CLOSE
Home Tags Innovation

Tag: Innovation

Flyers and coupons, in Italy the desire for digital is growing

Flyers and coupons, the backbone of promotional communication of large-scale distribution, are about to undergo a revolution. Which mainly concerns their dematerialisation and digitalisation. But that’s not all. Because the switch to digital will allow retailers, for example, by connecting to the loyalty card and through the analysis of Big Data, to avoid “shooting at random” and offer customised promotions and discounts, tailored to the needs, tastes and habits of the individual.

While at the moment, communication via text messages remains the main channel, especially in the engagement phase, much is already being done, and much will be done during the course of this year in terms of dematerialisation. Because the benefits are numerous, and everybody is asking for it. First of all Mobile consumers, the vast majority of whom prefer to receive Mobile Coupons, increasing from 76% in 2013 to 88% in 2014. And the reasons are also changing somewhat: while still practical and convenient, there is an increase in the demand for customisation and the propensity to use them in the store, increasingly a place where real and virtual intersect and integrate, but also the social dynamics. Consumers prefer Apps that aggregate different offers (even though there is a decrease according to the Doxa/Observatory survey from 76% in 2013 to 73% in 2014) because they provide the possibility to instantly compare the proposals, but the percentage of those who prefer the App of their favourite store is increasing (from 24 to 27%) because it allows customisation and additional services.

Then on the retailer side, experimentation is already underway, at different speeds. Both proprietary Apps as well as third-party wallets, coupon aggregators, are used. The phases to be considered are reading, redemption and clearing; reading can be via QR code, typing or check-in at the till, the coupon can be virtualised on the physical loyalty card or using contactless technologies or an image scanner.

The brand industry is extremely interested. Among the benefits envisaged are acquisition of customer information, cost reduction, offer customisation and fraud reduction. In addition, there is the possibility to verify the campaign results more rapidly and possibly make corrections on the fly.

“Brands are waiting for the retailers. Which have various problems to solve – explains Marta Valsecchi, head of research at the Mobile Marketing & Service Observatory of the Politecnico di Milano – of a structural nature (the economic situation, national or local extension, size, etc.), regarding the choice of the most effective channel for distributing coupons (proprietary App or third party wallet, or a combination of the two) and with regard to reading and redemption systems, which must be enabled. Technological replacement is on the move, also driven by the need to in any case replace obsolete terminals, but it should be part of a broader strategy. The real quantum leap will come with the adoption of a CRM approach, in order to build a single view of the consumer along the entire purchasing chain. There is a lot going on, with various experiments in a number of stores: let’s see what the consumer response will be”.

The digital flyer: already read by 5 million Italians

According to a Nielsen survey, 20 million households receive supermarket flyers and 12 million read them regularly. The online flyer is now read by about 5 million people, half of which only on Mobile devices. “The numbers are starting to become significant – says Marta Valsecchi -. And Mobile is becoming a new communication medium.

Not only: users browse the flyer both outside (30%) as well as inside (17%) the store. Then there are those who aggregate flyers, very popular with users and which have also become a new means of communications in which to invest”. The flyer in the store app is very widespread (72%) although not reaching the levels of consumer electronics (100%). Also in this area, therefore, there is much to be done.

Waste? No thanks. Carlsberg studies a 100% biodegradable bottle

The biodegradable wood-fibre bottle for Carlsberg beverages, a project born from the collaboration with the packaging company ecoXpac, the Innovation Fund Denmark and the Technical University of Denmark, to develop a biodegradable bottle of organic origin made of​wood fibres from sustainable sources that will be called the “Green Fiber Bottle”, has been presented at the World Economic Forum in Davos. All the materials used in the bottle, including the cap, will be made using biodegradable materials.

“In Carlsberg we firmly believe in the importance of the circular economy to ensure a sustainable future of growth and development of the Planet. If today’s project will become reality, as we believe, it will make a huge difference with regard to the options we have for packing liquids and will be another important step in our journey towards a circular and waste-free economy” said Andraea Dawson-Shepherd, Senior Vice President for Corporate Affairs of Carlsberg.

