Saturday, August 18, 2018

Online business - 24% Pakistani consumers using online channels for home delivery

Consumers in Pakistan and around the world are displaying burgeoning demand for convenient solutions that can help simplify their lives, with busy lifestyles and rising connectivity playing an increasingly pivotal role in buying decisions, according to a new report by performance management company, Nielsen.

Nielsen Holdings plc is a global measurement and data analytics company that provides the most complete and trusted view available of consumers and markets worldwide.



The Nielsen Quest for Convenience Report, which explores changing global consumer needs, highlights the rapidly growing demand for convenience in markets around the world including Pakistan. Around one-quarter of Pakistani consumers say they seek out products which make their life easier (26%) and are suitable for small households (24%), while around one in five is looking for products that are convenient to use (20%).

While demand for convenience varies somewhat by region, the Nielsen report reveals six key factors driving consumers’ increasing need for convenience which are consistent globally: Urbanization, shrinking household sizes, crowded urban transport, evolving gender roles, generational needs and increasing uptake of technology

These drivers of convenience and increasing demand for products and solutions which help to simplify lifestyles are having an impact across myriad industries, particularly the highly consumer-dependent FMCG sector. The Nielsen report illustrates consumers’ grocery and packaged goods product choices are underpinned by their experiences in three areas: shopping, consumption and brand engagement.

This evolving demand for convenience has given rise to a slew of life-simplifying products such as ready prepared and on-the-go meal solutions, home or office grocery delivery offerings, and tech-driven “on-demand” services. Almost one quarter (24%) of Pakistani consumers use restaurant or meal delivery services. Grab-and-go meals from quick-service, fast food and street vendors are also on the rise – 41% of Pakistani consumers have visited a fast food outlet and 29% street food vendors in the past six months. Dinner is the meal most likely to be substituted with out-of-home dining options, with 24% of Pakistani online consumers opting to eat outside on a weekly basis, and 38% on a monthly basis.

A Nielsen e-commerce study across 30 countries indicates FMCG online sales are growing an estimated five times faster than offline sales, and by 2020 global FMCG e-commerce will be worth more than US$400 billion and comprise 10%-12% of overall FMCG market share.

Mobile devices and digital platforms are also shaping consumer experiences and transforming brand-to-consumer engagement. Around four in five consumers say they enjoy the freedom of being connected anytime, anywhere (82%), and this prevalence of connectivity provides multiple touch points for FMCG companies to interact with consumers, and leverage localization to improve engagement through personalised and authentic recommendations. Almost one-quarter of Pakistani consumers are already using online channels for home delivery (24%) while 37% that have not yet used online home delivery services are willing to do so.

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