trends & design: deep dive into e-commerce · trends & design: deep dive into e-commerce...
TRANSCRIPT
![Page 1: Trends & Design: Deep Dive into E-Commerce · Trends & Design: Deep Dive into E-Commerce Karen English October 11th, 2016 . REVISITING THE MACRO TRENDS ... innovation-in-digital-commerce-for-cpg.html](https://reader034.vdocument.in/reader034/viewer/2022042316/5f04ddcd7e708231d4101a6e/html5/thumbnails/1.jpg)
Trends & Design: Deep Dive into E-Commerce Karen English October 11th, 2016
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REVISITING THE MACRO TRENDS
RISE OF THE MILLENNIALS
BIG BRANDS vs NIMBLE NEWCOMERS
THE DIGITAL FUTURE
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• Largest and most
diverse generation
in US
• Singlehood
• Social -
conversation
• Trust, Authenticity,
Transparency
RISE OF THE MILLENNIALS
Source: US Census Bureau, 2014
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THE DIGITAL FUTURE
Number of devices
connected to the
Internet
18 Billion
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THE DIGITAL FUTURE
18 Billion
50 Billion (Projected)
Number of devices
connected to the
Internet
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THE DIGITAL FUTURE
18 Billion
50 Billion (Projected)
Number of devices
connected to the
Internet
World Population
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THE DIGITAL FUTURE
Consumer Mobile
Shopping
Source: http://www.mckinsey.com/ Source: Neilson - April 2016
Americans - Smartphone
in the Pocket
Total Internet Usage
- US Mobile Devices
60%
83%
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Top companies
losing market share
BIG BRANDS vs NIMBLE NEWCOMERS US Food & Beverage
Companies
TOP 25
Source: Advertising Age, May 2015
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Top companies
losing market share
BIG BRANDS vs NIMBLE NEWCOMERS US Food & Beverage
Companies
TOP 25
in lost revenue
from 2009-2014
$18 Billion
Source: Advertising Age, May 2015
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BIG BRANDS vs NIMBLE NEWCOMERS
Introduction of new
upstart brands
Snack brand launches
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WHAT IS E-COMMERCE?
Any type of business, or commercial transaction, that involves the transfer of information across the Internet…
● No barriers of time or distance ● Consumer based retail sites ● Auction or music sites ● Trading goods and services
between corporations
http://www.networksolutions.com/education/what-is-ecommerce/
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E-COMMERCE & CPG’s
Statistics of Note
Source: http://www.packworld.com/ trends-
and-issues/e-commerce/how-e-commerce-
changing-packaging-landscape - May 2016
PMMI Report on CPG involvement in direct-to-consumer sales
$18 Billion Estimated E-commerce grocery sales by 2018
5.9% E-commerce currently accounts
for $1.3 trillion out of a $22 trillion global retail market
47% - UNDECIDED 29% - YES
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E-COMMERCE & CPG’s
Statistics of Note
Source: https://www.washingtonpost.com/
news/wonk/wp/2016/07/15/the-simple-change-
that-could-get-affordable-food-to-the-poor-people-
who-need-
it/?mc_cid=14d4699f5b&mc_eid=299100c74e
Source: http://www.nielsen.com/
us/en/insights/news/2016/growing-grocery-online-
innovation-in-digital-commerce-for-cpg.html
Estimated % of total quarterly retail sales according to the U.S. Census
Bureau - U.S. retail, E-commerce 1:4
Online global respondents say they order grocery products online - driven by Millennials and Generation Z
10%
55% Willing to buy grocery
products online in the future
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E-COMMERCE - AVID ONLINE GROCERY SHOPPERS
Source: http://www.nielsen.com/
us/en/insights/news/2016/growing-grocery-
online-innovation-in-digital-commerce-for-
cpg.html
Source: Nielsen Global E-commerce and the New
Retail Survey, Q3 2014
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E-COMMERCE - AVID ONLINE GROCERY SHOPPERS
Source: http://www.nielsen.com/
us/en/insights/news/2016/growing-grocery-
online-innovation-in-digital-commerce-for-
cpg.html
Source: Nielsen Global E-commerce and the New
Retail Survey, Q3 2014
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E-COMMERCE & CPG’s
The CPG industry is
fast approaching a
tipping point…
Are we there yet?
Source: http://www.gmaonline.org/ - THE DIGITAL FUTURE: A GAME PLAN FOR CONSUMER PACKAGED GOODS
“Winning business models have yet to be
established and are likely to be many…”
1 - 5 - 10
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AN E-COMMERCE MODEL
GOODS
DATA
GOODS
DATA C B R
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CONSUMER
Whatever I want,
Whenever I want,
Wherever I want...
