1、 2023 Nielsen Consumer LLC.All rights reserved.2023 Nielsen Consumer LLC.All rights reserved.From Blind Spots To BreakthroughsClosing the Omnichannel Reporting Gaps for E-commerce Insight Leaders 2023 Nielsen Consumer LLC.All rights reserved.2023 Nielsen Consumer LLC.All rights reserved.From Blind S

2、pots to Breakthroughs:Closing the Omnichannel Reporting Gaps for E-commerce Insight LeadersConsumer Packaged Goods(CPG)e-commerce insight leaders face a daunting challenge in todays omnichannel retail environment:the need to close reporting gaps and gain a complete view of their market.One consisten

3、t blind spot that is likely contributing to strategic missteps and underreporting more than any other is the Amazon blind spot.So exactly how large of a gap are we talking about here?Consider that a recent NIQ analysis shows that some CPG e-commerce insight leaders are leaving more than half of thei

4、r addressable category unreported to the C-suite.Yes,you read that correctly more than half.As we know,in todays omnichannel(in-store plus online)environment,no CPG channel functions truly independently signaling that your organizations Amazon blind spot is almost certainly contributing to strategic

5、 misfires or misreporting relative to your products,categories,and competitors performance.So how can you tell if your organization has the omnichannel view it needs to remain competitive?2 2023 Nielsen Consumer LLC.All rights reserved.From Blind Spots to Breakthroughs:Closing the Omnichannel Report

6、ing Gaps for E-commerce Insight Leaders3A quick way to assess is to ask yourself:How many of the following business questions is my organization able to answer accurately and confidently?If youre like most organizations we chat with,chances are your omnichannel strategies could benefit by increasing

7、 your market read for one,some,or many of the above.If this is the case,keep on reading!Lets start with the basics qHow are your sales&share online and in-store performing vs.those of your competition?qWhat are your current sales&share within Amazon vs.those of your competition?qWhat share of sales

8、and growth does Amazon account for?qWhat brands within your portfolio are growing online and in-store?How does this compare with who is growing within your competitive set?qWho are your biggest competitors in-store,online,within Amazon,and across emerging marketplaces?qHow well are your Amazon produ

9、ct pages performing vs.those of your competition?qWhat does your performance look like at the item level in Amazon?qWhere are your greatest opportunities for growth online and in-store?2023 Nielsen Consumer LLC.All rights reserved.4From Blind Spots to Breakthroughs:Closing the Omnichannel Reporting

10、Gaps for E-commerce Insight LeadersOmnichannel vs.Multichannel RetailOmnichannel retail and multichannel retail are two entirely different beasts that require distinct strategies and tactics.In multichannel retail,online and offline channels operate in independent silos with little consideration put

11、 toward a seamless shopping experience.Across the industry,the multichannel mindset is fading fast as many see it for what it is:an outdated approach.The response has been to adopt omnichannel retail,which strategically capitalizes on the obvious synergy that exists between in-store and online chann

12、els and embraces opportunities to report in a fashion that more accurately and meaningfully captures the behaviors of the shoppers of today(and tomorrow).Omnichannel strategies recognize that customer journeys are no longer linear,with consumers switching between channels depending on their needs an

13、d preferences.From this point forward,well assume the reporting needs of your CPG organization safely fall into the“omni”bucket.2023 Nielsen Consumer LLC.All rights reserved.From Blind Spots to Breakthroughs:Closing the Omnichannel Reporting Gaps for E-commerce Insight LeadersThe Total Omnichannel O

14、pportunity5Now that we can visualize how vast the omni landscape is,lets talk revenue.How big is the omnichannel revenue opportunity,and how much revenue is on the table if your blind spot(s)disappear?$1.54 trillion.FMCG Category Buyers1%Online Only14%In-store Only86%In-store and OnlineSource:NIQ Om

