Table of Contents
Executive Summary
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- Top takeaways
- Many remain loyal to in-store VMS shopping
- Multivitamins are the gateway
- Provide personalized, informed experience
- The issues
- Many consumers shop VMS exclusively in-store
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- Figure 1: VMS shopping methods – in-store only, by age, July 2019
- Online retailers must contend with the power of Amazon
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- Figure 2: Online retailers shopped for VMS, July 2019
- Competitive price is key for luring VMS consumers to online purchases
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- Figure 3: Encouragement for shopping for VMS online, July 2019
- The opportunities
- Vitamins are the gateway to online purchasing
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- Figure 4: VMS products purchased online, July 2019
- Bundled household purchases can encourage online VMS sales
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- Figure 5: Interest in future online VMS shopping, by age, July 2019
- Turn online research into online purchase
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- Figure 6: I shop online because that is where I research these products, by age, July 2019
- What it means
The Market – What You Need to Know
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- Consumer comfort with online shopping bodes well for VMS
- VMS well suited to join rise of ecommerce
- Path to online purchase increasingly complex
- Parents key target for convenience of VMS online
Market Perspective
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- Consumers are generally comfortable purchasing online, but VMS needs a push
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- Figure 7: Frequency of online shopping, July 2019
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- Figure 8: Online purchases, by category, November 2018
- VMS well suited to join rise of ecommerce
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- Figure 9: Estimated total US retail sales growth vs online sales growth, by quarter, Q3 2018-Q3 2019
Market Factors
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- Path to online purchase increasingly complex
- Parents key target for convenience of VMS online
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- Figure 10: VMS shopping methods, by parental status, July 2019
Key Players – What You Need to Know
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- Many degrees of customization
- Online order perks from trusted brands can be tempting to some
- Innovative in-store wellness experiences may cause roadblocks to online purchase
- With high demand for discounts, profitability is a challenge
- Curated wellness sites offer potential for natural VMS products
- Demand for sustainable packaging increasing
- Supplement-centric retailers undergo major transformations
What’s Working
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- Many forms of customization
- Customized (magic) pill
- Customized product assortment
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- Figure 11: Ads for supplements with curated product assortment, Hum Nutrition
- Customized individual daily packets
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- Figure 12: Ads for personalized DTC supplements, Care/of and Persona
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- Figure 13: Ads for personalized DTC supplements, GNC 4U and Only Me
- Online order perks from trusted brands can be tempting to some
What’s Struggling
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- Innovative in-store wellness experiences may cause roadblocks to online purchase
What to Watch
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- Curated wellness websites offer potential
- Demand for sustainable packaging increasing
- Supplement-centric retailers undergo major transformations
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- Figure 14: GNC online ad spend share, by site, October-November 2019
- Figure 15: Vitamin Shoppe online ad spend share, by site, October-November 2019
The Consumer – What You Need to Know
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- Many VMS consumers are sticking to brick-and-mortar
- Vitamins are the gateway to online VMS Purchase
- Sacrificing expertise for convenience?
- Research-driven category well suited for ecommerce growth
- Price breaks lead initial purchase motivations
- Let’s make a deal
- Lower prices are biggest influencer
- Many consumers want to avoid the guesswork
- Over half won’t budge; online VMS not for them
- Experience is main hindrance to increased online purchase
- Use of subscription services niche, but shows potential
VMS Shopping Methods
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- Nearly half of VMS consumers seek products strictly in-store
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- Figure 16: VMS shopping methods, July 2019
- Older adults more attached to in-store experience
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- Figure 17: VMS shopping methods, by age, July 2019
- Parents are key demographic
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- Figure 18: VMS shopping methods, July 2019
VMS Products Purchased Online
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- Vitamins are the gateway to online VMS purchase
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- Figure 19: VMS products purchased online, July 2019
- Vitamin consumers show high rates of online purchase
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- Figure 20: VMS products purchased online, July 2019
Retailers Shopped
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- Many include VMS in one-stop shopping experience
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- Figure 21: Traditional retailers shopped for VMS, in-store and online, July 2019
- Mass merchandisers can leverage cross-category one-stop shopping
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- Figure 22: In-store retailers shopped for VMS, July 2019
- Amazon dominates online shopping for VMS products
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- Figure 23: Online retailers shopped for VMS, July 2019
VMS Research and Shopping Habits
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- Research is key to increasing online VMS sales
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- Figure 24: VMS research and shopping habits, July 2019
Initial Online Shopping Motivations
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- Price breaks lead initial purchase motivations
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- Figure 25: Initial online VMS shopping motivations, July 2019
- VMS shopper preferences differ from other online categories
Reasons for Buying VMS Online
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- Let’s make a deal
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- Figure 26: Reasons for buying online VMS online, July 2019
- Lower prices key for older consumers
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- Figure 27: Lower prices as reason for buying VMS online, by age, July 2019
- Routine could hook certain younger consumers
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- Figure 28: Automatic reorder as reason for buying VMS online, by age, July 2019
Factors that Would Encourage More Online Shopping
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- Lower prices are the biggest influencer
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- Figure 29: Encouragement for shopping for VMS online, July 2019
- Beyond price, selection and convenience will please the most online VMS shoppers
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- Figure 30: TURF Analysis – Online VMS shopping, July 2019
Attitudes toward VMS Shopping
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- Many consumers want to avoid the guesswork
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- Figure 31: Attitudes toward VMS shopping, July 2019
- Selection is key in shopping channel choice
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- Figure 32: Influence of brand selection on VMS shopping channel choice, by VMS shopping methods, July 2019
- Technology alluring to younger consumers
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- Figure 33: Select attitudes toward VMS shopping, voice tech, by age, July 2019
- Younger consumers most likely to rely on expert advice
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- Figure 34: Select attitudes toward VMS shopping, by gender and age, July 2019
Interest in Future Online Shopping
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- Over half won’t budge; online VMS not for them
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- Figure 35: History of and future interest in online shopping for VMS, July 2019
- Parents more open to potential of online VMS shopping
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- Figure 36: Interest in future online shopping for VMS, by parental status, July 2019
- Hispanic consumers more open to buying VMS online
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- Figure 37: Interest in future online shopping for VMS, by Hispanic origin, July 2019
Barriers to Purchasing VMS Online
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- Experience deprivation is the main hindrance to increased online purchase
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- Figure 38: Barriers to shopping for VMS online, July 2019
VMS Subscription Service Participation
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- Use of subscription services niche, but shows potential
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- Figure 39: Participation in VMS subscription service, July 2019
- Men more apt to seek subscription services; women offer untapped potential
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- Figure 40: Participation in VMS subscription service, by age and gender, July 2019
- The jury is out on automatic reorder
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- Figure 41: VMS subscription service options, July 2019
- Some consumers can be persuaded
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- Figure 42: Likelihood of future participation in VMS subscription service, July 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Abbreviations and terms
- Abbreviations
Appendix – The Consumer
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- Figure 43: Repertoire of retailers shopped online, July 2019
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- Figure 44: Repertoire of retailers shopped in-store, July 2019
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- Figure 45: Table – TURF Analysis – Online VMS shopping, July 2019
- TURF Methodology
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