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.
E-comm & Omnichannel at Label Insight: Here at Label Insight, we have been working with retailers to manage their product data since our founding in 2008. Recently, we expanded our offering to include solutions that leverage LI high-order-attriibutes (HOAs) to power search and filter tools that increase engagement in omnichannel experiences.
A lot of interesting news coming out in November around E-commerce and Omnichannel. We've worked to curate and summarize the following important news events to help you to keep on top of what's going on in this space. Market dynamics: The market continues to evolve with growth in e-commerce being represented across the market in actual results as well as continued investment in e-commerce and omnichannel infrastructure. Retaildive.com: Walmart e-commerce sales soar 43% Walmart released their Q3 results with impressive growth across the board, but of particular interest for us is the considerable growth in e-commerce. "Q3's impressive performance continues to validate Walmart's long-term investment strategy, with solid revenue and operating margin growth, as well as online sales growth of 43% continuing to exceed the company's stated goal for 2018," Progressivegrocer.com: Grocerys directive - onmichannel or bust Coming out of the hugely successful Grocerhop event, this post highlights some of the key takeaways. Understanding your market is key to creating an experience that draws people to your stores. “Grocery has a built-in opportunity to be multi-sensory,” said Vicki Eikelberger, SVP and managing director of multidimensional brand experience firm Big Red Rooster. To create a rich shopper experience, Chicago-area grocery chain Mariano’s Fresh Market, part of The Kroger Co.’s Roundy’s subsidiary, hires its associated from foodservice, hospitality, healthcare and academia, explained Don Fitzgerald, the retailer’s group VP of merchandising and marketing. Supermarketnews.com: Retailer jostle to lead online grocery Amazon’s pricing edge in online grocery is narrowing as Walmart and subsidiary Jet.com have closed the gap. E-commerce analyst Profitero, in its latest “Price Wars” report, found Jet.com and Walmart the lowest in price relative to Amazon in online grocery. The study had Jet at a price index of just 0.6% higher than Amazon, while Walmart was 2.5% higher. International: Increasingly we're seeing implementations internationally leading the way in regards to the future of e-commerce and omnichannel. The article below is a great deep dive in to some of the exciting things going on in China. Definitely worth keeping an eye on these developments as a way to look at the future of e-commerce from a completely different perspective. Forbes.com: The future of e-commerce and retail will be written in china Alibaba’s high-tech food/grocery retail store concept, known as Hema, is expanding quickly. These outlets serve as walk-in restaurants, food and grocery purchase points, and warehouses for online delivery (within 30 minutes in a three-kilometer radius) – all at the same time. There are now 64 Hema stores in operation, with two being added each week. Already, Hema stores in operation for over 18 months are reporting revenues of RMB50k per square meter, up to five times what traditional offline stores can generate. Sixty percent of Hema’s sales are through the online delivery channel, making the stores far more productive, for far more hours of the day, than pure offline stores. User Experience: We have made the argument several times that we believe that the future of e-commerce and omnichannel will depend on the evolution of the user experience (UX). In November 2018 there was a lot of news related to UX evolution. Winsightgrocerybusiness.com: Target bests Walmart and Kroger in seamless shopping experience study In an evaluation of how well three leading national retailers deliver a seamless grocery shopping experience, Barrington, Ill.-based Brick Meets Click found Target beating out both Walmart’s and Kroger’s respective omnichannel platforms. Supplychainbrain.com: Amazon's latest crusade in the grocery delivery wars - thanksgiving dinner Online sales of food, beverages, soap, shampoo, pet food and other items routinely sold in supermarkets will reach $177bn in 2022, doubling this year’s $88bn, according to Cowen & Co. That will make online grocery a bigger market than electronics and toys combined. Progressivegrocer.com: Kroger launches voice assistant ordering grocery e-commerce The Kroger Co. is furthering its efforts in contextual commerce by adopting voice-assistant technology for ordering groceries online. Customers can interact with their Kroger Grocery Pickup cart via an action in the Google Assistant voice app – which can be accessed through iOS, Android and Google Assistant devices, Kroger Technology announced on its LinkedIn page.Activating the service is as simple as saying "Hey, Google" into the device. Supermarketnews.com: Customers were top of mind in Raley's redesigned website Raley’s has revamped its website with a new look and more personalization to provide an enhanced customer experience. “We understand that customers’ needs are changing whether shopping online or in-store,” Mike Molitor, vice president of e-commerce and loyalty at Raley’s, said in a statement. “Our goal is to make it easier and more compelling for customers to interact with online shopping and our savings program, Something Extra.” Automated Fulfillment - Robots and Automation: A hot topic at the moment are the movements around automated fulfillment as a way to solve logistics challenges and essentially viability of investments in e-commerce. Designnews.com: Next year let robots do your thanksgiving shopping Takeoff is partnering with a number of supermarkets to launch the robotic picking of groceries. Albertsons is in the pilot phase of the micro-fulfillment center concept using Takeoff’s artificial intelligence capabilities to pick and pack groceries with an automated system. The pilot makes Albertsons the first national grocer to implement an automated eCommerce fulfillment solution. Albertsons expects to begin testing the robots with customers in 2019. DCvelocity.com: Kroger picks cincinnati for first grovery e-commerce Grocery shoppers in Cincinnati will soon be able to order their fruits and veggies online, thanks to a highly automated warehouse planned by supermarket chain the Kroger Co. and its automation partner, Ocado Group plc, the firms said today.Cincinnati-based Kroger announced last month that it had agreed to order three of those customer fulfillment centers (CFCs) by the end of 2018 and a total of 20 CFCs over the first three years of the partnership. Opinion: Forbes.com: Needing to touch and feel groceries is like believing the earth is flat "A note of caution for those who attribute our low online grocery figures to consumers’ desire to touch and feel products before buying. That argument has been made by skeptics many times before – think clothing, footwear, beauty or mattresses. E-commerce, however, grows quickly as the breadth and simplicity of offerings rises. When digital ordering, pickup and delivery become easy and affordable, consumers migrate to these options. Convenience is an incredibly powerful motivator, no matter what the category." Zia Daniell Wigder, Groceryshop 2018 __________________________________________________________________________________________________________________ Want to keep on top of news and views from around the industry and the latest developments in attribute driven e-commerce & Omnichannel experiences? Subscribe
In 2019, we have a goal to work towards joining the thought leadership conversation in the area of E-commerce & Omnichannel. This conversation is already taking place on properties such as (to mention a few places where we see interesting content):
This post kicks off a regular series to capture and curate news that we find relevant to the future of attribute driven E-commerce & Omnichannel experiences.
In the last post of this series, we discussed the need for a dynamic taxonomy to power search across the omnichannel experience. If this future was to exist, it would be interesting to understand what effect this would have on the concept of a single source of truth - the apparent holy grail of product data management. To explore this topic we will need to first cover where we are at right now in regards to maintaining a single source of truth for our product data. We can then consider the future needs which we discussed both here and here, with the aim of overlaying where we are at with where we need to go to see whether a single source of truth is viable going forward.
Static data standards: Over the last decade, there has been a lot of talk about a single source of truth and creating data standards to match. However, during this period we have seen data fragmentation at an unprecedented scale. For any single product, there are hundreds if not thousands of data endpoints all being powered by different data sources with different needs and different levels of accuracy and currency. To say that brands have lost control of their product data would be a dramatic understatement.
Scientists lead search demand When Label Insight first began working with the FDA in 2008, our core use case was powering more detailed search. Fast forward 10 years - e-commerce and robust search has become critically important and, surprisingly, FDA scientists are still leading the way in regards to deep search demand.