The initiative is part of the Carlsberg Circular Community (CCC), a cooperation between Carlsberg and a number of partners (which by 2016 should become 15) with the aim of achieving a circular and waste-free economy using the Cradle to Cradle approach for the development and marketing of new products, which has the objective of creating products that can be recycled indefinitely or can return to nature being completely biodegradable, without creating waste therefore.

The smartphone is not enough: at Tesco stores you shop with Google Glass

Google Glass: not everyone can afford it, it costs more than 1000 euros and is currently a whim (with a tendency for breach of privacy), but that “wearables”, wearable and connected devices, will spread exponentially in the coming years is a fact. And so Tesco, the main British brand, is doing an operation of image rather than substance, certainly, but which promises to be talked about. Shopping online with Google Glass: even more technology, which uses the Google voice device (“OK Glass, start shopping”) and the scanning of barcodes to put together shopping lists, obtain nutritional information and ship the order, which will later be delivered to the home. The software was developed by the team of engineers and computer experts at Tesco Labs. The video shows how the App works.

Twenty global trends for food in 2015

What and how will we eat in 2015? A list of the 20 most important trends in the food sector has been published by the “Arabian Gazette” for the Gulfood 2015fair, to be held at the Dubai World Trade Centre (DWTC) from 8 to 12 February, global node of food product trade to emerging economies. We leave (literally) our backyard and go to see what happens in the global market and the Arabian high-end markets, which can also be of interest to our own food industry which is in extremely high demand. Many of these trends are also already arousing interest in the more receptive target markets at our latitudes. Here they are.

Gluten free – analyses to discover gluten intolerance, and consequently diagnoses, are on the increase. Packed gluten free products or the alternatives (cereals such as quinoa or amaranth) are becoming popular in all markets.

Clear labels – an increasing number of consumers are not content with vague claims of naturalness of a product: they demand clear and understandable labels, with nutritional and origin information. Not always do the laws (EU for example) support this desire. Apps for smartphones, on the other hand, do. From those for health to those which calculate the calories and nutritional aspects of a product by scanning the bar code.

Vegan and raw food – two food philosophies that will continue to influence restaurant menus (and supermarket shelves with the proposal of fresh produce and vegan friendly products)

4 “Good” fats and carbohydrates – goodbye to unsaturated and trans fats, olive oil and omega 3 fatty acids are increasingly entering the diet of those who care about their health. Blacklisted are also simple (refined) carbohydrates and artificial sweeteners. Among the emerging products is coconut sugar.

Fermented food – the health benefits of fermented foods, rich in live bacteria, will decree the growing success of yoghurt, kefir and fermented vegetables such as kimchi and sauerkraut. On the beverages front there are fermented teas such as kombucha

Alternative proteins – OK, we have always eaten them, yet in an effort to find alternative sources to meat protein, are insects really ready for global popularity? A lot of people are talking about them, from “Forbes” to the “Daily Mail”. Meanwhile, many are opting for more affordable algae, whey, legumes and timeless soy beans.

Smoking  – hot or cold smoking with various types of wood migrates from meat to other foods: butter, cheese, vegetables, cocktails and even salt, sugar and paprika

Alchemy of spices – the diffusion of cuisine from around the world and the desire to limit salt intake (due to hypertension) has pioneered the use of spices and mixes to provide flavour and taste to dishes. Old and new: cumin, saffron, cardamom, but also harissa, sumac, zaatar, Aleppo pepper and Marsh pepper.

Seeds and nuts – as an ingredient in the kitchen or in snacks and bars, or in the form of flour as an alternative to wheat or to create vegetable cheeses (with almond flour for example), nuts are the protagonist since they are rich in minerals, vitamins, protein and omega 3 fatty acids.

10 Fusion of flavours – to stimulate demanding and bored consumers, manufacturers are trying out unusual flavour combinations. From the now classic (here with us) chilli and chocolate and cinnamon and orange, to wasabi and chocolate, sea salt and caramel, strawberries and beans, oysters and kiwi…

11 Matcha – the Japanese green tea, known for centuries, which comes as an extra-fine powder. It is rich in antioxidants and beta-carotene, so its use will leave the ghetto of Japanese restaurant green ice-cream to become the queen of hot or cold health drinks, also in canned, carbonated or milk-based beverages

12 … water – fizzy and sugary drinks, among the leading causes of obesity, especially in children, have long been under the crossfire of doctors and nutritionists. The world is looking for healthy alternatives. After coconut water, maple, cactus and watermelon waters, rich in minerals and vitamins and low in sugar and calories, will flood the market.

