2017Issue6_Alabama_v9.indd

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“To prep for a digital world, retailers and manufacturers must evolve and grow with the emerging demand for e-commerce."

Summing It Up Consumers are evolving, and while growth is difficult, there is opportunity to win in today’s marketplace. Retailers and manufacturers should understand that there are two areas of growth to focus on: health and wellness, and the shift towards e-commerce and omni-channel purchasing. And while these two growth areas are likely not new to most retailers and manufacturers, it is critical that we all understand the consumers in these two spaces because it is not a one- size-fits all. A diabetic thinks about their health and wellness differently than a younger consumer who is focused on sustainability. But both cohorts matter, and it is upon us to understand how to get the right products to these consumers. The channels that the industry has created do not exist in a shoppers mind, shoppers buy their products wherever and whenever is most convenient for the need state at the time, and more and more of that is happening online. We can’t ignore that e-commerce is blurring the lines of how and where consumers purchase products. Brick-and-mortar stores will continue to be a relevant source of consumer purchasing, but will need to create a reason for a shopper

According to the “2017 Nielsen FMI Digitally Engaged Food Shopper Report,” online grocery shopping could grow five-fold over the next decade, with American consumers spending upwards of $100 billion on food- at-home items by 2025. In fact, consumer purchases show that some categories are going online faster than others. Categories like personal care, household goods, snacks, dry packaged goods, and canned and bottled goods will continue to grow penetration. However, other categories, such as fresh, have been challenging to shift online. That said – there is a golden opportunity here. A sure sign that consumers are willing to purchase fresh products online comes with the growth of meal kits. Nielsen’s recent research shows that one in four U.S. adults have purchased a meal kit in the past 12 months and 75 percent of those are still actively purchasing meal kits after trial. About 81 percent of meal kit purchasers believe meal kit dinners are healthier than prepared foods purchased from a grocery store. To prep for a digital world, retailers and manufacturers must evolve and grow with the emerging demand for e-commerce. In order to do this, retailers and manufacturers must have e-commerce at the center of their strategy. It is important to recognize that the digitally-engaged shopper is an omnishopper, shopping across all channels without regard from where the product is coming. Consumers expect frictionless, relevant experience accessible from anywhere. Sometimes that is a store. Sometimes that’s a smart phone in our pockets. And for many, that’s working with the smart assistant that lives in the connected devices sprinkled throughout our homes. The world is certainly changing – and you must be ready to meet the challenges of those changes.

to visit in person, for the experience, a unique or local item or your instore expertise. ■

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ALABAMA GROCER |