The Supermarket of the Future and other trends for 2018 and beyond

Wednesday, February 28, 2018

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Based on those facts, one may realize that Outsourcing on Sales and Merchandising may introduce an advanced way of dealing with its main process.

Outsourcing Service Providers also need to adjust their operational model to be fully aligned to what the future supermarket aims at offering to consumers. Concurrently, the FMCG Producers & Providers have to revise their products’ design with additional features (on top of the existing ones per product) equipping the merchandisers to incorporate in their activities the required information that may improve consumer experience and differentiate at a degree to gain market share.  Therefore, we are witnessing a new set of trends to enhancing engagement and consumer experience as follows:

·         Showroom-only stores where products can’t be purchased, just displayed and available to try. It’s a great concept to introduce new food products, to read the labels, to taste, to ask questions — a mini-model could be incorporated in every store.

·         In Japan, supermarkets have put greenhouses on top of or adjacent to supermarkets.

·         Waste-free supermarkets continue to grow globally.

·         Building stores that are truly energy efficient with solar glass blocks and solar roofing that not only reduce energy but create additional energy that could power an entire store.

·         Shoppers do want to have a relationship with their supermarket. They don’t want the experience to be faceless.

·         On the other hand, online grocery is at the top of everyone’s list, and there is no doubt that it will continue to grow and evolve. Click-and-collect will become the dominant online channel for all the reasons described here.

·         Nevertheless, online delivery will become more fractured, and more local. As we see these companies popping up on the landscape.

 

On the other hand, one of the biggest threats to traditional grocers is being created by blockchain technology. The goal is to out-Amazon Amazon with even greater efficiencies and to have brands sell directly to consumers, eliminating the need for retailers entirely.

As much as tech might want to disrupt the way people shop and make everything more efficient, whatever might be the new supermarket we need not forget that this business is all about people and our relationship to shoppers. It’s time to imagine just what a supermarket can be.

All the above trends combined with what follows shape up the new landscape where consumers will seek to purchase items, where FMCG Providers need to actively intervene re-designing their whole approach:

The new 2018 food definition version of Mindfulness is simply specified as: “the quality or state of being conscious or aware”. Mindfulness reflects a new consumer attitude, mostly led by millennials, to truly understand everything possible about a particular food or beverage and then support the company, whether it is a brand or a Retailer, by aligning with its values and supporting it with purchases. Seven out of 10 U.S. and U.K. consumers want to know and understand an ingredient list. Food and beverage brand introductions that feature ethical claims on their packages have increased seven-fold since 2010, and these human, environmental and animal ethical claims continue to grow in popularity. The new leaders of food are driven by a new set of corporate values: social conscience, health and wellness, enhanced nutrition and life hacking. This is the new way for FMCG and Retailers to make Big money.

One trend that may have the biggest impact on FMCG and Retail industry, it is Tactile — “the sense of touch”. Not to be ignored regarding the consumers’ attitudes, habits and selection criteria. Not all products are purchased online.

This is a more direct trend “farm-to-consumer connection” as communities strive to get closer to nature. Farming may not be applicable at all markets but it has started to be one of the drivers that will more frequently appear in Retail practices expanding the gamut of FMCG Providers.

About 10% of the world’s population is on some kind of “exclusion diet,” having to avoid certain foods because of a specific ailment or allergy.  The food and brain connection is important — from growing foods to cooking to how we eat to the nutrients themselves. In 2018, Smart Nutrition Services look for EPA and DHA Omega-3 to explode and become pervasive ingredients in all food and beverage products, for all consumers, from infants to seniors. Further, the culture development of a DNA kit started back in 2005 but nowadays it is actually here and is offered to consumers contributing to help managing risks of heart disease or diabetes, among other diseases enriching  experience in weight control.

Despite smartphones and social media, the reality is that three times the number of people trust word of mouth as trust online ads. Advertising needs to revise its context/content of the FMCG especially the food sector. An example is the Labeling issue: when people ate food that was the same but was labeled differently (one was labeled "snack," and the other was labeled "meal," despite being the same size) the people who had the snack version ate 50% more. It is obviously not only what we eat; it is how we communicate our food messages, especially when it comes to nutrition issues that make the difference. What we believe, has an impact on what and how much we consume.

Security is expressed through many facets leading to related actions. Let’s take a couple of cases: the cooperation of supermarket chains with Dieticians to respond to eating more due to stress covers a dimension of security assisting to lead consumers to healthy choices. Additionally, there has to be reporting of antibiotic use by meat and poultry suppliers. Refraining from in-home deliveries is another facet because there are crucial reasons of personal security. Fighting against monopolies by being skeptical to allow top providers to deliver at home will shortly become an important dilemma to encounter. For instance, once the Amazon Key is connected to your door, you are 100% Amazon for life.