13 Consistency is taste – fragrant, soft, pulpy, in varying combinations in the same product: this is also how to conquer the consumer of 2015 (and beyond)

14 The packaging revolution – requirements are increasing: not only safety and hygiene, new packaging must be sustainable, recyclable, contain all the required information on the content, transmit the product history, ensure new features and create new experiences

15 Convenience foods – Urbanisation and the increase in the work force in emerging economies will also lead to a demand for prepared and packed food, lacking the time to cook at home

16 Food of animal origin from sustainable sources – top restaurants in Gulf countries are already meeting the desires of an international clientele.

17 Halal – already counts for one fifth of global food trade and in 2018 should be worth 1.6 billion dollars. Not just meat but also tinned and dairy products can be halal.

18 Local, zero kilometre ingredients – from meat to seafood to fruit, where possible it will be locally grown.

19 Health and organic – With increasing prosperity the diseases of affluence will also increase, and hence the demand for healthy, natural food, without additives: an industry that by 2018 will be worth $1.5 billion in emerging economies.

20 More meat. Hard to subscribe to, with all the alarms of doctors and nutritionists, but the demand for high-protein food such as meat and dairy products will increase in emerging economies, as too will the demand for halal meat slaughtered according to the dictates of Islamic law.

10 trends for Protein Innovation

A new report on Protein Innovation from leading food and drink industry consultancy Zenith International has identified 10 key trends for new product launches worldwide in the last three years – new formats, new flavours, reduced sugar, new protein sources, new ingredients, ultra premium status, designer packs, limited editions, minimal packaging, unique designs.

More than 60 in-depth brand profiles offer product images as well as detailed information such as launch date, packaging type and size, pricing, ingredients, variants and marketing. These are categorised under four headings – ready to eat, ready to drink, new protein sources and targeted age groups.

“High protein products are no longer associated only with body building, athletes and muscle mass,” commented Zenith Chairman Richard Hall. “They are now being marketed as helping consumers lead a healthy lifestyle.

“There have been numerous recent headlines about the global rise in obesity levels and concern about added sugars in the diet. More manufacturers are responding with high protein products to help people stay in shape and combat obesity,” he concluded.

The report analyses products according to: 7 product types – yogurts, bars, smoothies, shakes, milk drinks, drinkable yogurt, other drinks; challenges and opportunities.

Savings and quality drive the purchases of private label products

From the Nielsen Global Survey on Private Label and Premiumization Trends, conducted by interviewing over 30,000 internet users, two main common aspects in all 60 countries surveyed emerge: price is the primary driver for the majority of consumers (70% of respondents in fact say they buy private label products to save money), but the appeal of private label goes beyond price and also involves quality.

But have these consumer attitudes, the report asks, turned into sales? The answer depends on the latitude. While in Western countries the share in value of private label products is around 15% or higher (with peaks of over 40% in Europe), in the East, Latin America and Asia it is less than 10% (but in China and Brazil it is 5% or less). The survey points out, however, that there is no unique recipe, even though the reasons for success in one market may drive other markets: the growth of private label in fact requires approaches tailored to individual markets.

Also for Italians (in 66% of cases) the main reason for purchasing private label products is to save money, meaning the possibility of being able to spend less for the same benefits offered by branded products: the price-quality ratio of private label products is in fact considered to be excellent by 67% of consumers. This figure is in line with the European average, although not yet at the level of countries such as Germany, where it reaches 79%.

Price, says the survey, is not an irresistible element of differentiation. Psychological factors can be very powerful, especially in certain categories. For example, in health and beauty private labels have not had a strong impact, despite a price advantage of up to 40%. Even in the most difficult periods, consumers have the desire to indulge occasionally and are willing to pay more for their favourite brands.

