Online stores are popular national chains, such as “Perekrestok”, “Azbuka Vkusa” and “agribusiness”. The increased popularity of mobile applications for shopping: in the top 500 in Russia according to the GfK includes the application of “Crossroads” and aggregator promotions “Edadil” (the latter even bought “Yandex”, and the amount of the transaction could reach 800 million rubles).
Upward trend, of course, exist – albeit more slowly than in the West. So, the category of food e-commerce in Russia is now ranked first in terms of returns in the purchase during the year (8.4 times), says Artem Sokolov, President of the Association of companies the Internet-trade (AKIT). Second place goes to the category of children’s goods (about four times). Over the past few years, the online sales channels in Russia launched the largest FMCG company. Through proprietary online shopping site or retailers sell their products Procter & Gamble, Nestle, Coca-cola, Mars, Danone and many other corporations.
However, Russia still lags behind. With an increasing competition the Russian brands are losing their potential position in the online environment transnational corporations and lose the market competition.
According to analysts Nielsen, 46% of Russian consumers are not satisfied with that online delivery is usually not appointed for a specific time and on a certain interval: when ordering food the difference even an hour can be significant. The most important criterion is speed, so to increase the attractiveness of the online channel is capable of delivering goods quickly and in time. However, in big cities the distances and the traffic creates certain difficulties for the timely service, so manufacturers have to develop courier services and open new offices.
Some companies use non-standard types of transportation: a network of Sainsbury’s in London has launched a service delivery of goods by Bicycle, which allows you to get in an hour up to 25 products. Delivery using drones, the pioneer of which in Russia has become a network of “Dodo Pizza”, demonstrates the potential of using this technique on a larger scale. In may this year about its intention to launch food delivery drones in the United States said Uber.
In Europe the retail sector is struggling with the traffic, delivering food on scooters. In Moscow already work at Pizza Hut and “Domino’s Pizza”. If this method proves effective, it will adopt and supermarkets.
Just as the couriers “Yandex.Food” meals of the closest to the customer restaurants can work and retailers. For example, iGoods in St. Petersburg promises to bring products from the store to your home or office in 90 minutes. Moscow Instamart claims service that delivers the products without charge.
From Zara to the “Auchan”
In the US popular click-and-collect: on the Internet site, the buyers form the basket of essential goods, and then take their own food from the supermarket or special pick-up stations. This method saves time on shopping and at the same time allows you to pick up goods at a convenient moment, and at the same time to ensure quality. In addition, this service offers the customers access to the entire range of products – if food basket is formed in the warehouse, not at a specific store. In this case, the service will require from the company the cost of shipping, but for large volume of orders they do not exceed the standard costs. So, “Azbuka Vkusa” implemented the principle of click-and-collect last year in St. Petersburg and now plans to do a pilot launch in Moscow.
However, in Russia such examples until the unit. Since November, the hypermarket Globus is testing the system in Krasnodar; the service has developed “the Seventh continent” to a large-scale campaign for the closure of the stores. In addition, the domestic market, the goods are delivered only while shopping. In Europe there is popular practice of creating a special pick-up stations in the streets, where the customer can collect the products. So, for example, built a network of grocery stores Willy’s with the help of the company StrongPoint. The customer must make the order and choose the point where it is convenient to pick it up. After the goods are delivered to the cell, the client receives a message with code from it.
In Europe, click-and-collect is becoming more and more common practice. In January, about the London opening of the first store operating according to this principle, declared Zara. In July, the network of hypermarkets “Ashan” has announced the opening in Kyiv of the two stores click-and-collect.
One of the most effective strategies for online sales – reduction in the number required for purchase actions. This trend gave rise to the subscription services on the goods that are bought regularly: from razor blades to coffee beans. So, in the summer of 2016 Unilever spent $1 billion to buy an American subscription service for disposable razors Dollar Shave Club. Black Socks offers its clients to issue the Sockscription – subscribe to regular deliveries of three pairs of socks for certain intervals.
In Russia, similar services started to appear in 2012, however, not all were able to hold out: consumers were not ready for such a model. However, many subscription services on consumer goods still successfully exist and continue to open: in the shop site Lavkalavka you can create a basket of products that are needed constantly, and on a weekly basis to get them via courier service. You can subscribe for regular delivery of coffee (shop “Roast coffee”), fresh fruit (GetFruit.me), underwear (Trusbox), chocolate (Chocolo).
