After years of promise, an internet grocery is finally catching on. How can food merchants compete in this rapidly expanding market?
The evolution of Online Grocery Egypt has now reached a tipping point. After years of promise but slow development, American consumers are now warming to the idea of ordering food and beverages from the comfort of their own homes.
More than one-third of main grocery customers have purchased food online in the previous 12 months, according to our latest research of the Online GroceryEgypt sector, a significant rise from last year. Furthermore, consumers from particularly appealing segments—urban residents, Millennials, and those earning more than $75,000 per year—are driving the online grocery trend, with their online grocery expenditure averaging more than $75,000 per year.
Online Grocery Egypt is one of the most important drivers of growth for retailers and consumer goods manufacturers alike in the generally low-growth, low-margin food retail industry, with sales rising five to six times faster than traditional channels. Over the next decade, growth of 15 to 18 percent is projected, giving it a 12 to 16 percent share of the entire market.
Who’s going to buy it?
Over the last year, the number of consumers buying food online has grown across all industries. While certain parts of the public are buying more online than others, Online Grocery Egypt shopping is becoming increasingly popular across all age groups, economic levels, and geographies. The following are some of the significant trends:
Online Grocery Egypt shopping is popular among people of all ages. The 25–34 age groups have the highest number of customers who claim they have purchased food online (37 percent), while penetration has risen by more than five times in other groups.
Despite the rise of smartphones, shoppers continue to use websites. However, among older customers, websites remain the preferred method of online buying, while non-website solutions (such as apps and social media) are less popular.
Some ancient barriers still exist, but they are dissolving. Even as online groceries grow in popularity, several of the market’s long-standing roadblocks to expansion persist. Nearly two-thirds of respondents say they would buy more food online if they could ensure product quality and freshness; 58 percent think lower pricing and free or low-cost delivery would be attractive.
Taking advantage of the online potential as more people use technology and more people migrate to cities and suburbs, online groceries are becoming more convenient and appealing to both customers and businesses.
Here’s how merchants and consumer packaged goods companies may develop an online grocery strategy.
Retailers. Three major aspects are covered by an online food strategy:
Segmentation. Identify high-population, high-density markets and target consumer groups within these areas that provide the best possibilities to execute a successful, on-point online food plan to their most responsive customers.
Proposal of value. Consumers’ interest in online grocery shopping will be translated into higher sales depending on how soon retailers can implement services like same-day delivery and click-and-collect, as well as if they can provide customers with the same values and pricing as they do in stores.