The future of digital: what will flourish and what will fail?
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The future of digital: what will flourish and what will fail? June 2022 © 2022 Nielsen Consumer LLC. All Rights Reserved.
Table of contents
Introduction 3
Ecommerce snapshot 4
Digital market maturity 6
Growth factors 8
Where is investment taking place? 11
Barriers and enablers 23
Key considerations 25
2
© 2021 Nielsen Consumer LLC. All Rights Reserved.
The future of digital: what will flourish and what will fail?
Introduction
Follow the financial trail to see what the big FMCG players
Fast-tracked by the pandemic, ecommerce is on a steep upward
think the digital future holds in terms of products, supply
trajectory. Now, almost every FMCG retailer and brand, and most
chain, sales channels, delivery, business models and the
of their shoppers, have migrated online.
shopper journey.
What was once a slow, steady climb towards online shopping
Hence, in this report, we look at where businesses are investing
has been transformed by COVID-19 into an astonishing
and innovating, how shopper priorities are shifting and what
technological surge. We have now entered the digital-first age
will make or break these big bets for ideas to go mainstream.
where ecommerce is taking centre stage.
We examine the enablers and barriers (such as whether a new
Today, almost every business expects their digital operation to
technology will resonate with shoppers and scale easily) that
expand yet further and drive future revenue. With this current
will create the conditions for these investment big bets to
explosion of technology and invention, it is crucial to understand
flourish or simply fall by the wayside.
what might lie ahead for the digital FMCG landscape.
With such a rapid pace of change, it’s never been more
important for FMCG brands and retailers to assess the future of
Inevitably, the most revealing clues about the future of digital
digital and take account of the signals of change and potential
are to be found in investment and innovation. What companies
industry disruptors.
are focussed on right now and where they are investing heavily
are the key drivers of change.
Monitoring innovations, technology and the latest retail
strategies that are shaping the future of FMCG retail will help
Indeed, the big bets taking place in retail investment and
companies stay competitive, agile and forward-looking. This
strategy are a precursor for what we are likely to see in the years
means that the best in class can lead the way in the digital
ahead.
landscape rather than playing catch up.
3
© 2021 Nielsen Consumer LLC. All Rights Reserved.
Ecommerce snapshot Ecommerce value split in FMCG sales
(%)
YTD 2020 YTD 2021
Ecommerce is now on a dizzying upward Total FMCG global performance
China 25.0% 30.0%
trajectory outpacing traditional FMCG sales % value growth vs YA
growth by quite some margin. Even shoppers South Korea 22.0% 26.0% Q4 2021
who rarely ventured beyond bricks and U.S. 9.0% 15.0%
mortar stores, such as older people, migrated
U.K. 10.4% 14.9%
online during lockdown and are staying –
finding the digital offering more convenient, Mexico 3.0% 12.0%
better value and offering increased choice. 3.5%
Taiwan 8.0% 10.0%
France 8.1% 8.8%
Globally, the value growth of ecommerce is
up by 14.5% on the previous year. Today, Brazil 4.0% 8.0%
ecommerce fuels retail growth around the Turkey 3.9% 6.2%
globe, with online sales rapidly outpacing Netherlands 3.8% 5.6%
offline by double digits in many countries
Sweden 2.5% 4.5%
across Europe, the Middle East, and Latin
America. Denmark 2.9% 4.2% Ecommerce global performance
Spain 2.2% 2.8%
% value growth vs YA
Q4 2021
Portugal 1.6% 2.6%
Globally, the value Italy 1.8% 2.4%
growth of ecommerce Finland 1.5% 2.3%
14.5%
is up by 14.5% on the Hungary
Germany
1.0%
1.0%
1.3%
1.2%
previous year. Switzerland 0.6% 0.8%
Poland 0.3% 0.3%
Sources: NielsenIQ Retail & Consumer Panels. | NielsenIQ RMS FMCG MAT Q4 2021 4
© 2021 Nielsen Consumer LLC. All Rights Reserved.
The rise of omnichannel shopping
An omnichannel model, that combines the best of the bricks and
mortar experience with the advantages of online, is the future of
FMCG retail.
