The COVID-19 pandemic has caused global consumers to heavily lean into e-commerce, as markets around the globe continue to see material rises in online fast-moving consumer goods (FMCG) sales. As consumer demand continues to shift online, Nielsen experts took the opportunity at the recent FutureCommerce360 Conference to highlight the need for manufacturers and retailers to retool their e-commerce strategies in order to win the online war.
Speaking at the conference, Ji Hyuk Park, Nielsen Global E-Commerce Solution Leader Asia, highlighted three core strategies that are critical to winning in e-commerce: increasing traffic, increasing conversion rates and increasing basket size.
“To succeed online, FMCG players must redefine categories based on changing consumer behaviour, focus on growing their online channels, simplify consumer decisions through unit price transparency, engage shoppers through real-time interaction and, finally, understand the importance of premium and offer exclusive assortment experiences online,” he said.
Didem Sekerel Erdogan, Senior Vice President Intelligent Analytics, APAC EEMEA was also present at the event, who noted that FMCG organisations can no longer afford to ignore their e-commerce strategies. In the U.S., the share of online FMCG increased 6 points to 15%, while the share in Mexico has increased 9 percentage points to 12% since this time two years ago. The share in China and South Korea has increased 5 and 4 percentage points to 30% and 22%, respectively. In Sekerel Erdogan’s home country of Turkey, the online share of FMCG has increased by 2 percentage points to 4% during the course of the pandemic.
“Just as organizations have invested in retail analytics for their brick-and-mortar businesses, they should do the same with their online businesses as our studies in North America indicate that consumer behaviour differs online and offline,” said Sekerel Erdogan.
“For example, our analytics show that online shoppers are more price sensitive, and are more likely to change their minds due to price when shopping online compared to if they are in store. They also tend to pay less online for the same products, and gravitate towards large size products online as they are less expensive.”
Nielsen was the official research partner for FutureCommerce360 Conference, which was held virtually this year on 5 November 2020. The conference featured more than 500 key decision makers from Turkey’s retail and consumer product sectors.