CPG Goes Omnichannel

Shoppers Grasp the Digital

Opportunity

Research of consumers in France, Germany, the

UK and the US reveals accelerating trends in online
CPG shopping, with more and more consumers
turning to digital channels to make purchases
across all CPG categories
Consumer packaged goods, once purchased
almost exclusively in stores, is moving fast
into the digital battleground as increasing
numbers of consumers research and purchase
CPG products online.

Meeting accelerating consumer omnichannel demands, especially those of millennial

shoppers, will be critical for CPG companies looking to refine their route to market models and
maximize online market share.

With today’s consumers aggressively pursuing what’s most important to them – price, quality
and convenience – Periscope by McKinsey conducted research in four mature e-commerce
markets: France, Germany, the UK and the US.

Evaluating the current purchasing behaviors of consumers and their future CPG shopping
intentions, the research findings provide insights on:

• Which channels consumers utilize to make CPG purchases (such as groceries, household
goods, store cupboard essentials, beauty and personal care, cleaning supplies and baby
products) and the motivations behind their channel shopping preferences

• Whether these channel shopping preferences are impacted by age or gender

• The delivery preferences of consumers making online CPG purchases

• Which consumers respond positively to personalized recommendations and are most likely
to engage with digital shopping options that enhance their overall shopping experience

2
Key Findings: The trend for omnichannel
CPG shopping is growing
Consumers adopt a blended shopping approach when making
CPG purchases
The survey reveals a significant number of consumers are no longer shopping for CPG
products entirely offline. Instead, they’re taking a blended approach and using whichever
channel suits their needs best. Indeed, in all the markets surveyed, we observed 70% or more
of the respondents undertaking some form of online CPG shopping activity.

When it comes to exhibiting multichannel shopping behaviors, French (40%) and UK (39%)
shoppers lead the fray with regard to demonstrating balanced on- and offline shopping
preferences followed by German (33%) and US (32%) shoppers.

Online shopping behavior

7.12% 5.60%
23.00%
29.73% only online only online
only offline
only offline
8.38% 14.40%
mostly online mostly online

22.32% 17.80%
mostly offline 32.46% mostly offline
39.20%
both on
both on
and offline
and offline
Answered: 1026 Answered: 500

3.20% 3.96%
27.20% only online
only online 25.74%
only offline
7.20% only offline 12.08%
mostly online mostly online

29.80% 18.02%
mostly offline 32.60% mostly offline 40.20%
both on both on
and offline and offline
Answered: 500 Answered: 505

That said, a compelling number of shoppers in the UK (20%) and France (16%) say they
primarily go online to order CPG items. And while the US and German markets appear to be
lagging behind on the digital shopping curve, a significant core of consumers in the US (15%)
and Germany (10%) admit to being ‘digital first’ when making CPG purchases.

The research reveals the extent to which offline CPG shopping behaviors continue to dominate
in Germany and the US. Almost two-thirds (57%) of German shoppers confirm they currently
make most of their CPG purchases in bricks-and-mortar stores, followed closely by 52% of
US shoppers for whom the physical store still prevails as the channel of choice.

3
Non-food categories prove a popular choice with
online shoppers
It’s clear that CPG players are at an e-commerce tipping point as digital redefines what it
means to ‘go shopping’ for consumers.

While consumers are clearly confident placing online orders for bottled drinks, store-cupboard
ingredients and other staples, the research findings highlight that non-edible and durable food
items are performing considerably better compared to short-shelf life products such as dairy
and bread, indicating shopper hesitation about purchasing these types of products online.

Online shopping by product category

Beauty & P. care 37.82% Beauty & P. care 45.80%

No online shopping 29.34% Coffee, tea 43.20%
Cleaning supplies 28.65% Cleaning supplies 42.00%
Coffee, tea 25.44% Cupboard essentials 41.00%
Snacks 24.37% Snacks 40.80%
Other 20.86% Canned products 39.20%

Bottled drinks 19.49% Bottled drinks 38.60%

Cupboard essentials 15.98% Dairy 38.20%

Baby products 15.98% Bread 34.60%

Canned products 15.50% Condiments 34.00%

Condiments 14.72% No online shopping 25.40%

Dairy 13.26% Baby products 16.80%

Bread 12.77% Other 15.20%

Answered: 1026 Answered: 500

Beauty & P. care 46.40% Beauty & P. care 47.33%

Coffee, Tea 37.40% Coffee, Tea 43.56%
Other 36.40% Bottled drinks 37.43%
Cleaning supplies 30.60% Cleaning supplies 36.04%
Bottled drinks 27.20% Cupboard essentials 35.64%
Snacks 26.20% Canned products 31.88%
Cupboard essentials 25.20% Dairy 30.10%
No online shopping 21.20% Condiments 28.51%
Condiments 21.20% Snacks 26.34%
Canned products 20.60% No online shopping 22.57%
Dairy 17.00% Other 22.18%
Bread 16.80% Bread 19.21%
Baby products 14.60% Baby products 12.28%

Answered: 500 Answered: 505

Non-food categories appear to be resonating strongly with shoppers. Indeed, beauty and
personal care products were top of the shopping list for consumers in France (47%), the UK
and Germany (46%), and the US (38%). Similarly, cleaning supplies featured in the ‘Top 3’
product categories consumers had shopped within in the past two months.

