IBIE - 2019 Special Edition & Show Preview - 99

E-COMMERCE

a compound annual growth rate of nearly 50% over the
past three years, according to Nielsen. That growth is being fed by the increasing availability and convenience of
click-and-collect models and omnichannel experiences.
Where categories like electronics, health and beauty
are doing much better in pure-play e-commerce channels, Mr. Gagliardi said foods are doing much better in
omnichannel retail channels. The sales data shows why.
According to IRI, only 4% of omnichannel sales for
snacks occur online. However, there is 35% growth
in the category. And that's despite 98% of all CPG
snack purchases occur in brick-and-mortar stores. Mr.
Gagliardi said this is because consumers are still tied to
that in-store model, even if they are now making purchasing decisions online first.
Mr. Gagliardi said it's imperative for brands and retailers to create a seamless experience between online channels and in-store experiences because both feed each
other. A positive in-store experience can lead to an online
delivery purchase through a local grocery retailer, which
then can be renewed automatically, thus driving sales.
With most major brick-and-mortar grocery stores
announcing click-and-collect and various delivery options, Mr. Seifer said the line between physical and online shopping is blurring, and as a result, consumers are
getting the best of both worlds. "There is also a place for
pure-play e-commerce groceries, but it looks like, as of
now, consumers want a seamless experience between
brick-and-mortar and e-commerce," he concluded.

Winning ways
Bakery and snack foods still have a lot of room to grow
online. According to Innova Market Insights, for the
US, just 1.9% of survey respondents in 2018 said they
purchased baked goods online. That's compared with
80.3% who said they still purchase these goods at mass
retailers.
So, how can bakers and snack manufacturers create
the growth they seek online? Mr. Gagliardi said brands
should follow a "build, drive, earn" strategy.
First, build an online presence. Today's shoppers often refill their baskets or carts with the snacks and foods
they purchased the previous week. Mr. Gagliardi said
it's imperative to become their first choice. Next, he said
companies need to drive consumers to their products
by shortening the path to purchase. Companies should
build their organic and paid search terms and work with
e-retailers to create a retargeting strategy that branches
into social media and other online channels.
Finally, food companies need to earn the awareness,
consideration and loyalty of their consumers.
"You have to explore and find your best sweet spot for
winning online," Mr. Gagliardi said.

trips still happen
98% ofat CPG
brick & mortar
DRIVING FACTORS FOR RETAIL CHOICES

57% Free delivery
47% Fast delivery
Click &
40% Having
Collect option
HOW TECHNOLOGY IS EVOLVING THE
SHOPPER PATH TO PURCHASE

This year digital will influence
of all retail SALES

77%

of all shopping
76% trips
begin online
searches begin
71% of allonproduct
retail sites
IRI

55% of these begin on Amazon

IS E-COMMERCE WORTH THE EFFORT?
IBIE attendees can learn more about ecommerce strategies in Las Vegas at 11
a.m. on Sept. 8. Susie Marie, owner of
Sweet Life Specialty Foods, Pleasanton,
CA, will lead the IBIEducate session called
"E-commerce for your business, is it
worth it?"
The session will detail everything
involved in e-commerce, including marketing, costs, shipping and even the potential
for bitcoin currency payments. The session
is part of the retail, sales and marketing
track and is included in the all-access pass.
The individual session costs $15. For more
information, visit www.ibie2019.com.

IBIE 2019 PreShow Guide 99

http://www.ibie2019.com

IBIE - 2019 Special Edition & Show Preview

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