From a consumer perspective, the online grocery experience is broken. While an increasing majority of consumers are shopping based on lifestyle choices and wellness needs (up 15% over the last two years), online retailers aren’t making it easy for them to find products that meet their criteria.
Traditionally, household cleaners have not been required to disclose ingredients on-package. But now that California has passed the California Cleaning Products Right to Know Act, all cleaning products sold in the state of California, which is currently most of the market, must disclose ingredients on-package and digitally. As a result, consumers are not as familiar with these ingredients, leading to confusion and apprehension as some household cleaning products have unrecognizable and often intimidating chemical names.
As COVID-19 cases rise again, it’s clear there will be a lasting impact on the way consumers grocery shop online. According to a survey through IRi, 35% of consumers are proactively taking care of their physical and emotional health more now versus before COVID-19. For CPG brands and retailers, there is an immense opportunity to capitalize on the demands of these consumers and provide product transparency, not only increasing e-commerce product discoverability and revenue, but also encouraging customer loyalty and trust in a time of uncertainty.
Grocery e-commerce is witnessing massive shifts in consumer behavior. While grocery shopping was almost entirely brick-and-mortar as little as five years ago, innovations in fulfillment, such as same-day delivery and click-and-collect, have made grocery e-commerce more attractive. The number of households ordering groceries online has risen over 145% from August 2019 to March 2020, and 43% of households surveyed said they are either extremely likely or very likely to stick with online grocery buying even after the current pandemic is over. But grocery brands are leaving money on the table by not optimizing their CPG product listings according to the way consumers are searching.
87% of food products fail to claim 1 of their 3 most searched attributes. By not claiming the qualifying attributes, such as gluten-free, non-GMO, keto, etc., beyond the label, brands and retailers are delivering a broken search experience, eroding consumer trust and failing to capitalize on millions of attribute-based shopping trips. Powering 99% of all consumer attribute-based keyword searches, our Explore Market Navigator solution helps brands improve the discoverability and e-commerce sales of existing products while providing the online consumer search data, competitive insights and top trending product attributes to launch new, on-trend products efficiently.
Approximately 1 out of 5 products online fail to include critical information including nutrients, ingredients, and warnings according to a recent audit of grocery e-commerce sites. By not delivering this information, retailers are providing a broken experience for consumers searching for products based on their needs and missing out on potential sales. In primary research Label Insight conducted with the Food Marketing Institute (FMI) last year, 44% of shoppers said a food allergy, sensitivity, or intolerance affects the way they shop, and 49% adhere to a diet or health-related eating program. In a refreshed study to be published later this month, we’ve seen those figures continue to grow as high as 55% and 65% respectively. Now, more than ever, consumers are craving clarity and detailed product information to fulfill their diverse preferences when grocery shopping online.
As consumers increasingly move online to buy groceries, fresh food products still represent a unique challenge for grocery retailers. According to a survey by Mintel, just one in ten Americans reports having bought fresh produce, meat, poultry, and fish through e-commerce with a majority of respondents pointing to a lack of trust in freshness, food safety concerns, and an inability to see, touch, and sample the product. Historically, the lack of label information and data on these products has been a challenge for retailers. By leveraging the USDA’s Nutritional Database for Standard Reference (SR), we are excited to announce that Label Insight is now able to deliver nutrient and serving size information for any product with a standard Price Look-Up or PLU code. This new offering also enables retailers to expand attribution across these products, highlighting key standard and custom attributes such as “Organic”, “In-Season”, and “Dietitian’s Pick”.
Label Insight is dedicated to providing clients and partners with the opportunity to leverage their SmartLabel™ pages beyond a flexible regulatory compliance solution to engage, educate and inform consumers of any COVID-19 related information with our new healthy and safety banner. With the current coronavirus pandemic at the forefront of our minds, it’s not surprising that 91% of Americans are concerned about COVID-19 while 76% feel prepared to handle its impact on their lives. At Label Insight, we understand consumers are surrounded by COVID-19 information, but we also recognize the need for them to have the most up-to-date information readily accessible to further their preparedness.
Qu'est-ce que c’est SmartLabel™? (What is SmartLabel™?). We’ve been practicing our French at Label Insight to support our decision to expand into the Canadian market via a fully fledged SmartLabel™ solution.
Building customer loyalty through improved product transparency. As a fourth generation, family-owned company, Reily Foods takes pride in its long tradition of bringing family and friends together. Reily Food’s ability to deliver on this promise is founded in an unwavering commitment to quality that’s spanned over 100 years. While Reily’s commitment to quality has been unwavering over time, what it takes to deliver products of the highest quality has evolved. Recently, sustainability has emerged as an important element of quality at Reily Foods’ as the impact of climate change and socio-economic factors have come more into focus.