The research also reveals that while consumers in the UK and France appear most likely to
make online purchases in all CPG categories, US shoppers are currently least likely to opt for
digital channels when making CPG purchases.

4
Key Finding: Digital Natives Lead the Way –
Most of the Time
Age determines online CPG shopping predilections
Millennial shoppers (aged 18-29) were the largest cohort in each country surveyed except the
UK to only or mostly undertake their shopping for CPG products online. But their enthusiasm
for digital channels is closely matched in many markets by those aged 30-39 and 40-49.

Online shopping behavior by age

18-29 years old 30-39 years old 40-49 years old

50-59 years old 60-69 years old

27.40% 27.40% 15.07% 21.92% 8.22%

Only online
38.37% 17.44% 18.60% 13.95% 11.63%
Mostly online
22.22% 24.02% 19.22% 18.92% 15.62%
Both on and offline
22.27% 19.21% 17.47% 22.27% 18.78%
Mostly offline
20.33% 15.08% 18.69% 22.95% 22.95%
Only offline
Answered: 1026

28.57% 35.71% 17.86% 10.71% 7.14%

Only online
37.50% 23.61% 25.00% 9.72% 4.17%
Mostly online
25.51% 26.02% 25.00% 16.33% 7.14%
Both on and offline
20.22% 16.85% 17.98% 25.84% 19.10%
Mostly offline
6.96% 4.35% 12.17% 35.65% 40.87%
Only offline
Answered: 500

37.50% 18.75% 25.00% 12.50% 6.25%

Only online
44.44% 5.56% 25.00% 13.89% 11.11%
Mostly online
24.54% 23.93% 24.54% 20.25% 6.75%
Both on and offline
18.12% 16.78% 14.77% 30.20% 20.13%
Mostly offline
9.56% 11.03% 25.74% 22.79% 30.88%
Only offline
Answered: 500

25.00% 20.00% 25.00% 20.00% 10.00%

Only online
34.43% 27.87% 19.67% 13.11% 4.92%
Mostly online
23.65% 19.70% 22.66% 21.18% 12.81%
Both on and offline
21.98% 18.68% 16.48% 21.98% 20.88%
Mostly offline
12.31% 14.62% 16.92% 19.23% 36.92%
Only offline
Answered: 505

5
But the findings reveal some impressive exceptions. In the US, 22% of all those who shop
for CPG items only online were aged 50-59 years of age. Similarly, the online purchasing
behaviors of those aged 40-49 outstripped that of the 30-39 age cohort in Germany and
France. Meanwhile, in the UK, those shoppers aged 30-39 were most likely to adopt a digital
only stance.

Clearly, CPG brands cannot afford to focus simply on targeting millennials alone. Those aged
30-49 are also actively engaging with online channels to make CPG purchases and consumers
aged 50-59 in all markets displayed omnichannel behaviors to a greater or lesser degree.

Consumers shop online for CPG products all year round –

millennials do so most frequently
The findings highlight how those making online CPG purchases aren’t doing so just on high
days or holidays. All age groups in each country surveyed confirm they shop online for CPG
goods throughout the year, with the bulk of shoppers regularly heading online every couple of
weeks or monthly to undertake a major shop.

Exploring the frequency with which those who make CPG purchases online are shopping,
it’s clear that millennials in Germany (41.6%) and the US (31.5%) are the most likely to make
several online shopping forays a week.

But in France almost 46% of shoppers who say they head online multiple times each week
were aged 30-39, while the weekly multi-shop behaviors of 37% of UK millennials were
matched equally by those in the 30-39 age cohort.

In the UK, regular monthly online shops proved particularly popular with those aged 40-49
(31%), while in Germany almost one-third (31%) of those undertaking a planned monthly shop
were in the 50-59 age cohort.