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CONSUMER
Interaction with Brands and Retailers
● SEAMLESS
● EASY to USE
● Added VALUE
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CONSUMER
Conversation with
Retailers and Brands
Reviews, feedback,
ratings
Social media = data
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CONSUMER
Packaging
customization
Personalization
Source: http://www.packagingstrategies.com/
articles/88592-a-bottle-diet-coke-fans-can-
call-their-own
Source: http://www.coca-colacompany.com/
stories/diet-coke-its-mine
Diet Coke “IT’S MINE” Campaign E-commerce channel further enables the brand with possibilities to enhance the consumer experience with the customized or personalized packaging
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CONSUMER
Conversation with
each other
Driven by digital
natives
Free marketing for
the Brands
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BRANDS
Growth
Opportunities
Reach more and new
types of consumers
Source: http://www.gmaonline.org/ - THE DIGITAL FUTURE: A GAME PLAN FOR CONSUMER PACKAGED GOODS
of CPG growth will come from E-commerce by 2018 50%
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BRANDS
Understanding the
digital shopper
Focus
Shopper
Full Basket
Shopper
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Big Data
Consumer
experience
Build trust -
transparency, brand
promise
BRANDS
BRANDS CONSUMER
● Product information ● User reviews ● Recipes ● Complimentary items ● Product improvements ● Supply chain
improvements ● Best Sellers
● Reviews ● Ratings ● Clicks ● Wish list
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C B R
BRANDS
Getting products to the consumer E-tailer
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C B R
BRANDS
Getting products to the consumer Direct to Consumer
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BRANDS - Direct to Consumer
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BRANDS
Getting products to the consumer New channels
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RETAILER
Channel
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RETAILER
Model
Click and Collect
Click and Deliver
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RETAILER
Model
Sharing Economy
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RETAILER
Eliminate seams Speed One step ordering Mobile payments
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RETAILER
King of E-tailers
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RETAILER
Exploring new
relationships
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PACKAGING CONSIDERATIONS - E-COMMERCE
Designing a vessel for E-commerce...
● Protection ● Insulation ● Barrier - Shelf Life ● Sustainability ● Frustration free ● Anti-counterfeit
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ELEMENTS OF PACKAGE DESIGN
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Product protection
Structural design -
Rigid vs. flexible
PACKAGING CONSIDERATIONS
RIGID FLEXIBLE
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Product protection
● Packages that do not break
● Packaging that keeps product from
breaking
● Lightweight and efficient
PACKAGING CONSIDERATIONS
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Insulation
Temperature
sensitive products
Coolers and ice
packs are costly
Source: FoodDive - March 2016
PACKAGING CONSIDERATIONS
Hershey charges $6.95 to ship a
$4.25 bag of Kisses ordered on its
website and “strongly suggests”
that customers buy liquid ice packs
and a foam cooler for an additional
$4.99... with recommended
expedited shipping...total cost is
$20.20 before taxes
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PACKAGING CONSIDERATIONS
Barrier packaging
Shelf-life
Downgauging
Transparency
Market continues to push for high barrier
performance packaging (moisture,
oxygen, etc.)
● High barrier, light weight
materials - reduce overall
packaging weight
● Consideration of longer stock
times (or slower moving
goods)
● Demand for longer shelf-life -
less strain on distribution
channels
● Consumers still want to see
the product - authenticity and
transparency
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PACKAGING CONSIDERATIONS
Brand differentiation
Graphic appeal
Shape, color, printing
Source: Packaging World - June 2016
● What role will package design play on the
digital shelf?
● With the brand (CPG) no longer having to
stand out in a sea of competitive
packages, will design be as significant
online?
● Will the package that arrives at the
consumer’s doorstep still require the
same aesthetic detail?
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PACKAGING CONSIDERATIONS
Anti-counterfeit
Authenticity
Source: http://www.businesswire.com/news/
home/20160119005811/en/Global-Anti-
Counterfeit-Packaging-Market-Set-Grow-CAGR
(Technavio)
Estimated % of the annual
global trade that is accounted
for by counterfeit goods and
products
...increasing disposable income from
emerging nations and the increase of E-
commerce retail in developing countries
encourages the need for anti-counterfeit
packaging...
5-9%
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PACKAGING CONSIDERATIONS
Sustainability
Source: http://www.originalrepack.com/
forbrands/
Considerations for primary,
secondary, and tertiary packaging
● Source Reduction
● Right Sizing
● Renewable
● Recyclable
● Returnable/Reusable
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PACKAGING CONSIDERATIONS
Sustainability
Source: https://www.amazon.com/p/feature/
c76chxvxrraw7hj?ref_=aa_bx_2&pf_rd_r=702MZ
87HSY5JXFCYT4Q8&pf_rd_p=3425aa17-1f7b-
4eba-a028-3c2cc42783b7
Initiatives on more than 1.2 million products,
Amazon eliminated more than 36,000 tons of
excess packaging just in 2015
• Multi-year waste reduction initiatives • Push for 100% recyclable packaging • Reduce prep, packing material and shipping supplies • Eliminate hard plastic “clamshell” cases and plastic-
coated wire ties • Increase the overall density of the packages • Reduce items that get damaged • Frustration-Free Packaging
25 Million Times a year, customers write to
tell Amazon about their packaging
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Thank you!