Two separate things When we worked on our extensive project on Brand Purpose (1), we reached the conclusion that there is often a large amount of...
Will shopping really mean ‘home delivery’ by 2025?
Following on from IKEA’s Kitchen of the Future we ask what is the one major hurdle that needs to be overcome in order for online grocery shopping to become the default?
“I’m not sure that online grocery shopping will become the default, as shopping is an entertainment activity for some consumers and shops are a socialisation place. Although, for growing online shopping, I can see two major hurdles. Firstly, a product availability close to 100% (how frustrating is it when something you order isn’t delivered because of shortage). Secondly, price parity with physical shopping, as a shopper will always consider their time spent shopping as free time, so no reason for being charged for saving this time.” Matthieu Meheut, international marketer in FMCG and retail industries
“A critical point from the consumer point of view is that the delivery can happen when they want it (within 30 minutes) anytime they want it. Grocery shopping be like ordering a pizza (you know it’ll be there when you need it and not when you’re at work)” Paul Gribbell, senior international business leader
“The biggest hurdle is the experience of not being in control when selecting the final product, for example being able to compare items with others, read labels etc. So a virtual shopping tour in real-time with available products without the queuing and other less positive experiences could be a solution.” Herma Rothfusz, a specialist in ice cream, beverages and out-of-home channels
“Home delivery is difficult in urban areas (a big issue in Moscow) so more online grocery shopping with fixed pick up points would make better alternatives. Security of payment can also be a hurdle (in emerging countries, this was a big issue in Russia). The social function of shopping is still an issue – for a lot of people it is still a a nice trip for example the elder generation and families with young children.” Elsbeth Schipper, market research specialist
“Simple question hard answer….. I guess the highest barrier today is that we still love to see, touch and pick food ourselves; we are not driven by pure convenience when we do food shopping.
Possible enablers could be:
- larger assortments
- personalisation of offers i.e. my grocer knows what brand a consumer buys, how ripe their bananas should be etc
- facilitators in terms of shopping lists i.e. multiple family members can add to a wish list
- anticipation of needs for example a connection with a smart fridge to list automatically what’s missing
This of course all needs to be with immediate or planned delivery.” Licia Allara, market research specialist
So, how will brands prepare?