6
Online shopping frequency – by age

18-29 years old 30-39 years old 40-49 years old

50-59 years old 60-69 years old

31.51% 30.14% 23.29% 13.70% 1.37%

Several/week
23.81% 26.98% 23.81% 15.08% 10.32%
Every week
28.57% 24.84% 16.15% 16.77% 13.66%
Every couple of weeks
26.14% 12.50% 25.00% 20.45% 15.91%
Every month
20.51% 19.05% 13.19% 24.91% 22.34%
Every couple of
months or less
Answered: 1026

37.04% 37.04% 18.52% 7.41%

Several/week
30.21% 28.13% 29.17% 6.25% 6.25%
Every week
33.94% 28.44% 16.51% 14.68% 6.42%
Every couple of weeks
16.39% 21.31% 31.15% 26.23% 4.92%
Every month
18.48% 13.04% 19.57% 27.17% 21.74
Every couple of
months or less
Answered: 500

41.67% 20.83% 20.83% 12.50% 4.17%

Several/week
23.08% 24.62% 30.77% 15.38% 6.15%
Every week
33.33% 19.79% 19.79% 19.79% 7.29%
Every couple of weeks
15.56% 17.78% 17.78% 31.11% 17.78%
Every month
18.66% 15.67% 17.16% 29.10% 19.40%
Every couple of
months or less
Answered: 500

37.50% 45.83% 8.33% 8.33%

Several/week
33.70% 27.17% 17.39% 17.39% 4.35%
Every week
24.64% 20.29% 20.29% 21.74% 13.04%
Every couple of weeks
18.29% 13.41% 26.83% 19.51% 21.95%
Every month
20.37% 15.74% 22.22% 24.07% 17.59%
Every couple of
months or less
Answered: 505

7
Consumers select delivery options that work best for them
The last-mile delivery preferences of those shopping online indicate that many consumers are
disciplined enough to forward plan their purchases. Just 7% of shoppers in France, Germany
and the US regularly utilize a 2-4 hours delivery option, rising to 9% of UK shoppers.

Standard delivery was the top option selected by 41% of German and 38% of US shoppers,
while expedited delivery was the preference for 36% of UK and 34% of French shoppers.

Delivery preferences

37.73% 2.64% 30.91% 3.90%

standard click & collect standard click & collect
7.21%
2-4 hours 8.83%
2-4 hours

16.64%
same day
20.78%
same day
35.58%
expedited
35.78%
expedited Answered: 1026 Answered: 500

40.93% 32.27%
0.82% standard 6.93%
standard
click & collect click & collect
6.87%
2-4 hours 6.67%
2-4 hours
13.19%
same day
20.00%
same day
38.19% 34.13%
expedited expedited
Answered: 500 Answered: 505

Demand for same day delivery, which may attract a price supplement, was also higher in the
UK (21%) and French (20%) markets.

Exploring delivery preferences by age demographic, the research reveals that European
millennials are the most demanding when it comes to getting hold of their purchases; those
aged 18-29 in France (48%), Germany (36%) and the UK (29%) were the most likely to select
a 2-4 hours delivery option. This age cohort are also the most likely to use a Click and Collect
service, signalling the omnichannel shopping ease and expectations of these consumers.

By contrast, US consumers (33%) aged 30-39 were the group most likely to opt for a 2-4
hours delivery slot, while Click and Collect held the strongest appeal for those aged 60-69
years of age (32%).

8
Delivery preferences – by age

18-29 years old 30-39 years old 40-49 years old

50-59 years old 60-69 years old

26.92% 32.69% 21.15% 11.54% 7.69%

2-4 hours
25.83% 30.83% 17.50% 18.33% 7.50%
Same day
25.19% 24.81% 20.93% 17.44% 11.63%
Expedited
24.26% 13.60% 15.07% 24.26% 22.79%
Standard
10.53% 21.05% 21.05% 15.79% 31.58%
Click & collect

Answered: 1026

29.41% 23.53% 32.35% 11.76% 2.94%

2-4 hours
35.00% 26.25% 27.50% 5.00% 6.25%
Same day
28.47% 28.47% 19.71% 13.87% 9.49%
Expedited
18.49% 18.49% 21.85% 29.41% 11.76%
Standard
26.67% 20.00% 13.33% 20.00% 20.00%
Click & collect

Answered: 500

36.00% 16.00% 28.00% 12.00% 8.00%

2-4 hours
37.50% 18.75% 22.92% 14.58% 6.25%
Same day
24.46% 24.46% 20.14% 21.58% 9.35%
Expedited
17.45% 14.77% 19.46% 30.20% 18.12%
Standard
66.67% 33.33%
Click & collect
Answered: 500

48.00% 28.00% 8.00% 12.00% 4.00%

2-4 hours
30.67% 25.33% 22.67% 16.00% 5.33%
Same day
25.00% 25.78% 16.41% 21.88% 10.94%
Expedited
17.36% 11.57% 27.27% 22.31% 21.49%
Standard
23.08% 19.23% 19.23% 19.23% 19.23%
Click & collect
Answered: 505

9
Key Finding: Functional Factors Drive
Online Shopping, While Experiential Factors
Drive Offline
Convenience, price, availability and delivery are top online
shopping drivers
Asked to evaluate why they shop online for CPG items, the consumers surveyed in
each market overwhelmingly highlighted the pragmatic advantages of conducting their
purchases online.

