The impact of the downturn has seen shoppers spending more time hunting around for bargains, looking for the best savings for their food and groceries.
However, shoppers are also claiming to lead busier lifestyles, looking for ways in which they can save time.
Michael Freedman, Senior Consumer Analyst at IGD, looks at what the future holds…
Online grocery shopping is seen by many as a way of saving time, according to many shoppers in our latest research, Online Shopping 2009. The number of people purchasing food or groceries online is growing at a fast rate, and is up by 63% since 2006 compared to 45% growth for those shopping online overall.
Many shoppers in our research valued the time saving benefits that they associated with online grocery shopping, such as travelling to and from the supermarket. Others commented on the advantages of online grocery shopping for busy mums with young children, who can to do more with their time. Some shoppers claimed they had turned to online grocery shopping as the experience of taking their young toddler around the supermarket was too much hard work.
“It probably takes me about half an hour online so it is obviously quicker than going shopping in-store. The amount of time and effort it takes going shopping is ridiculous really.”
Although 25-44 year olds with children are most likely to be shopping online for their groceries, it is also growing among other groups such as young couples with busy work lives.
A vote for diversity
It appears that more and more people are set to choose online shopping for their groceries. We predict further growth for online to almost double in size to £7.2bn by 2014, growing three times faster each year than the wider grocery sector.
However, when asked how people envisaged buying groceries in the next five to ten years, only 7% envisage doing all of their grocery shopping online, compared to 9% in 2007.
Instead there is an increased preference for mixing online with other channels. A third (34%) of the population plan to mix online with other channels compared to just a quarter (27%) who stated this in 2007.
Embracing technology for on-the-go shopping
One of the initiatives that may entice more customers to shop online in the future is embracing key developments in technology and shopping on-the-go (Source: IGD 10 for 2010).
A recent survey found that the average person in the UK spends nearly three days a month online, and seven hours on their mobiles (source:Mysupermarket.com). There is continual growth in mobile web browsing, driven by the growth in Wi-Fi connectivity from mobile devices, fast network access and increasingly sophisticated handsets.
Ocado recently launched an iPhone application allowing customers to do their shop whilst away from their computer. Within two months of launch this application had already accounted for 2% of sales. Tesco is also developing a number of iPhone applications.
However, most online shoppers in our latest research were satisfied with the way they currently shopped online through their PC and could not see a requirement to order by mobile phone.
This view was shared among non grocery online shoppers. Other perceived drawbacks of grocery shopping by mobile phone included:
- Small screen size
- Cost of using a mobile phone
- Length of time to shop by mobile
- Battery would run out
However, as with any new technology, there is likely to be greater appeal among consumers once awareness of the benefits is increased , e.g. accessing additional information on products, reading product reviews or even ordering grocery shopping on-the-go by mobile phone.
Added convenience and time-saving are key benefits of this technology. It will enable busy commuters to shop on the train, or housewives to rummage through their kitchen cupboards whilst adding to the order.
This technology will also open retailers' ranges to a new audience and help drive sales. Our research showed that younger consumers were most interested in using mobiles to order their groceries. As the new, younger, more application-savvy generation matures into regular grocery shoppers, these will no doubt hold more potential.
What does this mean for your business?
While the pace of technological innovation is rapid, industry needs to ensure shoppers are not left behind. It is therefore important to raise awareness of the benefits of any new applications.
Suppliers also need to understand how new technologies can work in their favour eg iPhone and applications that allow loyalty card information to be stored and updated on mobile phones, would enable them to send target ads and e-coupons to customers’ phones as they enter the store.
As well as focusing on new technologies, a balance needs to be struck between delivering consistency in the shopping experience across different channels, with the ability to tailor the approach for the online channel and take advantage of the distinct opportunities.
Michael Freedman, Senior Consumer Analyst at IGD, is an expert on shopper attitudes to food and retail-related issues, including, convenience, ethical consumerism, promotions and online shopping. He is a regular speaker at industry events and conducts qualitative and quantitative research, both commissioned and off-the-shelf
Related report: Online Shopping 2009
New research exploring how the internet is changing food and grocery retailing and marketing, now and in the future. To find out more and download your FREE extract go to the IGD website
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