Imagine a grocery store where you do not have to actually go out of your house to go to, will receive personalized recommendations and offers in a huge way, a store where you don’t have to open your purse or wallet to pay for your shopping. Sounds far-fetched? Well, it is closer than you might think. Technology has transformed the work process of the industries fundamentally. In the retail industry, the changes have been evolutionary but digitalization is completely changing the meaning of ‘go’ shopping. We can see the lines blurring between the physical and digital world. The recent retail survey polled that there are 30,000 active online respondents daily across 60 countries.
Can we say that this wave of home delivery is a blast from past? In the 1950’s- 60’s, home delivery of milk and other necessary things was a staple. The concept is still very much alive and well. Resources say, 55% of the global respondents are already ordering the grocery products online for the home delivery and more users are willing to use this digital way of grocery shopping in future. The e-retail food market has expanded by 2.5 times in the last three years and is expected to grab 20% of the market by 2025. The market was up by 19 % in 2014 and one can say around 70% of people will indulge in online grocery or food shopping in the coming decade.
Different age groups respond differently to the online retail food sector. The global observation revealed the responses of the people from different age groups. For example, around 30% of the millennials( ages 21-34) and 28% of Generation Z (aging 15-20) orders the grocery online, compared to Generation X (aging 35-49). 17% of baby boomers(aging 50-64%) and 9% of silent Generation respondents (65+), the younger crowd is more affected by the e-retail industry.
Coupling the online opportunity
Online is getting more alluring for both the end users as the consumers continue to adopt technology into their lifestyles.
Given below is a small look at how an e-retail industry is a great opportunity for both retailers and consumers. Following are three areas of strategy worth highlighting when it comes to online food retail sector.
- Segmentation: Segmentation is required to execute a feasible, on point e-retail food strategy to their most accepting customers, identifying high-population, high-density markets and targets the sectors of customers along these markets that reflects the best opportunities. Online segmentation can chase the specific audience, like new parents, back to school shoppers across food and non-food sectors. If the retailers consider the delivery as a special option, it will enable them to produce a degree of personalization and flexibility.
- Value Proposition: Transforming the consumer's interest in the online food shopping into the maximized sales relies on how fast the retailers are capable to generate features like same day delivery or if they can offer the customers same prices as in stores. Retailers are experimenting a lot with different programs and are also succeeding in them.
- Shopper Engagement: An engagement of today's consumer using various sites is more useful than using various media like television, direct marketing and reach the potential shoppers. Rather it is more about creating a personal, integrated experience for each consumer irrespective of time and place of their shopping. This must expand to the complete buying lifecycle.
The e-retail food sector opportunity
Since the e-commerce is becoming the central growth opportunity at the global level, alluring all the tech-savvy consumers relies on fulfilling all the logistics challenges of digital food sales tagged with an understanding of consumer insights. Even though online retailers have an edge with their business flexibility a physical presence is a must to efficiently connect with the customers. Whether to enter the online food sales or not is no more questionable, but one must rather focus on how to generate online capabilities that will attract customer’s trust, loyalty, and wallets.
If you too wish to set your foot in the e-retail business and get a highly customized and personalized portal feel free to reach us out. We at Global Infocloud will thoroughly assist you with all your queries.