Digital Shopping: What You Need to Consider

Success in the digital shopping environment requires a deep understanding of shopper needs and the ability to effectively deliver products to consumers. The digital revolution has transformed industries like music, books and travel almost entirely because e-commerce solutions delivered shopper needs in ways that traditional channels couldn’t match. Are consumer packaged goods (CPG) next in line? Further, is technology a friend or a foe to retailing in CPG? This paper provides a thorough assessment of the impact of digital on the CPG industry, and outlines key principles for marketing success in a world where digital is the new normal. While we acknowledge that both shopper understanding and economic considerations dictate success in the digital world, this paper focuses primarily on the former: the shopper, their category needs, and the digital touch points that influence their behavior. Digital technology is widely pervasive today and will only continue to grow at a rapid pace into the future. For example, over 117 million people own smartphones, and approximately 80 percent of them use these devices for shopping activities like finding stores, making lists, checking prices, researching products, sharing content, and purchasing (Nielsen Mobile Shopping Report, Q1 2012; Nielsen Mobile Panel, 2012). Amidst these activities, people seek to satisfy three fundamental needs when they shop: convenience, choice, and value. We believe that product category characteristics will interact with these fundamental needs and influence digital sales of CPG products.