MARKET WATCH
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Hispanic Population Impact on U.S. Shopping Trends Accelerating: IRI Study
Hispanic consumers are impacting U.S. shopping trends, according to a study by Information Resources, Inc. (IRI). The latest HispanicLink study contained new information about Hispanic shoppers’ path to purchase CPG products and a particular focus on the group’s widespread adoption of e-commerce as a purchase channel.
Today, there are 55 million Hispanics in the United States, representing 18 percent of the population and spending power of $1.5 trillion. Almost 60 percent of Hispanics are Millennials or younger, and they account for 80 percent of segment growth, making Hispanic shoppers vital for any manufacturer or retailer eager to grow sales and market share. In addition, Hispanics tend to shop online more than non-Hispanics in several critical categories, including cosmetics, fragrances and beauty, and general household products.
Hispanics are also a highly diverse group, based on factors such as age, income, specific needs and language preference — English-preferred, bilingual or Spanish-preferred. For online shopping, there are six segments of e-commerce shoppers in the United States, defined by their attitudes and behaviors about the activity: e-shopping enthusiasts, variety seekers, review seekers, selective e-shoppers, e-shopping resistors and e-shopping avoiders. Hispanic shoppers are disproportionately prominent in two of the most active online shopping segments, e-shopping enthusiasts and review seekers, providing unique growth opportunities for CPG companies, which can leverage this knowledge and refine their marketing efforts.
“Every year, we do an in-depth study on Hispanics’ shopping behaviors, and our most recent research takes a closer look at their shopper journey, including specific insights about the channels they shop, specific products they purchase as well as their adoption of e-commerce as a convenient and affordable means to do their shopping,” said Larry Levin, executive vice president of Consumer and Shopper Marketing for IRI, said, “Hispanic Millennials in particular are a very large consumer segment and are very digitally savvy, so our research will help CPGs customize their marketing efforts to achieve optimal results among this core growth target.”
Key findings from HispanicLink identify that Hispanic shoppers plan to increase their online purchases of grocery products from large retailers at a significantly faster pace than non-Hispanic shoppers; at Amazon, the increase is projected to be more than 40 percent. However, Spanish-preferred Hispanics are more resistant to doing so. Overall, Hispanics are also more likely to make comparisons across retailers when buying groceries online, especially those who are bilingual.
Industry Veteran Bart Roselli Joins VideoMining as Executive Vice President
VideoMining, the leading provider of in-store behavior analytics for Consumer Packaged Goods (CPG) manufacturers and retailers, announced that Bart Roselli has joined as EVP, Client Solutions.
Roselli comes to VideoMining with 30+ years of experience in leadership positions with market leaders like Nielsen, Procter & Gamble, Research Now, Walmart and ShopRite—giving him a unique perspective on all aspects of the CPG Retail ecosystem. Drawing on a diverse background that includes market research, client services, business transition, software deployment and product development, he will lead efforts to build and grow strategic relationships with key retailers and CPGs to expand VideoMining’s ShopperFirst platform and programs.
“We are extremely excited to have Bart onboard,” said Rajeev Sharma, Founder and CEO of VideoMining. “He has a deep understanding of the needs of both retailers and manufacturers and will play a very strategic role in our ShopperFirst programs—expanding retailer footprints and fielding new applications for the CPG market.”
ShopperFirst utilizes VideoMining’s patented sensing technologies to power the only scalable solution for measuring and analyzing in-store shopper behavior data. Its unified, multi-channel platform enables better decisions across a wide range of functions for both retailers and CPG manufacturers. ShopperFirst provides the real-world shopper response data critical to optimization in areas like category management, display planning, omnichannel campaign tracking, store design and more.
“Empowering retailers and manufacturers to make better decisions based on real shopper response is a game-changer and fills the in-store information gap that exists from traditional data providers,” said Roselli. “VideoMining’s innovative technology and approach to leveraging in-store behavior data will have a major impact on how retailers and manufacturers do business, and I am delighted to be part of the team.”
For more information, visit www.videomining.com or contact VideoMining at info@videomining.com or 800.898.9950.
Call for Speakers for Fall LEAD Marketing Conference
The Shopper Technology Institute (STI) has issued a Call for Speaker/Sponsors for its next LEAD Marketing Conference on Wednesday, Nov. 16. STI’s 10th LEAD is a virtual event that features some of the industry’s most knowledgeable experts speaking about trends and developments in Loyalty, Engagement, Analytics and Digital Application. The slate of presentations will be announced next month
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More information about the conference, co-hosted by CPGmatters, is available at www.LEADMarketingConference.com or by reaching out to 216-534-9933 or linda@leadmarketingconference.com
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Walgreens Launches Balance Rewards Integration with Android Pay
Walgreens has become the first retailer to integrate a loyalty program through Android Pay.
