Consumers with higher incomes are looking for an extensive selection of products and want the convenience of home delivery for items such as wine and fine chocolates. Having children living at home is another key factor related to a high rate of online shopping for CPG. These households purchase the following product categories online:
- Office/school supplies 50%
- Face care products 48%
- Hair care products 47%
- Household cleaning supplies 37%
- Oral care products 34%
Contrary to popular belief, Amazon does not dominate in all online categories. WalMart appeals to value shoppers and Target.com has built a following among new mothers.
To compete in this marketplace, CPG companies must understand how consumers are shopping specific categories and which consumers are likely to buy the products online. The next step in the process is to form partnerships with e-tailers or enter into the space with a solid marketing plan for reaching consumers directly.
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