St. Louis, Mo. (January 23, 2017) – The latest Food and Agribusiness Research and Advisory (FAR) Report lists four major suggestions to help incumbents within the retail food industry survive the major technological changes.
“No major player in the food industry should sit this one out. Online food sales – currently at about 1 percent to 2 percent in the U.S. – is lagging when it comes to e-commerce. But it is growing fast,” explains Nicholas Fereday, Senior Analyst Consumer Foods at Rabobank. While the total amount of growth in the e-commerce sector is difficult to predict, we can be sure that the delivery and convenience trend will not be leaving anytime soon.
One key to entering the online arena as a company that is traditionally brick and mortar is to leverage current strengths. These could be anything from distribution networks to trustworthy, quality products.
However, it is still possible to be successful while remaining offline, and in this case experience and atmosphere are everything. The customer needs a modern space with staff that are engaging and friendly.
Paula Savanti, Senior Analyst Consumer Foods, says, “Just having a website is not enough. Digital platforms need to be well developed and seamlessly integrated.” Analysts are predicting interesting acquisitions within the sector in the future, some simply for technological advancements.
While both the online and offline experiences will need to be enhanced, at the end of the day, customer loyalty will be the determinant of success.
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About Rabobank International Food & Agribusiness Research and Advisory (FAR)
The Rabobank International Food & Agribusiness Research and Advisory (FAR) group is a global team of more than 80 analysts who monitor and evaluate global market events that affect agriculture worldwide. This international team works to collect key insights into commodity markets; conduct in-depth analysis of the factors that drive sector success (or failure); and examine the megatrends that ultimately influence clients’ business strategy. These analysts are internationally respected experts in sectors from protein to produce, inputs to oilseeds, and their knowledge is shared with Rabobank customers.
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