PEOPLE WATCH GROCERY SHOPPERS NOVEMBER 2018 PEOPLE WATCH

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1 GROCERY SHOPPERS NOVEMBER 2018

2 REDEFINING THE GROCERY SHOP Australian grocery buying trends have changed over the last decade. Studies conducted by the abs has shown that the average household increase in groceries has increased by approx. 17% in this period. In 2018, 14 million Australians identify as Main Grocery buyers with an average household spend of $336 a week. One of the major changes we are seeing today is the shift away a week. Purchasing groceries online continues to grow too, with Nielsen predicting online spending for grocery to increase by $2bn in the next 5 years With change, comes opportunity. Is your brand leading the way in new grocery trends? Read on to find out more about growing trends marketers should know on this fast moving industry SOURCE: ROY MORGAN SINGLE SOURCE 2018 AUS FOOD NEWS PROJECT HARVEST NEILSEN CONSUMER MEDIA VIEW (CMV) ASIC MONEY SMART MARCH18 ABS 2016

3 FIVE KEY TRENDS OF THE MODERN GROCERY BUYER

4 - SANTA CLAUS IS COMING TO TOWN

5 1. GROCERY LISTS With the changing trend away from dedicated weekly grocery shops, one could assume people are shopping for their groceries is changing as well. One of the effects of not having just one weekly shop has lead to the changing attitudes towards writing a grocery list. A recent study has found that while 77% of Baby Boomers are more likely to use a shopping list when grocery shopping, Millennials on the other hand are much less likely to. Millennials, with an emphasis of flexibility and satisfying immediate cravings, are much more likely to do multiple shops a week and more likely to buy on impulse (47% vs. 34% of the general population) So stock up those candy aisles! SOURCE: GLOWFEED.COM.AU 2016 GALLOP BUSINESS JOURNAL 2016

6 74% of Australians prepare at least 5 of their 7 weekly dinners at home - HELLOFRESH 2017

7 2. MEALKITS 87% of Australians want to be more adventurous in the kitchen but 62% find deciding what exactly to cook for dinner stressful and 68% find that they are often too busy to find recipes that the whole family would enjoy Mealkits is a category that is growing fast. Although currently, only 1.5% of Australian households have made meal kit purchases in late 2017 early 2018, following global trends, Nielsen predicts this number to increase to 1 million Australian homes in the next 12 months. So who are these meal kit buyers? The same Nielsen study shows that purchasers of popular mealkit brands HelloFresh and Marley Spoon tend to be younger, more affluent and more likely to shop online than the average shopper. SOURCE: NIELSEN 2018 HELLOFRESH 2017

8 84% of shoppers use self checkout because they find them to be quicker, - CanStar Blue 2016

9 3. SCAN AND GO While most of us are used to self check-out evolution in retail technology. In Australia, wages account for 9.5% of domestic supermarkets are trialing new check-out technology. This year, Woolworths trialed its first barcode scanning app technology, allowing shoppers to scan with their phones bypassing the traditional check-out. In a global first, Amazon opened its first Amazon Go store in Seattle where hundreds of ceiling mounted cameras and electronic sensors work to identify and track items its shoppers are putting into their cart. These purchases are then billed to account as they leave the store. SOURCE: AUSTRALIAN GOVERNMENT PRODUCTIVITY COMMISSION 2014 AMAZON 2018

10 Modern technology has become a total phenomenon for civilization, the defining force of a new social order in which efficiency is no longer an option but a necessity imposed on all human activity - JACQUES ELLUL, FRENCH PHILOSOPHER AND WRITER

11 4. SELF DELIVERY Australians spend a total of 153 hours or 6.4 days a year buying groceries. What would you do if you had that time back? Several companies in the US have been trialing driverless delivery technology specifically for the grocery shop. Kroger launched its pilot in Arizona and AutoX in California earlier this year, adding to the services of other driverless delivery vehicles/robots. Volvo has also launched its service Roam where customers can purchase via an online store and their purchases can be delivered straight to their car, using a digital key to access the vehicle. After the delivery is made, the customer then gets a confirmation that the delivery has been made. SOURCE: HELLOFRESH 2017 BUSINESSINSIDER 2018

12 guests to a party, and we are the hosts. important aspect of the customer experience a little bit better JEFF BEZOS, AMAZON CEO

13 5. LOYALTY SCHEMES 9-in-10 Australians have at least one loyalty card in their wallet, with the average Australian consumer participating in up to 6 loyalty programs. In fact, 60% of Australians say loyalty schemes influence where they shop and 36% admit they spend more because of the scheme. When Woolworths replaced their Frequent Flyer linked Everyday Rewards scheme with a new loyalty program in 2015, there was swift public outrage. No surprise, this program was scrapped and replaced a year later. Now Woolworths is the clear leader in loyalty with 49% of Australians taking part in their loyalty scheme vs 45% Coles. fastest growing supermarket has been extremely anti- What do you think? What is your loyalty worth? SOURCE: CMO.COM.AU 2018 FINDER.COM.AU 2018

14 WHERE TO NEXT?

15 Although flying robots buying and delivering our groceries or self stocking refrigerators are still a long way off, changes in technology, culture and preferences has created whole new trends in Australians spend almost a full week every year doing their grocery shopping. From navigating traffic, finding an empty car spot, to waiting in line at the no wonder brands such as HelloFresh, UberEats and Deliveroo have become part of our everyday lives. As we continue to prize convenient shopping methods and purchase goods on a need-by-need basis, the way consumers interact with both Grocery and FMCG brands will evolve. With shoppers already using a multitude of touchpoints to complete their grocery shop, shopping behaviour and brand loyalty (not to be confused with loyalty schemes) will continue to be integral elements in the path to purchase for many consumers. Begging the question; how loyal are you shoppers? SOURCE: QUARTZ 2016

16 THANK YOU For more information on connecting with consumers contact us today.