RETURN OF LOCAL MILK MAN, NOW ON MOBILE

The Good Grocer, New Zealand

[observation]

Across the globe, the rise of proximity retailing is undeniable. However, the pattern striving for convenience is changing fast. Most of high-value civilised world finds small and simple more beautiful, while developing world is still marvels convenience of large (often well air-conditioned) retailers. Yet both — small and big facing similar challenge of how to attract new customers, as it is not an easy process and with the exponential rise of mobile proximity targeting — is a way of survival. Indeed mobile targeting is taking proximity retailing to a new level of customer centricity. There is nothing more convenient than a store in your pocket or in your handbag. Truly, the milkman is back, but this time he’s gone mobile.

[reflection]

To understand the nuances, the localisations is everything. What works in snobby neighbourhood in New Zealand (“The Food Bag” — personal upscale food delivery) is hardly going to work in other parts of the world (or to the same extend different parts of Auckland). Research shows that motivation for online grocery shoppers with lower income is very different from premium markets. Their objectives are not to get the “freshest” dinner and to chat about the beauty of organic leaves, but rather to get home on time for dinner by avoiding dreadful traffic. That is what Asian food tech company HappyFresh had in mind when it announced last month that it is bringing its online grocery retailing platform to the Philippines, expanding from Malaysia, Indonesia, Thailand, and Taiwan. Successfully creating tw0-sided market place, HappyFresh main value proposition is in both — delivering next-hour groceries in traffic-congested megacities and helping supermarket retailers go digital. The business model is simple, yet technology behind it is complex and daunting —from algorithm that helps to suggest the right combination of nutrition values in ingredients to personalised suggestions for menu based on your grocery list. All REAL TIME! Local participant stores also get huge value by actually getting most of their inventory digitised and “availability checked” by HappyFresh personal shoppers in-stores. So its a win-win. Or at least it looks like from their first steps into new market.

[persuasion]

  • make sure each point of interaction with consumer is your data collection.
  • make sure to correlate your strategy with local data that matters, like weather or traffic so you can suggest when the interaction makes more sense.
  • make sure to give little fun along the way — games, content, free stuff.

About the author:

Shopper are no longer on-or-offline but rather at the moment of “convenience’. To get their business, brands and retailers need to create new types of interactions. Ilya Vensky is mobile-first strategist at PAG_Digital focused on direct to mobile brand engagements using mobile games to boost loyalty and collect valuable consumer data.
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