“Private label products – pointed out Jean-Jacques Vandenheede, Director of Nielsen Retail Industry Insight – are not naturally predestined to grow, contrary to branded products. Commitment to innovation, analysis and marketing are effective strategies to maintain and increase sales. Aggressive promotional activity, as we have seen in the UK, can also help to consolidate the growth of private labels, but these responsive price measures are not sustainable in the long run”.

The comparison between private label and industrial products is constant and continuous on the part of the consumer, both in terms of the savings offered and product quality. 56% of Italians believe that private labels have a quality comparable to that of branded products (compared to 23% in 2010) and 47% believe that some are superior to industrial brands.

The products for which the consumer is willing to spend more for the quality offered are especially fresh food, particularly fresh or frozen fish and meat (46%), bread and bakery products (33%), cheese (32%), milk (26%) and eggs (21%). Followed by personal and home care products.

But what do Italians want in terms of range, prices, display and performance? First of all, 51% of Italians say that they would buy more private label products if there was more variety. 61% of respondents would like to have them alongside branded products for easier comparison of characteristics and prices. Moreover, the majority of consumers (62%) requests a complete offer that ranges from entry-level to high-end products, including domestic brands: maintaining a balance between the two types of brands on the shelf therefore becomes a key strategy.

Despite the very positive attitude of consumers and the significant growth of private label products in recent years, in 2014 they suffered a setback. Their share of total Grocery turnover YTD September 2014 remained at the same level as 2013 (18.4%) and for the first time sales did not support growth in the consumer segment: -1.5% for private label compared to -0.9% for the other brands.

 

At Marca retail meets Industry

The traditional annual private label event at BolognaFiere is just around the corner: on 14 and 15 January 2015 the exhibition site in Emilia will in fact host the eleventh edition of Marca byBolognaFiere-Private Label Conference and Exhibition, the only Italian event entirely dedicated to private label products.

The 2015 edition takes place at a special time for private label which, during 201, recorded a slowdown, the result of a reduction in shelf space of private label and price competition which saw leading brand products sold in promotion at a price lower than that of private label products not on promotion.

The two days has become a think tank, strengthening, year after year, its influence and ability to bring innovation to the sector. The last edition recorded 6,600 professional visitors, 454 exhibitors, 15 of which retailers, which this year will be 18. In general, over the last four years the exhibition space has increased by 33% and the number of exhibitors by 36%, while the presence of international buyers has increased by 30%.

The programme of events to be held in the three pavilions (16, 21 and 22) of BolognaFiere wiil be as intense as ever. Starting with the conferences, which represent important opportunities for discussion and analysis for all industry stakeholders.

With the opening Conference organised by ADM, the association, sponsor of the event, which brings together all the main players of modern retailing, the objective is to emphasise the role of modern retailing in the promotion of the Italian agrifood chain as a driver of the country’s growth: particular attention will be placed on fresh produce and fruit and vegetables, in which there are also many PDI and PGI products whose real value does not seem to be well perceived by the consumer and which consequently requires clear answers to certain emerging issues. Here is the programme.

Another traditional event on 15 January is the Annual Report on the evolution of Private Label, now in its 11th edition: implemented in collaboration with Adem Lab, a spin-off of the University of Parma, it will be divided into a first phase of quantitative analysis of the IRI data, followed by an analysis of retailer and exhibitor policies based on the data collected via specific questionnaires. This will then be followed by a focus on the issue of value for money and prices of private label products in the consumer range.

The Marca 2015 programme also envisages specialist workshops, such as the IBC conference, planned for the afternoon of 14 January, entitled The consumption factory. The conference aims to underline the role, the influence and the contribution of the Italian Consumer Products Industry in the context of the national economy, at the same time highlighting the contribution of Italian exports and the challenges awaiting n the global economy.

The Marca Tech Packaging focus, scheduled for the afternoon of Thursday 15 January, will attempt to take stock of the state of the technological solutions which, in addition to the requirement of cost effectiveness, ensure optimal product preservation and shelf life, safeguard the health of consumers and offer maximum guarantees in terms of environmental sustainability (i.e. biodegradable and/or high recyclability).

 

Retail: 10 trends for 2015

We are at the end of year, it is time to take stock, but also for next year’s forecasts. What can we expect in the near future from retail? Sifting through the various foreign sites we have selected ten trends that we expect will drive retail evolution. Here they are.

