The world is changing around us, yet are we keeping pace? That question is especially relevant in the food industry.
Over the years, we’ve seen a shift in the retail landscape with a move towards retailer consolidation. More and more consumers are buying food products online, too. How do these food industry retail trends affect manufacturers, and how can they manage these shifts successfully? Read on to learn more, as well as what kinds of technological solutions they can use to handle these changes.
One of the food industry retail trends with which food manufacturers must contend is that the face of retail itself is changing. A significant part of that trend is retailer consolidation.
A study conducted by Deloitte showed that in France, the top five grocery chains control 90% of the market share. The situation is similar in other western European countries, and the US is less than halfway there.
Because there are fewer and fewer retail chains, it’s harder and harder to get your products onto the shelf. Food manufacturers must show that they have a competitive advantage over other players in the market.
Many people still prefer to buy their groceries from the store. The PwC 2017 Total Retail Survey showed that 70% of global shoppers would rather shop in a bricks-and-mortar shop than online for that category of purchases.
However, when you dig a bit deeper into the numbers, you’ll notice that trend doesn’t hold true in every country. China is one example. Sixty five percent of Chinese consumers buy their groceries online. While China has the largest percentage of consumers choosing to buy groceries online, it’s not the only place in the world in which people would rather not shop in-store. The Middle East, Singapore, Thailand, the UK, and Vietnam are other regions in which at least one-third of consumers do their grocery shopping online.
Online retailers also have something in common with their bricks-and-mortar counterparts: they want to partner with suppliers with whom it’s easy to do business.
It can be challenging to navigate changing trends in the food industry because they’re just that – trends. You don’t know what has staying power and what doesn’t. However, regardless of what trends currently dominate, you need a competitive advantage to survive. That advantage is using the right technology.
ERP systems help you weather the storm of food industry retail trends. These systems give you visibility into all of your operations. You can see what’s going on at a glance and make the right decisions.
Having a modern ERP system makes you more attractive to retailers, too. They want a supplier that can give them accurate, up-to-date information about their shipments and the ingredients in their products. An ERP system gives that to them.
Trends can actually make or break companies. However, ERP systems enable you to stay agile, competitive, and strong through the changing tides.