54% French people buy online at least once a month. 22% at least once a week. A pace which should accelerate with the boom in e-commerce: the entire sector should grow by 20% or an additional $2.1 billion by 2020. If we are to believe the latest OpinionWay study for SprintProject and GS1 France, this is especially true for the purchase of home equipment products (new products: furniture, decoration, household appliances). This also concerns, to a lesser extent, second-hand or reconditioned products.
The growth of e-commerce today imposes a new model which applies to the food distribution sector: namely the use of home delivery as a new standard of consumption for the French, particularly under the leadership of the under-aged. 25 years.
Are the answers and services offered by major retail players still up to par?
Home delivery of food shopping: a service expected by consumers but hampered by a lack of players…
Food shopping delivery comes in penultimate position in the ranking of products that the French have delivered, according to the OpinionWay study for SprintProject and GS1 France. However, 57% of those under 25 say they buy online at least once a month. When we take a closer look at the average number of online purchasing actions carried out over the last 12 months, we realize that ordering groceries comes in first place. In fact, 16 purchases relate to food shopping, eight to prepared meals and eight to personal equipment (new products).
It is clear that no pure player has truly positioned itself in home delivery of food products. Large retailers certainly offer the possibility of delivery, but this is still marginal. In fact, 43% of those questioned declared that they were not offered a food shopping delivery service. However, the majority of French people (59%) intend to have it delivered to their home in the coming months compared to 19% in a store (click & collect, drive).
Offering drive-thru home delivery, particularly for food shopping, is a service that meets the expectations of the French. The strength of collaborative delivery methods is precisely having understood very early on this consumer expectation: an expectation of simplicity and flexibility (my shopping delivered to my home at a time that suits me), an expectation of conviviality (a service offered in a collaborative mode that mobilizes the community) and an expectation of territorial equality (a service offered throughout the national territory and not only in large dynamic metropolises).
Urban youth willing to pay more for more services and delivery innovations
Among the services with strong development potential in the delivery sector, we find in particular:
- the possibility of taking out a subscription allowing, for example, to benefit from better conditions for each purchase;
- delivery to a third party;
- delivery by appointment, with 2-hour slots;
- delivery combining several orders;
- installation of the delivered equipment.
29% of those under 25 say they are ready to pay more for a subscription. However, when we talk about all French people, only 15% say they are interested and ready to pay for such a service. This generational difference in the level of consumer expectations cannot be ignored by major food distribution players.
Driven by demand from young people, the principle of subscription is already becoming the norm. Thus, according to Fevad, 34% e-buyers are now signing up for a subscription delivery offer. Most (25%) chose Amazon. The others go through sites like Cdiscount, Fnac, Showroomprivé... which offer their own delivery subscription formula.
To continue to exist in this competitive market, the challenge for retail brands, particularly food brands, is twofold:
- on the one hand, succeed in structuring the delivery side of their activity by focusing on order preparation and rapid AND good quality shipping;
- on the other hand, renew the experience offered in store to bring more authenticity and professional know-how.
It is on this double condition, and by focusing on phygital, that brands will be able to sustain their economic model, attract and retain their customers.
The return of traditional worlds in supermarkets: bakeries, butchers, fishmongers... professional know-how serving a new customer experience
The store remains the place of purchase par excellence for food shopping, this must not be forgotten. Indeed, as the study highlights OpinionWay for SprintProject and GS1 France, over the last 12 months, only 5 purchasing actions were made on average on the Internet compared to 19 in stores.
Attracting and retaining consumers by offering them a real in-store experience remains a priority for large stores that wish to remain attractive.
At a time when consumers are looking for authenticity and proximity, supermarkets are reinventing themselves by offering fresh, local products... in short, by returning to the fundamentals that are the well-known and reassuring figures of the butcher-delicatessen, the fishmonger, baker. It is the embodiment of professional know-how (men and women who are visible and knowledgeable in their sector of activity) and advice to customers which will make it possible to put an end to the disenchantment which affects certain food distribution brands.
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