15、nishopper,Total US,52 weeks ending 12.31.22According to NIQ Omnishopper data,2022 brought close to 15 million new online CPG shoppers to the table.Within the US,86%of CPG dollar sales are represented by“omnichannel shoppers.”Of those omnichannel shoppers,many are making purchases across Amazons wide

16、-reaching network of online and brick-and-mortar markets.$-52 Wksw/e 01/28/22$-52 Wksw/e 01/28/23Total US Shipped and DeliveryTotal US PickupTotal US In StoreThe Omni Opportunity Currently Sits at$1.5 Trillionin the U.S.1.07 T51.18 B294.03 B1.42 T1.54 T1.16 T56.63 B323 BSource:NIQ OmniSales Measurem

17、ent,Total US,Prev 52 Wks-w/e 01/28/23 2023 Nielsen Consumer LLC.All rights reserved.From Blind Spots to Breakthroughs:Closing the Omnichannel Reporting Gaps for E-commerce Insight Leaders6The U.S.Omni Landscape Across DepartmentsSource:NIQ OmniSales Measurement,NIQ Amazon Sales&Share,Total US,Prev 5

18、2 Wks-w/e 01/28/23And we know what youre thinking:Yes,thats the entire omni landscape.How much would closing the Amazon blind spot benefit my category and business,specifically?Well,naturally,we dug into those data points too.-15%-10%-5%0%5%10%15%20%25%30%$0$20$40$60$80$100$120$140$160$180$200Alcoho

19、lBaby CareHealth&Beauty CareHousehold CarePet CareBillionsTotal US OmniTotal US In StoreTotal US OnlineTotal Amazon(Online)TATotal US OmniTotal US In StoreTotal US OnlineTotal Amazon(Online)TA$%Chg YA 2023 Nielsen Consumer LLC.All rights reserved.2023 Nielsen Consumer LLC.All rights reserved.From Bl

20、ind Spots to Breakthroughs:Closing the Omnichannel Reporting Gaps for E-commerce Insight LeadersQuantifying the Amazon Blind Spot at the Department Level:7Source:NIQ OmniSales Measurement,NIQ Amazon Sales&Share,Total US,Prev 52 Wks-w/e 01/28/23The Total OmniMarket Opportunity Practitioners are Missi

21、ngThe Total OnlineMarket Opportunity Practitioners are MissingAlcoholBaby CareFoodHealth&Beauty CareHousehold CarePet Care8%1%21%55%2%21%23%56%11%54%18%47%2023 Nielsen Consumer LLC.All rights reserved.From Blind Spots to Breakthroughs:Closing the Omnichannel Reporting Gaps for E-commerce Insight Lea

22、dersReporting on the Omni Landscape Across Departments(U.S.Only)When we drill down to department level,the total opportunity across in-store,online,and Amazon becomes clear.The split between in-store and online activity continues to widen,but the pace and extent of that widening varies by department

23、.While many e-commerce insight leaders have at least a partial view into holistic omni performance metrics,they are often lacking the right level of granularity when it comes to department and category leading to potentially misguided omnichannel strategies and activations.For example,within the NIQ

24、 analysis pictured above,omni growth is clearly occurring across CPG departments.Digging deeper,we can see that in the 52 weeks leading up to 1/28/23 the food department delivered the largest amount of dollar sales$877 billion with both high food prices and inflation across the omni landscape contri

25、buting to said growth.NIQs omni data also shows that more food dollars are being spent in-store than online.But notably,within the U.S.,21%of online CPG food is being purchased on A.When examining this department alone,were talking about a 21%blind spot.And the pet care department is showing the str

26、ongest growth rate(at+12%versus a year ago)across the total US omni environment.When it comes to softening departments,while the holistic omni landscape for the US alcohol category looks strong,the breakdown below reveals continued softness within online alcohol sales(-9%)versus a year ago.The onlin

