Online growth has plateaued, as consumers return to traditional channels.
Yesterday’s winner could be the loser today – and tomorrow we could have a different winner altogether. Since the beginning of the pandemic, ecommerce has been the focus of many brands’ efforts to sustain their sales volume and growth. It was one of the highest growth channels during COVID-19, in tandem with the aggressive expansion of neighbourhood mini-market stores, but the ecommerce arena has become more competitive and is now no longer shoppers’ top priority and preference. They are now moving back to conventional channels for their FMCG purchases, especially supermarkets and mini markets - absorbing the trips from Hypermarkets and General Trades.
Shoppers still buy FMCG from five different channels per year, which means they continue to ‘shop around’, shifting their trips and spending to channels that they find more relevant in terms of experiences and product offerings. Brands that have performed strongly online in the past might want to consider moving their investment back towards the conventional channels, or craft a specific role for the online stores. For the offline channel mix, they might want to be flexible in their activations and distribution strategies for different touchpoints.
It is crucial for brands to have an on-time budget allocation, and to be aware and reactive to market changes. Follow where shoppers are going to discover which channels and, more importantly, which particular stores to prioritise in terms of trade investment and product availability, according to their role in regards to your category.
