eCommerce accounts for just 4% of total US CPG sales however it is growing at a rate of more than 20 percent compounded annually. With retailers increasingly looking to eliminate one of the key barriers to online shopping – having to wait for your purchase – the digital channel looks set to capture a much larger share of CPG sales in the future according to Nielsen.
Digital is increasingly capturing the attention of consumers, manufacturers and consumers alike. According to Nielsen, 25% of online shoppers think prices are better online, one third think product assortment is better online, and a quarter feel shopping for CPG items is more convenient online than in-store.
However despite the exponential growth in eCommerce, only 30 percent of US consumers currently shop for CPG products digitally. The remainder go online for research and to price compare before making a purchase offline – highlighting the importance of accurate price intelligence to better inform the pricing strategies of both retailers and manufacturers, whether that be online or in-store.
According to Nielsen, purchase patterns will be significantly different over the next 10 years driven by rapid growth in tablet and smartphone ownership – which is why retailers and manufacturers alike need to be strategic as they develop their digital platforms.
Believing that all digital shoppers are the same, and having a one-size-fits-all digital strategy is a mistake, Nielsen believes. As online retail continues to evolve, a more in-depth understanding of the digital shopper will allow companies to optimize their digital strategies and enable them to compete more effectively.
Understanding a shopper’s needs both on-and-offline is crucial to positioning a business for success across both channels. Knowing how shoppers interact with brands and channels and most importantly, understanding their motivations for engaging – or not engaging – will be key. As will be delivering the same customer experience on both price and product assortment, whatever the channel.
Discover how Profitero delivers critical online pricing intelligence to more than 40 global retailers so they can compete more effectively across all channels. Email us at firstname.lastname@example.org or visit www.profitero.com to find out how we can help you grow sales and increase margins.
Profitero.com: Online competitor price intelligence for retailers and brands
Profitero is the leading global provider of online competitor pricing data. We provide both bricks & mortar and online retailers with their competitors’ prices, promotions and full product assortment information. Profitero’s accurate and timely competitor intelligence enables our customers to make better informed and more profitable pricing decisions, helping them to increase sales as well as margins.
Our pricing data can be seamlessly integrated into price optimization solutions such as Blue Yonder, Revionics and IBM DemandTec, to deliver more accurate and effective price optimization. Profitero is also the preferred supplier of online competitor pricing data to Nielsen’s retail customers across more than 100 countries.