5 Ways on How grocers can compete with online retailers

The rise of online grocery retailing is one of the biggest challenges facing food retailers today. Online grocery shopping has grown more than 400% since 2011 and is projected to increase by more than 50% annually until 2020. According to research firm eMarketer, the number of online grocery shoppers will grow to 40 million in 2021, which will represent 15% of all US consumers.

The main reasons for this growth are the increasing affordability of online grocery shopping, the convenience and accessibility of online shopping, and the growing number of food-related brands available online.

Is it possible to compete with e-commerce is giving better service?

There are a few food retailers that have been able to successfully compete with eCommerce and win market share. These include Kroger, Safeway, and Walmart.

Kroger has been able to grow its online grocery sales by focusing on delivery options, product selection, and prices. Safeway has built a strong eCommerce presence by offering competitive prices, a wide variety of products available online, and convenient delivery options. Walmart is well-known for its low-cost grocery store chain models which makes it attractive to consumers looking for affordable food items. This is the scenario of the US market. Now come to Bangladesh Market. Here Chaal Daal is leading the grocery e-commerce from the front.

Digitally-enabled trip missions

A trip mission is a shopper-generated request for a grocery store delivery service. Trip missions are generated by shoppers who use digital tools to track their shopping patterns, preferences, and needs. They can be generated when the shopper sees an item they want but doesn’t have time to go shopping or when they need food quickly and don’t have time to get in line at the grocery store.

According to a study by IRI, trip missions are on the rise and they are being generated at an increasing rate. In 2016, trip missions accounted for 17% of all grocery store sales in the US. This figure is projected to increase to 25% by 2021.

Digital tools that generate trip missions include smartphones and apps such as Amazon Go, Instacart, Shopify’s Order Ahead Delivery service, and Walmart’s Grocery Pickup app.

Online Grocery Market Share

The online grocery market is estimated to grow from $22.5 billion in 2016 to $47.9 billion by 2021, at a CAGR of 19%. The largest segment of the online grocery market is composed of food delivery platforms (38%), followed by e-commerce retailers (25%) and physical stores (21%).

In Bangladesh, Chaal Daal leads grocery e-commerce with a 70% share in the country’s total online groceries sales. A number of players including Big Bang Loot, Grocery Go Round, Shopclues, and Amazon are also present in the market.

Chaal Daal has been able to emerge as the leader in Bangladesh’s grocery e-commerce space due to its strong brand awareness and extensive distribution network. The company offers a wide range of products, including groceries, home supplies, and pet care items. Chaal Daal also offers delivery services across the country. Besides Caal Daal Daraz Grocer Shop, Shwapno, KhaasFood, Sheba Groceries, MeenaClick also offer groceries online in Bangladesh.

Grocery e-commerce is growing in popularity due to the convenience and affordability of online shopping. Additionally, shoppers can purchase items that they may not be able to find in their local store. Online grocery stores offer a wider variety of products than traditional brick-and-mortar stores, and they are also able to cater to specific dietary needs.

Customers Expectations

Shopper's expectations have changed because of online resources. They want to shop for groceries online the same way they would in a physical store. They expect quality products and easy checkout. Most importantly, they want to be able to order items that are not available in their local stores. Future Outlook Grocery e-commerce is expected to grow at a CAGR of 44% over the next five years. This growth will be driven by increasing demand for convenience and affordability, as well as higher spending on groceries in developing countries like Bangladesh that are expanding their middle-class population.

The online grocery market has grown significantly with the advent of mobile technology. The growing popularity of smartphones makes it easier than ever before to order items from shopping apps or websites using an app installed on your phone and quickly pay through services such as Bkash, Nagad, Debit/Credit card.

Shoppers in Bangladesh are hungry for food and grocery services, but they may not always have access to a convenient location or the right quality of fresh produce. Online groceries give people more options, especially when it comes to buying healthier foods that aren't often available locally.

Finding local produce is difficult for many who live in urban areas where there isn't enough space for farmers' markets. Online retailers can provide customers with greater variety than brick-and-mortar stores because of online ordering and delivery capabilities as well as the convenience of shopping from anywhere at any time using mobile devices like smartphones.

What Can Retailers Do In This Situation

1. Increase Digital Connections With Customers:

Retailers can increase their digital connectivity with customers by using social media, email marketing, and online channels to connect with shoppers. They can also use digital tools to engage customers on a deeper level by providing them exclusive discounts or product updates. By pushing out relevant information and staying up-to-date on the latest trends, retailers can keep customers coming back for more.

