Posts in grocery e-commerce

GroceryShop Returns

August 29th, 2019 Posted by brand strategy, branded content, e-commerce, Emerging brands, food retail strategy, Food Trend, grocery e-commerce, Retail brand building, shopper experience, Supermarket strategy 0 comments on “GroceryShop Returns”

Perhaps the most important convention in the food industry

From September 15 to 18 the food industry convenes in Las Vegas at the Venetian Hotel for the second edition of GroceryShop, Anil Aggarwal’s novel answer to a lingering gap in the meetings realm for food business and related technology companies.

Unlike most industry meetings focused on presenting a vast ocean of booths where company sales and marketing staff feature their latest products and services, GroceryShop is more focused on the sea changes, business model disruption and consumer shifts impacting one of the nation’s most important and robust industries.

E-commerce and digitization of the food business has buffeted the value propositions of traditional supermarkets, supported the emergence of new, higher quality food brands with mission-oriented story to tell, and witnessed the rapid rise of e-commerce channel shopping as consumers increasingly acquire food from the comfort of their dining room table.

Packaged food marketers and retailers alike have sought to better understand how to manage the transformational changes occurring around them. Mr. Aggarwal stepped in with a conference concept long on content and insight presentations more so than a straight buyer-meets-seller proposition.

GrocceryShop’s rapid rise can be attributed to creatively answering the thirst for guidance and direction in a rapidly changing business environment. Unlike the food business conventions of yesteryear where global food corporations such as Nestle and Mondelez held court with retail buyers, GroceryShop connects the likes of Google and Facebook to the conversation on how consumers will operate in a digitally-enabled world and what trends in fresh and prepared food will get traction at retail outlets.

GroceryShop presentations examine new technologies in supply chain management, while brand marketing discussions look towards the shift from traditional ad media and promotions to engagement based on relevance to healthy living and lifestyle aspirations, fed by digital forms of outreach and social media.

 The Future of the Food Business

The content forward approach Mr. Aggarwal has landed on serves as inspiration and best practice showcase to retail and CPG executives alike on how to remain relevant and inject deeper meaning into their brand and banner propositions.

The food business is in a state of rapid transition as consumers increasingly shop for menus rather than stock ups and the rise of super-convenient restaurant delivery makes out-sourcing dinner a viable last-minute option on a busy weeknight. Food has never been more competitive as quality choices are within arms-length from virtually anywhere.

  • According to Accenture, the 80 million or so Millennials, now in their prime spending years, wield roughly $600 billion in annual spending power. For the grocery industry that ladders up to about $2,300 per year on average spending at food retail. According to a recent national survey by Sweet Earth Foods, this cohort will try at least 46 new foods each year, helping drive the emergence of new food and beverage brands now gaining additional in-store real estate at supermarkets.

Meantime the grocery industry is reacting to the significant moves by Amazon into their territory through Whole Foods and its own Prime delivery, by bolting on outside e-commerce ordering and delivery solutions from Shipt and Instacart.

So much change and so quickly for a retail business that for many years was fueled by selling boxes, cans and bags off shelves at high velocity and razor-thin margins. Now the perimeter fresh departments hold the magic and in-store groceraunts are popping up to satisfy the inevitable last-minute rush to answer the pounding question, what’s for dinner?

All of this helps explain why GrcoeryShop has traveled so far so fast as business model disruption impacts Big Food and small grocery chains alike. If you haven’t thought about where you need to be this September, might be good to check it out: http://www.groceryshop.com

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Bob Wheatley is the CEO of Chicago-based Emergent, the healthy living agency. Emergent provides integrated brand strategy, communications and insight solutions to national food, beverage, home and lifestyle companies. Emergent’s unique and proprietary transformation and growth focus helps organizations navigate, engage and leverage consumers’ desire for higher quality, healthier product or service experiences that mirror their desire for higher quality lifestyles. For more information, contact Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

 

 

 

 

 

 

Home cooked meals

Kitchen Commanders Hold Reign

April 20th, 2018 Posted by brand marketing, Brand preference, brand strategy, consumer behavior, Consumer insight, Culinary inspiration, Culinary lifestyle, grocery e-commerce, shopper behavior 0 comments on “Kitchen Commanders Hold Reign”

Mining the resurgence of scratch cooking

The kitchen is mounting a serious popularity comeback as consumers increasingly opt for meals at home over meals cooked somewhere else. While digital grocery buying is on the rise, the net outcome of what’s purchased, regardless of shopping channel, ends up sooner or later in a sauté pan on a cooktop.

Yes, it’s true in our online, connected world – in five to seven years, and maybe sooner – 70 percent of consumers will be purchasing food and beverage products online. That ladders up to more than $100 billion in transactions by 2022, according to Nielsen Digital Imperatives report.

