The future of online retail
29 Sept 2019
E-Grocery Congress @ Anuga 2019
Food from the Internet: what sounded like a distant fantasy just a few years ago has rapidly grown in volume and commercial potential. A study by PwC in early 2018 revealed that 40% of Germans planned to purchase food products online in the next twelve months. The figures for China and Thailand were 88% and 87%, respectively, and 57% in Great Britain. Although online food sales in Germany crossed the Euro 1 billion threshold for the first time in 2018, there is still plenty of scope for further growth, as the German food industry’s total sales revenues lie just short of Euro 180 billion.
Online orders:
Consumer expectations
Completing the weekly shop quickly and easily with just one click (or thereabouts), having the items delivered at a time that suits them and being able to rely on the quality of the goods – these are just a few of the expectations that consumers place on the online shopping experience. Price and short lead times for orders also play a central role.
The issue of “freshness” is also particularly significant. As diverse and approved of as the available offering may now be, as soon as attention turns to products like fruit, vegetables, meat and cheese, consumers become more sceptical. In the PwC study mentioned above, 63% of those surveyed stated that they did not intend to buy any fresh produce online in the next twelve months. The differences between the various countries are (still) very clear. According to trade data gathered by Germany’s EHI Retail Institute, two-thirds of the suppliers in Great Britain offer fresh produce in their ranges; a figure that falls to 60% in the USA and around 50% in Germany, the Netherlands and Spain. There is huge potential for development in Austria, Switzerland, Italy and Canada.
Furthermore, online retail presents exciting opportunities for niche suppliers, who can distinguish themselves with special, exclusive products. These may be sustainable, healthy organic goods, or more generally items that are difficult to obtain, such as original specialities from other countries or regions, or foodstuffs that are only produced in small quantities.
The online shopping experience
Simple, personalised, innovative
Irrespective of the range of goods offered in an online store, the user experience often makes the decisive difference between success and failure. In addition to simple and intuitive operation, other factors to consider include the availability of offers, services and additional information tailored to the individual customer. That helpful recipe tip sent along with the selected ingredients is just as much a part of this as providing transparent information about ingredients and nutrients.
However, the need to make the shopping experience as simple, individual and informative as possible for the consumer necessitates a high degree of digitalisation, data processing and logistics effort on the part of the supplier. How can the customer journey be personalised and optimised? How should data be analysed in order to gain insights into buyer behaviour? What successful strategies can be adopted in terms of product range? What requirements does the supply chain place on the “last mile”? How can online and physical store concepts be interlinked as intelligently and efficiently as possible?
Trends, strategies and solutions for the online retail trade
E-Grocery Congress @ Anuga 2019
The E-Grocery Congress @ Anuga 2019 on 8 October 2019 will offer answers to these and other relevant questions. The challenges and opportunities of online retail will be discussed under the banner of “Driving online grocery forward: strategies, trends & game changers”. Best practice examples will be on the agenda alongside discussions about which strategies work, and which do not. There will also be a focus on active networking with like-minded colleagues.
Renowned speakers will be there to share their experiences and ensure a productive exchange of knowledge. Here are three statements by way of example:
Federico Sargenti, CEO, Supermercato24, Italy: We’re in the early stages of a big shift in the online grocery trade: today, people are looking for a combination of speed, convenience and quality. Our customers’ main reasons for choosing us are their lack of time and desire to save it. But they want quality, too. That’s why choice and trust are crucial: the option to select their favourite store and have a personal shopper take care of their grocery shopping are real plus points for them. I’ll be happy to tell you more and share some key insights into the behaviour of our customers, as well as looking at the outlook for the industry in Italy.
Zina Mavroeidi, Managing Director, e-Fresh.gr, Greece: With online grocery shopping demand continuing to rise and new tools and technologies becoming available, it is important to create opportunities for everyone to exchange views. I’m excited to have the chance to share my experiences at e-Fresh.gr, operating in the small but rapidly growing market here in Greece, and talk about common challenges and best practices in our industry. I’m really looking forward to being part of such an inspiring congress, which has quickly become a trend barometer for the global food industry.
Nader Amiri, Founder & CEO, el Grocer, UAE: We are on the cusp of a transformation in an age-old industry. I believe we will look back at this decade as the point in time when grocery retail took a leap forward in terms of fulfilling the desires of shoppers. It is our job to implement new ideas and new models to better serve consumers’ real grocery shopping needs and bring back the joy of the grocery shopping experience. I am personally very excited to be sharing our story and ideas from the Middle East, while also learning from everyone else, so that we can all work together and set this industry on a course for a profitable future.
Inspiration, ideas and practical recommendations for their implementation: the E-Grocery Congress @ Anuga 2019 is set to highlight trends and visionary concepts in the growing online retail trade. The full programme is available here . Tickets can be purchased directly here .