Cindy van Rijswijck of the Rabobank has never ordered food shopping from the internet herself, she confesses in her latest blog. "But types like me are a dying breed. The Rabobank expects around a quarter of groceries to be bought over the internet in 2030. Those grocers will not just be nappies and crates of beer, but also potatoes, vegetables, fruit and flowers."
From silent revolution to new challenge
"For more fruit, vegetable and decorative suppliers, the rise of the online shopping is still a silent revolution. Along the way they will start to notice more. The complexity in the chain will increase when fresh products can be delivered to your home in no time, pre packaged and looking 100% like they do on the photo. And the choice between 'ready to eat' and 'ripe after a few days' plays an important role too."
More choice and a shorter chain
"Supermarkets have sunk a lot of money into their online shops and don't want online shoppers to ignore high margin products like fruits and vegetables. They also don't want to be outdone by the many fast growing parties who deliver crates and boxes of fresh foods, such as Beebox and HelloFresh. This is why existing supermarket chains and new players in online food will do everything to offer an attractive fresh assortment online. The British Ocado, the first pure online supermarket in the United Kingdom, already offers over 1000 items in fresh fruits and vegetables. Bananas are available in fair trade and organic varieties, in children's sizes, in a small or large packaging, ripe and less ripe ...
Online shops with central distribution centres and few (or even no) stocks can offer a huge assortment that no physical supermarket can match. For suppliers of niche products, seasonal products, diet products or very exclusive products, this offers opportunities to reach a larger buyer audience. And if the online orders are taken centrally, products can reach our kitchen in optima forma. With less detours, transactions, touches and breaks in the cold chain."
More alternatives, more competition
"Such a massive online supply makes for a different competitive playing field. Supermarkets get more control over what consumers see or don't see and also what they do or don't buy. Consumers are offered a lot of alternatives in their online search and can simply compare prices. Someone who searches for apples, will also get results for pears, apple juice, squeezing fruit and apple tarts. Traditional flower delivery services can also join in. Jumbo already offers roses for three Euro a bunch (10 flowers) in their online supermarket. At the same time some other online supermarkets don't offer flowers at all. Do consumers who order their shopping online with a weekly list still buy that bunch of flowers for their table? By using the right photos, search terms, (paid) banners and other active 'screen management' suppliers try to influence the online shopper as much as possible."
More alternatives, more competition
"Such a massive online supply makes for a different competitive playing field. Supermarkets get more control over what consumers see or don't see and also what they do or don't buy. Consumers are offered a lot of alternatives in their online search and can simply compare prices. Someone who searches for apples, will also get results for pears, apple juice, squeezing fruit and apple tarts. Traditional flower delivery services can also join in. Jumbo already offers roses for three Euro a bunch (10 flowers) in their online supermarket. At the same time some other online supermarkets don't offer flowers at all. Do consumers who order their shopping online with a weekly list still buy that bunch of flowers for their table? By using the right photos, search terms, (paid) banners and other active 'screen management' suppliers try to influence the online shopper as much as possible."
Cindy van Rijswijck, Rabobank
Do you want more food for thought on this topic? Customers who have access to the FAR knowledge app can read the report via this link. Other interested parties can contact the Rabobank.