The Packaging Pitch: staring at the future of retail

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The Packaging Pitch: staring at the future of retail

By Fresh Produce Marketing founder Lisa Cork

Lisa Cork columnistHave you thought about the future of retail in Asia? Will Asia be your customer in the next three, five or ten years? If yes, then what will this opportunity look like?

I recently spent 10 days working in Shanghai and Beijing. I spoke at a conference and spent time visiting retail and wholesale outlets. I also got a quickfire lesson in Chinese social media and all I can say is, the retail world as we know it is changing. There is no doubt, online is the future of retail in China once they work out distribution issues.

I spent one evening with a colleague getting a detailed lesson on how to navigate the online worlds of Taobao and JD.com. We searched various fresh fruit and vegetable items and she translated the online sales pitch and customer feedback. It was interesting to read what shoppers say about the taste of the fresh produce they buy, and powerful to see the pictures they post.

One online apple consumer took a picture of a small rot spot on an apple and posted it to other buyers. "What is this?" he asked the online audience, "Is it safe to eat this apple?"

Sometimes, when there is a complaint, the shop owner will reply. Reading their responses, it can be an interesting lesson in customer service.

One customer on a smaller fruit selling site, complained her apples were too small. The shop owner basically replied, "You are buying them cheap. If you don’t want them small, then be prepared to pay more." Other vendors took a more service oriented approach. In response to a comment about the apple not being as sweet as last time, the vendor noted, "Thank you for your feedback. We will try to better ensure the taste next time."

Querying my colleague about her online habits was a bit like staring into a crystal ball. Firstly, her online world is based around her phone. It is what she uses to do all of her online shopping. She regularly shops different sites for different items. JD.com is a staple for groceries and more bulk items. Water, toilet paper and the like get ordered and delivered to her apartment. She notes, "These items are big. I do not want to carry them home. Better to have them delivered to my house." She perceives the price is cheaper than a supermarket and loves the convenience.

"JD.com has fantastic distribution. If I order before 10am, I will have the items the same day. If I order at night, they get delivered in the morning. Or, I can have smaller items delivered to my office."

For fruit and veg, she now buys almost all her imported fruit online. In order to compare prices, she simply goes to Taobao and searches for what she is looking for. Given online imported fruit selling is relatively new to Beijing, she is developing a list of companies she can trust, but she is also still shopping around. What determines who she buys from? She reads the reviews of others.Taobao screenshot

"In my parent's day, they shopped at the markets and they based their decision on price. Today, I shop online and I base my decision around what other people comment on and what my network says."

That's a potent quote and no doubt reflective of a whole new generation of online shoppers. They are simply influenced by other things – especially since they are buying the imported fruit without seeing or handling it; something that would have been unthinkable just a few years ago.

It is interesting to speculate, to crystal ball gaze and think forward. What is the implication of online buying? How will it impact produce marketing? How will it change shoppers?

And, if Asia is on the cutting edge of the trend, will online buying become the new norm globally or is Asia unique given its size, density and the online propensity of the population?

If you narrow your thinking down to just imported fruit for now, online buying can't help but change fruit purchasing in Asia. No longer connected to seeing, touching and/or smelling the fruit, the transaction will be driven by the online photo and description, plus post-purchase comments about size, taste and/or ripeness.

For the first time, the phrase "Customers buy with their eyes" might be about to change to "Customers buy with their mouse, but taste brings them back for more".

If you would like your packaging to be working harder but not sure where to start, give me a call or drop me an email. A simple packaging review could be all you need or we can explore options for a complete revamp. Contact: Lisa@freshproducemarketing.com or call 64 9 815 5944.

www.freshfruitportal.com

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