Gamification, Big Data and Delivery in 10 minutes: What Trends Await Food Tech in 2022

Trend 1. People will save even more on food after the pandemic.

Imagine that there are two brands of pasta on the shelf: one sells a pack for 5$, and the second for 6$. The difference is small, but in fact, pasta from the first brand will be sold out in an hour, and the second brand will have to sell its goods for several more weeks.

One way to keep your price low is to save on associated costs. The hard discounter shops work according to this scheme, which saves on everything that is possible. For example, the network allows to open a store in a 1000 m2 building with only light, ventilation and a concrete floor. Showcases and shelves are also not needed - you can sell directly from pallets as if it's from a warehouse. Discounters focus on their own products, limit their assortment and save on advertising.

In the long term, this means that the cost of goods will rise, so companies will cut all associated costs in order to lower the price of food. This means that even more "hard discounters" will appear in cities.

Trend 2. Small companies will compete for niche markets

It is too difficult to compete with large retailers - smaller stores do not have enough capacity to sell regular goods at low prices and remain in the black. Instead, companies can focus on products that are not available on most networks. Exclusive products can be sold at a higher price, as it will be difficult for customers to find them elsewhere. It can be:

• Farm products: milk, cheese, meat. You can promote such food as organic or emphasize nostalgia - for example, milk, like a grandmother in the country.
• Imported products that are hard to find . The store can fully concentrate on selling French wines, Italian cheeses, Portuguese port or other products that are hard to find on the shelves of large chains.
• Products for vegans and vegetarians. It is usually difficult for this audience to diversify the menu if they buy only in large chains. Therefore, a small store can compete here if it sells coconut yoghurts or pea protein sausages.

Trend 3. There will be more private brands (Private Labels)

For a long time now, supermarket shelves have been stocked with “first price” goods, which stores sell under their own brands (example Auchan). The advantage of such brands is that the company can buy food directly from suppliers, optimize logistics and not overpay for someone else's advertising.

Besides being cheaper to produce your own brand, it can also be used as a tool to increase loyalty. The better and cheaper private label products are, the more often customers will buy them from a particular store.

Considering all the advantages of our own brands, over time they will become more and more. For example, companies will be able to develop multiple brands, one for low-cost products and one for premium products.

Trend 4. Express delivery will get even faster

High competition in the delivery market is forcing large players to open new points.

The market is growing, which means that the fight for customers will become even tougher. Therefore, companies are already thinking how to deliver goods not in 15 minutes, but in 10 or even 7 minutes. To increase speed, darkstore executives must hire just enough couriers to keep them busy and deliver goods on time.

There is another way to optimize personnel - for example, to give orders to “stranger” employees. If there is an Uber courier near the Whole Foods client, he can accept an order from another dark store. Due to this approach, companies will be able to speed up delivery and not keep unnecessary staff on the staff.

Another way to increase speed is to provide all couriers with bicycles and electric scooters or other personal transport. Darkstores find it difficult to do logistics manually, so new contractors will come to their aid.

Also, the media often write that couriers will soon be replaced by drones. However, I believe that this trend is overestimated - it is still too expensive to buy and maintain robots in bulk, and we do all not live in California - in different countries there is mud, snow and temperature changes. No technique will survive. Therefore, in the coming years, darkstores will accelerate delivery by optimizing store areas, staff and other available resources, but it is too early to invest in drones and drones.

Trend 5. Companies will engage customers through games and other activities

Darkstores and traditional retailers are pushing for customers to use their apps more often. To do this, they use gamification - games or other activities, for participation in which a person receives discounts, rare goods or other bonuses.

Since 2012, "Monopoly" has been periodically held at McDonald's. As in the original game, where you need to collect several cards of the same color, which are issued for purchases of certain dishes. When the cards are collected, in return you can win cars, smartphones, money or certificates for purchases from partners. In 2021, Monopoly was conducted online, and the cards were already stored in the application so that customers did not lose them.

Hidden gamification can be called any system of ratings and user statuses that they receive for frequent purchases. In fact, they are also involved in the game - they need to take an action (buy a product) in order to receive a reward (a discount or a hidden opportunity). Such mechanics can be implemented by express delivery services: for example, if the sum of all orders exceeds 200$, then couriers with the highest rating will be sent to the client.

Trend 6. Big Data will allow you to recommend products

The more people use apps, the more data business owners get. In the future, this will allow companies to better understand what food the user prefers and make appropriate recommendations. For example, if you often buy milk from one brand, then over time, this particular milk will appear in the search results.

Over time, services will learn to predict in advance when a user runs out of pasta, meat, or other food. And when this happens, a notification will be sent to your smartphone or other device: "It's time to replenish stocks." Amazon is already implementing something similar in its smart refrigerator, which can track the contents of drawers and shelves. When the expiration date or food is about to expire, the refrigerator prompts you to restock.

XOXO. Me.