  • Of note: we’ve already arrived at the end of borders, boundaries and lanes in channel shopping behaviors. Omni-channel shopping is simply a reflection of the increased comfort level with buying fresh and perishable foods online – the last remaining barrier to crumble in favor of e-commerce growth. What lies ahead is the demand for fluid, seamless shopping experiences as needs and preferences move from mobile ordering to in-store exploration, from delivery to squeezing your own tomatoes – all inter-changeably.

Whether brick and mortar food retail is optimally positioned for this reality is unclear. What is crystal clear, however, is a shift in supermarket business models from selling e-commerce friendly boxes, cans and bags off shelves at velocity, to answering preferences for navigating the perimeter fresh grocery departments. This is where consumers increasingly labor to solve real-time meal and menu needs using ingredients they expect to cook. Shop at 5 pm and eat acquired food at 7pm.

Adventures in culinary experience – at home

According to The Hartman Group’s “Transformation of the American Meal” report, seven out of 10 consumers currently eat scratch prepared meals at home. “Americans tend to agree that the best meal – the healthiest, tastiest and most emotionally satisfying is a freshly cooked homemade meal,” reports Hartman.

This makes absolute sense:

  1. Fresh, real foods are seen as healthier and higher quality. These items involve cooking.
  2. People want more control over ingredient quality, preparations and portion sizes; this includes seasoning and sweetening decisions.
  3. The emergence of meal kits also helps simplify the menu decision and the cooking process with partially prepped ingredients.
  4. Popularity of cooking shows and food websites/blogs, reveals the growing fascination with creativity and learning in food preparation and skills development.

Cooking is back with a vengeance. Scratch cooking behaviors will vary in intensity and commitment from heat-to-eat prepared meals to creating an entire menu from whole foods. Somewhere in the popular middle are meal recipes that combine fresh food ingredients with some packaged or pre-made items such as pasta, stocks and baked goods.

However you slice it or dice it, this is a bona-fied banquet of opportunities for food and beverage companies wanting to forge deeper relationships with consumers. How? By helping enable their passions in the kitchen.

While food choices and possibilities are more abundant than ever before, time and energy continue to grow scarce. With time scarcity is the increased need for guidance, ideas and support in various forms that help consumers achieve their culinary passions (if not their day-to-day meal preparation needs) with minimal frustration.

The friction for consumers grows in tandem with increased shopping trip frequency for smaller, meal-focused baskets. People don’t really know what they’re having for dinner, the most considered and mentally taxing meal of the day, before it’s just about time to sit down at the dinner table. What’s emerged is just-in-time food shopping aimed at creating a menu. Food retailers need to solve the meal trip phenomenon with more convenient in-store experiences (grab and go kits). Navigating a 60,000 square foot store for five to seven items will increasingly drive food shoppers online for easier click and collect or shortened delivery windows.

We know that brand building in the consumer-control era begins first with empathy for shopper needs and interests. If a food or beverage brand wants to forge a deeper relationship, it will be founded on becoming more meaningful and valuable. It’s clear the opportunity here is to help solve these recurring ‘what’s for dinner’ challenges.

The cornucopia of food brand marketing solutions:

  • Meal ideas, menus and shopping lists
  • Assistance with recipes, preparation steps and enhancing cooking skills
  • Creating or enabling in-store culinary events and tasting experiences
  • Building social channel communities of like-minded home cooks sharing ideas, experiences, hacks and recipes
  • Creating culinary clubs and educational experiences to inspire new food adventures and experimentation
  • Marrying kitchen tools with the food to enhance reliable, optimal outcomes –especially in baking where precision is essential
  • Considering culinary lifestyle marketing strategies that surround the consumer in their areas of interest and passion from health and wellness to global taste exploration

Message and content creation opportunities here are virtually boundless. The opportunity to be relevant and valuable is compelling. But to be sure, this is one of those moments when brand voice and authenticity will ultimately separate the winners from the posers.

If your organization lacks a fundamental passion for food and culinary experience, it’s doubly hard to bring relevance and proper context to marketing communication. Consumers are amply able to identify the genuine from the artificial.

If your organization breathes the love of food and food experience, it will manifest in the quality of communication that drives brand value and engagement levels. Consumers will reward food brands that align with their needs by opting in to user communities.

It is, indeed, the Golden Era of food marketing.

Looking for more food for thought? Subscribe to our blog.