It is now the norm to spot shoppers in a bricks and mortar store
checking their mobile as they browse the aisle. They are
omnichannel shopping – maybe looking for more product
information about the items on the shelves, seeking the best
deals or weighing up delivery options.
The data supports this view. The latest NielsenIQ research has
found that, globally, almost 50% of shoppers say they will shop
both online and offline for their weekly groceries. This compares
to 41% who shop exclusively offline and 9% who only shop online.
The rise of omnichannel shopping is now crucial and brands and
retailers need to fully understand omnishopper behaviour and
invest to create a seamless online and offline shopping
experience. Shoppers expect this experience to be highly
personalised and adaptive to any device or location. Almost 50% of shoppers say they
will shop both online and offline
In future, omnichannel retailing must provide a coherent,
seamless, integrated experience for every contact a shopper has for their weekly groceries.
with a brand at every touchpoint – whether that’s in store, on
social media or in an ecommerce site.
Source: NielsenIQ 2022 Consumer Outlook Survey, Dec 2021
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© 2021 Nielsen Consumer LLC. All Rights Reserved.
Digital market maturity
What a shopper wants and how they behave online is influenced to some extent by how mature the ecommerce landscape is
in their market.
Shoppers in emerging markets may prioritise good and consistent content - as well as convenience, trust and delivery.
Meanwhile, in more mature digital markets such as the UK, shoppers’ expectations of content changes.
Just as in emerging markets, these shoppers want good content, convenience and a trusted service. However, they may have
additional expectations for a more personalised shopping experience with enhanced curated content that speaks to
their values and requirements as they shop online.
Indeed, the buying experience and shopper journey becomes even more crucial in a mature omnichannel market.
The product must be searchable and discoverable through whatever means the shopper decides to use. In addition shoppers
will judge the experience by how long it takes to complete a purchase and whether the process is smooth.
As omnichannel shopping improves, shoppers grow used to being able to access a huge array of products and potential deals.
This is the new normal for the FMCG ecommerce landscape.
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© 2021 Nielsen Consumer LLC. All Rights Reserved.
Digital market maturity
Online penetration Online spending
Online penetration is on the rise with a significant Research shows that shoppers are willing to spend more
increase in the number of new online shoppers. money online when a retail channel meets
Today, the crucial question is no longer whether people their needs and the experience is enjoyable and easy.
are willing to purchase fast-moving consumer
goods online. Instead, it has become how frequently they
do so, how much they are willing to spend and how they
use online stores to supplement or even replace their
bricks and mortar purchases.
Number of new online shoppers in 2020 % online spending growth
+111M In China Indonesia +43%
+17M In Brazil India +36%
+8M In Mexico Thailand +27%
+922K In South Korea Singapore +16%
Brazil +5%
Sources: NIQ Consumer Panel services 2020; NIQ Homepanel Post ECQ Survey Oct 2020 Shopper Trends. NIQ Homescan; Thai Shopper Frequency (Nov-Dec 2019 vs. Feb 2021); Shopper Trends India 2021, NIQ Ebit 2021
7
© 2021 Nielsen Consumer LLC. All Rights Reserved.Growth factors: the need to offer choice
A key reason why shoppers head to digital channels is to
benefit from the far greater choice available online than in bricks
and mortar stores. In mature markets especially, shoppers
increasingly expect to find exactly what they need – the right size,
the right ingredients, the right environmental credentials. Importance of online shopping attribute: wider variety of products
Ranking and shifts year-over-year by market
In addition, the whole experience of sorting through lots
of different buying options and finding what you need can
be enjoyable for online shoppers. Many enjoy browsing Rank in 2020 Rank in 2019
through potential purchases, selecting their ‘favourites’,
Spain 4 23 +19
considering the differences between products – then choosing
what they will ‘add to basket’. Denmark 8 25 +17
Lots of choice makes the online path to purchase more satisfying Belgium 4 17 +13
and fun for shoppers. Today’s digital landscape is so competitive
that brands and retailers must offer plenty of buying options to Netherlands 5 15 +10
stay ahead of their online rivals.
