Ecommerce is a topic on everyone’s minds since it’s rapid acceleration in 2020.
Yes, confectionery is growing online, but the growth is not as seismic as seen in other categories. This is because ecommerce comes with as many challenges as it does opportunities. Many of the traditional ‘category’ management guidelines no longer apply; shelf space is a vastly different negotiation, product cues are less visible, and converting shoppers to purchase is a whole new landscape, one unfamiliar to many.
Traditional ‘check-out lane’ categories cannot enjoy the visibility online that they are used to in Bricks. So, what can traditional impulse categories do?
Winning visibility
Confectionery and other traditional Impulse categories naturally still consist of more unplanned shoppers than the average, so there is still a need to emphasise investments on-site.
What’s interesting is unplanned shoppers do not use the Search Function or the Specials Function as much as planned shoppers!
Instead, they tend to be the primary users of ‘exploratory functions’ – browsing ideas provided from retailers, using the discovery section, and looking through first-page deals. For Impulse categories specifically, 3 out of 4 unplanned online shoppers browsed the online catalogue!
Investing in exploratory functions will also kill two birds with one stone – traditional impulse category shoppers have significantly higher expectations on the enjoyment of shop (both versus their bricks counterparts, and the average online shopper). They want to be inspired and excited, through theatre and innovation.
KEY TAKEOUT: Confectionery shoppers are still unplanned and are still browsing – capture their attention through exploratory functions.
Reposition our thinking
Shoppers have varying mindsets when shopping different categories, but they also have varying mindsets when shopping different channels and platforms. For example, in the USA, “Impulse” in eCommerce does not refer to confectionery but refers to the Health/Beauty/Baby departments, Florals, General Merchandise and Alcohol.
Similarly in Australia, our program finds that:
Online shoppers are buying traditional Impulse categories for casual gatherings and planned special events – more than the Bricks Impulse shoppers, and much more than the average online shopper.
There is a sense of urgency: 3 out of 4 Impulse category online shoppers are buying for a particular occasion for today.
With this, there is already more planning online of Impulse categories vs in Bricks. It’s clear that there is a need to expand (or even re-define) the definition of “Impulse categories” online. But the headline for confectionery is that we need to reposition our mindset to reflect our shoppers: from being an Impulse category to being on the shopping list.
How can we achieve that?
Ensure product range and innovation meets their expectations:
Impulse category online shoppers’ top desired improvement is for a better product range to suit their all their needs, followed by more innovation. Digital offers opportunities to do this easier than in Bricks – we are not limited to physical space, so focus on keeping up the excitement within the category. Expand your portfolios to include specific occasion-based SKUs and other novelties.
Cater to immediate consumption:
Shoppers are actively moving online for convenience reasons even if there is a ‘need ASAP’ mindset – to work with this, have a strong delivery plan: click & collect, rapid delivery, flexible delivery time slots, and be punctual. For example, online chocolate shoppers say delivery time slots are the most important delivery aspect to them – more so than delivery costs.
KEY TAKEOUT: Have social indulgence occasions in mind and cater to their urgency.
Adjust to their mindset
Adjusting to the shopper mindset requires us to understand what attitudes they hold, so that we can lead with the right messaging. For example, it’s not prices that are a standout for online Impulse category shoppers, but sustainability (“minimal harm to the environment and is made/sourced ethically”), innovation, and product range at the focal point more than with Bricks shoppers.
Action: Shout out sustainability credentials, innovate and improve environmental friendliness of packaging, and elevate product attributes and benefits in your online comms. Invest in personalized offers that relates to your shoppers’ attitude mindset online.
KEY TAKEOUT: Lead with the right messaging that relates to your shoppers’ attitude mindset online.
Confectionery may not yet be riding the swell of eCommerce, but it can. Do not think eCommerce will put a hold on confectionery; instead, proactively gain insights and understand your shoppers’ mindset before diving into your category plans and strategy.
Talk to Shopper intelligence to get the insights you need.
Data: Shopper Intelligence AU, Online Grocery, Jun-Sep 2021
This article was originally published in Retail World Magazine and reposted here with permission.