Tag Archives for " Groceries "

view of a grocery aisle

Technologies shaping the Supermarket of the Future

Technologies and Trends shaping the Supermarket of the Future

Food businesses will have to change to stay competitive – online, in-store, and at sorting and processing plants too.

The technological boom and the increasing adoption of Industry 4.0 among retailers are creating disruption across all industries. This change is coming to supermarkets which will have an immediate impact on the entire food industry supply chain. Technological innovations – both online and in-store along with the shifting consumer demands will re-shape the supermarket of the future.
Traditional brick-and-mortar supermarket chains are strengthening their own e-commerce capabilities to stay on par with their digitally native competitors. The global grocery e-commerce market is forecasted to expand from an annual value of 43 billion pounds to 135 billion pounds by 2025.

Another aspect that e-commerce players must note is while they are making efforts to establish a strong foothold in the US and European markets, they may face serious challenges because the existing grocery market is saturated and the margins are low. This indicates that the global growth in food e-commerce will be driven by Asia, where there is a willingness to purchase groceries online, along with rapid urbanization, low labor costs, and a newer retail market.

Rising consumer expectations

Widespread food shopping online and fast deliveries to customers’ front doors will only just be the tip of the iceberg in the new world. Computer codes and algorithms will further enable supermarkets to collect data about shopper preferences and habits and use this to personalize their offerings to customers. Recommendation engines further help nudge customers to make purchases similar or related to the products that they have already purchased or been looking for via the “Recommended for you” web pages.

The growing number of people with moderate incomes and lifestyles will become more aware of food safety and more curious about how their foods are sourced and screened. Moreover, food shoppers will develop higher expectations and become critical when buying fresh fruits and vegetables. More will want to know how fresh the produce is and whether or when it is ready to eat.

Consumers will further have the ability to check information about the origins and nutritional value of produce and will be able to see suggestions for recipes and food pairings. This will attract a greater number of customers while making each feel as if they are being provided with individual shopping experiences.

The ad-hoc demand created through the online ‘nudge’ will challenge the traditional food supply chain. Processing lines will need to know precise details about the food – where it is coming from and what is in the storage to meet the demand.

Technology to ensure quality and safety

Grading and inspection equipment – at point-of-origin, prior to shipment to the supermarket, or from the on-line dispatching warehouse – can ensure that the fresh produce has the desired size and ripeness without bruising or mold. In addition, sorting equipment at different stages in the supply chain will be able to provide essential information on sizing, quality and other quality markers.

Traditional supermarkets fight back against the online disruptors – and information about shoppers’ preferences and habits will be an important weapon. Consumer-facing technologies, such as shopping-cart-mounted devices or smartphone apps, will steer shoppers towards the aisles and shelves where they are more likely to make purchases. Sensors in the store’s shelves will keep track of the items customers put in their carts and bill their mobile payment system as they exit the store.

Looking ahead

Another likelihood is that supermarkets will remain the same size but change in concept, becoming destinations for click and mortar shopping. Retailers need to offer consumers a consistent omnichannel experience, stores will connect the physical and digital worlds. Here, consumers can see and feel products they might order online. Here, too, the online product offering could also be accessible via interactive screens.
These changes align with the forecast growth in consumer demand for healthier, high-quality produce, more choice, and greater convenience – a demand which will increase massively as household incomes rise in developing nations, bringing 70 million more people globally every year.

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Online Shopping and Grocery – building consumer trust

Online Shopping and Grocery - building consumer trust

Online shopping has skyrocketed in the past few years. While it will continue to grow, majority of consumers still prefer to shop in-store - especially when it concerns grocery shopping. It’s no secret that the grocery industry has been the slowest major retail sector to join the e-commerce bandwagon.

As grocers are investing their resources to move their businesses online, there is competition among them to provide the best customer experience.

There have been a lot announcements made recently in this space. Retail giants like Walmart, announced the pilot of a new robotic back-end which would manage online orders in its super centers. Amazon added curbside grocery pickup for online orders as a Amazon Prime membership perk at Whole Foods. Whereas Target, rolled out same day delivery for groceries and other categories.

Consumers are concerned

While there is a lot of talk about omnichannel and online efforts, research suggests that people today still go to grocery stores.

According to a Gallup survey of 1,033 US adults, 84 percent said that they would never buy their groceries online. About 11 percent order groceries online for pickup or delivery twice in a month or lesser. While only 4 percent order once a week or more.

The survey highlights the fact that people still use the traditional means to purchase grocery. To ensure that the majority of the purchases are made online, it is imperative for the online retailers to provide an incentive to engage and help users purchase groceries online. The incentives could be in the form of timeline delivery of goods, competitive pricing, trusted & reliable products.    

The familiar feeling of a traditional store infrastructure cannot be replaced. Hence, the need of hour is to make the underlying technology for groceries feel human, comforting and intuitive.

lady buying apples at a store

Enabling technology for groceries 

By investing in technology and infrastructure, along with access to instant delivery channels, online grocers can build trust among consumers. 

Detailed product information 

Consumers have often been able to verify the quality of groceries such as fruits and vegetables with stores. When not physically present in the store, the consumer is unable to verify the quality of the products, thereby, increasing risk and uncertainty.

In an online platform, the product page must provide the right data of the particular product in terms of the images, the product description, the product specifications (size or weight/volume) along with the date it has been manufactured and the expiration date to be clearly mentioned.

This helps the consumer get the right information to make a decision. When consumers gain more knowledge about the product, and gain trust towards the platform, their uncertainty towards purchasing decreases. Furthermore, products that are from familiar brands also help reduce the perceived risk as the consumer already knows what to expect from a product that he/she is already familiar with.

Making reviews count

It is important to engage customers and community to rate the service of online retailers -   delivery of goods, the ease of ordering groceries through the platform, pricing, availability of groceries, etc.

Reviews are one way of building trust amongst existing users and new users alike to use the platform for their requirements. The more positive the reviews, the more users are likely to purchase through the online grocer.  

Instant Deliveries to instant gratification

Unlike appliances, groceries are mostly perishables and need to be consumed as early as possible. Sometimes, the need for groceries is almost instantaneous and requires delivery at the earliest. One way to make it readily available is strengthening the supply chain and the underlying technology to ensure instant delivery. 

Conclusion

While consumers today still prefer the traditional method of buying groceries, technology is fast catching up to cater to the needs and convenience of the consumer. There is tremendous scope for innovation and increase in grocery technology that can solve the problems for the retailers who want to move online and provide value to consumers. 


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