27、e alcohol boom sparked in 2020 by Covid has certainly cooled down.Without question,the return to bars and restaurants after the pandemic-related pause has shifted the omnichannel alcohol landscape once again.Beverage alcohol brands continue to struggle with e-commerce related challenges related to t

28、he 3-tier distribution system,age verification,and high-fees associated with same-day delivery services.So,what is the total Amazon blind spot?That comes in at right around$90 billion.The key takeaway for e-commerce practitioners is clear:Reporting(both laterally and vertically)must be done with acc

29、uracy and granularity to deliver a successful omnichannel strategy across departments that capitalizes on the total omni opportunity.Now that weve established the high-level omni opportunity,well dig into what makes it so hard to eliminate the Amazon blind spot.First off,its challenging to even obta

30、in these data without the right supplier.On top of that,omni teams are plagued by consistency and accuracy challenges.Even when they have the right data supplier,they need to know what data the supplier should be providing to eliminate said blind spot.Finally,teams need to know how to successfully a

31、ctivate with these data to capitalize on todays$90 billion Amazon omni opportunity.8 2023 Nielsen Consumer LLC.All rights reserved.From Blind Spots to Breakthroughs:Closing the Omnichannel Reporting Gaps for E-commerce Insight LeadersIndustry-Wide Omni Reporting Challenges Speak to Issues of Overall

32、 Accuracy9We all know that useful data is trustworthy data.In the omnichannel ecosystem,“trustworthy”means both accurate and complete.The proliferation of marketplaces,direct-to-consumer(DTC)brands,pure play online retailers,and brick-and-mortar stores has resulted in an increasingly difficult spher

33、e to truly measure end-to-end.What does a lack of confidence in omni data mean for your business?It means practitioners are unsure of whether theyre maximizing opportunities across their products and categories.It means constant fear that the absolute growth is not competitive relatively speaking wh

34、en attempting to examine overall product and category-level performance.It means misreporting to the C-Suite and skewing organizational strategies in both the long-and short-term.What are the odds your team feels this way?Well,a 2022 survey from Data Impact revealed that a whopping 82%of e-commerce

35、practitioners do not fully trust the data they have in hand to make accurate and actionable omni retail decisions.Your team is almost undoubtedly struggling with a lack of confidence in their data.of e-commerce practitioners do not fully trust the data they have in-hand to make accurate and actionab

36、le omni retail decisionsSource:Data Impact 2022 Survey82%2023 Nielsen Consumer LLC.All rights reserved.From Blind Spots to Breakthroughs:Closing the Omnichannel Reporting Gaps for E-commerce Insight LeadersImproving Visibility(and Confidence)Requires an Accurate,Full View into Your Omnichannel Lands

37、cape10For simplicity,the full Amazon landscape could most succinctly be visualized as:Trusted,holistic data sources fuel omni insights and improve practitioners abilities to eliminate strategic misfires closing known(and previously unknown)performance gaps and capturing incremental wins in both bric

38、k-and-mortar and e-commerce environments.As weve seen,no view is complete without Amazon data.So,what data should I be asking for to improve my organizations omni visibility particularly as it pertains to Amazon?Amazon data gets complicated fast,but that doesnt mean you cant pump the brakes to focus

39、 on a few specific,critical elements with your CPG data supplier about.Those elements include:Data“freshness”relative to Amazon reporting.Product-,category-,and department-level Amazon reporting.In-store,in-app,and online Amazon data.First-party(1P)and third-party(3P)seller-level data.Hourly data re

40、freshes to capture Amazon algorithm updates.To Close the Omnichannel Reporting Gap,a Full View Into Amazon Looks Like ThisAmazon In StoreTotal Amazon OnlineOnline Seller Segments Within ABrick and mortar sales within AmazonFresh+GoTotal online sales across AAsales for 1P sellers and 3P sellers at de