Members of the giant drug store chain’s Balance Rewards program can now seamlessly apply their loyalty account at checkout through Android Pay. The aim is to further the convenience of earning and redeeming points and expanding the company’s portfolio of unified mobile payments solutions.
This latest integration gives the more than 85 million active Balance Rewards members, many of whom use Android devices, another an easy, secure and private way to earn and use loyalty points in-store, and eliminates the need to separately scan or enter their Balance Rewards card.
“We’re continually looking at ways to enhance the customer experience through innovative and forward-thinking technologies,” said Abhi Dhar, Walgreens senior vice president and chief information officer. “We’re proud to have been the first retailer to integrate our loyalty program with the two leading mobile payment providers, and to give our customers another channel for greater access, choice and convenience with our loyalty program.”
To get the most out of purchases, users can add their Balance Rewards card information to the Android Pay app downloaded on Google Play. Before payment, members simply hold their Android device near the PIN pad and the appropriate rewards information is applied. To checkout, members then hold their Android device again near the PIN pad for payment. Android Pay is easy to set up and users will continue to receive all of the rewards and benefits offered by credit and debit cards.
“We want to make in-store payments simpler for everyone, so we've worked with Walgreens to implement Balance Rewards with Android Pay in their stores nationwide, giving customers instant, frictionless access to their loyalty card when they pay,” said Pali Bhat, Google senior director, product management. “Now, Walgreens customers can speed through the entire checkout process in as few as two taps with their Android phones.”
Android Pay is one of the many convenient payment options at the nearly 8,200 Walgreens stores nationwide. Customers can pay for purchases with most standard credit and debit cards, EMV chip credit cards and other mobile wallets. Balance Rewards integration with Apple Pay is also offered.
$10 Billion+ in CPG Online Sales Estimated for 2016
Strong online sales for key product categories will push CPG sales this year to more than $10 billion, says new research.
Findings from 1010data Market Insights show that when compared to the first half of 2015, CPG online sales grew 42 percent across key categories in the first half of 2016. If present trends continue, 1010data estimates that online sales in the U.S. will surpass $10 billion for these categories for the first time in history.
Given recent high-profile events like Unilever’s $1 billion acquisition of Dollar Shave Club, 1010data wanted to learn more about how traditional CPG companies are coming to terms with new online competitors, as well as to examine how legacy makers of consumer goods were faring in terms of in-store versus online sales. Overall, the research points to a significant shift towards online shopping, from $5 billion in 2014 to $7 billion in 2015 and to this year’s projected $10 billion in e-commerce revenue for the CPG sector. 1010data further shows that consumers’ in-store spending is flat and nearly all of the modest 4% annual growth in consumer spending is happening from growth in e-commerce.
In terms of category sales and growth, 1010data’s results show that the Health Supplements and Pet Care categories are the largest in terms of overall revenue. The Health Supplements category has already surpassed $1 billion in online sales, and Pet Care is over $700 million; in addition, Pet Care is the fastest growing category in CPG among categories with at least $200 million in annual online sales. And while smaller at approximately $40 million, Laundry & Dish is the fastest growing category overall.
Analyzing individual brands’ sales and growth also provides insight into where and how traditional CPG companies are winning or losing online. In the Health Supplements category, research shows that protein supplement maker Optimum Nutrition leads in total single-brand sales. Evlution Nutrition, a newer and rapidly growing brand that sells most of its product via the bodybuilding.com website, is the fastest growing brand so far in 2016. Half of the top 20 best-selling online brands are in the Pet Care category, and Blue Buffalo leads the pack in online sales. Across the entire CPG sector, online upstarts are staking their claim. For example, in the online hair-loss shampoo market, Pura D’or owns a 17% percent market share, beating out household names like Rogaine, Nioxin, and Kirkland.
“Our data shows that online challengers are making a big impression in their market segments because e-commerce helps them achieve massive growth without the high up-front costs that traditional CPG companies must incur in marketing, distribution and product visibility at brick-and-mortar stores,” said Natalie Seidman, SVP Data Insights for 1010data, a provider of self-service data management and analytics.
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