Table of Contents
Executive Summary
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- Better late than never
- The issues
- Most household consumers are strictly in-store shoppers
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- Figure 1: Buy household products online vs in-store, June 2019
- Many consumers still prefer the in-store experience
- Some consumers have concerns about packaging integrity
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- Figure 2: Attitudes towards online household products shopping, June 2019
- The opportunities
- Household ecommerce has a strong value proposition
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- Figure 3: Actual online purchase experience vs desire to buy online in the future, by product category, November 2018
- Make ecommerce the choice for economizing consumers
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- Figure 4: Reasons for buying more household products online, June 2019
- Create packaging that is protective, standardized and environmentally friendly
- What it means
The Market – What You Need to Know
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- eCommerce is outpacing traditional retail
- Household products have the largest gap between desire to buy online and actual online purchase
- Parents will drive household ecommerce
Market Factors
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- eCommerce is outpacing traditional retail
- Household products still have untapped potential online
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- Figure 5: Rate of online vs in-store purchase by product category, November 2019
- Household products have the largest gap between desire to buy online and actual online purchase
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- Figure 6: Actual online purchase experience vs desire to buy online in the future, by product category, November 2018
- Parents will drive household ecommerce
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- Figure 7: Interest in bundling online purchases of household products with other categories – Any agree (net), by age of children, June 2019
Key Players – What You Need to Know
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- Private labels from online retailers will be a game changer
- Packaging manufacturers are starting to address the problem
- Brands using a subscription-based refill model are also driving packaging innovation
- Better shipping and more sustainable packaging
- Create a more compelling online product presentation
Who’s Innovating?
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- Private labels from online retailers will be a game changer
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- Figure 8: Interest in buying toilet paper online if there were no shipping costs, by age and income, November 2018
- Packaging for efficient shipping is a top innovation area
- Packaging manufacturers are starting to address the problem
- Brands using a subscription-based refill model are also driving packaging innovation
- Better shipping and more sustainable packaging
- P&G’s Tide is taking a cue from beverage dispensing
- Create a more compelling online product presentation
- Cleaning for a new baby…and a better life
- Contextual shopping will play a growing role
The Consumer – What You Need to Know
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- Younger consumers and parents shop online the most
- Mobile shopping has become a preferred method of buying online
- Smart speakers will be the next frontier in online ordering
- Amazon drives ecommerce
- Nearly half of consumers are increasing their household ecommerce
- Convenience and savings top the list for reasons for buying more online
- About one in four consumers are concerned about breakage in shipping
- Bigger discounts and reduced fees would encourage more online shopping
- Innovations for greater speed and efficiency rank highly
Online Shopping Frequency and Interest in eCommerce
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- Fast growth, but much untapped potential
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- Figure 9: Shopping for household products online vs in-store, June 2019
- Younger consumers and parents shop online the most
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- Figure 10: Shopping for household products online vs in-store, by age, June 2019
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- Figure 11: Shopping for household products online vs in-store, by age of children, June 2019
- Parents are the segment that most wants to switch to ecommerce
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- Figure 12: Experience and future intention to buy household products online, by parental status, June 2019
- Consumers choose paper and aircare the most for home delivery
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- Figure 13: Shopping behavior by household care category, June 2019
Device Usage
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- Mobile shopping has become a preferred method of buying online
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- Figure 14: Internet connected device – Personal and household ownership, by generation, May 2018
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- Figure 15: Buy household products with a smartphone, by age, June 2019
- Smart speakers will be the next frontier in online ordering
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- Figure 16: Online purchase of household products by device usage, June 2019
Online Channels Shopped
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- Amazon drives ecommerce
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- Figure 17: Online purchase of household products by channel, June 2019
- Higher-income shoppers are more likely to shop Amazon and online warehouse stores
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- Figure 18: Online purchase of household products by channel, by age and income, June 2019
Drivers of Online Shopping
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- Nearly half of consumers are increasing their household ecommerce
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- Figure 19: Change in online shopping compared to last year, household products vs all ecommerce, June 2019 and November 2018
- Who is increasing their online purchases?
- Consumers under age 55 are increasing online purchases at roughly the same rate
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- Figure 20: Change in online household product shopping compared to last year, by age, June 2019
- Middle-class consumers are also buying more online
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- Figure 21: Change in online household product shopping compared to last year, by household income, June 2019
- Parents of older children are increasing online purchases the most
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- Figure 22: Change in online household product shopping compared to last year, by age of children in the house, June 2019
Reasons for Shopping Online More Often
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- Convenience and savings top the list for reasons for buying more online
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- Figure 23: Reasons for buying more household products online, June 2019
Attitudes and Behaviors toward Shopping Online
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- It’s still important to see products in person
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- Figure 24: Attitudes toward online household product shopping, June 2019
- Older consumers like to see products before buying; younger consumers like the in-store experience
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- Figure 25: Attitudes toward in-store shopping, by age, June 2019
- About one in four consumers are concerned about breakage in shipping
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- Figure 26: Concerned about failed packaging, by age, June 2019
- Younger consumers are more experimental online shoppers
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- Figure 27: Habitual vs experimental household product shoppers, by age and gender, June 2019
- Finding the deal is the top online behavior
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- Figure 28: Online shopping behaviors, June 2019
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- Figure 29: Online vs in-store shopping behaviors, June 2019
- Online retail is used for both stocking up and filling in
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- Figure 30: Stock-up vs fill-in shopping online, by age and income, June 2019
Factors that Would Encourage More Online Shopping
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- Bigger discounts and reduced fees would encourage more online shopping
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- Figure 31: Factors that would encourage more online shopping, June 2018
- Pocketbook-related factors are the most actionable for online retailers
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- Figure 32: TURF Analysis – Factors that would encourage more online shopping, June 2019
- Methodology
Interest in Innovations
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- Innovations for greater speed and efficiency score highly
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- Figure 33: Interest in innovations, June 2018
- Children drive interest in convenience innovations
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- Figure 34: Interest in innovations – Strongly agree, by age of children, June 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Abbreviations and terms
- Abbreviations
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