The ultrafast grocery economy has seen tremendous growth over the past few years. We’ve seen new players enter and leave the market. A report composed by EuroCommerce and McKinsey identifies ‘price sensitivity, premium product, and sustainability’ as key drivers to stay competitive in the market.
Price considerations
When looking at consumer purchasing criteria, price must be considered. This is the value customers place on a product or service and can be critical to the company. Price becomes less of an issue if customers feel they are receiving value that is not offered by our competitors. For example, a customer who values health and wellbeing will place loyalty to brands that offer healthy food choices. This is strengthened by the company’s value proposition, such as the convenience and speed of the service. And so, if a price-related change occurs, your dedicated customer base will remain using your service. However, a more price-conscious customer may choose to seek an alternative.
Premium range
Success comes from understanding your customers’ needs and motivations. Our offering must be unique but also highly desirable to ensure customers return. Unique items can tempt customers to try a product, they offer a point of difference and can be a great way to generate publicity. Getir is a company that has been delivering ultrafast groceries since 2015, understanding the importance of high-quality signature items as part of our range was key to our success from the get-go. For example, the Getir community can order ‘Kiss the Hippo’ hot drinks, a brand known for its high-quality coffee, an attractive product for coffee aficionados.
Sustainability
Having the right products is simply not enough. That realisation was instrumental to the birth of the instant-delivery market. Convenience plays an ever-increasing part in customers’ experience and ordering decisions. Ultrafast grocery apps provide choice and speed; it would take someone longer to individually source a variety of products, with visits to multiple stores. Online ordering means customers can order these products from a single retailer and within minutes. However, unique products must sit alongside essential groceries and big labels the customer expects to see. Instead, a well thought-out product portfolio gives a competitive edge. Simply put, the more items the customer wants, the higher the basket value.
Another consideration is the ecosystem the service exists in. Building the right ecosystem has proven to be prevalent; companies must consider quality, reliability and accessibility, as well as technology and data analytics in order to achieve sustainability. Creativity is equally as important, with new ideas needed to keep your customer engaged. For example, Getir’s most recent trial involved mystery boxes, where customers were able to purchase a mystery box filled with great value lines. An innovative way to capture additional sales and interest, this encouraged more customers to try Getir and existing customers to spend more! Having the right ecosystem means rewards can be achieved. A customer who has their needs met will return and share positive experiences with others. This can only be achieved when companies listen to their customers and adapt to changing market conditions.
A bright future
The grocery sector has found itself to be an attractive investment opportunity for those looking to own a franchise. It’s an industry which has grown as customers put greater value on time, habits formed most notably after the UK nationwide lockdowns.
The future for franchising looks to be full of promise and excitement.
This article comes courtesy of Getir, the pioneers of ultra-fase grocery delivery, delivering thousands of products to customers everyday.
