Nielsen report: E-commerce driving sales
“The formula for growth is simple. There’s really only three levers you can pull — find new buyers, get your buyers to spend more and/or raise prices,” said Chris Morley, president of fast-moving consumer goods, or FMCG, and retail at Nielsen. “But talk to most retailers and FMCG companies today, and they’ll tell you that growth is increasingly hard to find.”
But there’s good news coming from e-commerce, according to the recent Nielsen report, “Total Consumer Report.” New consumers are entering the market who are willing to pay a premium to get what they want — when they want it. That’s one reason e-commerce has been enjoying a strong uptick in sales.
“While e-commerce represents, at best, roughly a third of category sales, it’s growing so rapidly across FMCG that it’s contributing significantly to growth,” Morley said. “For edible categories, more than half of all growth is coming from e-commerce. For personal care, e-commerce is driving [more than] 80% of growth. The story for pet care is even more dramatic, where 90% of total growth is coming from e-commerce.”
One white space opportunity addressed by Morley is subscription services. “Meal kits are clearly leading in their ability to drive value from subscription services, with 84% of online meal kit buyers purchasing via subscription,” he said. “As we’ve seen with eyeglasses and mattresses, consumers are open to new choices that deliver better-quality, more convenient products for less,” he noted. “To consumers, all of this choice used to be overwhelming. But now, with the phones in our hands, the next best brand or retailer is always a swipe away.”
DSN inaugural healthcare industry survey assesses data needs
Drug Store News in May conducted a survey of healthcare industry professionals to determine views about existing data management practices and future needs across the sector.
Working with the Hamacher Resource Group, DSN analyzed more than 300 responses from its readers on topics such as market conditions, investment and acquisitions, industry initiatives and general retail pharmacy operations. Some of the key insights DSN found in its inaugural State of the Industry survey include:
- Regarding technology and data-driven solutions, respondents were most interested in the following six areas: Item set-up and ordering system, point-of-sale support, ecommerce or online shopping, warehouse management, space management and virtual store experience.
- Regarding the development, maintenance and auditing of brand-related content, there was no consistency among the functional areas responsible for management and oversight, suggesting that it requires dedicated attention.
- Although there is no disagreement about accuracy of product-related information being essential, the importance of each element varies by its intended use or audience.
- Nearly two-thirds of survey respondents suggested that the need for accurate product data had increased during the previous 12 months.
- Despite concern regarding data integrity, 37% of respondents reported no structured approach to auditing or monitoring brand-related content and approximately one in four reviewed brand representation quarterly or less.
- Regarding future data needs, the answers varied widely, but emerging themes included a focus on shoppers having immediate access to information and personal interactions with data and content.
Click here to view the entire report.