Press Room

Global Online Grocery Purchasing Up 15% In Last Two Years, Leading To An Estimated USD70 Billion Sales In Online FMCG

{“order”:3,”name”:”pubdate”,”attributes”:{“hidePublishDate”:”true”,”jcr:mixinTypes”:”[cq:LiveRelationship]”,”sling:resourceType”:”nielsenglobal/components/content/publishdate”},”children”:null}

Media contact: Mila Lubis, Phone: +62 8551082304, Email: miladinne.lubis@nielsen.com

GLOBAL ONLINE GROCERY PURCHASING UP 15% IN LAST TWO YEARS, LEADING TO AN ESTIMATED USD70 BILLION SALES IN ONLINE FMCG

●      Fashion and Travel are Still Indonesian Online Consumers’ Favorite Categories

●      57 Percent of Indonesian Online Consumers are Interested In The Money Back Guarantee Program When Shopping Online

Jakarta, 23 November 2018  – Online purchasing of packaged and fresh groceries has surged by 15% in the past two years, with an increase in consumers’ confidence within the online buying ecosystem leading to purchasing in a broader range of categories, according to a new report by global measurement company, Nielsen.

The 2018 Nielsen Connected Commerce Report, which looks at consumers’ online purchasing habits, reported that 95% of global consumers who have access to the internet have made a purchase online, up 1% vs 2017 and  2% compared to 2016. The report also revealed 26% of digital consumers purchased fresh groceries online, an increase of 15% between 2016 and 2018, which is contributing to overall FMCG e-commerce growth, which Nielsen estimates increased by around US$70 billion globally in the past two years.

“From tracking the e-commerce evolution in pioneering countries like South Korea where online sales now account for a staggering 20% of the total FMCG sector, we know that consumers follow a certain pattern of online shopping behaviour,” observes Pete Gale, Retailer Services, Nielsen. “Travel, fashion and books are typical categories for first-time online shoppers, but as their familiarisation, comfort and trust levels increase, their category repertoire expands into areas like beauty, personal care and baby products, and then moves even wider afield to packaged and fresh grocery categories, and this is evidenced in the significant jump we’ve seen in online purchasing within grocery and food delivery in recent years.”

This Nielsen report reveals that consumers are more open to purchase packaged and fresh groceries online when they are offered certain purchasing options and quality assurances. Almost half (49%) of consumers said that a money back guarantee for products not matching what was ordered would encourage them to buy online. A further 45% of consumers are enticed by same day product replacement service for products not available, while 44% are looking for free delivery services for purchases above a minimum spend.

Fashion and Travel Are Still Favorite Categories Purchased by Indonesian Consumers Online

Stalwart e-commerce categories fashion, travel and books continue to account for the largest proportion of online transactions (61%, 59% and 49% of consumers respectively purchased within the category). Meanwhile, the categories posting the most significant growth in e-commerce activity include restaurant deliveries, where 33% of online consumers said they made a purchase (up 2pts vs 2017), packaged groceries (up 3 pts to 30%) and fresh groceries (up 2pts to 26%). See chart1.

In Indonesia, more than half of consumers make online purchases for Fashion (63%) and Travel (62%) categories . Certain service options offered by every online seller are also the main attraction for consumers to shop. 57 percent of Indonesian consumers state that the money back guarantee for products that are not matching to purchase orders attracts them to shop online. 52 percent said they are interested in same day product replacement services if the ordered product was not available. 49 percent of consumers are also encouraged to shop online if there is free delivery services for purchases above a certain amount of spending.

Agus Nurudin, Managing Director, Nielsen Indonesia, said, “With the rise of consumer adoption in online purchasing, the continuously evolving e-commerce space has blurred the lines between online and offline. A few years ago e-commerce purchase was focused on non-perishable goods such as travel, fashion and books but over time we are seeing a rise in purchases across new categories. Looking ahead, the next wave of evolution in online purchasing behaviour will likely be driven by innovations in digital capabilities like personalised recommendations based on programmatic consumption and online behavior.”  

Chart 1: Online Category Performance (% of consumers who have purchased the following categories online [penetration]) – Global

Chart 2: Top Categories Growing in Penetration

***

A Message for Journalists and Editors:

  • Nielsen highly recommends journalist and editors to include a brief explanation of Nielsen methodology into the article, whenever referring to Nielsen data as source of information.
  • To avoid any possible inaccuracy in using Nielsen data as reference, please do not hesitate to contact the above person for clarification.
  • Nielsen has the Right of Reply for any inaccuracy of Nielsen data usage in the article.

ABOUT THE NIELSEN CONNECTED COMMERCE

The Nielsen Connected Commerce report provides an understanding of the global connected consumer, shopping traits, category evolution and barriers to identify future growth prospects. It identifies the top online categories and changes in category penetration, along with online purchasing behavior and consumers’ expectations from an online shopping experience. The insights will assist FMCG companies in formulating strategies to enhance consumers shopping experiences in the digital world.

ABOUT NIELSEN

Nielsen Holdings plc (NYSE: NLSN) is a global measurement and data analytics company that provides the most complete and trusted view available of consumers and markets worldwide. Our approach marries proprietary Nielsen data with other data sources to help clients around the world understand what’s happening now, what’s happening next, and how to best act on this knowledge. For more than 90 years Nielsen has provided data and analytics based on scientific rigor and innovation, continually developing new ways to answer the most important questions facing the media, advertising, retail and fast-moving consumer goods industries. An S&P 500 company, Nielsen has operations in over 100 countries, covering more than 90% of the world’s population. For more information, visit www.nielsen.com.

Read Bahasa Indonesia Version

# # #