Online shopping reasons

26.49%
cheaper 27.79%
26.35% 6.24% 5.19% 17.66%
accessibility out of other accessibility out of other cheaper
business hours 20.39% business hours
more promotions 16.10%
more promotions
22.88% 17.06% 28.57% 18.96%
delivered range of products delivered range of products
12.76% 10.91%
ratings and ratings and
recommendations recommendations
41.47% 45.19%
time time 11.43%
15.95% 16.64% 14.70%
efficient efficient no offline
spending buying no offline 26.49% availability
control in bulk availability spending 26.49%
control buying
in bulk
Answered: 721 Answered: 385

38.46%
accessibility 25.00% 35.73% 23.20%
out of business cheaper accessibility out of cheaper
hours 5.22% 2.40%
other business hours other 26.13%
21.43% more promotions
more promotions

21.70% 25.55% 22.67% 21.87%

delivered range of products delivered range of products

18.41% 10.93%
ratings and ratings and
40.93% recommendations recommendations
44.80%
time 15.11% 8.27%
22.25% time
efficient spending 19.51% efficient 16.27% no offline
no offline availability
control buying availability 28.00% buying
in bulk spending in bulk
control
Answered: 364 Answered: 375

10
Time efficiency was the top benefit identified by over 40% of respondents in France, Germany,
the UK and the US. Meanwhile, the freedom to shop out of hours was viewed as the second
most important functional advantage for 38% of German and 36% of French shoppers, with
29% of UK shoppers identifying the convenience of having goods delivered as being the next
most important factor for them.

In the US, shoppers were split equally on whether out of hours shopping (26%) or being able
to hunt down cheaper priced goods (26%) was the second biggest benefit of heading online to
make their CPG purchases.

Shoppers find offline shopping experientially rewarding

Considering what appeals most to consumers when shopping for CPG purchases offline,
access to fresh produce held a strong appeal for German (52%), French (29%) and UK (28%)
shoppers. Similarly, the ability to check out brands and products or browse aisles for new
options was identified as being important to shoppers in each country surveyed. Clearly, for
many shoppers, physical stores still provide the thrill of unplanned product discovery.

Offline shopping reasons

40.25%
35.78% product check
product check
43.43%
31.69% browsing
6.61% 6.61% browsing 3.39% 6.57%
hestitation around other hestitation around other
online payment online payment
13.12% 15.47%
small size, 15.53% small size, 11.44%
single item shop cheaper single item shop cheaper
15.42% 14.62%
26.23% more promotions 23.09% more promotions
habit, family 11.02% habit, family 12.50%
routine range of product routine range of product
25.92% 8.60% 27.75% 9.75%
fresh products no online fresh products no online
availability availability

Answered: 953 Answered: 472

44.63% 43.30%
product check product check

35.54%
2.27% 6.20% browsing
3.71% 3.09% 25.15%
hestitation around other hestitation around other browsing
online payment online payment
26.03% 13.40%
small size, 12.81% small size, 9.48%
single item shop cheaper single item shop cheaper
8.06% more promotions
13.81% more promotions
26.86% 11.36% range of product 27.01%
habit, family habit, family 12.99% range of product
routine 6.82% routine 9.07%
no online no online
availability 29.48% availability
fresh products

51.86%
fresh products
Answered: 484 Answered: 485

11
The research findings also confirm that in-store shopping remains an established family
routine for around a quarter of all consumers surveyed (German 27%, French 27%, US
26%, and UK 23%), who still view shopping in a retail store as an engaging experience that
represents an opportunity for a family excursion.

CPG companies will need to emulate this experiential offering if they want to boost online
purchases across more products and category selections.

For example, meal recipes that show cooking ingredients on a virtual table could help draw the
consumer along a shopping journey, while those exploring a haircare or beauty purchase could be
given opportunities to upload their photo and virtually try out a new hair colour or makeup look.

Key Finding: Online Purchasing Drivers –

Shoppers Seek Out Discounts and Bulk
Purchasing Options
Budget-conscious shoppers are tempted by price and
free delivery
Today’s savvy shoppers are becoming masters at using digital channels to track down the
best possible deals.

Price and free delivery were unanimously voted by consumers in France, Germany, the UK
and US as the top two factors influencing their online CPG purchasing decisions. German
shoppers (65%) rated price as the most important factor when making online CPG purchases.

Promotions and discounts came a close third for consumers in every country except Germany,
where 30% of shoppers said product descriptions were the next most important factor likely
to sway the choices they make.

