Digital purchases for consumer packaged goods (CPG), like grocery products or beauty and personal care items, have historically lagged items like clothing or electronics. In fact, online sales currently represent just 5% of total CPG sales. But trends are shifting and today’s shoppers are increasingly heading online to buy the products and services they need for their daily lives. And digital sales for CPG products are growing at a rate of 30% year-over-year.
In the U.S., one consumer group that’s leading these trends toward digital shopping is Asian Americans. Approximately 47% of Asian Americans are under the age of 35, making them digital natives. As a result, the group is more likely than the total population to own digital devices. In fact, 97% own a smartphone, which makes them 6% more likely than the total population.
Not surprisingly, they’re using these devices to shop online. 87% have made an online purchase over the past 12 months, which means they’re 22% more likely to do so than the general population.
For CPG manufacturers and retailers, understanding how to innovate new products that meet consumers’ needs in this increasingly digital retail landscape, as well as what consumers are looking for and how to connect with them online, is crucial.
This episode, which is the second of a two-part look at the path to purchase, includes two segments: first, a discussion with Jenny Frazier, global commercial leader for NielsenIQ BASES, about the role of innovation along the consumer path to purchase, with a focus on omnichannel; and second, a conversation with Mariko Carpenter, VP of Strategic Community Alliances, at NielsenIQ, about how Asian American consumers are leaning heavily into digital in their consumer journey and helping to drive shifts across other consumer segments.
Special thanks to My Le, Client Operations Manager for NielsenIQ Catalina Solutions and the Northeast regional co-lead of AAL, NielsenIQ’s Asian American employee resource group, who helps introduce the episode.