  1. Customised approach thanks to technology. The customer feels chosen and understood thanks to communications transmitted via apps and the possibility for retailers to interpret his desires and choices. But also…
  2. Time is crucial. On and offline time for a certain range of customers (20-50 years old, working women, families with children) is a crucial factor in choosing where to buy. Which means fast deliveries and devices for quick shopping in the store (fast check out, fast payment, shopping list apps, click and drive and click and collect, product availability or fast shipping in the case of missing products).
  3. Virtual and digital assistants. Especially in the high-end of the market, consumers will expect increasing support from hi-tech devices which guide their choice. RFIDs, beacons and touchscreens will abound in the store.
  4. Price polarisation. The middle class is disappearing and so is the average price. The trend is increasingly towards the two extremes, low-cost and luxury. The novelty is that the same person can draw from either of the two extremes indifferently: for example, low cost yoghurt from the discount store and traditional balsamic vinegar from Eataly.
  5. Cross-sector sales. Coffee in libraries, insurance in supermarkets, music in coffee shops, it has got to the point where everyone is selling everything. An advanced example? Monop’lab in Paris gare Montparnasse (in the photo) which changes its range every month depending on consumer desires, in partnership with the caterer Elior.
    Monopl'lab Monoprix
  6. Product customisation or mass customisation. Mass production no longer meets the needs of consumers who can almost never afford real tailor-made. Which means in the future limited edition products created thanks to customer input, or those for market niches (the spread of gluten free products is one example).
  7. “Over forties” revival. The population is ageing and the offer will adapt. Fewer teenagers, more and more older people who require products “for the home”, home delivery, easy-to-open packaging and large and legible text.
  8. Women. The largest market in the world is still largely ignored by brands and retailers. But things are changing and sooner or later even they will realise it. Already today, in 65% of cases women decide which car and in 81% which financial products to buy. The opportunities for those who are the first to “talk” to the other half of creation are immense. An example? The Nike women-only store in Newport Beach, California (in the photo below), with annexed fitness centre that also offers yoga classes
    Nike-FI_Store_11.19.14-12_native_600
  9. Emotion and brand. To have connected and informed consumers perceive the pluses of a brand will be fundamental and therefore arousing emotions will be the lever to win their hearts and wallets. An example? WHSmiths, historic UK stationery chain, which sells cookery courses and hot air balloon rides.
  10. Emotional values and storytelling will also guide positioning, differentiation and the ability to tell the story of a brand. Provided it is genuine and linked to its deepest essence, not just entertainment but actually able to win the customer over to the brand.

Anna Muzio

With the electronic shelf labeling every product is connected

How to make a store truly multi-channel? With Electronic Shelf Labeling (ESL), which in its latest evolution and thanks to NFC technology (now available on almost all phones, iPhone6 included) and the Product Positioning System (PPS) allows the geolocation of objects in the store. Every object.

The Ses video shows the end-user potential: I do the shopping at home, go to the store and find a route already suggested with the position of the items I want to buy highlighted, I get alerts for products at risk for my allergies, if I have time I touch the label and watch a video or listen to the suggestions for buying related products (without having to go and look for them around the store), pay and leave after having done a very fast and efficient shop.

The potential for the back office is, if possible, even greater. You can in fact use screens to show customers prices and information on promotions with a system synchronised with the back office of the store and with the check-outs, also manageable via a mobile application. Then, after closing, you can “switch” to label view mode and use the positioning to replenish the shelves with speed and accuracy and do a stock-take.

Digital Innovation: where is italian food retail on this issue?

Technological innovation at the point of sale is a crucial issue because it can bring customers (back) to the physical store in conjunction with online channels. But where is large-scale distribution in Italy on this issue? From a comparison with other channels, a picture of positives and negatives emerges: highly advanced in certain cases and in certain types of innovation (self-scanning and self check out, digital coupons, in part Apps), but definitely behind in others (online sales, mobile in particular).

