Digital Commerce Is a Largely Untapped Opportunity for CPG: Study
Consumer packaged goods (CPG) companies are underestimating the e-commerce channel’s growth potential and consequently may be missing out on a substantial market opportunity, according to the first of a two part Deloitte study, Digital Commerce in the Supermarket Aisle.
The study analyzed responses from a survey of 2,040 online shoppers who are responsible for shopping and food preparation in the household, a survey of 43 executives and senior managers engaged in activities related to digital commerce at CPG companies, and in-depth interviews with selected executives.
One of the most significant findings revealed that, while both executives and consumers anticipate online sales of food, household and personal care products will grow in the next year and over the next three years, consumers’ intent to purchase these products online far outpaced executives’ expectations for both time periods. According to the report, executives expect 35% growth in the next year and 76% growth in three years. In contrast, consumers expect their online purchases to increase by 67% in the next year and 158% in three years.
“Increasingly, consumers desire the convenience of the online channel to purchase their groceries,” said Pat Conroy, vice chairman, Deloitte LLP and consumer products sector leader. “Although consumers are changing their behavior, CPG companies are not as prepared as the data suggests they should be to take full advantage of this growing opportunity. The importance of e-commerce to CPG companies has not, in most cases, translated into a fully-developed strategy for capitalizing on this channel.”
In the upcoming Part II of this study, Deloitte will address the transformative opportunities that exist for CPG companies along the entire path to purchase. Topics to be discussed will include driving product trial and repeat purchases, generation-specific strategies for digital commerce, and the essential differences across product categories (from food to personal care) that should inform those e-commerce strategies.
2014 IRI Summit to Focus on Actionable Strategies for Growth
Since consumers have settled into the “new normal” of conservative purchase behaviors and attitudes, CPG manufacturers and retailers must not only have a keen understanding of their shoppers, but they also need to find new and innovative ways to entice these shoppers to loosen their purse strings. To help CPG leaders make the leap from insight to action and achieve bottom-line boosting results, IRI will focus on “Winning the Growth Race,” at its 2014 Summit March 10-12, 2014 at the Gaylord Palms Resort in Orlando, Fla.
The agenda for the 2014 Summit will zero in on the hot-button growth issues of marketing, marketing research, brand management, category management, merchandising and advertising professionals. To deliver these compelling perspectives, IRI has assembled an impressive preliminary roster of keynote speakers, including:
- Andy Callahan, President of Retail, The Hillshire Brands Company
- Brian Cornell, CEO, PepsiCo Americas Foods
- Erin Hunter, Global Head of CPG Marketing, Facebook
- Jason Jennings, Consultant and Author of “The Five Shared Growth Secrets of the World’s Best Performing Companies and Leaders”
- Mike Walsh, Author of “Big Data Revolution in CPG and Retail”
- Jocelyn Wong, CMO, Family Dollar
- Geena Davis, Actress, Activist and Author of “Award-Winning Life: Geena’s Steps to Achieving Success and Personal Growth”
- Rick Lenny, Chairman of the Board, IRI
- Andrew Appel, President and CEO, IRI
These thought leaders will provide insights that will help Summit participants to:
- Kick-start growth opportunities across categories and demographics
- Develop strategies for smarter pricing and promotion
- Master marketing mix in the digital age
- Discover paradigm-busting, profit-capturing analytics
- Uncover the latest tools to maximize merchandising and assortments
- Learn tales and takeaways from win-win retailer/manufacturer collaborations
“It’s definitely challenging to compete and win in today’s complex environment, which is leading CPG marketers to re-examine their strategies from start to finish” says Andrew Appel, president and chief executive officer, IRI. “That’s why it’s our mission to send Summit attendees home with big ideas and bona fide solutions for growth.”
Hispanics Shop More Online than Average Web User: Study
Hispanic adults visit retailer websites more often than the average online consumer, says a new analysis of Hispanic shopping habits by Experian Marketing Services, a global provider of integrated consumer insights, targeting and cross-channel marketing
During a 24-week period, from June 2013 through November 2013, Hispanics’ market share of visits to Experian Marketing Services’ Hitwise Retail 500 Websites was 21% percent higher on average than the online population. Further, the analysis found that this market share widened in October 2013 and continued to increase through November.
