Rise of Omni Shoppers in the Omni Channel era

Omni channel, or multichannel shoppers, have become one of the fastest growing consumer groups for FMCG and retail development in China, particularly during and after COVID-19 outbreak, which significantly accelerated the integration of the Offline and Online markets.

With Omni channel shoppers playing an increasingly important role in both manufacturers and retailers business, it’s essential to focus on these shoppers for future brand growth.

According to Kantar Worldpanel’s FMCG household panel data in 2019Omni shoppers have higher spending power, accounting for 61% of all buyers and 67% of the total value ofthe FMCG market, with a year on year growth of 25%.

To help brands and manufacturers target this group more precisely, here are 3 key trends we have witnessed from monitoring the purchase behavior and preferences of Omni shoppers:

01.Omni shoppers are Aspirational looking for a better quality of life and convenience 

They are looking for convenience, health and as well as an indulgent lifestyle. They care about their image and appearance, spending heavily on categories like skin care,make-up and fragrances. Health related categories such as nutrient supplements and hygiene are also of high importance to them in order to lead a better quality of life.

02.Omni shoppers are rapidly adopting the emerging channels

The rapid growth of E-Commerce continues in China, but the landscape has evolved compared toseveral years ago. Social commerce, including WeChat, Redbook and PinDuoDuo is now the growth engine of the E-commerce market with a 59% uplift in sales versus a year ago.

Meanwhile, the O2O channel (which consists of a retailer’s own delivery platform) and pure delivery platforms, like Eleme, are becoming more and more popular. There is no doubt that this channel will boom faster after the epidemic and penetrate an even larger number of consumers as they satisfy the increased demand for home delivery and convenience.

In the context of these emerging channels popping up, Omni shoppers, as mature multi-channel adopters, are at the core of this retail evolution. Omni shoppers are fast adopters of Social commerce and O2O and are driving a strong premiumisation trend in these channels.

03.Not all Omni Shoppers behave in the same way 

We can divide Omni Shoppers into 3 groups based on their profile and purchase.

• High City Luxury Aspirationalist

• Convenience Family Buyer

•  Lower Tier Value Seeker

Considering the booming prospect of Omni shoppers, winning them is critical in order to drive growth in the background of continued modernization of retail in China.

Manufacturers need to increase their share among Omni shoppers through optimizing their portfolio sold through social commerce and O2O. They need to capitalize on their needs for a more diversified basket which caters to their convenience and lifestyle needs by applying smart communication and pricing strategies which can attract the 3 different groups of Omni shoppers.

Note:

Omni Buyer: Offline and Online Shoppers at least twice a year, and at least once online outside of D11, 618 shopping festivals