How Online Shopping for VMS is Evolving for Consumers - US - December 2019

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
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
Figure 1: VMS shopping methods – in-store only, by age, July 2019
Online retailers must contend with the power of Amazon
Figure 2: Online retailers shopped for VMS, July 2019
Competitive price is key for luring VMS consumers to online purchases
Figure 3: Encouragement for shopping for VMS online, July 2019
The opportunities
Vitamins are the gateway to online purchasing
Figure 4: VMS products purchased online, July 2019
Bundled household purchases can encourage online VMS sales
Figure 5: Interest in future online VMS shopping, by age, July 2019
Turn online research into online purchase
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
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
Consumers are generally comfortable purchasing online, but VMS needs a push
Figure 7: Frequency of online shopping, July 2019
Figure 8: Online purchases, by category, November 2018
VMS well suited to join rise of ecommerce
Figure 9: Estimated total US retail sales growth vs online sales growth, by quarter, Q3 2018-Q3 2019
MARKET FACTORS 
Path to online purchase increasingly complex
Parents key target for convenience of VMS online
Figure 10: VMS shopping methods, by parental status, July 2019
KEY PLAYERS – WHAT YOU NEED TO KNOW 
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
Many forms of customization
Customized (magic) pill
Customized product assortment
Figure 11: Ads for supplements with curated product assortment, Hum Nutrition
Customized individual daily packets
Figure 12: Ads for personalized DTC supplements, Care/of and Persona
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
Innovative in-store wellness experiences may cause roadblocks to online purchase
WHAT TO WATCH
Curated wellness websites offer potential
Demand for sustainable packaging increasing
Supplement-centric retailers undergo major transformations
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 
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 
Nearly half of VMS consumers seek products strictly in-store
Figure 16: VMS shopping methods, July 2019
Older adults more attached to in-store experience
Figure 17: VMS shopping methods, by age, July 2019
Parents are key demographic
Figure 18: VMS shopping methods, July 2019
VMS PRODUCTS PURCHASED ONLINE
Vitamins are the gateway to online VMS purchase
Figure 19: VMS products purchased online, July 2019
Vitamin consumers show high rates of online purchase
Figure 20: VMS products purchased online, July 2019
RETAILERS SHOPPED 
Many include VMS in one-stop shopping experience
Figure 21: Traditional retailers shopped for VMS, in-store and online, July 2019
Mass merchandisers can leverage cross-category one-stop shopping
Figure 22: In-store retailers shopped for VMS, July 2019
Amazon dominates online shopping for VMS products
Figure 23: Online retailers shopped for VMS, July 2019
VMS RESEARCH AND SHOPPING HABITS
Research is key to increasing online VMS sales
Figure 24: VMS research and shopping habits, July 2019
INITIAL ONLINE SHOPPING MOTIVATIONS
Price breaks lead initial purchase motivations
Figure 25: Initial online VMS shopping motivations, July 2019
VMS shopper preferences differ from other online categories
REASONS FOR BUYING VMS ONLINE 
Let’s make a deal
Figure 26: Reasons for buying online VMS online, July 2019
Lower prices key for older consumers
Figure 27: Lower prices as reason for buying VMS online, by age, July 2019
Routine could hook certain younger consumers
Figure 28: Automatic reorder as reason for buying VMS online, by age, July 2019
FACTORS THAT WOULD ENCOURAGE MORE ONLINE SHOPPING
Lower prices are the biggest influencer
Figure 29: Encouragement for shopping for VMS online, July 2019
Beyond price, selection and convenience will please the most online VMS shoppers
Figure 30: TURF Analysis – Online VMS shopping, July 2019
 ATTITUDES TOWARD VMS SHOPPING
Many consumers want to avoid the guesswork
Figure 31: Attitudes toward VMS shopping, July 2019
Selection is key in shopping channel choice
Figure 32: Influence of brand selection on VMS shopping channel choice, by VMS shopping methods, July 2019
Technology alluring to younger consumers
Figure 33: Select attitudes toward VMS shopping, voice tech, by age, July 2019
Younger consumers most likely to rely on expert advice
Figure 34: Select attitudes toward VMS shopping, by gender and age, July 2019
INTEREST IN FUTURE ONLINE SHOPPING
Over half won’t budge; online VMS not for them
Figure 35: History of and future interest in online shopping for VMS, July 2019
Parents more open to potential of online VMS shopping
Figure 36: Interest in future online shopping for VMS, by parental status, July 2019
Hispanic consumers more open to buying VMS online
Figure 37: Interest in future online shopping for VMS, by Hispanic origin, July 2019
BARRIERS TO PURCHASING VMS ONLINE 
Experience deprivation is the main hindrance to increased online purchase
Figure 38: Barriers to shopping for VMS online, July 2019
VMS SUBSCRIPTION SERVICE PARTICIPATION
Use of subscription services niche, but shows potential
Figure 39: Participation in VMS subscription service, July 2019
Men more apt to seek subscription services; women offer untapped potential
Figure 40: Participation in VMS subscription service, by age and gender, July 2019
The jury is out on automatic reorder
Figure 41: VMS subscription service options, July 2019
Some consumers can be persuaded
Figure 42: Likelihood of future participation in VMS subscription service, July 2019
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Abbreviations and terms
Abbreviations
APPENDIX – THE CONSUMER 
Figure 43: Repertoire of retailers shopped online, July 2019
Figure 44: Repertoire of retailers shopped in-store, July 2019
Figure 45: Table – TURF Analysis – Online VMS shopping, July 2019
TURF Methodology