Reson of digital connection with customers

The reason for digital connection with customers is that customers feel like they have a personal relationship with the company and that the company is always there to help them.

Some benefits of digital connection with customers are that it keeps the customer updated on what is happening with the company, it makes it easier for the customer to find the information they are looking for, and it allows customers to communicate with the company easily.

2. Develop Seamless Shopping

Retailers can develop seamless shopping experiences by integrating different digital channels into their websites and mobile apps. They can also create customer loyalty programs that allow customers to earn rewards for spending money with the company. By making it easy for customers to browse through products, retailers can increase sales and attract new shoppers.

Importance of Seamless Shopping

One of the main benefits of seamless shopping is that it makes it easier for customers to find what they are looking for. When shoppers can browse through products quickly and easily, they are more likely to buy something. Seamless shopping also saves customers time, which can be important when there is a lot of competition out there.

3. Multiple options of receiving their online orders

Retailers can make it easy for customers to receive their online orders by offering different delivery options. They can also offer free shipping on orders that are over a certain amount, and they can provide customer service hours that are convenient for customers. By providing multiple options for receiving their online orders, retailers can keep customers happy and loyal.

Importance of Providing Multiple Options of Receiving Orders

One of the main benefits of providing multiple options for receiving orders is that it keeps customers happy. When shoppers feel like they have choices, they are more likely to buy something from the retailer. Additionally, when retailers offer multiple options of receiving orders, they are less likely to have customer service issues.

4. Offering discounts and deals on specific products

When retailers know which products are popular with their customers, they can offer discounts and deals on those products. This allows customers to buy items that they would not ordinarily purchase, which increases sales overall. By knowing what is selling well, retailers can increase their profits while keeping their customers happy.

Retailers can also use customer data to improve the design of their products. By understanding what features are popular and desirable, retailers can create products that better meet those needs. This allows customers to purchase more items with each purchase which increases sales overall.

Importance of Offering Deals and Discounts on Popular Products

One of the main benefits of offering deals and discounts on popular products is that it encourages customers to buy these items. When customers know that they can get discounts on popular products, they are more likely to purchase these items. This makes it easier for retailers to sell more products and increase profits overall.

For Example: If you are a clothing retailer and your most popular item is a blouse, you may offer discounts on this item to customers. This will make it more affordable for customers and encourage them to buy more of these items. In turn, this will increase sales for the clothing retailer.

5. Offering Loyalty Programs

When customers feel like they are part of a community, they are more likely to buy from that community. By offering loyalty programs, retailers can create a sense of community and encourage customers to buy more items from them. This makes it easier for customers to find what they are looking for and increases sales overall.

Some common loyalty programs include customer rewards points, free shipping on orders over a certain amount, or exclusive deals only available through the loyalty program. Retailers can choose which type of loyalty program best meets their needs and preferences.

Grocery retailers are struggling with the rise of online grocery delivery services. According to a survey by Kantar Worldpanel, grocery retailers in America earned a 0.2 percent market share from online grocery sales from January 2017 to December 2017, lower compared to last year’s 0.3 percent growth rate and even lesser than that of traditional supermarket chains (0.4 percent). Online grocery retailers like Amazon along with startups like Instacart are taking away business for conventional grocers making it difficult for them to make profits.

One reason grocery retailers may be struggling is that they are not able to compete with the low prices that online grocery delivery services charge. Amazon charges as little as $3.99 per order, while Instacart charges only $7.95 for orders of over $40. These low prices make it difficult for grocers to earn a profit on online groceries, which could be one reason why conventional supermarket chains have seen less growth in this sector than online startups have in the past few years.

Integrated retail is a great way to increase customer engagement, but it's not the only strategy that needs to be in place. Retailers need to tailor their strategies based on the specific online grocery market they're operating in.

For example, if you're a brick-and-mortar retailer selling food products through an eCommerce site, you might need to focus on increasing customer loyalty and providing convenient delivery options. If your business operates purely online, however, integrating retail features into your site may not be necessary or even desirable.

In any case, retailers should keep an open mind about how to best engage their customers in the online grocery space. Engaging with shoppers through social media can be a powerful way to build relationships and increase sales.