Finland 14 22 +8
Considering shopping
experiences globally, NielsenIQ data shows more shoppers feel
positive about the online shopping experience (53%) than they
do about the brick-and-mortar store experience
(18%). Shoppers are likely to increasingly migrate online lured
by the endless choice they can scroll through. But
this increasing choice creates expectations. An online shopper
that can’t find what they want is an unhappy shopper.
Source: The Leading Edge Report, NielsenIQ / NielsenIQ Shopper Trends 2020-2021 vs 2019-2020
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© 2021 Nielsen Consumer LLC. All Rights Reserved.Growth factors: The need to offer choice
A 2022 study in the Journal of International Marketing (Choice Deprivation, Choice Overload and Satisfaction) found that
the amount of choice shoppers are offered can have profound consequences.
Less choice than they desire (choice deprivation) is strongly associated with decreased satisfaction with choices than
an overload of options. The cross-cultural study looked at six countries Brazil, China, India, Japan, Russia and the US. In all
but the US, choice deprivation was the norm.
But shoppers also want choice about how they shop as well as what they buy. They may want to buy a brand in-person, online
– or combine both. Shoppers also expect options about how they shop from a brand – whether online or in-person.
As shoppers demand more from their purchasing experience, pleasing them is likely to become a greater challenge – which,
in turn, means growth requires more effort and research.
A slick ecommerce operation - that offers shoppers as much choice as possible - is a must-have for any brand that wants
to future proof continued growth and success.
The question is how manufacturers and retailers respond to the different needs the online shopping era brings their way.
9
© 2021 Nielsen Consumer LLC. All Rights Reserved.Where is investment taking
place?
Looking at where companies are investing reveals
important clues about where they see future growth –
and what might lie ahead for the FMCG industry.
We look at the innovations, technology, start-ups and
ideas that rank high on the watch-lists of the big
industry players – and that are attracting eye-watering
sums of investment.
With shareholders to please and hard-won market share
to retain, you can be sure that their big bets for the
future are calculated to bring maximum returns. Here
are some of the ones to watch…
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© 2022 Nielsen Consumer LLC. All Rights Reserved.Cultured meat and lab-grown ingredients
Investment in free-from and vegan foods is surging. Brands are expanding their product portfolios to meet
shopper needs.
In 2020, investors poured more than $1.2 billion into start-ups around the world working on cell-cultured meat.
Future Meat, an Israeli company, has raised $347m in the biggest financing round for cultured meat.
Californian Cultured, a US company, is making lab-grown chocolate and General Mills recently
unveiled Bold Cultr, a lactose-free cheese. This is made with milk proteins produced by microflora and
fermentation.
Meanwhile, business of all sizes from tiny start-ups to multinationals such as Nestle and Danone, are investing
and chasing the prize of an alternative or plant-based milk.
Legislation is also following on from the innovation. Regulators in Singapore approved cultivated chicken for
sale in 202. The FDA and USDA are considering it in the USA.
However, it’s crucial that brands ensure these new products are discoverable on the digital shelf. A shopper
profile or filter option on retailer websites could help simplify the digital shopping experience. Brands will need
to top-up their product attributes to make sure product content is complete.
In 2020, investors poured more than $1.2 billion into start-ups
around the world working on cell-cultured meat.
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© 2021 Nielsen Consumer LLC. All Rights Reserved.Customised recommendations
Shoppers will increasingly want a personalised digital shopping experience and brands and retailers are investing in this.
Personalisation is all about providing customised content and services based on shopper data to drive digital member
targeting and enable personalised purchase offers.
Leading the way on this, Nike is focussing efforts on highly personalised digital tactics. It has acquired Celect, a
predictive analytics company and Datalogue, a data integration platform. The technology this brings will help anticipate
demand and understand what shoppers really want.
Forbes magazine said the acquisition means ‘Nike now has what it needs to get (truly) personal.’ Allowing for more
personalised search and recommendations, more targeted communication to shoppers and more personalised experiences.
The Nike SNKRS App has also helped Nike improve its digital business (NIKE Digital was 25% of total brand revenue in 2Q22)
by offering ‘personalised purchase offers’ using data science to "drive digital member targeting."
