Marketplaces play a major role in beauty and clothing, while grocery shoppers rely on in-store visits. Retailers must balance both online and in-store strategies, leveraging loyalty programs and fast delivery to stay competitive.
Here are four insights into consumer browsing and buying across three categories.
1. Marketplaces are a one-stop-shop for beauty and clothing
Over a third (39%) of shoppers say the leading marketplace in their region (e.g. Amazon, Mercado Libre) is their primary source for beauty inspiration, per VML’s The Future Shopper report.
- 35% say marketplaces are the leading search destination for beauty products, and 25% say it’s their preferred spot to purchase beauty products.
- Marketplaces are also a go-to for clothing and fashion shoppers, with 42% using them for inspiration, 37% for search, and 24% for purchases.
Our take: Beauty and clothing brands must be present on marketplaces like Amazon or Mercado Libre, helping shoppers discover and research products.
- However, physical retail is also key for beauty and clothing brands.
- Brick-and-mortar Walmart locations are the top destination for US consumers to shop for beauty and personal care items, according to Jungle Scout’s Q2 Consumer Trends report.
- Clothing shoppers prefer to buy in-store as well, though the most popular in-store destination was listed as “another retailer” that was not Walmart or Target.
2. Grocery shoppers rely on the physical store
Browsing in-store is the No. 1 way consumers find inspiration, search for, and purchase groceries, per VML’s report.
- The top grocery purchase destination was not Target or Walmart, but “another in-store retailer,” per Jungle Scout.
- However, Walmart was a close second, with 28% of US consumers grocery shopping in-store and 15% shopping on Walmart.com.
Our take: We forecast US grocery retail sales to reach $1.569 trillion this year.
- In-store sales will make up most of that figure (87.0%), but ecommerce sales are growing faster (increasing 11.5% YoY versus physical grocery’s 1.8%).
- Walmart’s grocery ecommerce sales will reach $51.47 billion this year, nearly a quarter (23.5%) of total US grocery ecommerce sales, per our forecast.
3. Consumers are most likely to belong to a supermarket loyalty program
Over 4 in 10 (43%) global consumers belong to a loyalty program offered by a supermarket, according to VML’s report.
- 37% belong to loyalty programs from the leading marketplace in their region, 28% from health and beauty retailers, and 23% from department stores.
- While over a quarter (27%) of consumers say loyalty programs would encourage them to buy directly from brands, it’s not as influential as price (56%), free delivery (49%), fast and convenient delivery (40%), or free returns (37%).
Our take: Loyalty programs can be an effective way for retailers to increase their share of sales.
- Retailers should add free shipping or returns to their loyalty programs to provide customers with more value.
- Retailers can also use loyalty programs to gather more customer data to further personalize the shopping experience.
- 61% of US adults value loyalty programs tailored to their shopping preferences and 57% value special offers/discounts based on their shopping habits, according to March 2024 data from Bizrate Insights.
4. Grocery shoppers expect the quickest deliveries
Nearly three-quarters (72%) of global consumers expect their grocery delivery to arrive in less than 24 hours, and 49% expect it in less than 2 hours, per VML.
- The demand for fast delivery has grown. In 2022, consumers expected orders across all categories to arrive in 2.36 days. But in 2024, they expect deliveries in just 1.85 days.
- 44% of consumers said marketplaces offer the fastest delivery, according to VML. Respondents also said marketplaces offer the most convenient and best free delivery.
Our take: When it comes to delivery, it’s all about speed. And when it comes to speed, Amazon is king.
- Amazon has the fastest click-to-door time in the US, averaging 1.5 days versus 5.2 days for other retailers, per Nielsen data.
- To maintain its lead, Amazon is using generative AI to help it make better decisions on inventory allocation, delivery route optimization, and training its warehouse robots, Steve Armato, Amazon’s vice president of transportation technology and services, told CNBC.
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