41、partment,category and item level 2023 Nielsen Consumer LLC.All rights reserved.From Blind Spots to Breakthroughs:Closing the Omnichannel Reporting Gaps for E-commerce Insight Leaders11Pet Care Sales Within the Amazon Landscape,3P is Outpacing 1P SalesSource:NIQ OmniSales Measurement,Amazon Sales&Sha

42、re Latest 52 weeks ending 3.18.23$%change vs YAGOActivating Holistic Amazon Data Across a Single DepartmentTo better understand exactly why these nuanced data are useful(and how theyre monetized)were going to take a close look at a single department,pet care,as a model to show precisely how valuable

43、 accurate,granular omnichannel data is to CPG organizations.Weve established that theres a huge revenue opportunity available to organizations that are able to close the Amazon blind spot and we know the questions we should be asking to get there,but how do we activate the data to win across our key

44、 products,categories,and departments?When digging into pet care categoryperformance within the full Amazon retailenvironment,NIQ data shows greatergrowth coming from 3rd party sellers.When expanding the scope of the analysis to look at non-food vs food-based categories within pet,NIQ data shows that

45、 Non-Food pet categories accounts for almost 60%of the 3P volume while Pet Food is only 20%of those Pet 3P sales.Understanding the performance of 1P and3P sellers can help e-commerce insightleaders identify new growth opportunitiesacross the omni landscape and make data-driven decisions about how to

46、optimize their omnichannel strategy.Thisinformation can also help identify areas of investment to remain competitive.Within the industry you serve,do you know who the top players are across 1P,3P?0.00%50.00%100.00%150.00%200.00%250.00%300.00%$0$2,000,000,000$4,000,000,000$6,000,000,000$8,000,000,000

47、$10,000,000,000$12,000,000,000$14,000,000,000$16,000,000,000Total ATATotal A1P TATotal A3P TAPet Care$Pet-Food$Pet-NonFood$Pet Care$%Chg PrevPet-Food$%Chg PrevPet-NonFood$%Chg Prev 2023 Nielsen Consumer LLC.All rights reserved.12From Blind Spots to Breakthroughs:Closing the Omnichannel Reporting Gap

48、s for E-commerce Insight LeadersWho is Winning Across the Competitive A Landscape?Across the top 5 performing pet food brands within the wet/dry pet food category sold on A.,most of the category leaders are seeing double digit percentage growth versus a year ago,with the exception of the#4 player wh

49、o is seeing a 19%decline.At the surface level,this reveals competitive weaknesses,however at a larger strategic scale,this level of visibility may reveal blindspot growth opportunities.Source:NIQ OmniSales Measurement,Amazon Sales&Share Latest 52 week ending 3.18.23 2023 Nielsen Consumer LLC.All rig

50、hts reserved.Amazon Deep Dive:The Wet/Dry Pet Food Landscape Within Amazon Is Tight;Competitive Weaknesses Are RevealedFor e-commerce insight leaders a view into competitive performance across the Amazon landscape can dictate strategic activations to grab opportunities away from competitors.Increase

51、d visibility into this space can also serve as a grounding function for your own business to assess the true growth of your business versus general category growth.There is real potential for practitioners lacking visibility into the competitive Amazon landscape to possibly misreport on anticipated

52、growth rate figures without the larger,full view of the entire Amazon landscape.How confident are you in the growth figures you are currently reporting across Amazon?(40)%(20)%0%20%40%60%80%100%120%140%$0$200$400$600$800$1,000$1,200$1,400$1,600$1,800Wet&Dry DogFoodWet&Dry DogFoodBrand AWet&Dry DogFo

53、odBrand BWet&Dry DogFoodBrand CWet&Dry DogFoodBrand DWet&Dry DogFoodBrand EMillions$%Chg Prev$%change vs YA 2023 Nielsen Consumer LLC.All rights reserved.2023 Nielsen Consumer LLC.All rights reserved.From Blind Spots to Breakthroughs:Closing the Omnichannel Reporting Gaps for E-commerce Insight Lead

