both
agency and client companies. She has formerly
Marketplace
been managing director of the Hong Kong
operation and managing director of Customised
Research for Hong Kong and China.
Francis Lee has been promoted to chief
financial officer, Asia Pacific from his position
as executive director, Finance. Prior to joining
ACNielsen last year, Lee held a variety of senior
financial management positions at Strategic
Management Limited, CEF New Asia Partners
Limited and IBM. He was also a part-
ner with Ernst & Young.
Andy Floyd, managing director,
ACNielsen Media International, Asia
Pacific, is leaving the region after 13
years. Floyd has assumed a new role in
London where he will work on televi-
sion audience measurement and media
strategy for the company’s European
operation.
Helping companies make sense of
the Internet revolution will be Hugh
Bloch, who has been appointed manag-
ing director, Hong Kong for ACNielsen
eRatings.com. In his new position,
Bloch will have overall responsibility
for launching the Nielsen//NetRatings
Internet audience measurement service
in Hong Kong in the second quarter
of 2000.
Bloch comes to ACNielseneRatings.
com with more than 15 years of market
research experience, having worked
extensively in both qualitative and quan-
titative research and in multiple world
markets. Most recently, he was man-
aging director of Hong Kong for
ACNielsen International Research. He
has also worked with AGB McNair, SRG
Australia, Frank Small and Associates and Yann
Campbell Hoare Wheeler.
New Deal for Watson’s
Watson’s the Chemist has signed a two-
year deal with ACNielsen to receive the most
up-to-date information and analysis through-
out the region.
The agreement covers data and servicing
across 450 stores operated in six countries by
the chain.
Watson’s has been a prior supporter of
ACNielsen’s Spaceman system. Among the new
services being purchased by Watson’s are
regional summary reports, business reviews,
category reviews and studies of shopping
habits. ■
15
 Talkingpoint
Produced by AC Nielson
Communications Department 168 Walker Street North Sydney NSW 2060 Australia.
Chief Communications Officer, Asia pacific: Phil Burfurd; Editor: Lisa Rippon
Publisher: Redwood Asia Pacific Limited
13F Vulcan House 21 Leighton Road Causeway Bay Hong Kong
Telephone (852) 2831 0058 Facsimile (852) 3832 4902.
a member of the Redwood International Customer Publishing Network.
16
China Signs on for
TV Ratings
Homes in ten major merkets in China are now covered by ACNielsen’s people meters
The need for top-level information and analysis
has led to strong support for ACNielsen’s
peoplemeter TV ratings service in China
ACNielsen Media International has signed a number of major clients since
expanding peoplemeter TV ratings coverage to include 10 major markets last year.
The client list now includes Hubei Cable, Nanjing Cable, Sichuan Cable, Liaoning
Cable, Tianjin Cable and Hangzhou Xihu Pearl Terrestrial, plus growing production
companies such as West-Meadow (Huanle Zong Dongyuan) and Light Television
Programming and Research (China Entertainment Report).
“There has been strong support in the media marketplace following the com-
pletion of our 10-city expansion plan at the end of last year,” said Steven Yung,
president, ACNielsen Media International.
“Key international, terrestrial and cable broadcasters, advertising agencies and
media specialists have responded favourably to our on-time delivery of the service
and our professional knowledge.”
Since ACNielsen’s panel introduction in Shanghai in 1996, China’s television indus-
try has experienced wholesale changes in terms of programming, audience analysis and
advertising.
“With ACNielsen’s TV ratings as the industry currency, media owners, advertis-
ing agencies and advertisers have a common language covering more than 60% of
China’s advertising expenditure,” Yung said.
Phil Rich, executive director, ACNielsen Media International, China/Hong
Kong, said ACNielsen’s investment in China’s growing media industry went beyond
setting up peoplemeter TV ratings panels.
“We work with our clients by providing extensive training and tailor-made
analysis to suit their specific needs. By relating our international experience and
insights to the local market, we aim to help media owners develop their businesses
more effectively,” Rich said. ■