Shopper Marketing - January 2018 - 14

14

SHOPPER MARKETING JANUARY 2018

TRENDS18
E-commerce in the new year? It's not the be-all
and end-all, but don't wait to adjust your business

H

OUR VIRTUAL ROUNDTABLE

BY DAWN KLINGE NSMITH

eading into 2018, are brands and traditional retailers positioned
to succeed in e-commerce? Wall Street withheld its vote of confidence when, on June 16, retailers and grocery manufacturers lost

SAM GAGLIARDI
SVP of E-Commerce,
IRI

billions of dollars in market capitalization. That was the day Ama-

zon announced its purchase of Whole Foods.
While the market sent its message about manufacturers' and retailers' prospects

in an Amazon world, we asked six industry insiders to weigh in on how manufacturers and retailers can protect their profitable physical businesses while ramping up
competition in e-commerce channels, where sales are scanty but growing.

MARIANNA
ZIDARIC
Global Director,
E-Commerce,
Spin Master

This virtual roundtable discussion complements the results of our annual
Trends survey, which asks some of these questions and many more.
Just how big of a factor is e-commerce in the
retail landscape as we head into 2018?
SAM GAGLIARDI: IRI tracks over 300 categories, and
65% of them are showing real dollar sales growth greater
online than in-store. So while e-commerce is still a small
percentage of business - from 2% to 10% depending on
the category - and most buying is still happening in-store,
online is the only reliable place for growth in the industry.
Brands and manufacturers need to rapidly adjust their
business to be digital-centric. The issue is that they're all
waiting for the business to get there, but online, first movers have the advantage.
LESLIE DANFORD: Very little of our category (spirits)
sales come from online, but our e-commerce investments
enhance our shoppers' path to purchase because, as we
know, prior to purchasing, they are researching products
digitally at home or even while at the store shelf. E-commerce enables consumers to jump straight from discovery
and inspiration to having products delivered within an
hour. This change is compacting the path to purchase and
making it less linear. All of this adds up to a big impact
as well as little visibility. With limited available data, particularly for bricks-and-clicks customers, the true impact
of e-commerce on our sales is difficult to measure. What
is clear is that e-commerce is sure to shake up the existing
sales and marketing approaches in 2018 and beyond.
MEGAN HARBOLD: The dollars are still obviously much
higher in-store today, so brands should not forget that.
However, growth online is not projected to slow down
anytime soon, and the more you invest now and the more
you develop a history and relationships with e-retailers
now, the better your chances of long-term success. This
likely means overinvestment and poor returns for a few
years, but if you wait, you're dead.

Did Amazon's purchase of Whole Foods mark a
critical shift for e-commerce strategy?
GAGLIARDI: It should, because these are two retail formats
where smaller, more regional, more local brands can dominate. That translates into more competition and substantial
downward pricing pressures and, potentially, no top-line
sales growth going forward for the industry.
ALISTER GREENWOOD: I agree it's pivotal in terms of
where e-commerce is heading; the new retail landscape
will be a convergence of online and offline. What it signifies from Amazon's point of view is that the rest of the
industry has something it can't ignore. It is threatening,
but at the same time, it suggests we should breathe a sigh
of relief because we have something valuable that Amazon
wants.
HARBOLD: It signals that Amazon is extremely interested
in consumables and interested in continuing to bridge the
gap between the digital and physical. It also signals Amazon's understanding of memberships and value. As they
look to drive Prime membership, what they're really doing
is padding their profitability again and again.
Can Walmart and Target successfully compete
with Amazon over the long haul?
DIANA MEDINA: I think so, though it won't be easy. Amazon creates new expectations in the minds of consumers,
and some of the things we've seen from Walmart in the
grocery space and also with free two-day shipping is that
they understand the need for flexibility and agility. At the
same time, if you look at what Amazon is doing, they're
trying to increase their presence offline and glean insights
and data from those interactions.
Continued on page 56

LESLIE DANFORD
Director of
E-Commerce,
Beam Suntory

ALISTER
GREENWOOD
Head of Global
E-Commerce Insights,
Mondelez International

MEGAN HARBOLD
VP, E-Commerce,
The Mars Agency

DIANA MEDINA
Director of
E-Commerce Product
Development and
Marketing,
Inmar



Table of Contents for the Digital Edition of Shopper Marketing - January 2018

Contents
Shopper Marketing - January 2018 - 1
Shopper Marketing - January 2018 - 2
Shopper Marketing - January 2018 - Contents
Shopper Marketing - January 2018 - 4
Shopper Marketing - January 2018 - 5
Shopper Marketing - January 2018 - 6
Shopper Marketing - January 2018 - 7
Shopper Marketing - January 2018 - 8
Shopper Marketing - January 2018 - 9
Shopper Marketing - January 2018 - 10
Shopper Marketing - January 2018 - 11
Shopper Marketing - January 2018 - 12
Shopper Marketing - January 2018 - 13
Shopper Marketing - January 2018 - 14
Shopper Marketing - January 2018 - 15
Shopper Marketing - January 2018 - 16
Shopper Marketing - January 2018 - 17
Shopper Marketing - January 2018 - 18
Shopper Marketing - January 2018 - 19
Shopper Marketing - January 2018 - 20
Shopper Marketing - January 2018 - 21
Shopper Marketing - January 2018 - 22
Shopper Marketing - January 2018 - 23
Shopper Marketing - January 2018 - 24
Shopper Marketing - January 2018 - 25
Shopper Marketing - January 2018 - 26
Shopper Marketing - January 2018 - 27
Shopper Marketing - January 2018 - 28
Shopper Marketing - January 2018 - 29
Shopper Marketing - January 2018 - 30
Shopper Marketing - January 2018 - 31
Shopper Marketing - January 2018 - 32
Shopper Marketing - January 2018 - 33
Shopper Marketing - January 2018 - 34
Shopper Marketing - January 2018 - 35
Shopper Marketing - January 2018 - 36
Shopper Marketing - January 2018 - 37
Shopper Marketing - January 2018 - 38
Shopper Marketing - January 2018 - 39
Shopper Marketing - January 2018 - 40
Shopper Marketing - January 2018 - 41
Shopper Marketing - January 2018 - 42
Shopper Marketing - January 2018 - 43
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Shopper Marketing - January 2018 - 72
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