“Our analysis indicates that Hispanic adults are shopping online more frequently than the online population and that they are shopping earlier in the season this year,” said Heather Dougherty, research director at Experian Marketing Services. “Those Websites most frequently visited by Hispanic shoppers mirror the online population, with Amazon.com, Walmart.com and Target.com leading overall. However, our analysis also found that smartphones are clearly a key shopping tool for Hispanic consumers; so, ultimately, those retailers that win this highly influential and socially active consumer will be those with savvy mobile strategies and cross-channel execution capabilities.”
Experian Marketing Services found that slightly more than half of Hispanic smartphone owners (54%) visit shopping sites from their mobile browser during a typical month and they spend more time browsing those sites than non-Hispanic smartphone owners. Hispanic adults are visiting department store mobile Websites more frequently than non-Hispanics.
Industry Leaders to Examine ‘Reinventing Business’ at GS1 Connect 2014
The annual GS1 Connect 2014 conference and exhibit, themed “Reinventing Business,” will be held June 8-12, 2014 at the San Diego Marriott Marquis & Marina and the San Diego Convention Center. Experts from retail, healthcare, foodservice and grocery industries will examine drivers for change to improve supply chain visibility and discuss best practices for meeting the challenges of today’s and tomorrow’s dynamic business environment.
GS1 Connect 2014 provides an opportunity for more than 1,200 attendees to explore how GS1 Standards can improve product traceability, operational efficiency, data quality, growth and collaboration. New this year, the conference will feature a “Collaboration Day,” offering attendees extended opportunities to participate in one-on-one meetings with GS1 Standards experts, industry initiative leaders, trading partners and solutions providers.
“GS1 Connect 2014 will bring together a cross-section of industry stakeholders in one location to facilitate collaboration, the exchange of unique perspectives, and the development of fresh ideas to keep businesses moving forward,” said Bob Carpenter, president and CEO of GS1 US. “This year’s focus on the heightened exchange of information is designed to help attendees succeed in an ever-increasing technologically-advanced business environment.”
In addition, GS1 US is now accepting applications from industry leaders interested in presenting. The conference consists of 60-minute presentations within four industry tracks—Retail, Healthcare, Foodservice and Grocery—as well as a Standards and Solutions track. Additionally, GS1 Connect will offer 20-minute sessions focused on technology solutions, which will be presented in the exhibit hall “Technology Theater” during exhibit hours.
Applications to present at GS1 Connect 2014 should be submitted using the online form and received by December 22, 2013. Applications will be evaluated based on various criteria, including alignment with conference theme, relevance, and usefulness of topic to GS1 Standards users and conference attendees.
Big Data Analytics Framework Launched
Nuevora, a leading big data analytics solutions provider, announced that its nBAAP (Big Data Analytics & Apps Platform) analytics apps suite will form the basis of its new nBAM (Big Data & Analytics Maturity) Assessment Framework. Nuevora’s analytics aim to help firms successfully predict and monetize significant revenue generating opportunities across all stages of customer life cycle.
Now, organizations can leverage nBAM Assessment early in their strategic planning process to develop a tactical roadmap for monetizing opportunities hidden in their data. Using Big Data and analytics as a driver towards operational excellence has in the past been problematic, with significant cost, lengthy implementations, and high failure rates.
Organizations generally tap into analytics as isolated and one-off projects which provide insights that are either not actionable or have limited shelf-life with no impact on business process innovation. Nuevora’s nBAM is designed to guide organizations in developing predictive insights that are logically connected to optimize a series of business outcomes on a continual basis along a defined business process.
“Our new nBAM Assessment presents our customers with a detailed and actionable roadmap to achieving market leadership via operational excellence,” said Phani Nagarjuna, CEO of Nuevora. “Starting with a definition of corporate objectives and goals, nBAM develops a blue print of client’s current capabilities and details a customized big data roadmap that outlines key gaps and the required processes and capabilities needed to achieve the desired goal.”
Valpak Plans to Expand Digital Coupons in Miami, Fla.
Valpak, a provider of local print and digital coupons, aims to expand its presence in Miami, Fla. With the digital couponing industry quickly gaining popularity and overall coupon usage expected to grow by 150% from 2009 to 2014, especially among the rapidly growing Hispanic community, Valpak is poised to rapidly expand and is currently seeking entrepreneurs to invest in new franchise territories in the South Florida market.
Earlier this year, Valpak announced a partnership with YaSabe.com to enter the expanding U.S. Hispanic market. YaSabe, a provider of local information for U.S. Hispanics, enables users to find and discover Valpak coupons and special offers in Spanish online and from their mobile phone.