54、ersLeveraging Accurate,Precise Omni Data for Key Activation Touchpoints Across the U.S.Omnichannel Landscape13Within an effective omnichannel strategy,leveraging data to know how and where to strike is just as important as knowing when to strike.A quick look into omni shopping across 2022 shows nota

55、ble peaks and valleys with unique variances across the total omni,in-store,and online environment.E-commerce insight leaders and C-suite officers would be wise to take special note of the spikes reflecting CPG retail moments throughout the year.Perhaps most surprising is the fact that the biggest sp

56、ike in CPG omni retail in 2022 came around Amazon Prime Day,not Black Friday or Cyber Monday.It should be noted that online CPG sales even outside of Prime Day are much more volatile than in-store sales,which tend to vary little from month to month.For e-commerce insight leaders,understanding the pe

57、aks and valleys relevant to their operational omni environment can be a strategic differentiator.More specifically,e-commerce insight leaders who can clearly determine when to activate promotions and invest critical marketing dollars are better positioned to create winning omnichannel strategies.10.

58、0%6.2%7.7%9.1%7.0%13.1%8.5%9.8%10.2%8.9%8.7%6.3%14.1%4.1%10.2%11.2%2.7%29.1%7.7%10.8%13.5%5.2%7.3%4.5%8.7%6.8%7.0%8.4%8.4%8.7%8.8%9.4%9.2%10.3%9.2%6.9%0.0%5.0%10.0%15.0%20.0%25.0%30.0%35.0%4 w/e02/26/224 w/e03/26/225 w/e04/30/224 w/e05/28/224 w/e06/25/225 w/e07/30/224 w/e08/27/224 w/e09/24/225 w/e10

59、/29/224 w/e11/26/225 w/e12/31/224 w/e01/28/23$%Chg YATotal US OmniTotal US OnlineTotal US In Store$%Chg YA of Total Store in Total US Omni,Total US Online,Total US In Store during 12 Omni MonthsSource:NIQ OmniSales Measurement,Total US,12 month analysis through 4 w/e 1.28.23 2023 Nielsen Consumer LL

60、C.All rights reserved.14From Blind Spots to Breakthroughs:Closing the Omnichannel Reporting Gaps for E-commerce Insight LeadersGet the Right Data from the Right Data Supplier to Close Your Amazon Blind Spot1Without a full view into the omnichannel landscape,e-commerce insight leaders are at risk of

61、leaving more than half of their addressable category unreported to the C-suite.The omni opportunity for CPG e-commerce insight leaders currently sits at$1.5 trillion;for many,Amazon is a$90 billion blind spot.Measuring Amazon means more than A.For omnichannel reporting,a full view into Amazon perfor

62、mance should reflect Amazons retail landscape across brick-and-mortar and online outlets,updated by the hour.Understanding the nuance of Amazon reporting as well as performance of 1P and 3P sellers on Amazon can help e-commerce insight leaders identify new growth opportunities across the omni landsc

63、ape and make data-driven decisions about how to optimize their omnichannel strategies.To be successful,e-commerce insights leaders must have an omnichannel view inclusive of Amazon.23455 Key Takeaways for CPG ExecutivesReady to take the next step toward closing your teams data gaps?Visit https:/ exp

64、lore how a floor-to-ceiling window into the data insights your business requires can eliminate your Amazon blind spot and help your business capitalize on an effective omnichannel strategy today.2023 Nielsen Consumer LLC.All rights reserved.2023 Nielsen Consumer LLC.All rights reserved.About NIQNIQ,

65、the worlds leading consumer intelligence company,reveals new pathways to growth for retailers and consumer goods manufacturers.With operations in more than 100 countries,NIQ delivers the most complete and clear understanding of consumer buying behavior through an advanced business intelligence platform with integrated predictive analytics.NIQ delivers the Full View.NIQ was founded in 1923 and is an Advent International portfolio company.For more information,visit NIQ.com