There’s no denying the popularity of online shopping. Millennials in particular have been eager for convenience, and that can mean spending a lot of money online. In fact, by 2020, it is projected that Americans will spend $1.2 trillion dollars on their digital items — around 20% of US GDP.
One area where e-commerce has created many advantages is in the area of personal purchases and items too complicated to be purchased at a local store or restaurant with good service and pick up as desired. With technical issues and shipping delays, it’s easier to just search for something online and have it delivered. Beyond the simplicity of this approach, digital services also provide a convenience factor (one-click ordering) that has been instrumental in helping companies like Amazon gain market share.
In the personal care category alone, the amount of spending is estimated to be around $19 billion dollars by 2020. Kipling, the multi-billion dollar global parent company of Johnson & Johnson, is optimistic about the upcoming generation of millennials to spend much more money in this category.
This puts Kipling in a position where it can capitalize on Generation Z customers – those born between 2000 and 2015 – who are expected to spend $320bn by 2021.
Kipling’s strategy here is to leverage the abundance of digital information within this group through social media platforms and mobile channels.