12
Online buying factors

55.06% price 60.00% price

56.59%
free delivery
47.014%
free delivery
41.04%
34.12% promotion
1.39% promotion 1.56% & discount
other & discount other

11.23% 22.33% 15.06% 26.49%

single click option product description single click option product description

13.45% photos/videos 12.99% photos/videos

21.04%
30.10% 17.20% reviews 16.36%
reviews product content info product content info
25.38% 25.71%
brand brand
Answered: 721 Answered: 385

60.00% price 64.00% price

57.14%
free delivery
48.53%
free delivery
41.60%
promotion
3.02% 26.37% 1.60% & discount
other promotion other
& discount

30.49% 27.73%
7.69% product 17.33%
single click option single click option product
description description

10.99% 15.47%
21.70% photos/videos 25.60% photos/videos
reviews reviews
23.90% 24.73% 4.80% 23.20%
brand product content info brand product content info
Answered: 364 Answered: 375

Exploring in more detail the factors that influence online purchases by age demographic, the
survey findings reveal how these top drivers are constant across every cohort in each country.
However, millennial shoppers aged 18-29 are generally more likely to seek out product
information and peer reviews when making a purchasing decision.

US millennial shoppers (41.5%), in particular, say reviews are a valued and important feature,
with over one-third of German and French millennials agreeing these are important to them.

13
Online buying factors by millenials

50.56% 47.19% 51.46%

free delivery price price
43.69%
free delivery
0.56% 0.97% 39.81%
other other promotion
30.90% & discount
promotion
& discount

10.67% 20.22% 16.50% 29.13%

single click product single click product
option description option description
14.04%
photos/videos
27.18%
reviews 17.48%
20.22% photos/videos
41.57% product content info
reviews 25.84%
brand 25.24% 17.48%
brand product
content info
Answered: 721 Answered: 385

55.06%
55.06% price
58.51%
free delivery price
43.62%
free delivery
1.12% 0.00%
38.30%
other other promotion
21.35% & discount
promotion
& discount

5.62% 29.21% 20.21% 23.40%

single click product single click product
option description option description

20.22% 17.02%
photos/videos photos/videos
34.83% 34.04%
reviews reviews
25.84% 29.21% 7.45% 26.60%
brand product content info brand product content info
Answered: 364 Answered: 375

Asked to evaluate how their online shopping habits differ from shopping in-store, the research
confirms that consumers in all markets are more likely to buy more in bulk online (perhaps
taking advantage of preferential pricing and the convenience of having their goods delivered)
and are willing to spend more if they can hunt down discounts and offers. This was particularly
the case for the 67% of UK shoppers who say they are definitely or more likely to shop in bulk
for CPG goods online.

14
On-offline comparison

Definitely disagree Somewhat disagree Somewhat agree Definitely agree

20.68% 33.33% 31.64% 14.34%

buy more items online
15.90% 38.27% 32.41% 13.43%
spend more online
16.67% 26.39% 39.66% 17.28%
buy in bulk more online
9.41% 23.30% 47.99% 19.29%
buy more discounted online
Answered: 648

12.32% 29.13% 43.14% 15.41%

buy more items online
12.32% 35.85% 37.25% 14.75%
spend more online
10.36% 23.25% 44.82% 21.57%
buy in bulk more online
8.96% 22.97% 50.98% 17.09%
buy more discounted online
Answered: 357

17.82% 34.48% 38.79% 8.91%

buy more items online
17.53% 43.39% 30.46% 8.62%
spend more online
15.80% 29.02% 44.25% 10.92%
buy in bulk more online
10.06% 26.15% 50.29% 13.51%
buy more discounted online
Answered: 348

13.24% 36.62% 41.41% 8.73%

buy more items online
15.21% 35.49% 37.75% 11.55%
spend more online
14.65% 35.77% 37.46% 12.11%
buy in bulk more online
7.32% 21.97% 56.62% 14.08%
buy more discounted online
Answered: 355

Do recommendations put brand loyalty at risk?

Today’s digital shoppers increasingly associate online shopping with the opportunity to
discover alternative options.

The findings highlight how at least 38% or more of consumers in every market surveyed say
they are open to recommendations on a similar product but from a different brand.

Recommendations on products by the same brand was the second most welcomed prompt
for shoppers in France (30%) and the US (28%), while ‘frequently purchased together’ style
recommendations were particularly popular with 25% of UK shoppers.

However, over a quarter of shoppers in France (30%), the UK (29%) and the US (28%) say they
don’t use or like recommendations, while a staggering 36% of German shoppers made it clear
they are unlikely to be swayed by this facility.

15
Attitudes on recommendations

7.27%
8.46% 28.29% don’t like recommendations 25.19%
don’t like recommendations products from products from
same brand same brand
19.69% 22.08%
don’t use don’t use
recommendations recommendations

26.07% 25.45%
frequently bought 38.14% frequently 40.78%
together similar product bought similar product
different brand together different brand
Answered: 721 Answered: 385

10.16%
don’t like recommendations 9.60%
25.27% 29.60%
products from don’t like recommendations products from
same brand same brand
26.10% 20.00%
don’t use don’t use
recommendations recommendations

21.07%
frequently bought
24.18% 38.74% together 39.47%
frequently bought similar product similar product
together different brand different brand
Answered: 364 Answered: 375

Are millennials more brand loyal?

