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Where are the growth opportunities for natural products online?
By Bill Bishop Chief Architect, Brick Meets Click
September 16, 2015
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Digital transformation
The focus is on e-tailing but the whole
shopping experience is changing.
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Digital expands the possibilities
Shop online
and pick up
in-store
Shop in-store,
order and have
delivered
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Online grocery is gaining share
in certain markets
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Increase of 1-2% same store sales
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Look through
new lenses
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1. Online growth is driven by local conditions.
2. In-store shopping occasions
don’t work online.
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Growth of online grocery in any
specific market is driven by 3 factors
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1. Expanded AVAILABILITY
2. Wider ATTRACTION
3. Greater AFFORDABILITY
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Defining online shopping occasions
Online Shops
Full basket
Partial
Targeted
In-store Trips
Stock up
Routine
Fill-in
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Online occasion #1: Full Basket Shop
These shopping occasions
• Are large because of the fees.
• Typically includes full range of HH needs.
• Are really about planned/long-list shopping.
Natural products online opportunity
Endless aisle Part of the regular assortment
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Online occasion #2: Partial Basket Shop
These shopping occasions
• Can be a subscription or “one off”.
• Frequently are built around themes such as
local, artisan, gluten-free, etc.
• Include high priority, routinely-purchased
products.
Natural products online opportunity
Part of the regular assortment Endless aisle
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Natural products online opportunity
Part of the regular assortment
As a compliment to an in-store purchase As an ingredient
Online occasion #3: Targeted Shop
These shopping occasions
• Are typically only for a few items.
• Two different goal/objectives: • Expanded access i.e. items not found in-store or cheaper
than in-store (Abe's Markets or Amazon).
• Immediate convenience i.e. advance orders for prepared
food or services like meal kits.
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• Target the intersection of where consumers are blending
shopping and lifestyle.
• Leverage the advantage of being an “on trend” smaller
brand.
• Focus on opportunities within the online shopping
occasions.
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Searching out the
opportunities
Here’s what you can do
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