How to Compete With Online Food Sales?

Traditional food manufacturers find that online shopping can result in more impulse purchases than in-store shopping.

August 02, 2018

ALEXANDRIA, Virginia – Long-popular snack and candy makers are finding that last-minute and impulse purchases at checkout now compete with online shopping, according to a report at Fooddive.

As online shopping goes mainstream, manufacturers no longer can count on a captive in-store audience to help make their numbers, and savvy companies are seeking ways to capture spontaneous buys in the digital marketplace.

Values that drive in-store shopping behaviors often differ from Internet motivators. They also vary across the various ecommerce shopping paths, such as supermarket websites, mobile apps, e-grocery sites and direct-to-consumer platforms.

“Regardless of where the shopping trip ends, the search now begins in digital, most often in the palm of the consumer’s hand,” said Doug Straton, chief digital commerce officer for Hershey. “The way people purchase our category is evolving.”

This can be both good and bad. On one hand, digital touch points give products new opportunities to gain consumer mindshare, but on the other, the Internet's wide array of trendy, new merchandise can entice consumers away from established brands.

Online shoppers can be even more impulsive than in-store shoppers, and “they're far more open-minded to how many brands can fulfill their needs," said Jordan Rost, vice president of consumer insights at Nielsen. “They have so much more choice, and the ability to jump between brands has really enabled them to explore a bit more.”

In fact, Nielsen data shows that shoppers are 5% more likely to make an impulse grocery purchase online than inside a store. Snacks in categories such as crackers and popcorn, and chips and pretzels, enjoy 14.4% and 13.7% more buys online than in a retail environment, respectively.

Companies are searching for a solution, and some experts believe the answer is a compelling digital substitute that delivers a sense of immediacy and excitement, such as an engaging video, recipe or even a related meme at checkout that consumers can share on social media.

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