L2 released today the Digital IQ Index: Personal Care | US, which assesses the digital competence of 82 brands across the eight categories of Bath & Shower, Diapers, Shaving & Hair Removal, Sun Care, Oral Care, Deodorants, Personal Care Electronics and Feminine Care. The study finds the industry to be on the verge of a tipping point, conducting few e-commerce transactions but preparing for a future of online or online-influenced sales. Currently, just 3% of the category’s $50 billion sales take place online and mobile sales are modest, but mobile channels influencing 19% of in-store purchases. In the past year, 10% of personal care brands including Olay, Gillette, and Caress have launched new sites. Mobile site adoption grew by 12% year-on-year, and now 2/3 of all personal care sites are optimized for mobile browsing. And, 40% of Index brands with email sign-up are sending emails regularly vs. just 28% last year.
Personal Care retailers are not standing still either. Walmart is positioning itself to be a formidable competitor to Amazon. It announced the acquisition of a product search business in May 2014, and it is now building e-commerce fulfillment centers across the US. Amazon has a head start on the CPG shipping business as it is rapidly scaling its Amazon Fresh and Prime Pantry program. For more on how brands are revamping their digital capabilities and working with online retailers, download an excerpt of the study.
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