Evolving eCommerce: Household Care: Incl Impact of COVID-19 - US - August 2020

OVERVIEW
What you need to know
Key issues covered in this Report
Definition
COVID-19: Market context
EXECUTIVE SUMMARY 
Top takeaways 
Impact of COVID-19 on household care eCommerce
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
Figure 2: Change in online shopping for household products, June 2019 and June 2020
There’s an opportunity to attract more seniors to eCommerce
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 &amp; mortar private labels have opportunity online
THE MARKET – KEY TAKEAWAYS 
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
Figure 4: Short-, medium- and long-term impact of COVID-19 on household ecommerce, August 2020
Lockdown
Reemergence
Recovery
COVID-19: US context
MARKET FACTORS 
Extraordinary economic pain
Figure 5: Unemployment, January 2007-June 2020
Figure 6: Financial health, by household income, July 15-July 22, 2020
Figure 7: Spending habits – higher priority, July 15-July 22, 2020
eCommerce will outgrow retail
Figure 8: Total US retail ecommerce sales and forecast, at current prices, 2015-25
Policy shifts will close the digital divide
MARKET OPPORTUNITIES
Keep the momentum
Prepare for a new era of voice-driven shopping
COMPANIES AND BRANDS – KEY TAKEAWAYS 
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
Packaging innovations align with growing eCommerce demand
DTC models and packaging offer areas of innovation
Figure 9: Truman’s cartridge-based spray cleaner systems and laundry pods
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
Figure 12: Clorox Objective supplement brand
P&amp;G and SC Johnson are well positioned
Mass merchandisers also push into DTC
Figure 13: Driving factors for in-store DTC visits, by age, November 2019
Beyond DTC, private labels have online growth potential
Figure 14: Multi-outlet percent growth of household surface cleaners, by leading companies, rolling 52 weeks 2019
Walmart looks to challenge Amazon Prime
Figure 15: Online retailers for household products, June 2020
Purpose-driven ecommerce gets a boost
Figure 16: Screen capture showing Unilever’s COVID-19 relief efforts
Figure 17: Lysol Facebook video demonstrating how germs are spread
THE CONSUMER – KEY TAKEAWAYS  
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 
Household products have become part of consumers’ lifestyle strategy
Figure 18: Spending habits – higher priority, June 25-July 7, 2020
Consumers already buying online show a marked shift in channel preference
Figure 19: Household product shopping habits by channel, June 2019 and June 2020
Age and income are primary determinants for online shopping
Figure 20: Purchase of household products by channel, by age and income, June 2020
Paper is the top category for home delivery
Figure 21: Purchase of household products by channel, by product category, June 2020
Trial of eCommerce leads to repeat purchases
Figure 22: Trial and interest in shopping online among in-store shoppers, June 2020
Brands should use safety to entice seniors online
Figure 23: Trial and interest in shopping online among in-store shoppers, by age, June 2020
INFLUENCE OF COVID-19
COVID-19 will reshape long-term shopping behaviors
Figure 24: Changes in shopping behavior due to COVID-19, June 2020
Consumers shop their consciences in a crisis
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
Figure 26: Mentions of #supportsmallbusiness and #shoplocal on Instagram and Twitter, March 1-June 18, 2020
ONLINE CHANNELS SHOPPED 
Amazon is biggest and growing the fastest
Figure 27: Online retailers shopped for household products, June 2020
CHANGES IN ONLINE SHOPPING 
A historic jump to eCommerce
Figure 28: Change in online shopping for household products – 2019 vs 2020, June 2019 and June 2020
Income still determines who shops online
Figure 29: Purchase household products online – more often, by age and income, June 2020
The pandemic has created more “entry level” eCommerce shoppers
Figure 30: Purchase household products online – more often, by online shopping status, June 2020
REASONS FOR SHOPPING ONLINE MORE OFTEN
Safety has become the top eCommerce driver
Figure 31: Reasons for buying more household products online, June 2020
Higher-income consumers are most likely to cite reduced shipping costs
Figure 32: Increased online shopping because shipping has become less costly, by household income, June 2020
COVID-19 drives older consumers online
Figure 33: Buy online more often because of COVID-19 concerns, by age, June 2020
ATTITUDES AND BEHAVIORS TOWARD SHOPPING ONLINE
Improve the online shopping experience
Figure 34: Attitudes toward buying household care products online, June 2020
A minority are willing to pay shipping costs
Figure 35: Willingness to pay more for home delivery, by age and income, June 2020
Parents are most willing to pay delivery fees
Figure 36: Willingness to pay more for home delivery, by age of child, June 2020
Online retailers make shopping lists easier
Figure 37: Most common behaviors when shopping in-store vs online, June 2020
Consumers increase use of eCommerce to stock up 
Figure 38: Stock-up and fill-in shopping behaviors, by channel, by age, June 2020
FACTORS TO ENCOURAGE MORE ONLINE SHOPPING
Cost and convenience are king
Figure 39: Factors that would increase online shopping, June 2020
Younger consumers want convenience benefits
Figure 40: Convenience factors that would increase online shopping, by generation, June 2020
Figure 41: Factors that would increase online shopping, by channel, June 2020
INTEREST IN INNOVATIONS
The internet remembers, and that can be a good thing
Figure 42: Interest in ecommerce innovations, June 2020
New innovations should be targeted toward seniors
Figure 43: Interest in ecommerce innovations - any agree, by generation, June 2020
Parents are the most enthusiastic about convenience
Figure 44: Interest in ecommerce innovations – any agree, by age of child, June 2020
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Abbreviations and terms
Abbreviations