In the past week not one but three people announced that they have been saving the New York Times Magazine Food Issue for me. Now that I have four copies-which comprise the entirety of the magazine display in my new apartment-a mention here seems appropriate, even if overdue.
In ‘Faster Slow Food’, Mark Bittman envisions an online grocery experience that intuits preferences and tempers impulses. This electronic bazaar would elucidate the provenance of broccoli, pair rosemary with chicken, and disable the cart when over-zealous in the frozen desserts aisle. In the article, Bittman is told that this vision is a bit “George Jetson.” Is it? The information exists. It might not be well communicated through the supply chain, but one day it could be. [Could it?] I think Mr. Bittman sees online shopping as a way to correct informational asymmetries in retail. He seems to be saying ‘There are people who would pay to know this stuff. Why don’t we let them.’ Our food system is wanting for greater transparency. But what preparation would consumers need to sift through that onslaught of information? Would those willing to chip in for traceback merely be the same individuals who pay attention to that anyway?
Although online grocery retail accounts for less than 1% of total food and beverage sales, the niche is ready to grow. According to a recent Nielsenwire post, Mark Bittman epitomizes the typical online grocery shopper: “upper-income “established” adults ($100K income per household) residing in smaller households (1-2 members) with no children. These consumers are more willing to pay the shipping fees and premium prices typically associated with online grocery shopping in exchange for the convenience and other benefits of online.” (Bittman does have two daughters, but they are adults and presumably do not count as ‘household children’).
Online grocery shoppers spend twice as much on food and beverages online as they do offline. Consumer demographics, minimum orders/free delivery incentives, and the joy of having someone else lug milk jugs and canned beans, all encourage larger baskets. Although home delivery will remain a powerful incentive, consumer demographics are likely to change.
According to nielsenwire, growth in online shopping is predicted by
“the intersection of four key mega trends:
- Convenience-the growing need for convenience has already transformed the packaged goods industry
- Generation Y-Gen Y shoppers are approaching grocery-buying age, and are comfortable doing so online
- Broadband Internet-Almost two-thirds of Americans have broadband Internet access, making online grocery shopping easier and quicker
- Customization-Digital platform allows online grocers to personalize the shopping”
Online shopping suits our screen-time addictions and our narcissism.
Moreover, people may shop differently when ordering online. A 2007 pilot study within a weight-loss trial randomized a subset of participants to receive home food delivery for groceries that they ordered and purchased themselves. Both groups experienced similar weight-loss during the 8-week program, but the online shoppers were better able to improve the nutritional quality of the home food environment. Specifically, they significantly decreased the number of high-fat foods at home. This suggests that people may stick closer to their shopping lists online than when competing with supermarket stimuli.
The authors (Amy Gorin and colleagues) speculate that the short-term nature of the study won’t capture the potential long-term benefits of having a ‘healthier’ home environment. But the short-term nature of the participants’ interest in online shopping limits such speculation; although 75% of participants reported recommending the service to someone else, few intended to continue online grocery shopping once the study ended.
Even if online shopping emerges as a means to control unplanned food purchasing, I fear this will be undermined as manufacturers grow savvy to online shoppers’ behaviors. For years, marketing researchers have been studying ’shelf-effects’ online and the relationship between relative screen placement, sequence, and shopping behavior. Virtual store layouts also matter. The more we learn about consumer behaviors online, the more tactical placement of ads and products we’ll see.
Nielsen identifies time-strapped families as a largely untapped demographic ripe for online shopping. Online shopping could not only save time, but it could also help keep on budget thanks to running tallies on in-cart items while avoiding the The Nag Factor of shopping with children. Manufacturer coupons can be redeemed online, but WIC and food stamps vouchers cannot due to PIN security issues. [Question: Does this mean we should be more worried about debit card security online?]
Consumers that replace multiple shopping trips with a large home delivery may save time and gas. Do they pass the environmental costs to the delivery trucks? Is it more emissions friendly to have a fuel inefficient truck make multiple stops on a delivery route than to have a fuel-efficient car make smaller trips to the store? Should home delivery trucks make like UPS and avoid left handed turns to save gas?
Personally, I’m too much of a control freak for PeaPod: I can’t choose tomatoes without inspecting for bruises, pick cantaloupe without sniffing the rind, or buy milk before checking the expiration date. But I have friends who swear that Fresh Direct saved their roommate relations. Home delivery eliminated fights about buying too little yogurt or the wrong brand of toilet paper and prevented anyone from having to choose between making it to the store and going out for drinks. I can click to that.
image by TransplantedVTer