The giant industry player Carrefour Group is launching Carrefour Links, a platform to enable its CPG vendor companies to
create more personalised and relevant experiences, both in-store and online. Meanwhile, US grocery retailer Kroger’s new
private programmatic marketplace courts 'pre-optimized audiences'
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© 2021 Nielsen Consumer LLC. All Rights Reserved.The evidence for personalisation
NielsenIQ Brandbank’s recent report ‘Is there enough opportunity for
shoppers to shop?’ looked at how retailers and brands can improve the
online experience and nudge ahead of competitors by giving shoppers
what they want at the time they need it.
‘Consequently, retailers should
It examined how success in ecommerce demands that retailers and identify personalization as a key driver
brands speak to a shoppers personal values and needs as they browse for improving customer experience,’
online. says the study. ‘Retailers should
actively search for new ways to build
This is best achieved by presenting enriched, the perception of personalization,
contextualised and visually-sophisticated content and buying options – which can take various forms, such as
delivered at precisely the optimum time during the online
using customer data in order to
purchasing journey.
provide customers with personalized
Shoppers want a convenient, personalised journey from first click to information about their purchases,
checkout with the right information and buying opportunities at the e.g. information regarding
right time. healthfulness or carbon footprint of
their previous food purchases.’
An academic study in Journal of Retailing and Consumer
Services (Volume 57) from University School of Business and
Economics, confirms this. It reveals that creating more personalised
offerings and advertisements makes the shopping journey more
enjoyable and is associated with a greater likelihood of buying and
shopper satisfaction and loyalty.
Source: Journal of Retailing and Consumer Services (Volume 57)
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© 2021 Nielsen Consumer LLC. All Rights Reserved.Technology
Brands and retailers are investing in digital in response to COVID-19 which
supercharged shopper migration to online.
Walmart’s planned investments are a fascinating glimpse into where the US retail giant
feels future success lies. The company plans to spend nearly $14 billion in
capital investments, including increased automation and omnichannel technologies. The
retail company is improving its digital and ecommerce expertise.
The investment is part of its strategy to become what it describes as ‘the
primary destination for customers’. When shoppers want to buy something, Walmart
wants to be the first place they head to. ‘We weren’t the first place you go when it’s time to
buy products online. We’re trying to change that obviously,’ Chief Executive Dough
McMillon told a virtual investor event. ‘You’ve got to have assortment, you’ve got to have the
price, you’ve got to provide service, you’ve got to deliver when you’re supposed to deliver…
And it takes some time to build those kinds of capabilities.’
Walmart’s strategy from a shopper perspective is focussed on omnichannel buying –
giving shoppers the flexibility to get hold of exactly what they are looking to buy – when
and where they want it. That might be in a Walmart store, via click and collect or
delivered to their home.
plans to spend nearly $14 billion in capital investments
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© 2022 Nielsen Consumer LLC. All Rights Reserved.Automation start-ups
A number of automation start-ups are included in a list of unicorns (start ups worth over $1bn and privately owned) These are creating
what are called ‘clip on’ automated warehousing and distribution solutions.
AI Magazine reports that Locus Robotics warehouse automation has led to unicorn status. The Massachusetts-based company builds
autonomous mobile robots for use in warehouses, supporting the explosion in ecommerce.
Carrefour digital vision
Carrefour Group recently announced it is adopting a ‘data-centric, digital first’ approach. It aims to ‘accelerate the development of all
forms of food ecommerce’. To this end, Carrefour is increasing by around 50% its investments in digital with a €3bn dedicated
plan between 2022 and 2026. It wants to grow express delivery (under three hours) and quick commerce (less than 15 minutes).
‘The development of ecommerce will contribute to the Group’s overall performance, through the increasing number of omnichannel
customers. Those customers buy more at Carrefour (+27% in revenue after 2 years) and their retention rate is higher (97%) than that
of store-only customers. Omnichannel customers are expected to account for 30% of the Group’s customers in 2026, compared to
11% today, thanks to the conversion of existing customers to omnichannel, as well as the recruitment of new customers.’
Source: Carrefour management statement released at its Digital Day in Paris, November 9, 2021.
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© 2021 Nielsen Consumer LLC. All Rights Reserved.One to watch
case study
Walmart has announced it will be trialling 24/7 grocery
delivery via temperature-controlled home smart boxes
left outside shoppers' homes and anchored securely by a
chain until ready for collection.