Exploring consumer attitudes to recommendations by age demographic, the findings confirm
how millennial shoppers are much more open to receiving and utilizing recommendations
when shopping online compared to consumers from other age groups.

While not immune to the allure of special offers, these digital shopping natives also expect to
encounter shopping recommendations that help them navigate the options on offer.

Frequently typified as fickle consumers, our research clearly indicates those aged 18-29
are more likely to pursue recommendations on products from the same brand compared to
shoppers from other age cohorts.

16
Attitudes on recommendations by age

18-29 years old 30-39 years old 40-49 years old

50-59 years old 60-69 years old

30.88% 26.96% 21.08% 15.20% 5.88%

Products from same brand
21.45% 21.82% 20.73% 21.45% 14.55%
Similar product different brand
30.85% 19.15% 17.55% 18.62% 13.83%
Frequently bought together
21.83% 22.54% 14.08% 23.24% 18.31%
Don’t use recommendations
11.48% 21.31% 16.39% 19.67% 31.15%
Don’t like recommendations

Answered: 721
42.27% 25.77% 20.62% 7.22% 4.12%
Products from same brand
31.21% 28.03% 22.93% 12.10% 5.73%
Similar product different brand
33.67% 24.49% 22.45% 15.31% 4.08%
Frequently bought together
12.94% 17.65% 27.06% 27.06% 15.29%
Don’t use recommendations
21.43% 14.29% 17.86% 17.86% 28.57%
Don’t like recommendations

Answered: 385
30.43% 17.39% 23.91% 23.91% 4.35%
Products from same brand
31.91% 17.73% 22.70% 21.28% 6.38%
Similar product different brand
28.41% 19.32% 20.45% 22.73% 9.09%
Frequently bought together
18.95% 18.95% 17.89% 22.11% 22.11%
Don’t use recommendations
5.41% 16.22% 13.51% 40.54% 24.32%
Don’t like recommendations

Answered: 364

34.23% 22.52% 14.41% 18.02% 10.81%

Products from same brand
23.65% 22.97% 25.00% 18.24% 10.14%
Similar product different brand
32.91% 16.46% 16.46% 21.52% 12.66%
Frequently bought together
22.67% 17.33% 16.00% 25.33% 18.67%
Don’t use recommendations
19.44% 19.44% 25.00% 11.11% 25.00%
Don’t like recommendations
Answered: 375

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Key Finding: Online Is Becoming a Primary
Channel for Every Type of Shopping Trip
Consumers go digital for every shopping need
More than half (51%) of UK consumers and 44% of French consumers say their CPG
purchases are part and parcel of regular big online shopping trips. It’s a similar story in the US,
where 31% of respondents say they engage with online channels to undertake a major shop,
and in Germany where major online shopping sprees are the routine for 33% of consumers.

Online shopping visit types

14.03%
30.51% browsing 51.17%
25.80% major trip major trip
10.13%
browsing
special
occasion trip

17.61%
special 26.07% 24.68%
occasion trip immediate immediate
use trip use trip
Answered: 721 Answered: 385

15.93%
32.69% 18.67%
browsing 44.00%
major trip browsing
major trip

17.03% 10.93%
special special
occasion trip occasion trip

26.40%
34.34% immediate use trip
immediate use trip
Answered: 364 Answered: 375

Immediate need purchases are the second most significant driver for around a quarter of
French, UK and US shoppers and tops the list for 34% of German shoppers.

The research highlights that online is no longer reserved for special occasion trips or to hunt
down a specific product, and that many consumers regularly browse online to stay appraised
on products, offers and deals.

Apart from the UK, significant numbers of consumers are utilizing pure-play online retailers to
make their CPG purchases. In the UK, shoppers predominantly purchase from retailers with a
bricks-and-mortar presence, while French consumers had the greatest penchant for making
CPG purchases direct on a manufacturer/brand’s online outlet.

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Online shopping outlets

1.82%
5.55% manufacturer
manufacturer 59.92% 32.73%
/brand site
/brand site online online
retailers retailers

34.54%
65.45%
site of offline
site of offline
retailer
retailer
Answered: 721 Answered: 385

21.87%
manufacturer 10.16% 68.13%
59.74% manufacturer
/brand site online
online /brand site
retailers retailers

18.67% 21.70%
site of offline site of offline
retailer retailer

Answered: 364 Answered: 375

Device preferences: traditional PCs or laptops still dominate

Despite the proliferation of smart phones and tablets, the majority of consumers we surveyed
across all markets say they still prefer using traditional desktop PCs or laptops when
shopping online.

