Food producers and processors need to rethink of their business strategy in order to capitalise on the opportunities afforded by online retailing, according to a new report from Rabobank.
The report, ‘Food Processors Challenged By Online Growth Dynamics’, outlines three strategies processors must employ if they are to stake their claim to this lucrative market, described as the 'next stage' in the evolution of retail.
It says that processors must change and diversify their product range (by offering healthy options, varied packaging, different sizes etc.) in order to target the different customer groups proliferating online.
New marketing techniques will also have to be developed that focus on building strong brands online through cultivating constant online visibility.
Furthermore, supply chains will have to be streamlined to cope with the demands of the digital market, with more flexible production runs and shorter lead times.
“Food processors must tackle the complexities of online retailing head-on to avoid being pushed to the back of the e- shelf,” said John David Roeg, senior analyst at Rabobank. “It’s not enough to change the packaging or formulations, in the face of increased competition and opportunities for commercial advantage, products need to be ‘online-proof’.”