The retail sector is evolving rapidly. These days, consumers have become multi-circuit. It’s a fact. They are buying online as well as in stores.
So what does this mean for consumer products?
Last September, IPG Mediabrands surveyed 1000 Belgians, in a representative panel of the population, in order to better understand how they buy their consumer products. The results showed a clear trend towards multi-circuit buying. The proof is that 18% of Belgians say that they use online shopping, even if only occasionally, for consumer products such as cosmetics, food, etc. This trend is further confirmed among the 18-34-year-olds, at 27.5%.
In light of growing local and international competition, the rise of ‘pure players’, the temptations to look elsewhere are increasing. Building customer loyalty has therefore become more challenging than ever. What’s more, whether people are effectively e-shoppers or not, looking up information and comparing online has become a part of our consumer habits and the FMCG sector is no exception. Nevertheless, this behaviour is much stronger in the e-shoppers, as 63% of them search for information before purchasing consumer products, as opposed to 49% for the respondents who shop mainly in stores.
Currently, the physical store remains the primary place for inspiration, hence the importance of offering a truly differentiating consumer experience that is consistent with other distribution channels.
Belgians still like advertising circulars, but for e-shoppers, Google, the social networks and Amazon have become essential and the voice search is on its way to playing the same role.
The websites where people like to shop
In the South, Amazon and the websites of the major supermarket chains are the big winners. This is different in the North, where Bol.com is a big hit. It is true that Bol.com has invested heavily in innovation in order to more closely imitate the Amazon model. There is, for example, ‘Bespaar Continu’, the service for automatically ordering regular purchases, which is available on the website and the app, as well as evening delivery between 6 p.m. and 10 p.m.
The terms of delivery, specifically, the prices and turnaround times, are certainly one of the key factors for a successful digital transformation.
In conclusion, the online channel is favoured for its ‘functional’ characteristics such as timesaving, convenience, and sometimes cheaper prices. Consumers have become ‘omnichannel’ and make their decisions with care. They expect an in-store experience that has more to do with the sense of enjoyment.
‘The price, the online or in-store experience, the ability to transform points of sale into places for experiencing connection, and the agility to reconcile data are essential criteria for consumers today’, explains Noelle Stevens, Trade Marketing Director IPG Mediabrands.