Magazine: Digitally connected consumers

Digital device use is expanding dynamically in Hungary, for instance back in 2013 only 49 percent of internet users owned a smartphone, but by 2016 this proportion reached 80 percent. The number of tablet computer owners tripled in this period. Still, online shopping is mostly done on non-mobile devices. It is also true, though, that shoppers use their smartphone more and more frequently while shopping. According to the GfK Digital Connect Consumer study, 87 percent of Hungarian internet users have already bought something online – in 2012-2013 this proportion was 72 percent; 31 percent buy online every month and 29 percent pay for these goods electronically.

In 2014 only 0.4 percent of FMCG sales were realised online, but by 2016 this proportion reached 1 percent. The main reasons why consumers buy things online: fast and simple procedure, large selection of goods, favourable prices. In just three years (2013-2016) the proportion of consumers who buy FMCG products online increased from 7 percent to 21 percent. The number of buying occasions in online FMCG retail grew from 2.1 to 6.1. While in 2013 only 30 percent of those who tried online shopping repeated it at least once in the given year, in 2016 already 60 percent returned to online FMCG stores. Most people buy FMCG products online for stockpiling, but promotions and price reductions are also important reasons.

What are the most popular FMCG categories when buying online? In 2013 products with a longer shelf life (household chemicals, personal hygiene products), heavy goods (soft drink, mineral water) and pet food were the most popular. In 2016 fresh products were the No.1, with a 23-percent share in online FMCG sales. The most important motivating factor for shopping online is saving time – consumers are even willing to pay higher prices if time can be saved. GfK’s global FutureBuy study sheds light on the expectations of digital consumers (who love their smartphone, are price conscious and for whom the shopping experience is as important as the product itself). Comfort, product selection, price and shopping experience are the four most important factors that can make a retailer successful in the online channel, too.

James Llewellyn, GfK UK head of Shopper has the following advice to retailers: 1. CONVENIENCE – Be where your customers are! ‘Formerly shoppers went to retailers to do shopping, but today it is retailers who need to go to their shoppers.’ 2. PRODUCT SELECTION – React to needs, don’t just sell the product! ‘The retail industry is going in the direction of ‘lifestyle’-type stores.’ 3. PRICE – Make your pricing transparent! ‘Being the best and offering the best services can’t justify selling the same product at a higher price anymore.’ 4. SHOPPING EXPERIENCE – Convince the customer that they have made the right decision! ‘Today when the proportion of online transactions is growing, retailers can compete with the online channel by offering a special shopping experience in physical stores.