Online grocery shopping currently accounts for 4.8% of all food purchases in the US and most find it an easy alternative to spending hours walking the rows of products, which is most likely the increase in click-and-collect services as well as home delivery. Although according to statistics online shopping in 2007 grocery shopping online was enjoyed by 3.9% of people in America who purchased some of their groceries online, a sharp increase took place in 2012 when the percentage increased to 14.3%. While the number of people preferring to shop for groceries online increase so does the proportion of shoppers doing groceries, by 2020 it is projected that 7.4% of all groceries will be purchased digitally and this percentage would reach 10% by 2025.
One thing CPG firms and grocery retailers are not to underestimate is the interference this huge shift will create, the increase in online shopping is not only changing the amount of money spend, but it also changes the dynamics of food shopping including the relationships between brands and consumers.
What the Increase in Grocery Online Shopping Could Mean for CPG Firms
The behaviours and mindsets of consumers are different in online grocery shopping, and while digital discovery could be quite difficult, in physical shopping, it is brands that capture the attention of the shopper. Packaging and the messages on products contribute to the point of sale, and in-store promotions and special offers are critical, it is all part of the tools used by brands to increase loyalty, encourage switching and in breaking the shopper’s habitual behaviour. It is these dynamics that completely changes when it comes to online shopping. Shoppers are far less likely to browse and look at each individual product since most have a list and shops accordingly.
Grocery Dynamics Online vs Offline
According to recent studies and statistics, this is the shift already taken place due to online grocery shopping. Only 39% of online shoppers look at some of the new brands while 61% of offline shoppers give attention to new brands. In online shopping, only 16.3% are influenced by the packaging, while the packaging still influences 37.2% of off-line grocery shoppers. Many off-line shoppers consider trying out a product that is not normally part of their shopping, well percentage wise 53.5% of offline shoppers do, while only 22.8% of online shoppers consider purchasing a brand they don’t normally buy.
It means that the packaging has a far less influence on the decision made by the consumer in purchasing the product, it also could mean that online shoppers do not waste time on reading all the nutritional information printed on most products. Online shopping makes entering the grocery market as a new brand considerable tougher as products will no longer be attractive due to colourful packaging, which automatically means to catch the attention of shoppers it would have to be the price and how the product is marketed. Maybe all these factors could mean online shoppers can force brands to be more competitive price-wise, which would be great for both online and offline shoppers.