One of the stoppers of the development of this tool in our country becomes distrust with which consumers are required to bind your card to the service with monthly charges. This is forcing manufacturers to go on tricks. So, one of the first projects subscribe to goods “Just a club razors” sends your clients a reminder at the moment when the blades/razors should be replaced, and offers to buy a new one. Tea company David’s Tea says about the need to purchase a new pack after a month since the last purchase. Another method, which allows customers to not feel tied down to the regular payment, at the same time reducing the number of required iterations, it becomes confirmation of a shopping cart. The user forms on the website of the Internet store a list of products and periodically receives reminders to do a new order on the list – however, to make a purchase, you must confirm the action by pressing “OK”.
The range and price
To attract customers to Internet sites manufacturers are experimenting with a range of placing in the online stores of items that can be purchased online only. Some brands sell through a digital channel large packages of goods that are difficult to get from the supermarket physically, but easy to get delivery. Exclusive can be not only the goods, but the prices are: cost reduction for the products when ordering on the website – quite a popular method that helps consumers to make a choice in favor of the online.
The obvious advantage of shopping – a wide range of products in different categories. During one visit, the buyer can buy from buckwheat, shampoo, a bottle of Coca-Cola and liquid dishwashing. There is little wanting specifically to go into the online shop to order a pack of gum or Cup of yogurt, therefore, digital brands set up their sales channels on the websites of the retailers – and they far are not always grocery site. For example, a manufacturer of healthy food Bionova has partnered with network “Sportmaster”, by posting on the website store the muesli bars: the calculation goes that if you order the sports goods by the buyer at the same time add to cart “healthy snack”. Internet-shops of children’s goods, you can often buy dairy products or confectionery products – for example, in the network “Children’s world”. Gum Mondelēz sells its products through Amazon, WalMart, Tesco, Tmall, and others.
Manufacturers of toothpaste promote your product in beauty supply stores (as a brand Silver Care on the site Pudra) or major online malls (e.g., Wildberries). Tea, coffee and pastries can be purchased at online marketplaces dedicated to products for the home and office (“Comus,” “FISMA”, Office-zakaz etc.) – the calculation is based on the fact that when ordering stationery and office equipment at the same time the buyer will take and snacks for employees.
“Their” socks and chocolate
Another way for FMCG brands to attract customers to online become all sorts of services personalization. Thus, the project LOT regularly sends its subscribers underwear, socks, personal hygiene products, accessories and other products, some of which brandished the recipient’s name. The company’s customers KitKat Chocolatory have the opportunity to order a personalized chocolate. Liquor store Saq has developed a loyalty card which generates for buyer personalized promotions based on analysis of previous purchases.
Smart home, shop, refrigerator
The future of e-commerce in FMCG lies in the application of new technologies, which so far are only a few examples of implementation. So, in 2017, Alibaba opened in several Russian cities shops with elements of virtual reality. In these shops the role of the shop Windows carry a special label, the scanner on the smartphone of the buyer opens a virtual room with shelves and goods. With the cursor on the screen you can zoom a 3D model of the product, “twirl” to explore from different angles, check price and buy.
The development of “smart house” technology will give the ability to scan the contents of the refrigerator and the shelves and automatically order goods from the online store. “Smart” refrigerators (such as Family Hub Samsung, LG Smart InstaView or Xiaomi Viomi Intelligent French Four-door Refrigerator) are equipped with internal video cameras and is integrated with applications, which allows at any time to order ended product. Buttons Amazon’s Dash lets you order items that are constantly bought: for example, washing powder, shaving cream, pet food or toilet paper. Buttons can be placed in any part of the apartment. If, for example, set a button in the closet where the washing powder, for order new don’t need to go for the phone or laptop is enough to ensure that the product has come to an end, and then press the button.
Of the voice recognition system applied to online marketplaces, will allow you to dictate to your smartphone shopping list. Continues to develop social Commerce – selling through social networks. Given that in social media people in Russia spend 32% of their time online, this sales channel has a good potential for e-commerce and FMCG in particular.
Despite certain difficulties, online sales in FMCG there is potential for development. Over time, an effective model that will replace the quest for bread at the press of a button the phone needs to emerge in Russia. Whether its the structure formed by domestic brands or consumers will adapt to the Western system, which will begin to implement the foreign network, is unclear. But the victory of e-commerce over shopping is inevitable.