The smart boxes are created by HomeValet. Rolled out
more extensively this would mean shoppers at work or
out and about could still have frozen, refrigerated and
store cupboard groceries delivered to home and stored
correctly until they can access them. This opens the
option for 24/7 deliveries by Walmart.
The SmartBox also has an option to heat prepared foods
– so they can be warmed in advance and be ready to eat
when the shopper gets home. The smart box service is
being trialled near the Walmart headquarters in
Arkansas.
Image Source: https://www.core77.com/posts/104176/Package-Lockers-Aside-a-New-Porch-Object-Emerges-Walmarts-HomeValet-Smart-Box
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© 2021 Nielsen Consumer LLC. All Rights Reserved.Gameification in FMCG retail
Gamification is a buzzword in retail marketing and is increasingly an option in FMCG retail as an innovative way to engage the
shopper. It involves creating an engaging task or game to encourage and motivate people while shopping. It can help brands and
retailers engage with shoppers and make the process fun. They can win rewards in the form of points, discounts or even
merchandise. Here are some of gamification projects that should be top of your watch list…
Retailer Pinduoduo is now the second Gamification is driving real results The supermarket group is using fun,
largest ecommerce company in China for Mars Wrigley, reports The Drum. interactive targets to gamify fruit and
after Aliababa, according to technology It allows them to create meaningful veg sales. An in-app tracker sets
news site calcalistech.com. Pinduoduo engagement with audience, build personalised fruit and veg purchasing
has invested and used gamification to brand awareness and increase targets, based on a person’s existing
become one of the most popular brand loyalty – and is a growth shopping habits. Shoppers earn points
shopping sites in the country. It offers driver in emerging markets. For as they buy and monitor progress in
time-limited offers, sweepstakes and example, Snickers developed and the company’s app.
prize-yielding games to promote user- launched an e-football tournament
app interaction. A popular game asks for shoppers which was
users to choose a virtual tree, such as a livestreamed online. Meanwhile, in By gamifying this experience, we were able
lemon or mango. To provide it with Mexico M&Ms new flavour was to grab consumers’ attention and engage
water and fertiliser, users need to launched using augmented reality. them in an interactive and fun manner. The
purchase from the app, share offers, Shoppers were invited to ‘capture’ uniqueness of this campaign also created
invite friends, or just open the app up a M&M characters via an app that buzz and amplified discussions on social
lot. If they successfully grow their tree, were ‘present’ in different physical media,’ Sergio Peniche, Mars Wrigley’s
they win a real box of fruits. Around 11 stores at the company’s main brands and content senior director of global
million users play this game every day. retailers. emerging markets, told The Drum.
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© 2021 Nielsen Consumer LLC. All Rights Reserved.Metaverse
The term ‘metaverse’ has generated a lot of buzz – but what exactly is it and what could it
offer FMCG shoppers?
The metaverse is a vague and highly complex idea. In its simplest terms, it means
going online – but in 3D and usually wearing 3D goggles to enjoy the experience. Once
there you can interact with people in an immersive world across many devices.
Technology magazine Wired suggests you simply replace the words ‘the metaverse’ with
‘cyberspace’ to gain a better understanding. It says almost always they mean the same
thing.
In the metaverse people can socialise, learn, collaborate, play – and shop. Along with the likes
of meeting up with friends and going for virtual job interviews, the metaverse is also likely to
include ecommerce.
Instead of heading into a real store, shoppers could visit a store virtually, using a VR
headset to simulate the experience digitally. They could move around a grocery store
virtually and buy FMCG for delivery later. The metaverse experience could harness your data
to remind you of items you might have forgotten or flag up items you might want to try.
• Nike is set to acquire RTFKT – a leading virtual fashion
Big brands platform that specializes in creating virtual sneakers.
are already
• P&G has stepped into the metaverse with their
considering
“beautysphere” platform that aims to develop great
how to trade
experiences for consumers
in this way…
• Walmart filed for several trademarks, suggesting plans to
start selling virtual goods.
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© 2021 Nielsen Consumer LLC. All Rights Reserved.Investments in social and sustainability goals
Post-pandemic shoppers are prioritising social and sustainability objectives – and brands are investing as a result.
