Unlocking the power of digital at Retail
E-commerce is the fastest growing channel within the consumer product space. From 2010 to 2015, US online Consumer Packaged Goods sales will see a Compounded Annual Growth Rate of 25%; increasing from $12 billion to a predicted $32 billion. To keep up with this growth, marketers are searching for new ways to modernize companies and engage more digital shoppers. So far, this “digital movement” has caused changes to store trips, complexities to the path to purchase, and shifts between planned and unplanned purchases.
These dynamic changes in the digital shopping realm have led to the emergence of “clicks and bricks.” Consumers are more technology savvy and deal-seeking than ever, especially millennials, and their main driving force is the mobile device. For many younger consumer generations, mobile devices have become the primary source for product hunting and product information. This means transparency across all channels is not only needed, but required to move business forward and retain customers. As more consumers browse websites before they leave work in order to build a shopping list, or spend their evening browsing Amazon instead of a shopping mall, recognizing these new habits is critical to any retailer.
The International Data Center (IDC) estimates that in 2015, three billion people will create eight zettabytes of data (yeah, that’s a very big number), and 98% of those consumers want the options for purchase, delivery and returns across multiple retail channels. That’s a very strong and imperative case of consumer insights calling for retailers to become more focused on digital integration.
As businesses offer digital shoppers the choice to click and collect, combining brick and mortar retail with e-commerce, the importance for marketers to have an ever-increasing “omni-perspective” when incorporating digital into a business model needs to be part of their core mission. Shoppers want options – they want to shop online, but they also want the traditional option of shopping at the brick and mortar store. It’s all about a blended approach of how the consumer wishes to experience that moment of “scoring a deal”. There’s no doubt that omni-channels are the future of digital shopping. Retailers can win by keeping convenience, price-value and choice as top-level digital priorities. When achieved, retailers will watch their digital shopper audience grow.
GMDC publishes whitepapers and research on a regular basis -- available to members, while executive summaries are open for public viewing. For more information about the digital shopper and successful retailing practices, you can download the GMDC whitepaper, “Evolution or Revolution: The Impact of Digital on Shopping & Stores,” with data and education provided by Nielsen. See the link below:
GMDC is the only trade association dedicated to building suppliers’ businesses in the GM and HBW industries based on retailer priorities throughout the US and Canada.
If you have interest or questions about how to meet with retailers, suppliers or solution companies that can grow your business, please contact Patrick Spear, GMDC President, at [email protected].
Or, send me your thoughts, comments or experience based on this article. We’d like to hear from you. Mark Mechelse, GMDC Director Industry Insights & Communications, at [email protected].