Following a Brand Innovators discussion with Ivonne Kinser, Head of Digital Marketing and Innovation Lead, Avocados from Mexico, we take a look at how her company uses consumer behaviour to drive results at their unique intersection of live produce and consumer packaged goods (CPG) and how they are innovating in the e-commerce space.
This intersection is significant. In 2019, the US CPG market was the largest in the world, an estimated $635 billion. In addition, fresh foods have been identified as the primary driver of growth for CPG retailers, accounting for 49% of all dollar sales. Avocados have been growing in popularity in the US for the last number of decades and today Americans consume 1.7 billion pounds of the fruit, over 90% of which come through Avocados from Mexico.
Understanding where their consumers are and where they shop was key to developing their e-commerce strategy and capabilities, which was accelerated by COVID-19. This shift came just in time, as e-commerce sales are expected to reach 14.4% of all US retail spending this year, exceeding expectations by two years.
Commenting on the transformation Ivonne said, “Companies need to be agile to thrive and survive in today’s world, COVID has shown us that we need to move fast and make decisions fast – the industry was tested during COVID how fast you can move”. Recent innovations included a chatbot activation in Walmart that provided in-store shoppers with real time tips, as part of an educational campaign.
As we’ve seen in our foot traffic data to retailers across the country, people are finding reassurance in stability, with sustained downward trends proving the most consistent driver of increased shopper volumes. Whilst this may seem obvious, it is important to note. Rising unemployment and economic uncertainty may sway consumers from items previously considered essential. For brands like Avocados from Mexico continuing to build brand equity and driving awareness will ensure they remain front of mind and that consumers are reminded of the nutritional benefits of the product.