Nearly, one-quarter of online respondents say they order grocery products online, and more than half (55%) are willing to do so in the future. The growth of online grocery shopping is driven in part by the maturation of the digital natives—Millennials and Generation Z.
Customers can place an online or store kiosks order to ensure that their item. The convenience of stores and promoting store pickup for online orders and doing trials of home delivery via ease of fulfillment, tracking, through intelligent sensors and offerings. From procuring orders to fulfilling the baskets, determining vehicle lineups, to allocating jobs to the delivery personnel.
Virtual baskets don’t necessarily mirror physical ones. In fact, the relationship between the two is often an inverse one. In the U.S., for example, the mix of online product sales is roughly 60% non-food to 40% food, the exact reverse of the total in-store CPG picture, which is about 60% food and 40% non-food.
Consumers are embracing the idea of buying certain packaged goods online, but some categories are simply better suited for e-commerce than others. While certain fast-moving consumer goods categories will serve as ‘on-ramp starter’ e-commerce categories, as we’ve seen in Asia-Pacific, adoption rates will vary market by market. Understanding what consumers are buying both on and offline allows you to prioritize digital initiatives and take action with the categories that drive in-store trip count and basket size.
Today the physical dimensions brick-and-mortar premises no longer limit the amount or variety of products available to shoppers. Customers can place an online or store kiosk order to ensure that their item (if necessary, shipped from another store or warehouse) will be ready for them to pick up.
Online retailers are also expanding their selection. Groceries – fresh food in particular – are still mainly purchased in neighborhood supermarkets and hypermarts. However, at least one online giant is piloting online grocery shopping in large cities, promising same- or next-day delivery, depending on when the order is placed.
Although the online-grocery market has been stuck in a vicious cycle, there is latent demand from consumers:
We believe the advent of the “click and collect” model—which allows customers to place orders online and pick them up at a store or other designated location—could entice more retailers, as well as more consumers, to the online-grocery space. In fact, many of them love the idea of saving time by not having to trek to a supermarket, pushing a shopping cart down aisle after aisle, then wait in the checkout line. The convenience of shopping for groceries online is alluring.
E-commerce is only part of the digital picture. A complete digital strategy includes interaction at every point along the path to purchase, including finding stores, making lists, checking prices, researching products, sharing content and purchasing. These touch points occur both in and out of stores, and consumers are increasingly using technology to simplify and improve the process. In-store digital enablement options can bring the ease, convenience, and personalization of online into brick-and-mortar stores. Instituting digital strategies into the in-store experience is not just nice-to-have, these options can increase dwell time, engagement levels, basket size and shopper satisfaction. At present, shoppers do all of the work putting the pieces together to arrive at their final purchase decision.
What are our “must win” category battlegrounds? What role should each channel play by category? What strategic bets should we make on emerging platforms such as smartphones and tablets? How will digital technologies shape the store of the future?
In addition to digital, evolving consumer tastes are also transforming the retail landscape. Which channels are consumers shopping most and what are they buying there? Are modern trade outlets replacing traditional trade in developing markets or is the opposite true? A review of sales trends for select fast-moving consumer goods categories across the world reveals that when it comes to trade channel importance, all countries are not created equal.
Shop stores kiosks and driving conversations between customers, delivery personnel, and store managers.
Consumers have more shopping choices than ever, and as channels proliferate, protecting and building store loyalty is no easy task. To keep customers coming back for more, it’s crucial to understand what drives them to switch one store for another.
Create an asset-lite model today and ensure you are when and where your customer needs you.
Read more on how you can convert retail stores into eCommerce warehouses!