Table of Contents
Executive Summary
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- Three in 10 consumers don’t use online channels for product discovery
- Word of mouth is leading consumers to add to cart
- Online product discovery isn’t always intentional
- Grocery stores can potentially turn online browsers into buyers
- Rural consumers are learning about food and drink products on Amazon
- Online food and drink retailers should be putting together family-friendly offerings
- Beauty products retailers need to be clear about functionality
- Make it easy and convenient for consumers to get what they want
- Consumers want a better idea of what products look like
- Consumers need to trust who they’re buying from and what they’re buying
Key Drivers – What You Need to Know
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- Online shopping is becoming universal
- Proliferation of smartphones spurs mobile product discovery
- Consumers are learning about new products through online ads
- Social media’s impact on online product discovery
What’s Driving Online Product Discovery?
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- Nearly everyone is shopping online
- Younger consumers are shopping online more frequently
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- Figure 1: Online Shopping frequency, by generation, March 2017
- Proliferation of internet-connected smartphones
- Apps, apps, everywhere
- A quarter of consumers learning about new products from digital ads
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- Figure 2: Attitudes toward digital ads – mobile. social, video, June 2017
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- Figure 3: Attitudes toward mobile ads, by age, June 2017
- More outlets are available to find product content than ever before
- Social media’s impact on online product discovery
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- Figure 4: Social media usage – Facebook, by generation, February 2018
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- Figure 5: Social media usage – YouTube, by generation, February 2018
- Figure 6: Social media usage – Instagram, by generation, February 2018
Overview of Motivators and Challenges for Online Product Discovery
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- Amazon and Walmart invest in online grocery
- Subscription boxes introduce shoppers to unfamiliar products
- Consumers aren’t convinced they can find the freshest foods online
- Online food and drink and beauty products retailers will encourage sampling
Motivators of Online Product Discovery
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- Apps are making it easier for shoppers to find new products and quickly
- Subscription boxes and meal kits are making it easier to try new products
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- Figure 7: Beauty subscription box, by age, February 2018
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- Figure 8: Online food/drink subscription box usage, by generation and area, February 2018
- Amazon and Walmart expand online grocery efforts
- Ulta, Sephora lead the charge to reach new beauty products consumers
- Shoppable recipes
Challenges of Online Product Discovery
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- Consumers still aren’t convinced they can find the freshest food online
- Retailers aren’t providing consumers with enough images online
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- Figure 9: Attitudes toward online shopping, February 2018
- Consumers are having difficulty finding products online
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- Figure 10: Attitudes toward finding products online – difficult to find products, need more product images/videos, by generation, February 2018
- Online retailers haven’t yet fully earned consumers’ trust
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- Figure 11: Reasons for not adding a beauty or food and drink product to an online shopping cart, by age and area of residence, February 2018
Future of Online Product Discovery
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- Online shoppers will be able to see food products before completing a purchase
- Voice-based online ordering
- Brands and retailers will continue to invest in augmented and virtual reality technologies
- More sampling to encourage product trial
- Online visibility into local store inventory
The Consumer – What’s Happening
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- Consumers generally enjoy shopping online and trying new products
- Younger consumers favor beauty subscription boxes
- Consumers aren’t buying fresh food products online
- Young adults consider themselves to be trendsetters
- Women are more likely to buy online to avoid going to the store
- Men are drawn to premium food and drink products, women tend to shop for need and value
Attitudes Toward Online Shopping
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- Consumers enjoy shopping online and trying new products
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- Figure 12: Attitudes toward shopping, February 2018
- Younger consumers consider themselves to be trendsetters
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- Figure 13: Attitudes toward online shopping – first among friends to try new products, by gender and age, February 2018
- Consumers have concerns about the safety and freshness of products purchased online
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- Figure 14: Attitudes toward online shopping – concerns about freshness, safety, by gender and by age, February 2018
Online Product Discovery – Food and Drink
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- Grocery sites outpace Amazon for food/drink product discovery
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- Figure 15: Channels for online food/drink discovery, February 2018
- Consumers are more likely to turn to grocery retailer websites than food shopping apps
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- Figure 16: Channels for online food/drink discovery – Grocery retailer website, Amazon.com, and Food shopping app, by generation, February 2018
- Parents use a variety of online channels to learn about food/drink products
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- Figure 17: Channels for online food/drink discovery, by parental status, February 2018
- Younger consumers are finding food and drink products on social media
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- Figure 18: Social media channels used for food/drink product discovery, by age, February 2018
- Suburban, rural consumers are looking to Amazon to learn about food and drink products
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- Figure 19: Channels used for food/drink product discovery, by area of residence, February 2018
