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THE HIGHLIGHTS

How brands can harness the ‘quick commerce’ boom

Sponsored by Wavemaker

As pandemic panic left supermarket shelves empty and delivery slots full, a new generation of grocery services began to emerge. What opportunities could these rapid grocery delivery services hold for brands?

Quick commerce operators have seen exponential growth in grocery across the last 18 months. According to new research from Wavemaker UK, 29% of consumers ordering through grocery delivery platforms say that they place an order at least once per week. As Monica Majumdar, head of strategy at Wavemaker UK, pointed out during a session at the Festival of Marketing, far from being limited to last-minute alcohol orders, these services are quickly establishing themselves as opportunities for brands across all key grocery categories to take advantage of a new shopping occasion, and nudge consumers to try out alternative brands.

Paolo Feser

Wavemaker’s new research, combining a survey of 2,000 UK respondents with social listening, found that 71% of orders placed on these services incorporated fresh or frozen items, versus only 17% ordering alcohol. “Alongside that we're ordering cupboard essentials, confectionery and snacks, soft drinks, household cleaning products, as well as toiletries and pharmaceutical goods,” said Majumdar. It is not seen as an indulgence either; users viewed these services as almost essential, with 53% saying it had changed the way they shop for the better and 68% agreeing the services had made life easier. Significantly, too, the research by Wavemaker highlighted that users are open to experimenting with alternative brands if their preferred one isn’t available. “In the physical space brands are fighting for mental availability, so when a consumer goes to the shelf they shortcut to one, which is yours,” said Majumdar. “That's not necessarily the case in this space.” She added: “Of the people using these services we find there are two key mindsets that emerge. There's the 'need-it-now' mindset and the 'planned' mindset. The former covers everything from ‘I've forgotten an ingredient’, to ‘I've just remembered an ingredient I need’ or ‘I don't have time to go to the shops so I'll need to order it in.’ In the planned use mindset, 22% of users are forgoing going to the shop, knowing they'll place an order on one of these services later that day. “Whether it's need-it-now or planned, for users of rapid grocery delivery services it's all about need state rather than brand when placing orders.” In fact, 52% of users said they were happy to swap to an alternative brand, and only 13% cared if premium food brands were available.

Wavemaker's Monica Majumdar on the growth in quick commerce

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Click here to watch the session on demand at the Festival of Marketing

Broadening brand repertoires This creates a great opportunity for second- or third-preference brands to make their way into shopping baskets, she added. “Each and every one of these orders is a moment that autopilot is broken and that means second, or third preferred brands have a fighting chance to be put in baskets and tried. It’s an opportunity for consumers to broaden their brand repertoire.” To take advantage brands should, “think about building priming stage bias in order to make your product synonymous with the category”, she recommended. “That means focusing on top-of-mind and spontaneous awareness.” Plus, brands should think about the moment before these orders are placed. There are lots of signals out there that brands can harness, for example someone frantically searching for ingredient substitutes. These are moments when brands can intercept, either offering a complementary solution - directing a user to a service where brand is available - or an alternative. But Majumdar had a note of caution. “I urge brands to be discerning. Decide whether or not all these missions are worth owning. It might be worth winning but think about the logistics that need to be set up, the partnerships that need to be set up and the commercial deals.” In short, contradictory as it might seem, brands should take their time before diving straight into quick commerce – for all the potential opportunities it holds. ■ For more findings on the ‘Need it Now’ Revolution, you can read the full report here.