Device preference

27.74% 25.45%
50.91%
42.58% Mobile app Mobile app
Website on
Website on your laptop/PC
your laptop/PC

29.68%
23.64%
Website on your
Website on your
mobile/tablet
mobile/tablet
Answered: 721 Answered: 385

16.21% 17.87%
65.93% Mobile app
Mobile app 66.67%
Website on
your laptop/PC Website on
your laptop/PC

17.86% 15.47%
Website on your Website on your
mobile/tablet mobile/tablet

Answered: 364 Answered: 375

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Consumers in the US (30%) and UK (24%) showed the most inclination to make online
purchases using their mobile or tablet device. Similarly, shopping apps are proving most
popular with US (28%) and UK (25%) shoppers.

Key Finding: Future Shopping Trends – One

Size Does Not Fit All
Online shopping behaviors set to escalate - for some

Future shopping behavior

26.90% 26.20%
will shop online will shop online

62.18% 63.40%
no change no change

10.92% 10.40%
will shop offline will shop offline

Answered: 1026 Answered: 500

19.80% 25.94%
will shop online will shop online
68.00% 64.55%
no change no change
12.20%
will shop offline
9.50%
will shop offline

Answered: 500 Answered: 505

While an overwhelming majority of shoppers in each of the markets we surveyed say that their
current shopping habits are unlikely to change in the coming 12 months, a significant number
say they plan to prioritize online channels when making CPG purchases.

Indeed, over a quarter of US (27%),a French (26%) and UK (26%) shoppers indicate they will
predominantly be shopping online in the future, with one-fifth of German shoppers also saying
this will be their channel of choice.

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Analysis of the future online shopping preferences of shoppers by age group indicates that
millennials and those aged 30-39 are the most likely demographics to make changes to how
they purchase CPG goods in the coming year head. Both groups say they anticipate that they
will increasingly engage with online channels.

Future of online by age

Will shop online Will shop offline No change

18 to 29 years old 32.90% 15.00% 52.08%

30 to 39 years old 28.29% 16.09% 55.61%

40 to 49 years old 28.19% 10.64% 61.17%

50 to 59 years old 24.53% 8.02% 67.45%

60 to 69 years old 18.78% 3.31% 77.90%

Answered: 1026

18 to 29 years old 42.34% 18.02% 39.64%

30 to 39 years old 40.82% 13.26% 45.92%

40 to 49 years old 26.47% 11.76% 61.76%

50 to 59 years old 6.60% 5.66% 87.74%

60 to 69 years old 12.05% 1.20% 86.75%

Answered: 500

18 to 29 years old 29.41% 23.53% 47.06%

30 to 39 years old 26.19% 14.28% 59.52%

40 to 49 years old 20.91% 12.73% 66.36%

50 to 59 years old 14.65% 6.90% 78.45%

60 to 69 years old 7.95% 3.41% 88.64%

Answered: 500

18 to 29 years old 33.64% 20.00% 46.36%

30 to 39 years old 31.96% 4.12% 63.92%

40 to 49 years old 23.00% 11.00% 66.00%

50 to 59 years old 22.00% 7.00% 71.00%

60 to 69 years old 18.37% 4.08% 77.55%

Answered: 505

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The future is omnichannel for millennials
More detailed exploration of millennial shopping habits reveals how those aged 18-29 appear
unwilling to solely commit to online channels; instead, they appear intent on embracing the
richness of experiences that omnichannel shopping affords them.

Even those millennials that only or mostly shop for CPG purchases online today say their
future shopping behaviors are set to change to some degree or another.

Future shopping behavior for Millenials

Will shop online Will shop offline No change

Only online 90.00% 10.00%

Mostly online 42.42% 33.33% 24.24%

Both on and offline 37.84% 14.86% 47.30%

Mostly offline 19.61% 13.72% 66.67%

Only offline 14.52% 8.06% 77.42%

Answered: 165

Only online 62.50% 25.00% 12.50%

Mostly online 48.15% 22.22% 29.63%

Both on and offline 46.00% 14.00% 40.00%

Mostly offline 33.33% 27.78% 38.89%

Only offline 0.00% 0.00% 100.00%

Answered: 111

Only online 50.00% 33.33% 16.67%

Mostly online 18.75% 43.75% 37.50%

Both on and offline 42.50% 20.00% 37.50%

Mostly offline 25.92% 18.52% 55.56%

Only offline 0.00% 15.38% 84.62%

Answered: 102

Only online 60.00% 40.00%

Mostly online 33.33% 33.33% 33.33%

Both on and offline 33.33% 22.92% 43.75%

Mostly offline 45.00% 10.00% 45.00%

Only offline 12.50% 0.00% 87.50%

Answered: 110

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Exploring the anticipated behaviors of those who say they only shop online at the present time
in more detail, European millennials appear most likely to be exploring offline sometime soon;
40% of French, 33% of German and 25% of UK shoppers in this category state their future
plans include shopping more in-store. By contrast, just 10% of US ‘online only’ millennial
shoppers intend to head offline for CPG purchases.