Brands and retailers are financing initiatives to reduce plastic use and make sure they are more sustainable. Shoppers want this and it’s
imperative for both future commercial success and ecological reasons.
More than 60 businesses have already committed to making all plastic packaging reusable, recyclable or compostable by 2025. These
include Aldi, Australian grocery retailers Woolworths and Coles, The Arnott's Group, Coca-Cola South Pacific, Nestle Australia, PepsiCo
and Colgate Palmolive.
Colgate Palmolive Iceland
Is innovating to reduce plastic waste, for example Has pledged to become what the UK’s first ‘plastic
designing thinner, lighter packages; devising packaging that neutral’ supermarket from 2022 in what it claims is an industry
eliminates trigger pulls and coming up with what it calls ‘the first. It will recover waste plastic in weight equal to its residual
first-of-its-kind recyclable toothpaste tube. plastic footprint and recycle it.
Tom Ford Tesco
002 Ocean Plastic Sport Watch is the first automatic Is to delist products that fail to comply with its policies
watch made entirely from recycled ocean plastic. on plastic. Tesco is to focus on selling more loose and
unpackaged products and upscale use of concentrates,
Aldi reusable and refillable packaging.
Aldi’s chief executive Giles Hurley has written to suppliers
of third-party brands warning they will be delisted unless
they align with the company’s 2025 plastic packaging pledges.
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© 2021 Nielsen Consumer LLC. All Rights Reserved.Sustainability, enhanced content
and product descriptions
Environmental and social concerns now rank high
among digital shoppers - and they want to find
products online that meet these needs. It’s crucial that
brands set out any environmental credentials in
product descriptions to ensure they are fully complete
and visible to the digital shopper. This makes the
product visible to shoppers searching for this and
persuade a shopper to add to their digital basket.
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© 2022 Nielsen Consumer LLC. All Rights Reserved.Direct to consumer
Brands and retailers are also investing in retail Expect to see more FMCG brands opting for direct-to-
transformation, aiming to sell more of products direct to consumer sales in the future.
consumers and bypass online superstores and bricks and mortar
retailers. At the cutting edge of the direct-to-consumer trend are:
The direct-to-consumer sales model is well-suited to • Good Glamm Group Established in 2021, it brings
FMCG which are often consumed and replaced in a continuing together innovative and fast-growing beauty and personal
cycle. It’s ideal for quick-selling items such as coffee-machine care brands. India's first beauty commerce start-up to become
pods or vitamin tablets that shoppers use every day and must a unicorn. The digital-first company claims to be India’s
frequently replenish. fastest-growing direct-to-consumer beauty brand.
Shoppers might be open to direct subscription deals, with special • Nestle expects to nearly double its e-commerce sales to
deals offered for repeat purchase. Brands obtain loyalty – and lots 25% by 2025 by stepping up marketing and
more marketing data about shopper habits. technological investments. Nestle will drive sales directly to
consumers via its own online channels. This will build on the
Shoppers are discovering new channels to purchase products. It’s success of Nespresso coffee pods and Purina PetCare which
crucial that brands make sure their messaging and content is are increasingly sold direct to shoppers via the brand
consistent across all channels so that the shopper can resonate websites.
with the brand story.
• Healthcare giant Johnson & Johnson is to split its
When a brand speaks directly with the shopper at every point operation into two entities – a medical company and a
on their path to purchase, there are plenty of chances to spinoff consumer products arm. Investors suggest this is so it
confirm brand identity and consistent content and design is can focus more on the direct-to-consumer market.
crucial.
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© 2021 Nielsen Consumer LLC. All Rights Reserved.Rapid delivery
Shoppers want and expect
ever-faster delivery and as a Here are some recent key players leading the way with rapid FMCG delivery
result retailers are investing investments…
heavily in this area. It is now
quick and convenient to shop • Indian food and grocery delivery platform Swiggy has secured $700 million in
for groceries via apps and the funding. It is now valued at $10.7 billion. The company has plans to fast-track
delivery market is growing. growth and expand its rapid delivery services.
With so many ways to buy • Uber is partnering with French retailer Carrefour to launch a 15-minute grocery
FMCG, brand consistency is delivery service called Carrefour Sprint in Paris.
important across channels.