Bob Wheatley is the CEO of Chicago-based Emergent, the healthy living agency. Emergent provides integrated brand strategy, communications and insight solutions to national food, beverage, home and lifestyle companies.  Emergent’s unique and proprietary transformation and growth focus helps organizations navigate, engage and leverage consumers’ desire for higher quality, healthier product or service experiences that mirror their desire for higher quality lifestyles. For more information, contact Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

 

 

 

 

 

 

 

Shop to eat or eat what you shop?

October 3rd, 2017 Posted by consumer behavior, Consumer insight, Digital marketing, food retail strategy, Food Trend, grocery e-commerce, retail brand relevance, shopper experience, Supermarket strategy 0 comments on “Shop to eat or eat what you shop?”

Here’s the runway for grocery e-commerce expansion

A more European-like view of food preferences and shopping is sweeping the retail landscape as consumers shop for meals rather than pantry stock-ups: more trips, more often with smaller baskets aimed at mealtime solutions. The implications of this behavior shift on retail business models and  e-commerce strategy is no less than transformational.

Online grocery’s convenience bona fides are already well positioned to capture increased share of stock-up shopping trips, focused primarily on shelf stable packaged foods and beverages.

However, new insight on consumer food shopping behavior raises a challenge and opportunity that if addressed successfully, could fuel exponential online growth. You need look no further than the decision around ‘what’s for dinner’ – which today is often resolved in a quick grocery store trip a mere few hours before sitting down to eat.

Perhaps most immediately pressing on the potential escalation of grocery e-commerce is the relationship between this shop-for-meal trend and fast order, delivery or click-and-collect fulfillment. Success here could leverage a significant pain point of escalating frustration embedded in the brick and mortar food shopping experience.

  • Important to note here, Emergent has studied e-commerce extensively and concluded that consumer trust remains a significant near-in barrier to business growth. Shopping online for fresh food requires consumer belief that e-commerce platforms can be depended upon to select, on the consumer’s behalf, the highest quality fresh perishable items like meat, fish and produce.
  • As this trust issue is resolved and consumer confidence takes hold, fresh and perishable sales in e-commerce will rapidly rise, and with it, the economic models of food retail will change forever.

With e-commerce’s historic advantage in online proficiency, industry watchers have noted: “Amazon’s capital and tech-fueled infrastructure is poised to rapidly expand same-day fill-in shopping of perishable food as trust in the e-commerce portal grows.” Hartman Group Executive, Q3 2017

 

Smaller baskets create grocery store shopping friction and e-commerce opportunity

According to IRI, 64 percent of grocery visits are now quick, focused, rapid-shopping trips for a limited basket (IRI, The Omnichannel, September 2016). Yes, we are witnessing in real time a major behavior change as the distance between buying and consuming collapses.

Traditional food retail was never designed with this kind of meal shopping in mind. Navigating a 60,000 square foot store for five to seven items can become annoying. The smaller the shopping basket, the more egregious and noticeable the time commitment is to travel the store footprint in search of a few items. Younger audiences especially are less tolerant of these time inefficiencies.

  • So what does it mean when pantry shopping gives way to just-in-time menu procurement? It puts in motion the conditions leading to a potential surge in online food shopping growth. Online can take the cart navigation discomfort out of the shopping experience.

There is however another consideration…

E-commerce must align with the consumer’s emotional connection to food

First, trust issues around fresh/perishable selection have to be resolved. If e-commerce is to play a substantive role in helping consumers with their dinner plans, more effort is required to recognize and leverage the real passion and care consumers have around fresh food – unlike any other product category offered online.

Virtually every food e-tailer is positioned in similar ways on convenience claims. Therein lies the next challenge: e-commerce constructed to answer transactional simplicity and convenience must not overlook the consumers’ emotion-rich interests around food.

  • It should be noted that meal kit companies do a much better job in the online environment delivering this kind of information and product backstory via content on ingredient sourcing, food experience and culinary adventure.

So for the most part, the online food environment remains a single instrument playing the song of products, prices and a virtual basket to fill. Unfulfilled as of yet, is the food e-commerce platform offering a complete orchestra and symphony of food story and guidance to home cooks hungering for their next meal adventure.

When e-commerce begins to push past the transactional and into the consumer’s relationship with food, magic could happen as the consumer comes to believe that online food shopping, and a differentiated online banner, offers much more than purchase simplicity.

Looking for more food for thought? Subscribe to our blog.

Bob Wheatley is the CEO of Chicago-based Emergent, the healthy living agency. Emergent provides integrated brand strategy, communications and insight solutions to national food, beverage, home and lifestyle companies.  Emergent’s unique and proprietary transformation and growth focus helps organizations navigate, engage and leverage consumers’ desire for higher quality, healthier product or service experiences that mirror their desire for higher quality lifestyles. For more information, contact Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

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