The Food and Drink Shopper: Spotlight on Technology - US - November 2016

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
The issues
The majority of respondents prefer to personally select their own food and drink
Figure 1: Barriers to entry, August 2016
27% of shoppers still want assistance from store clerks
Figure 2: Attitudes toward technology and shopping – Store clerk, August 2016
Shoppers are slow to adopt food/drink delivery options
Figure 3: Attitudes toward technology and shopping – Delivery/pick-up, August 2016
The opportunities
Cost savings leads interest in technology, followed by time savings
Figure 4: Desired benefits of technology, August 2016
Money savings websites and retailer sites lead types of tech used
Figure 5: Food and drink shopping technology usage and awareness – Currently using, August 2016
Consolidation of services may improve stickiness
What it means
THE MARKET - WHAT YOU NEED TO KNOW
Adoption of online shopping grows, but food/drink categories are not as quick to benefit
Food/drink shoppers are growing accustomed to alternative channels
Women and Millennials control a large share of food/drink shopping responsibility
Smartphone ownership and app usage suggest opportunity for mobile engagement
MARKET PERSPECTIVE
Food and drink sales move beyond the grocery store
Consumers continue to adopt online shopping
Barriers remain for online food/drink purchase, but online share is expected to grow
Figure 6: Categories avoided in online shopping, April 2016
Expansion of foodservice delivery could help normalize online food/drink shopping
MARKET FACTORS 
Women represent the majority of primary shoppers
Figure 7: Grocery shopping responsibility, by gender, August 2016
Millennials make up 40% of primary grocery shoppers
Figure 8: Grocery shopping responsibility, by generation, August 2016
Mobile carries a third of online sales
Figure 9: US mobile shopping sales vs online shopping sales via desktop, 2014 and 2016
81% of consumers have smartphones
Figure 10: Mobile device ownership, August 2016
Three quarters of consumers use mobile apps daily
Figure 11: Time spent using mobile apps, July 2016
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Amazon keeps innovating
Walmart prioritizes the development of online resources
Third party food/drink delivery providers continue to gain investor support
Consolidation of services may improve stickiness
WHAT’S WORKING?
Amazon keeps innovating
Figure 12: Extent of online shopping conducted on Amazon, April 2016
Grocery retailers are boosting their online presence
Walmart prioritizes development of online resources, customer service
Food delivery providers gain investor support
WHAT’S STRUGGLING?
Food and drink shopping tech misses the why
Figure 13: Food and drink launches, by share of leading claims, 2012 and 2016
Tech needs to push beyond inconvenience
WHAT’S NEXT?
Consolidation can boost convenience
Consumers like to reap rewards
Emphasizing relevance through personalization
Figure 14: Attitudes toward technology and shopping – Push notifications, August 2016
Figure 15: Attitudes toward technology and shopping – Push notifications, by generation, August 2016
Encouraging connection
Figure 16: App download inspirations, July 2016
Engage through empowerment
THE CONSUMER – WHAT YOU NEED TO KNOW 
71% of food and drink shoppers use tech as part of their shopping experience
Money savings websites and retailer sites lead types of tech used
Cost savings is the strongest driver of technology usage
Barriers to utilization largely tie to a comfort with the status quo
Shoppers are still slow to adopt food/drink delivery options
FOOD AND DRINK SHOPPING TECHNOLOGY USAGE AND AWARENESS 
71% of food and drink shoppers use tech as part of their shopping experience
Half of food and drink shoppers use tech while in the store
Figure 17: Technology used when shopping for food and drink – NETs, August 2016
Money savings websites and retailer sites lead usage
Figure 18: Food and drink shopping technology usage and awareness – Currently using, August 2016
Interest in delivery/mobile pay still challenged
Figure 19: Food and drink shopping technology usage and awareness, August 2016
Men are more likely than women to order for delivery/pick-up
Figure 20: Technology used when shopping for food and drink – Delivery/pick-up, by gender, August 2016
Women are more likely to use traditional sites, men get onboard in-store
Figure 21: Food and drink shopping technology usage and awareness – Currently using, by gender, August 2016
iGens/Millennials most likely users of shopping technology
