Table of Contents
Executive Summary
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- Top takeaways
- Impact of COVID-19 on household care eCommerce
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- Figure 1: Short-, medium- and long-term impact of COVID-19 on household ecommerce, August 2020
- Opportunities and Challenges
- A historic migration to online retail
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- Figure 2: Change in online shopping for household products, June 2019 and June 2020
- There’s an opportunity to attract more seniors to eCommerce
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- Figure 3: Buy online more often because of COVID-19 concerns, by age, June 2020
- A blurring of the lines between big and small
- Purely online brands will gain exposure
- A packaging renaissance will make household products more shippable
- Shipping costs are still a barrier
- Reaching full eCommerce potential means closing the digital divide
- Brick & mortar private labels have opportunity online
The Market – Key Takeaways
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- The impact of COVID-19 on household eCommerce
- eCommerce will outgrow retail
- Policy shifts will close the digital divide
Impact of COVID-19 on Household eCommerce
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- Figure 4: Short-, medium- and long-term impact of COVID-19 on household ecommerce, August 2020
- Lockdown
- Reemergence
- Recovery
- COVID-19: US context
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Market Factors
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- Extraordinary economic pain
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- Figure 5: Unemployment, January 2007-June 2020
- Figure 6: Financial health, by household income, July 15-July 22, 2020
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- Figure 7: Spending habits – higher priority, July 15-July 22, 2020
- eCommerce will outgrow retail
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- Figure 8: Total US retail ecommerce sales and forecast, at current prices, 2015-25
- Policy shifts will close the digital divide
Market Opportunities
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- Keep the momentum
- Prepare for a new era of voice-driven shopping
Companies and Brands – Key Takeaways
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- Packaging innovations align with growing eCommerce demand
- Big manufacturers explore DTC
- Walmart looks to challenge Amazon Prime
- Private labels have online growth potential
- Purpose-driven eCommerce gets a boost
Competitive Strategies
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- Packaging innovations align with growing eCommerce demand
- DTC models and packaging offer areas of innovation
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- Figure 9: Truman’s cartridge-based spray cleaner systems and laundry pods
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- Figure 10: Amazon’s Clean Revolution surface cleaner
- Figure 11: Percentage of shopping done online, pre-COVID and during COVID, June 2020
- Big manufacturers explore DTC
- Clorox focuses on in-house DTC development
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- Figure 12: Clorox Objective supplement brand
- P&G and SC Johnson are well positioned
- Mass merchandisers also push into DTC
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- Figure 13: Driving factors for in-store DTC visits, by age, November 2019
- Beyond DTC, private labels have online growth potential
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- Figure 14: Multi-outlet percent growth of household surface cleaners, by leading companies, rolling 52 weeks 2019
- Walmart looks to challenge Amazon Prime
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- Figure 15: Online retailers for household products, June 2020
- Purpose-driven ecommerce gets a boost
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- Figure 16: Screen capture showing Unilever’s COVID-19 relief efforts
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- Figure 17: Lysol Facebook video demonstrating how germs are spread
The Consumer – Key Takeaways
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- Trial of eCommerce leads to repeat purchases
- Brands should use safety to entice seniors online
- COVID-19 will reshape long-term shopping behaviors
- Consumers shop their consciences in a crisis
- Income still determines who shops online
- The pandemic has created more “entry level” eCommerce shoppers
Online Shopping Frequency and Interest in eCommerce
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- Household products have become part of consumers’ lifestyle strategy
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- Figure 18: Spending habits – higher priority, June 25-July 7, 2020
- Consumers already buying online show a marked shift in channel preference
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- Figure 19: Household product shopping habits by channel, June 2019 and June 2020
- Age and income are primary determinants for online shopping
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- Figure 20: Purchase of household products by channel, by age and income, June 2020
- Paper is the top category for home delivery
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- Figure 21: Purchase of household products by channel, by product category, June 2020
- Trial of eCommerce leads to repeat purchases
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- Figure 22: Trial and interest in shopping online among in-store shoppers, June 2020
- Brands should use safety to entice seniors online
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- Figure 23: Trial and interest in shopping online among in-store shoppers, by age, June 2020
Influence of COVID-19
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- COVID-19 will reshape long-term shopping behaviors
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- Figure 24: Changes in shopping behavior due to COVID-19, June 2020
- Consumers shop their consciences in a crisis
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- Figure 25: Interest in buying household brands that support coronavirus relief efforts, by generation, June 2020
- Even big brands can help by thinking small and local
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- Figure 26: Mentions of #supportsmallbusiness and #shoplocal on Instagram and Twitter, March 1-June 18, 2020
Online Channels Shopped
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- Amazon is biggest and growing the fastest
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- Figure 27: Online retailers shopped for household products, June 2020
Changes in Online Shopping
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- A historic jump to eCommerce
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- Figure 28: Change in online shopping for household products – 2019 vs 2020, June 2019 and June 2020
- Income still determines who shops online
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- Figure 29: Purchase household products online – more often, by age and income, June 2020
- The pandemic has created more “entry level” eCommerce shoppers
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- Figure 30: Purchase household products online – more often, by online shopping status, June 2020
Reasons for Shopping Online More Often
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- Safety has become the top eCommerce driver
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- Figure 31: Reasons for buying more household products online, June 2020
- Higher-income consumers are most likely to cite reduced shipping costs
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- Figure 32: Increased online shopping because shipping has become less costly, by household income, June 2020
- COVID-19 drives older consumers online
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- Figure 33: Buy online more often because of COVID-19 concerns, by age, June 2020
Attitudes and Behaviors toward Shopping Online
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- Improve the online shopping experience
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- Figure 34: Attitudes toward buying household care products online, June 2020
- A minority are willing to pay shipping costs
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- Figure 35: Willingness to pay more for home delivery, by age and income, June 2020
- Parents are most willing to pay delivery fees
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- Figure 36: Willingness to pay more for home delivery, by age of child, June 2020
- Online retailers make shopping lists easier
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- Figure 37: Most common behaviors when shopping in-store vs online, June 2020
- Consumers increase use of eCommerce to stock up
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- Figure 38: Stock-up and fill-in shopping behaviors, by channel, by age, June 2020
Factors to Encourage More Online Shopping
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- Cost and convenience are king
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- Figure 39: Factors that would increase online shopping, June 2020
- Younger consumers want convenience benefits
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- Figure 40: Convenience factors that would increase online shopping, by generation, June 2020
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- Figure 41: Factors that would increase online shopping, by channel, June 2020
Interest in Innovations
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- The internet remembers, and that can be a good thing
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- Figure 42: Interest in ecommerce innovations, June 2020
- New innovations should be targeted toward seniors
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- Figure 43: Interest in ecommerce innovations - any agree, by generation, June 2020
- Parents are the most enthusiastic about convenience
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- Figure 44: Interest in ecommerce innovations – any agree, by age of child, June 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Abbreviations and terms
- Abbreviations
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