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Where are the growth opportunities for natural products online?

By Bill Bishop Chief Architect, Brick Meets Click

September 16, 2015

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Digital transformation

The focus is on e-tailing but the whole

shopping experience is changing.

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Digital expands the possibilities

Shop online

and pick up

in-store

Shop in-store,

order and have

delivered

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Online grocery is gaining share

in certain markets

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Increase of 1-2% same store sales

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Look through

new lenses

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1. Online growth is driven by local conditions.

2. In-store shopping occasions

don’t work online.

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Growth of online grocery in any

specific market is driven by 3 factors

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1. Expanded AVAILABILITY

2. Wider ATTRACTION

3. Greater AFFORDABILITY

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Defining online shopping occasions

Online Shops

Full basket

Partial

Targeted

In-store Trips

Stock up

Routine

Fill-in

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Online occasion #1: Full Basket Shop

These shopping occasions

• Are large because of the fees.

• Typically includes full range of HH needs.

• Are really about planned/long-list shopping.

Natural products online opportunity

Endless aisle Part of the regular assortment

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Online occasion #2: Partial Basket Shop

These shopping occasions

• Can be a subscription or “one off”.

• Frequently are built around themes such as

local, artisan, gluten-free, etc.

• Include high priority, routinely-purchased

products.

Natural products online opportunity

Part of the regular assortment Endless aisle

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Natural products online opportunity

Part of the regular assortment

As a compliment to an in-store purchase As an ingredient

Online occasion #3: Targeted Shop

These shopping occasions

• Are typically only for a few items.

• Two different goal/objectives: • Expanded access i.e. items not found in-store or cheaper

than in-store (Abe's Markets or Amazon).

• Immediate convenience i.e. advance orders for prepared

food or services like meal kits.

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• Target the intersection of where consumers are blending

shopping and lifestyle.

• Leverage the advantage of being an “on trend” smaller

brand.

• Focus on opportunities within the online shopping

occasions.

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Searching out the

opportunities

Here’s what you can do

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