While 98% of home care sales occur on the ground, brands ahead of the curve are investing in digital assets to prepare for the expected online grocery boom. Amazon is a no-brainer for brands looking to reach the baskets of those buying cleaning products online (97% of brands in L2’s Home Care Index distribute on Amazon), but Walmart is not to be ignored. Walmart execs have made their digital ambitions clear by mentioning the term e-commerce 55 times in the company’s 2014 annual reports, more than any other retailer studied by L2. Walmart is pioneering click-and-collect, testing pickup stops for online purchases in select locations and advertising “free shipping” for consumers who can pick up items bought online from the nearest store.
However, home care brand participation on Walmart has been somewhat anemic. Those owned by the biggest CPG conglomerates are supplying the retailer with in-depth content for product listings (manufacturer description, multiple product images, product video, display ads, cross-brand promotional links), but average investment across brands in L2’s Home Care Index lags. Just a quarter provide multiple product images vs. 84% on Amazon, and less than half of brands supply a custom manufacturer description on Walmart vs. 64% on Amazon.
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