Key Distinctions Among CPG E-shoppers: Study
Online consumer goods purchases—particularly among millennials and high-end shoppers—are on the rise. There is a sense of urgency for consumer packaged goods companies to place a strategic priority and to shift their sales and marketing strategies to address this eCommerce tipping point or risk losing both share and relevance. In fact, ecommerce is the fastest growing channel for consumer packaged goods companies.
It’s not surprising that online consumers are younger, more affluent, and have a higher level of education when compared to the general population. However, what we have learned is that even within this highly attractive group, there are key distinctions, according to a new online shopper study from e-tailing solutions and Catapult Marketing.
The Young and The Restless
Younger consumers buy across a wider variety of etailers. Consumers under 34 shopped across 19 of the 21 etailers profiled in the study, while consumers over 35 shopped across six of the etailers. For Millenials, online shopping is the norm and they use the web as a primary means to learn about and purchase consumer products.
High Income, High Engagement
High-income consumers are among the most active online shoppers. Consumers who earn over $100,000 a year are buying across more categories and are purchasing more high end and indulgent products like wine and confections. They shop online for the superior selection and the convenience of home delivery.
Families Flock Online
Families are migrating online for many consumer packaged goods categories, and they are shopping across retailers at a much greater rate compared to households with no children. Key categories for households with children include office/school supplies (50%), facial care (48%), hair care (47%), household cleaning supplies (37%), and oral care (34%), while 26% purchased baby care and 15% purchased baby food.
Amazon is a key destination retailer for both households with and without children; nearly 60% of shoppers without children shop Amazon, while 69% of households with children shop there. However, that is where any similarity between the two kinds of households ends. Across the 21 retailers questioned in the study, households with children were likely to shop at 20 of them, while childfree homes tended to stick to Amazon.com, Drugstore.com, Staples.com, Walmart.com and CVS.com.
Not All CPG Products Are Shopped The Same
Vitamins are one of the most popular consumer packaged goods products purchased online. Other categories with high penetration include body care, hair care, facial care, office supplies, pet food, and teas and coffees.
There are some categories that have lower penetration but are shopped with very high frequency. Categories that have loyal, high frequency consumers include: wholesome bars (such as protein bars and granola bars), ready-to-drink beverages, powdered beverage mixes, meat/seafood, crackers, and teas and coffees (a category showing high penetration and frequency).
Not All Etailers Are The Same
While Amazon dominates several categories, there are many opportunities for other etailers to build their presence as a destination for categories ranging from everyday household goods (cleaning supplies and laundry products), to fresh foods, and to center-of-store grocery staples. Among value shoppers, Walmart.com ranked high especially for grocery items like beverages and snacks. Target.com was a popular destination for new moms who found it to be a great place to shop for baby.
How CPG Brands Can Get in Charge of Their Online Selling Space
Establishing a baseline and understanding the landscape is the first step that a company can take towards getting in charge of their online-selling space.
Taking the time and making an investment in insights will help consumer goods companies know how, where, when and how much to invest in order gain maximum share of availability, visibility, sales and loyalty.
Angela Edwards is director, consulting services, etailing solutions. She can be reached at [email protected]. Elizabeth Schreiter is Marketing Insights Analyst at Catapult Marketing. She can be reached at [email protected].