Volatility in future shopping preferences was also observed in those who say their current
shopping behaviors are equally balanced between online and offline, with between 33%
(France) and 46% (UK) of millennial shoppers saying they have plans to predominantly shop
more online in the future.

Meanwhile, those who mostly shop offline today demonstrate strong intent to make more
digital purchases in the future. French millennials in this group led the way, with almost half
(45%) saying they will be increasingly heading online. Similarly, one third of UK (33%) and just
over a quarter (26%) of German millennial shoppers say they are getting ready to make more
use of digital channels.

It would appear that, for many millennials, it’s not simply a question of ‘online or offline’; they
want to choose which touchpoints they interact with when shopping and will move seamlessly
between channels, using those that fit their needs in the moment.

CPG companies that master delivery of an omnichannel customer experience are set to gain
competitive advantage with this age group. And they’re not the only demographic who will
respond positively to an integrated and robust multi-channel strategy.

Generation X prepares to go full speed ahead with

digital channels
Analysis of the future online shopping habits of those aged 30-39 indicate that this age cohort
represents the fastest growing opportunity for future digital transactions in the coming year.

Indeed, 40% or more of Generation X consumers in all markets who today mostly shop online
have plans to increase their digital purchasing behaviors, with an impressive 100% of German
shoppers saying they plan to be ‘digital only’ in the future.

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Future shopping behavior for age group 30-39

Will shop online Will shop offline No change

Only online 70.00% 15.00% 15.00%

Mostly online 46.67% 13.33% 40.00%

Both on and offline 37.50% 20.00% 42.50%

Mostly offline 11.36% 13.64% 75.00%

Only offline 4.35% 13.04% 82.61%

Answered: 205

Only online 70.00% 20.00% 10.00%

Mostly online 52.94% 11.76% 35.29%

Both on and offline 35.29% 11.76% 52.94%

Mostly offline 40.00% 13.33% 46.67%

Only offline 0.00% 20.00% 80.00%

Answered: 98

Only online 33.33% 33.33% 33.33%

Mostly online 100% 0.00%

Both on and offline 33.33% 12.82% 53.85%

Mostly offline 20.00% 16.00% 64.00%

Only offline 6.67% 13.33% 80.00%

Answered: 84

Only online 40.00% 40.00% 20.00%

Mostly online 41.67% 16.67% 41.67%

Both on and offline 21.75% 13.04% 65.22%

Mostly offline 13.33% 0.00% 86.67%

Only offline 18.18% 4.55% 77.27%

Answered: 100

Meanwhile, those shoppers displaying a balance of online and offline purchasing behaviors
at the present time are also more likely to be shopping more online in the future. Future digital
shopping inclinations of this age group ranged between one-fifth (21%) of French consumers
and well over a third (37.5%) of US consumers in this sector.

For these time-pressed shoppers, online shopping equates to time-saving, convenience and
control that includes the ability to make their purchases at any time of the day or night.

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Conclusion
Changing commercial dynamics will require an effective response from CPG companies. It’s
clear that consumers are increasingly purchasing CPG products online and they’re not just
shopping within packaged food categories.

As online shopping trends accelerate, CPG companies will need to move quickly to master
next generation e-category management and build their digital capabilities.

That includes developing a deep understanding of category pricing dynamics, coordinating

promotion plans across channels to ensure they drive incremental sales and building ‘power
partnerships’ with key channel partners.

Agile execution, a rapid test and learn approach and a willingness to leverage advanced
analytics to personalize offers and predict consumer needs and better understand unique
channel shopping behaviors will all become increasingly critical.

In general, winning CPG companies will prioritize the following imperatives:

• Evaluate the broader channel strategy, determining where and how to play - and with
which partners

• Automate data collection from a variety of sources and utilize centralized analytic tools to
generate market-specific shopper insights

• Pursue integrated decision making on pricing, promotions and assortments

• Invest in omnichannel retail capabilities; attaining commercial excellence will demand

new skills and more advanced channel management practices that include tailoring
assortments, merchandising and promotions to the online channel

• Make more frequent adjustments to SKU portfolios, undertaking micro-segmentation that

considers in detail which channel outlets are being served

As online consumer demand continues to grow in mature e-commerce markets, CPG

companies will need to ensure they are positioned to take advantage of every opportunity.
With online shoppers motivated by price and convenience drivers, it’s time to gain mastery of
basic and value-oriented assortments, while leveraging consumer insights to execute price
and promotion to maximize returns and personalize the conversation with individual shoppers.

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About Periscope®
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