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SHOPPING FOR HOUSEHOLD CARE PRODUCTS ONLINE - US - AUGUST 2019

Published By :

Mintel

Published Date : Aug 2019

Category :

Retail

No. of Pages : N/A

eCommerce in household care has developed slowly compared to most other CPG categories, but that’s about to change. The consumer demand to buy household products online is growing, while top brands and online retailers are becoming more proactive in developing packaging better suited for shipping. 
Parallel to this, there has been an emergence of new strategies to improve consumer engagement in this historically low-involvement category with more emotionally compelling online product presentations. All told the stars are aligning to the point where household product e-commerce will catch – and possibly surpass – other categories because the value proposition to shop online for household care products is very strong.

Table of contents

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
Better late than never
The issues
Most household consumers are strictly in-store shoppers
Figure 1: Buy household products online vs in-store, June 2019
Many consumers still prefer the in-store experience
Some consumers have concerns about packaging integrity
Figure 2: Attitudes towards online household products shopping, June 2019
The opportunities
Household ecommerce has a strong value proposition
Figure 3: Actual online purchase experience vs desire to buy online in the future, by product category, November 2018
Make ecommerce the choice for economizing consumers
Figure 4: Reasons for buying more household products online, June 2019
Create packaging that is protective, standardized and environmentally friendly
What it means
THE MARKET – WHAT YOU NEED TO KNOW
eCommerce is outpacing traditional retail
Household products have the largest gap between desire to buy online and actual online purchase
Parents will drive household ecommerce
MARKET FACTORS
eCommerce is outpacing traditional retail
Household products still have untapped potential online
Figure 5: Rate of online vs in-store purchase by product category, November 2019
Household products have the largest gap between desire to buy online and actual online purchase
Figure 6: Actual online purchase experience vs desire to buy online in the future, by product category, November 2018
Parents will drive household ecommerce
Figure 7: Interest in bundling online purchases of household products with other categories – Any agree (net), by age of children, June 2019
KEY PLAYERS – WHAT YOU NEED TO KNOW
Private labels from online retailers will be a game changer
Packaging manufacturers are starting to address the problem
Brands using a subscription-based refill model are also driving packaging innovation
Better shipping and more sustainable packaging
Create a more compelling online product presentation
WHO’S INNOVATING?
Private labels from online retailers will be a game changer
Figure 8: Interest in buying toilet paper online if there were no shipping costs, by age and income, November 2018
Packaging for efficient shipping is a top innovation area
Packaging manufacturers are starting to address the problem
Brands using a subscription-based refill model are also driving packaging innovation
Better shipping and more sustainable packaging
P&G’s Tide is taking a cue from beverage dispensing
Create a more compelling online product presentation
Cleaning for a new baby…and a better life
Contextual shopping will play a growing role
THE CONSUMER – WHAT YOU NEED TO KNOW
Younger consumers and parents shop online the most
Mobile shopping has become a preferred method of buying online
Smart speakers will be the next frontier in online ordering
Amazon drives ecommerce
Nearly half of consumers are increasing their household ecommerce
Convenience and savings top the list for reasons for buying more online
About one in four consumers are concerned about breakage in shipping
Bigger discounts and reduced fees would encourage more online shopping
Innovations for greater speed and efficiency rank highly
ONLINE SHOPPING FREQUENCY AND INTEREST IN ECOMMERCE
Fast growth, but much untapped potential
Figure 9: Shopping for household products online vs in-store, June 2019
Younger consumers and parents shop online the most
Figure 10: Shopping for household products online vs in-store, by age, June 2019
Figure 11: Shopping for household products online vs in-store, by age of children, June 2019
Parents are the segment that most wants to switch to ecommerce
Figure 12: Experience and future intention to buy household products online, by parental status, June 2019
Consumers choose paper and aircare the most for home delivery
Figure 13: Shopping behavior by household care category, June 2019
DEVICE USAGE
Mobile shopping has become a preferred method of buying online
Figure 14: Internet connected device – Personal and household ownership, by generation, May 2018
Figure 15: Buy household products with a smartphone, by age, June 2019
Smart speakers will be the next frontier in online ordering
Figure 16: Online purchase of household products by device usage, June 2019
ONLINE CHANNELS SHOPPED
Amazon drives ecommerce
Figure 17: Online purchase of household products by channel, June 2019
Higher-income shoppers are more likely to shop Amazon and online warehouse stores
Figure 18: Online purchase of household products by channel, by age and income, June 2019
DRIVERS OF ONLINE SHOPPING
Nearly half of consumers are increasing their household ecommerce
Figure 19: Change in online shopping compared to last year, household products vs all ecommerce, June 2019 and November 2018
Who is increasing their online purchases?
Consumers under age 55 are increasing online purchases at roughly the same rate
Figure 20: Change in online household product shopping compared to last year, by age, June 2019
Middle-class consumers are also buying more online
Figure 21: Change in online household product shopping compared to last year, by household income, June 2019
Parents of older children are increasing online purchases the most
Figure 22: Change in online household product shopping compared to last year, by age of children in the house, June 2019
REASONS FOR SHOPPING ONLINE MORE OFTEN
Convenience and savings top the list for reasons for buying more online
Figure 23: Reasons for buying more household products online, June 2019
ATTITUDES AND BEHAVIORS TOWARD SHOPPING ONLINE
It’s still important to see products in person
Figure 24: Attitudes toward online household product shopping, June 2019
Older consumers like to see products before buying; younger consumers like the in-store experience
Figure 25: Attitudes toward in-store shopping, by age, June 2019
About one in four consumers are concerned about breakage in shipping
Figure 26: Concerned about failed packaging, by age, June 2019
Younger consumers are more experimental online shoppers
Figure 27: Habitual vs experimental household product shoppers, by age and gender, June 2019
Finding the deal is the top online behavior
Figure 28: Online shopping behaviors, June 2019
Figure 29: Online vs in-store shopping behaviors, June 2019
Online retail is used for both stocking up and filling in
Figure 30: Stock-up vs fill-in shopping online, by age and income, June 2019
FACTORS THAT WOULD ENCOURAGE MORE ONLINE SHOPPING
Bigger discounts and reduced fees would encourage more online shopping
Figure 31: Factors that would encourage more online shopping, June 2018
Pocketbook-related factors are the most actionable for online retailers
Figure 32: TURF Analysis – Factors that would encourage more online shopping, June 2019
Methodology
INTEREST IN INNOVATIONS
Innovations for greater speed and efficiency score highly
Figure 33: Interest in innovations, June 2018
Children drive interest in convenience innovations
Figure 34: Interest in innovations – Strongly agree, by age of children, June 2019
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Abbreviations and terms
Abbreviations

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