In food, a sector characterised by lower margins, high competition, repetitive low unit-value purchases and a long supply chain, most retailers are still focused on investments in the back-end, aimed primarily at integration with suppliers, creation of more efficient operations and effective stock management. But now they are turning to the point of sale, while still very little consideration is given to the multichannel approach.

A comparison with other sectors

While the intelligent changing room is a technology obviously designed for the clothing industry, there are also other innovations that make sense only in certain situations. For example, RFid tags are scarcely used in large-scale distribution at the point of sale due to the excessive cost compared to the product in question.

On the other hand, speeding up the buying process, according to the analysis of the Observatory

On Digital Innovation in Retail of the Politecnico di Milano, is one of the key factors influencing the adoption of innovative technologies (along with marginality, internationalisation, competition with the Dot Coms and supply chain structure). In food, 53% of the sample have already invested into self scanning and smart cart systems, which support the customer in the buying process, and 26% intend to do so in 2015. 50% of Italian retailers in the food sector of the sample have developed self check out systems, i.e. unattended tills capable of speeding up the customer exit process. Auchan and Coop Estense are experimenting Mobile self-scanning solutions in which customers use their mobile phone to scan products to be purchased.

Fast scanning (crucial in the point of sale where a large number of items are bought) but also fast payment (appreciated by everyone): Esselunga has already enabled all checkouts for contactless payment via NFC and smartphone, encountering slow but steady growth in this initial phase. On the other hand, another system gaining popularity and appreciated in department stores with interaction with sales staff which would not make much sense in large-scale distribution is the Mobile POS, tablet or smartphone transformed into check-out systems that allow the layout of the store to be significantly modified by bringing the till closer to the consumer.

There is a lot of interest in coupon and loyalty acceptance systems (digital or Mobile) that allow promotions to be sent in proximity and digital coupons to be redeemed directly at the store check out. With a dual objective: increase customer purchasing opportunities and increase the use of loyalty cards (23% of the sample have already invested and 43% intend to do so in 2015). Bennet and the PaM group are experimenting a Mobile couponing system promoted by telephone operators in interoperable mode.

Lagging behind in e-commerce

Two or three are doing it and only one in a widespread manner: we are speaking of e-commerce in large-scale distribution. Food is the sector that uses it least (13%) and the market share is still below 1%, while the most developed sectors are information technology and consumer electronics, where 88% of the sample sells online, publishing with 83% and clothing with 72%. Evident in these cases is the fierce competition from the more aggressive Dot Coms. Followed by cosmetics with 60%, furniture with 57%, do-it-yourself with 43% and department stores with 20%.

Esselunga, an early adopter, claims double-digit growth: “E-commerce helps bring the customer to the store and has now become Esselunga’s first store – said Luca Sorichetti, Director of Information Technology – while the App, developed for a bit of fun by a number of students in 2011, is now in full release and provides the possibility to customise product offerings to be purchased in the store, where kiosks are widely used by those still tied to the physical point of sale”.

The click and collect system that starts to be included in certain situations (Tigros, Auchan, Coop and Carrefour in certain stores) could change things significantly, as has been the case in France (+75% and 4 billion euros of turnover, equivalent to 5% of total large-scale distribution revenues).

Also the presence in mobile, increasingly used both inside and outside the store, is amongst the worst performers: as much as 44% has no presence. It must be said that among the Apps of Italian retailers, few have developed ad hoc features to be used in store.

Finally, social media are in a limbo for almost everyone; they are not widely implemented and there seems to be no interest in doing so.

A look to the future

There are certainly many services that can be delivered through multiple devices. The famous kiosks, for example, are used by Tesco to enable the comparison of smartphone models available in the store (technical specifications and prices) while Thomas Pink, again in the UK, uses digital tables to customise shirts and to provide interactive entertainment while waiting. The American StopandShop chain with smart carts, a self scanning system and custom coupons proposes products related to those scanned by the customer for purchase, with an increase in the average receipt of 10%.

The future at home? According to Luca Sorichetti it will be in the adoption of social media “where we have so far done very little”, in greater customer involvement through the multi-media narration of product features, in the co-creation of initiatives with customers and in the involvement of the next generation of “digital natives”.

 

BrandContent

Fotogallery

Il database online della Business Community italiana

Cerca con whoswho.it

Diritto alimentare