Figure 22: Technology used when shopping for food and drink – NET*, by generation, August 2016
Figure 23: Food and drink shopping technology usage and awareness – Currently using, by generation, August 2016
Eight in 10 Asian shoppers use tech when shopping for food/drink
Figure 24: Technology used when shopping for food and drink – NET*, by race, August 2016
White and Asian shoppers are most likely to use food/drink shopping tech
Figure 25: Food and drink shopping technology usage and awareness – Currently using, by race, August 2016
High earners are primary users of technology
Figure 26: Food and drink shopping technology usage and awareness – Currently using, by HH income, August 2016
Key driver analysis – Likelihood of in-store purchase
Consumers under the age of 55 who earn $75K+ are most likely to use tech while in-store
Figure 27: Key drivers of use of technology in-store, August 2016
Key driver analysis – Likelihood of delivery
Urban dwellers under the age of 45 who earn $100K+ are most likely to use grocery delivery services
Figure 28: Key drivers of use of technology for delivery, August 2016
WHAT FOOD AND DRINK SHOPPERS WANT FROM TECHNOLOGY
Cost savings leads interest in technology, followed by time savings
Figure 29: Desired benefits of technology, August 2016
Women are particularly money conscious
Figure 30: Desired benefits of technology, by gender, August 2016
Food/drink tech can help newer shoppers learn about products
Figure 31: Desired benefits of technology, by generation, August 2016
Younger shoppers are interested in help making responsible choices
Figure 32: Desired benefits of technology – Responsibility, by generation, August 2016
Delivery and food management could appeal to Hispanic shoppers
Figure 33: Desired benefits of technology, by Hispanic origin, August 2016
Interest in money savings is not limited to lower earners
Figure 34: Desired benefits of technology, by HH income, August 2016
Parents seek help with making healthy choices/meal planning
Figure 35: Desired benefits of technology – Information, by parental status, August 2016
BARRIERS TO USING FOOD/DRINK SHOPPING TECH
The majority of respondents prefer to pick out their own food and drink
Figure 36: Barriers to entry, August 2016
27% of shoppers still want human interaction
Figure 37: Attitudes toward technology and shopping – Store clerk, August 2016
A quarter of shoppers agree self-checkout can be a hassle
Figure 38: Attitudes toward technology and shopping – Self checkout, August 2016
Men are not as particular about picking out their own items
Figure 39: Barriers to entry, by gender, August 2016
Reminding young people to use the technology available will be key
Figure 40: Barriers to entry, by generation, August 2016
Time appears as a barrier for some of the most time-strapped shoppers
Figure 41: Barriers to entry, by employment status, August 2016
Figure 42: Barriers to entry, by parental status, August 2016
Asian shoppers don’t want to be bombarded with offers, but are OK with social sharing
Figure 43: Barriers to entry, by race, August 2016
DELIVERY/PICK-UP
Non-perishables lead delivery/pick-up
Boosting delivery/pick-up participation may come from a focus on hard-to-find items
Figure 44: Food and beverages purchased for deliver/pick-up, August 2016
Free delivery would only sway a third of shoppers
Figure 45: Attitudes toward technology and shopping – Delivery/pick-up, August 2016
Price incentive plays a stronger role for women
Figure 46: Attitudes toward technology and shopping – Delivery/pick-up, by gender, August 2016
Millennials are willing to pay for delivery
Figure 47: Attitudes toward technology and shopping – Delivery/pick-up, by generation, August 2016
Three in 10 consumers worry about the quality of delivered goods
Figure 48: Attitudes toward technology and shopping – Delivery concerns, August 2016
Figure 49: Attitudes toward technology and shopping – Delivery concerns, by gender, August 2016
Figure 50: Attitudes toward technology and shopping – Delivery concerns, by race, August 2016
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Consumer qualitative research
Key driver analysis methodology
Interpretation of results – Use of technology while in-store
Figure 51: Key drivers of use of technology in-store – Key driver output, August 2016
Interpretation of results – Use of technology for delivery
Figure 52: Key drivers of use of technology for delivery – Key driver output, August  2016
Abbreviations and terms
Abbreviations
APPENDIX – KEY PLAYERS 
Figure 53: Food and Drink launches, by leading claims, 2012-16*