NIELSEN BASES

ACTIVATING THE E-COMMERCE OPPORTUNITY

Overall, online and offline FMCG sales totaled more than $1.01 trillion in 2018, which is 2.6% more than a year ago. Many think that e-commerce's piece of the pie is still small, but it's worth noting that e-commerce accounted for 5% of total omnichannel sales, but drove 40% of its growth. E-commerce is a hot topic in the CPG industry. However, when it comes to innovation testing, it can be a challenge to think about this new space.

Shopping

$7.9B

Spent online for 2018 Cyber Monday

(+20% v2017)

Shopping

70%

Of grocery shoppers expect to shop online for groceries in the next 5 years

Shopping

5X

Growth rate of online vs. offline global FMCG sales

(2016-2020)

CAN YOU MYTHBUST SOME MISCONCEPTIONS ABOUT

E-COMMERCE?

What percentage of CPG online shoppers still prefer brick & mortar stores?

33%

33%

42%

42%

75%

75%

81%

81%

What percentage of grocery shoppers use a physical store to evaluate a product before purchasing online?

Less than 25%

Less than 25%

25-50%

25-50%

50-75%

50-75%

More than 75%

More than 75%

What percentage of CPG consumers shop in both brick & mortar stores and e-commerce?

22%

22%

45%

45%

51%

51%

62%

62%

Important to start innovating with an omnichannel lens, but also to tailor the online approach to the innovation strategy

Does online shopping represent an infinite "shelf" or "distribution"?

Distribution

Distribution

Example: There are 8,000 Cereals on Amazon, but only 230 in the average grocery store

Shelf

Shelf

Example: There are only 24 items on Page 1 of Amazon

What percentage of shoppers never pass beyond page 1 of the online shopping experience?

21%

21%

36%

36%

55%

55%

70%

70%

Getting visibility online means maximizing your search rankings; having the right assortment, packaging, and marketing helps.

What are the top 2 factors for consumers when determining which product to buy online?

Price & Packaging

Price & Packaging

Price & Reviews

Price & Reviews

Price & Ability to Pick up in store

Price & ability to pick up in store

Reviews & Packaging

Reviews & Packaging

Reviews are important to consumers and important to search rankings. The implications:

  • Product reviews drive trial online
  • BASES product testing highly predictive of star ratings
  • "Launch & Learns" with subpar product are impractical. Bad reviews lead to less sales which leads to less input to learn and optimize.

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* Data is specifically for the United States

Copyright © 2019 The Nielsen Company (US), LLC. All Rights Reserved.