Multichannel grocery shopping is surging across the globe, according to a major new study by the customer science company dunnhumby. The company analysed the shopping habits of seven million people in established, emerging and nascent markets across the globe.
The report has revealed a huge opportunity in the multichannel space for retailers in emerging markets like South Africa, with a phenomenal 97% surge in online grocery shopping year on year.
Less than 1% of the global population shop online only, with the majority of online shoppers now classed as multichannel customers. According to dunnhumby’s report, these customers are between 30% and 67% more valuable to retailers than the average shopper, and are far more likely to be from an ‘upmarket’ household.
For brands in entry categories – the first to move online – the importance of developing a multichannel strategy is also evident, with the report explaining that brands are not guaranteed success despite the high growth rates. Multichannel customers are worth 28% more to brands than ‘average’ shoppers, so brands are well advised to establish their online strategy now.
What’s more, broadband internet coverage in emerging markets is set to increase rapidly over the next five years, bolstering today’s near 100% annual increase in online grocery shopping. With 60% of all internet traffic coming from mobile phones in South Africa, it will be critical for retailers to ensure that they have a winning proposition on this platform.
Convenience appears to be a strong factor in determining the products customers choose to buy online and there are some categories for which having a well-defined online strategy is key. For instance, time and sleep-starved parents are turning to online shopping for the first time in emerging markets like South Africa, with baby categories such as milk, food and nappies among the most purchased grocery items by multichannel shoppers. Dried and frozen foods, in particular fish and breakfast cereal, are also popular choices among these shoppers,
Graeme Tulloch, Head of Country for dunnhumby South Africa, said, “The rapid increase in online grocery shopping and broadband usage across emerging markets presents a huge opportunity for retailers and brands in South Africa. This is a key time for retailers and brands to start thinking seriously about their multichannel strategies so they can be ahead of the curve.”
The dunnhumby Global Trends Unit identifies the customer trends that will shape the future of the retail industry. It uses dunnhumby’s behavioural and attitudinal data on more than one billion customers worldwide to enable decision-makers to formulate superior forward-looking strategies. The full report can be downloaded here.