How Consumers Shop for Food and Drink
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- In-store remains preferred method of food/drink shopping
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- Figure 20: Method of shopping for food/drink products, February 2018
- Men, younger consumers, and urban residents are more likely to shop for food and drink online
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- Figure 21: Method of shopping for food/drink products – fresh items, by gender, age, area, February 2018
- Shelf stable items see higher purchase incidence online
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- Figure 22: Method of shopping for food/drink products – shelf stable items, by gender, age, area, February 2018
- Parents report shopping for food/drink products online more than non-parents
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- Figure 23: Method of shopping for food/drink products, by parental status, February 2018
- Dads are more likely than others to shop for food and drink online
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- Figure 24: Method of shopping for fresh food/drink products, by gender and parental status, February 2018
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- Figure 25: Method of shopping for shelf stable food/drink products, by gender and parental status, February 2018
- Cost savings, convenience key
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- Figure 26: Reasons for buying food or drink products online vs. in-store, February 2018
- Older, higher income consumers are more likely to buy online to find what they are looking for
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- Figure 27: Reasons for buying food/drink online vs. in-store – to find a specific item, by household income, February 2018
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- Figure 28: Reasons for buying food/drink online vs. in-store – to find a specific item, by age, February 2018
- Women are more motivated than men to buy online to avoid stores
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- Figure 29: Reasons for buying food/drink online vs. in-store – to avoid going to a store, by gender and age, February 2018
- Moms buy online to save time, avoid going to the store
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- Figure 30: Reasons for buying food/drink online vs. in-store – to save time, avoid going to a store, by gender and parental status, February 2018
New Product Trial – Food and Drink
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- Online is gaining ground when it comes to selling consumers on unfamiliar products
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- Figure 31: Willingness to try new products by channel, February 2018
- Younger men report buying new products online more frequently than others
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- Figure 32: Willingness to try new products online, by gender and age, February 2018
- Household income does not directly correlate to new product trial
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- Figure 33: Willingness to try new products online, by household income, February 2018
How Shoppers Learned About the Last Food/Drink Product They Bought Online
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- Recommendations, being in a consumer’s online purchase path are key
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- Figure 34: influencers of last online food/drink purchase, February 2018
- Traditional influences are still ultimately driving online food and drink purchases
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- Figure 35: Influencers of last online food/drink purchase – recommendation, retailer website, brand website, by gender, by age, February 2018
- Younger consumers respond more favorably to ads on social media and recommendations from others
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- Figure 36: Influencers of last online food/drink purchase – social media ad, recommendation from friend or family, by generation, February 2018
- Hispanic food and drink consumers are motivated by online product reviews, desire to try specific brands
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- Figure 37: Influencers of last online food/drink purchase –recommendation from friend or family, online product review, interest in brand, by Hispanic origin, February 2018
Online Shopping Cart Behavior – Food and Drink
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- Reasons for adding new food/drink products to cart
- Make it look tasty
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- Figure 38: Reasons for adding food/drink products to online shopping carts, February 2018
- Younger consumers are drawn to products that look fun and exciting
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- Figure 39: Reasons for adding food/drink products to online shopping carts – exciting, fun, packaging, by age, February 2018
- Men seek premium and high quality products, while women are drawn to value, need
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- Figure 40: Reasons for adding food/drink products to online shopping carts – good value, high quality, unique, need, premium, by gender, February 2018
- Rural consumers swayed by products perceived as good value, urbanites swayed by products signalling premium and high quality
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- Figure 41: Reasons for adding food/drink products to online shopping carts – good value, high quality, need, premium, by area of residence, February 2018
- Reasons for not adding new food/drink products to carts
- Price, product quality rank as top online shopper concerns
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- Figure 42: Reasons for not adding food/drink products to online shopping carts, February 2018
- Higher-income consumers are deterred by concerns about shipping, product quality
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- Figure 43: Reasons for not adding food/drink products to online shopping carts – quality of products and shipping concerns, by household income, February 2018
- Women want more information about food and drink products
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- Figure 44: Reasons for not adding food/drink products to online shopping carts – price, lack of information, can’t sample, too many choices, by gender, February 2018
Online Product Discovery – Beauty Products
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- No one single online channel dominates overall
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- Figure 45: Online tools that beauty consumers use to discover products, February 2018
