Last month, I highlighted a report from Nielsen about how more CPG manufacturers are marketing and selling directly to consumers, often online. Additional data from Catapult Marketing explains which consumers are purchasing CPG online and how marketers can successfully increase sales.
While online shopping is commonplace among most age groups, the Catapult Marketing data notes some key differences. Consumers under the age of 34 patronized nearly all, 19 out 21, of the e-tailers included in the study. But older consumers, those over age 35, only shopped at 6 of these establishments. In addition, consumers who earn over $100,000 annually are notably more likely to shop online for CPG.
Consumers with higher incomes are looking for an extensive selection of products and want the convenience of home delivery for items such as wine and fine chocolates. Having children living at home is another key factor related to a high rate of online shopping for CPG. These households purchase the following product categories online:
- Office/school supplies 50%
- Face care products 48%
- Hair care products 47%
- Household cleaning supplies 37%
- Oral care products 34%
Contrary to popular belief, Amazon does not dominate in all online categories. WalMart appeals to value shoppers and Target.com has built a following among new mothers.
To compete in this marketplace, CPG companies must understand how consumers are shopping specific categories and which consumers are likely to buy the products online. The next step in the process is to form partnerships with e-tailers or enter into the space with a solid marketing plan for reaching consumers directly.
[Source: Edwards, Angela. Key Distinctions Among CPG E-shoppers: Study. Etailing solutions. 23 Jun. 2011. Web. 13 Jul. 2011]