Branded clear messaging and • London start-up Jiffy has scooped $28m funding to grow its speedy grocery
enriched content can engage delivery service. The company operates a network of dark stores, a retail
shoppers and ensure they distribution centre that caters only for e-commerce, and promises fresh
have a positive, aligned groceries in 15-minutes. It has eight stores and around 20,000 customers now
message in content across and is expanding rapidly. Other on-demand grocery delivery companies
all channels. operating in London include Gorillas, Weezy, Getir and Zapp. Meanwhile, in the
US delivery start-up goPuff raised $380m and is valued at $4.9b. It aims to deliver
Clear, consistent information ‘everything you need’ such as food, home essentials, snacks and alcohol in less
makes it easier to convey key than half an hour – 24/7. It is using investment to fund international expansion
messages and values and and in 2021 entered the UK rapid delivery market when it acquired Fancy, a
help shoppers differentiate a small UK-based delivery company.
brand from competitors.
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© 2021 Nielsen Consumer LLC. All Rights Reserved.Barriers and enablers
Factors that might make or break possible future developments for FMCG. With so many possible developments and areas of
investment, it can be a challenge to work out what investments and developments have the most potential. How do you tell what is
most likely to succeed and be rolled out widely – and what might fall by the wayside?
Barriers and enablers framework:
• Consumer sentiment This is one of the most important
factors driving whether a big bet investment will succeed or fail. ‘Favourable consumer sentiment, albeit a very important
How open are shoppers to buying when available to them? one, is just one factor at play when determining the
• Social movement. Is it aligned to a broader social cause that success of an innovation, a new business model or a new
will find favour and support. Does it meet a social need? product. There are countless barriers and enablers that
• Governance Is there any potential legislation, policy, could play a key part that need to be considered as
taxes, incentives, restriction and requirements that might affect part of the broader eco-system these big bets will
a potential growth area? enter. A product or service could be wildly popular in the
• Weight of investment Does the amount of investment and types minds of consumers but if you can't scale it or a high tax
of companies investing make it more plausible? Or is it niche and is placed on it, then that is an additional hurdle that
a small investment from peripheral players? might hinder its adoption and feasibility.’
• Scalability Can it be replicated and rolled out easily?
• Readiness Is the offering ready for market? What about NielsenIQ Intelligence team
the technology, quality and efficiency? Are there any other
barriers to entry?
• Competitive advantage Does it have a clear advantage
over existing alternatives?
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© 2021 Nielsen Consumer LLC. All Rights Reserved.24 © 2021 Nielsen Consumer LLC. All Rights Reserved.
Key considerations
Prepare for the future of the digital shelf
1. 2. 3.
Product attributes and Enhance the shopper experience
Monitor and prioritise
discoverability
Provide an engaging shopper
There is a lot of change and
Ensure you continually top up your experience by elevating your product
innovation, and you can’t act on it all.
product attributes so that your pages – driving conversion and traffic
Instead, continually monitor what’s
products are discoverable in the to the product listing. Focus on the
going on in the FMCG industry. Then
digital aisles. Frequently monitor and importance of enriched product
identify what is most important to
know the quality and content and below the fold content.
your business and your shoppers -
comprehensiveness of your online Drive discoverability and sales by
and then prioritise. This will ensure
product content. Optimise your amplifying your product pages with
you focus your efforts and achieve
product page performance and videos, marketing images, product
your goals meaning you won’t be left
measure with a content health score tours and comparison charts.
behind while competitors win your
that reveals what is missing.
shoppers.
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© 2021 Nielsen Consumer LLC. All Rights Reserved.NielsenIQ Brandbank is the leading provider of digital product content solutions
enabling more than 52,000+ brands and 700+ retailers and wholesalers across the globe
in over 39 countries to deliver the best shopping experience by giving them the ability to
capture and share rich digital product content on all channels seamlessly.
NielsenIQ Brandbank’s end-to-end solutions connect shoppers to the most up to date
and relevant digital product content making consumer goods more discoverable and
engaging.
For more information please visit:
https://nielseniq.com/global/en/landing-page/brandbank/
26
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