- Moms likely to learn about beauty products on Amazon and Facebook
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- Figure 46: Online tools that beauty consumers use to discover products – Amazon, Facebook, by parental status, February 2018
- YouTube, Instagram prove popular with younger consumers and Hispanic consumers
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- Figure 47: Social media tools used to discover beauty products – Amazon, Facebook, Instagram, by age, February 2018
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- Figure 48: Online retailers and social media tools used to discover beauty products, by Hispanic origin, February 2018
- Younger, urban consumers are actively reading articles about beauty
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- Figure 49: Online tools that beauty consumers use to discover products – beauty blog/vlog and beauty magazines, February 2018
How Consumers Shop for Beauty Products
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- Consumers are more likely to shop for beauty products online than food and drink products
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- Figure 50: Net method for shopping for beauty and food and drink products in-store vs. online, february 2018
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- Figure 51: method of shopping for beauty products, February 2018
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- Figure 52: Method of shopping for specific beauty products – online, by age and Hispanic origin, February 2018
- Beyond price, finding a specific product and better product selection are key to getting shoppers to buy online
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- Figure 53: Reasons for buying beauty products online vs. in-store, February 2018
- Suburban, rural consumers are more likely to go online to find a specific item
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- Figure 54: Reasons for buying beauty products online vs. in-store – to find a specific item, by area of residence, February 2018
- Subscription boxes appeal to younger women
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- Figure 55: Reasons for buying beauty products online vs. in-store – to try subscription box, saw product video, by age, February 2018
- Moms place stock in product recommendations, product videos
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- Figure 56: Reasons for buying beauty products online vs. in-store – saw suggested product, saw product video, by parental status, February 2018
New Product Trial - Beauty
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- Figure 57: Willingness to try new beauty products, by channel, February 2018
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How Shoppers Learned About the Last Beauty Product They Bought Online
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- Recommendations from friends and family, accidental product discovery are most common
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- Figure 58: influencers of last beauty product purchased online, February 2018
- Online beauty consumers trust the recommendations of those they know
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- Figure 59: Influencers of last beauty product purchased online – recommendation from friends/family, retailer’s website, brand’s website, by age, February 2018
- Younger consumers are more influenced by social media ads
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- Figure 60: influencers of last beauty product purchased online – brand’s website, social media ad, saw someone using it online, by age, February 2018
- Hispanic beauty consumers are more likely to go directly to a site to find what they’re looking for
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- Figure 61: influencers of last beauty product purchased online – retailer’s website, social media ad, brand’s website, by Hispanic origin, February 2018
Online Cart Behavior - Beauty
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- Need, value drive consumer behavior when it comes to beauty products
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- Figure 62: Reasons for adding a beauty product to an online shopping cart, February 2018
- Quality packaging, trendy appearance entice younger consumers
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- Figure 63: Reasons for adding a beauty product to an online shopping cart – unique, exciting, trendy, good in the packaging, by age, February 2018
- Hispanic beauty consumers value unique, trendy beauty products
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- Figure 64: Reasons for adding a beauty product to an online shopping cart – trendy. exciting, unique, by Hispanic origin, February 2018
- Reasons for not adding beauty products to carts
- Price, uncertainty about product functionality and quality deter online beauty consumers
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- Figure 65: Reasons for not adding a beauty product to an online shopping cart, February 2018
- Price is more likely to be an online deal breaker for younger consumers
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- Figure 66: Reasons for not adding a beauty product to an online shopping cart – price, shipping concerns, trust, by age, February 2018
- Consumers are turned off by low quality product images
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- Figure 67: Reasons for not adding a beauty product to an online shopping cart – unclear product images, by age and household income, February 2018
- Rural, suburban consumers have more concerns about beauty product functionality
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- Figure 68: Reasons for not adding a beauty product to an online shopping cart – product efficacy, product quality, by area of residence, February 2018
Future Drivers of New Product Trial Online
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- Price isn’t everything when it comes to getting a consumer to buy a new product online
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- Figure 69: Factors influencing new product trial, February 2018
- Women value free shipping, user reviews, refund policy when buying a new product online
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- Figure 70: Factors influencing new product trial, by gender, February 2018
- Younger consumers want it fast, while older consumers need to trust where they are buying from
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- Figure 71: Factors influencing new product trial – user reviews, trust in retailer, refund policy, product guarantee, fast delivery, by age, February 2018
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Abbreviations
- Terms
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