For brands looking to expand beyond an online presence on Amazon, it helps to understand how customers shop in different channels and what they are looking for. In this way, brands can customize their offerings and marketing strategies to provide prospective retailers with the potential for incremental category sales.
Reaching the FDMC-first customer
FDMC remains an important channel. FDMC-first consumers are the largest customer base and represent the most overall spend. Additionally, FDMC is the most-shopped channel when non-FDMC-first consumers shop outside their preferred channels, primarily due to convenience. These consumers tend to be value oriented, prioritizing price per unit, and focused on general health and immunity products. Generally speaking, FDMC-first customers have less interest in trying new or innovative products.
The products best suited to the FDMC channel are value and core VMS products. You can raise awareness of your products via digital platforms and strategic use of social media influencers. Messaging that emphasizes simple, easy-to-understand ingredients and reasonable prices is likely to be the most effective. Goli Nutrition is a prime example of an innovative yet simple brand whose marketing strategy helped garner impressive FDMC success. Goli used highly effective social media campaigns, as well as midi- and micro-influencers, to break into FDMC in a big way.
Targeting the HFS-first customer
HFS-first consumers are similar to Amazon-first consumers in that they are willing to pay for and try new products and want more innovative products. Like the Amazon-first customer, they are open to a longer list of condition-specific offerings. HFS-first consumers also place significant value on all-natural products and clinical studies supporting effectiveness.
Given what we know about consumer preferences, there is an opportunity for brands to appeal to both Amazon-first and HFS-first shoppers with premium, condition-specific items.
Expansion through personalization and more SKUs
FDMC-first customers are interested in guidance on locating the right products. This finding suggests that once you have gained a foothold in FDMC, you can expand your presence through increased personalization and offering a range of products to accommodate specific customer needs. For example, multivitamin maker Smarty Pants has been very successful with its offerings targeted at specific groups with varying nutritional needs, including toddlers, kids, teens, pregnant women, and men and women in different age groups. There may be opportunities to explore further personalization as personalized nutrition becomes more mainstream.