Over the pandemic and lockdowns, the online channel market share increased significantly.
Whilst this has now stabilised or even started to fall back, there are many questions about its effect on shopper behaviour.
Online shares of FMCG are now dropping
Discounters, after stability or even decline during the pandemic, are now growing again and taking advantage of store openings over the last 2 years. In contrast, market shares for online, where Discounters are not strong, is now declining and are well below lockdown peaks.
Big brands do especially well online
Comparing shares between online and offline purchasing, the biggest brands hold a much higher share online. Smaller brand shares are very similar on and offline. Although this was pre-pandemic it is likely these patterns remain.
As expected, shoppers are much more loyal online especially for smaller brands
Before the boost to online during the pandemic, shopper loyalty was much higher online. About half the difference is due to lower shopping frequency, the rest to the use of lists/favourites. Smaller brands benefit most – likely because availability is better online. Again this behaviour is likely to continue.