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A ¼ of food brands consider own e-stores

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With online grocery shopping expected to become increasingly popular, a new study reveals that 27 per cent of food and grocery manufacturers have considered selling direct to their customers over the internet.

The IGD report ‘Online grocery retailing – Building capacity for a digital future, anticipates online grocery shopping will double in value by 2015 to be worth £9.9 billion a year.

As the sector grows, various businesses will want to cash in and IGD found that 43 per cent of manufactures expect a tenth of their total revenues to come from the online channel by 2015, up from 18 per cent at present.

Joanne Denney-Finch, CEO of IGD, said: “The strong growth predicted for the online grocery channel presents an opportunity for companies of all sizes and types - retailers, manufacturers, local producers – to meet the needs of today’s multi-channel shopper.

“It is encouraging to see manufacturers looking to flex their business models, participate in the digital explosion and engage with consumers in different ways.”

With so many food brands contemplating their own e-stores, it is no surprise that a number of UK grocers, including Sainsbury’s, Asda and Ocado, have been improving their own-brand products over the last year.

Delivery seems to be key to capturing online sales, with 88 per cent naming reliable delivery as the top factor when choosing an online store and 59 per cent saying that free delivery would be enough to tempt them to grocery shop via the internet.

In the next year 13 per cent of shoppers are expected to buy groceries online and this figure jumps to 24 per cent for 18 to 34 year olds.

“The world around us is changing and technology is leaping ahead. You only need to look at the last ten years to see that the digital age is evolving at an incredible pace,” Denney-Finch added.

“As the market is constantly changing, it’s still difficult to predict exactly what online grocery retailing will look like in the next few years. What is exciting, however, is how the digital revolution will evolve and shape our industry in the years to come.”

Published on Thursday 10 March by Editorial Assistant

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