Grocery E-commerce Set To Soar
Online Grocery retail is seeing an unprecedented amount of growth and it's just beginning. Consumers are growing in confidence with online shopping and spending, set to make the grocery e-commerce channel boom.
Research from the FMI and Nielsen show that nearly half of American Millennials (18-38) now buy groceries online. Looking locally, a study by Nielson found that in the past 12 months in Australia, there was a 22.9% increase in new online grocery shoppers. This obvious shift in consumer behavior requires retailers and manufacturers to respond now, or get left in the dust.
"Millennials are leading the global
online grocery shopping trend."
The 3 main reasons why grocery retailers and suppliers can’t ignore e-commerce:
Globally, online retail is already fast-growing, if not the dominating growth channel
Online and offline are merging, with an online store vital to complement physical stores
In an age of 24/7 connectivity and unparalleled access to information, the digital world evolves faster than the physical one and online stores will become increasingly captivating
What will future online shops look like?
They’ll be personalised, a consumer’s personal micro-store offering individualised and online-exclusive products, suggestions and previously bought products, personalised promotions, advertising and loyalty schemes.
It will feel and act like a personal assistant, connecting with various devices, offering dietary guidance, automatically updating and re-ordering products, preventing shoppers from running out of products and supporting their lifestyle goals.
It will be more efficient for shoppers, easier and quicker, payment through facial, voice or touch recognition technology. Shoppers will incur less waste, with a more choice of pack sizes and meal planners to help manage quantities and leftovers.
They’ll integrate the online and in-store experiences. Shoppers will have a seamless offline and online shopping experience, switching easily between the two with data sharing. This will help bring more personalisation and improve the experience of the physical store.
It will be available at all times from all forms of digital content e.g. videos, photo, social media, you’ll forget when you’re shopping. China has been leading the merging of media, entertainment and shopping, and Europe and North America will follow.
From grocery shopping to prepared meals to meal kits, the options are only going to grow for consumers. With such a fast developing market, it is essential now more than ever for Australian brands and retailers to have an e-commerce strategy for the future, in order to keep up with the generational change in buying behaviour.