2015 was a big year for eCommerce. Going down in history as the year that online shopping truly came into its own, growth outpaced that of in-store shopping. With explosive growth predicted for the sector in 2016, it is estimated that the value of FMCG eCommerce will double in the next two years. But asides from massive potential growth, what else can we expect to see in FMCG eCommerce during 2016?
As identified over Black Friday weekend, mobile shopping is set to take centre stage in 2016. More than a third of all sales were placed from a mobile phone or tablet over the festive period, indicating that mobile is becoming the consumer’s preferred way of shopping. Optimisation of the mobile platform, therefore, is of the highest priority for retailers and suppliers; 69% admit that they are working to make their mobile apps and websites more responsive and more intuitive for users. Such is the strength of mobile commerce coming into 2016, that many e-tailers are considering adopting an app-only model for their online sales.
Retails and FMCG brands should ensure that their mobile presence is not only functional, but also aligned with the rest of their branding, be it online or in store. Done right, mobile commerce can be a powerful addition to any FMCG company’s portfolio, endlessly useful in this age of omnichannel commerce. And not only that, but it has also been shown that omnichannel consumers are more likely to spend more when making a purchase.
With shoppers slowly making the shift from bricks to clicks for their shopping and with mobile the predominant way to browse and buy, product content is now more important than ever. As consumers demand to know what is in their products, extended product information – full ingredient lists, nutritional values, usage instructions etc. – is needed to foster consumer trust and loyalty. As marketing teams turn their attention to addressing suspicions surrounding “Big Food” and big business, eCommerce will soon follow suit. Strong product content works hand-in-hand with optimised website performance to create a seamless online experience, particularly crucial in FMCG sales as retailers and brands must work to stand out in a crowded arena.
As seen by the previous two Cyber Mondays, many retailers’ websites are still not fully prepared for surges in online shopping activity, crashing during peak periods and frequently running low on stock. Ensuring that all websites and apps are fully functional, with intuitive navigation, quick loading times and a very secure payment process, will be key for consumer satisfaction in 2016.
The development of mobile technology will not only benefit online sales, but its effects will carry over into the physical store, too. Supermarkets have already started introducing various in-store technologies in order to enhance the overall shopping experience. Tesco’s scan-as-you-shop service, for example, allows shoppers to scan their products as they add them to their basket in-store, saving time at checkout. With mobile-savvy millennials a key demographic for grocery retailers, we can expect to see a redoubling of efforts to connect with smartphone-carrying shoppers as they browse in store.
FMCG eCommerce in 2015 undoubtedly belonged to Amazon and its Pantry and Fresh services. Amazon Prime Pantry opened its services to UK consumers in November 2015, allowing members to get everyday household goods delivered to their home. AmazonFresh, meanwhile, expanded its grocery home delivery services in the US, with plans to expand to the UK and Europe in 2016. This rapid geographic expansion has placed pressure onto other grocery retailers to further develop their delivery models.
Up until now the most prevalent delivery model for groceries has been the pick-up model, yet consumers still show an overwhelming preference for home delivery. With the consumer as king and Amazon reigning supreme, we will see retailers testing the possibilities of home delivery throughout 2016. Independent retailers will expand their loyal customer base by building on their experience with local delivery to reach new customers, undercutting existing players with a less flexible infrastructure, while global companies will benefit from their proven delivery expertise. With the threat from global pure players on one side and the potential of smaller more nimble specialist retailers on the other, medium-sized retailers will need to be on top of their e-game in 2016.
Personalisation of products and of content has been tipped as one of the most exciting opportunities in digital marketing in recent years. As the market becomes saturated with companies all offering similar products and services, tailoring the online experience to each user and their preferences is an new way to stand out. Coca-Cola were perhaps the first to really harness the power of product personalisation in 2013, with their “Share a Bottle with…” campaign. Other leading FMCG companies soon followed suit, however, with Mondelez recently profiting from their colour-in holiday packaging and making $2.5 billion from online Oreo sales in 2015. With these two examples leading the FMCG pack, 2016 could be the year that product personalisation truly takes off.
Syndy is a product content distribution platform for suppliers and retailers. Syndy’s break-through platform technology allows global suppliers to deliver optimised product content to local online retailers across the globe.