Specialty Food Magazine is the leading publication for retailers, manufacturers and foodservice professionals in the specialty food trade. It provides news, trends and business-building insights that help readers keep their businesses competitive.
Issue link: https://specialtyfoodmagazine.epubxp.com/i/691740
needs—which delivery models do they offer and how do they sup- port their own e-commerce platform. Manufacturers, too, have several directional options when selling their products: selling direct via their own website, partnering with a large third-party site like Amazon, or going through other more niche specialty sites like Goldbely or Mouth. A common worry among manufacturers too, is that they are undercutting their business through conventional retailers by also selling online. It's a fear that's largely unfounded, according to Tony Cox, founder of the 5th Food Group, a direct-marketing consul- tancy for the specialty food online and catalog industry. "One of manufacturers' biggest concerns is that the stocking retailers who are the bulk of their business will feel like they are cannibalizing them. We've seen that's not the case as long as you have pricing par- ity [with what you are selling online.]" "I liken e-commerce to when club stores were in their infancy," said Betsy McGinn, principal and founder of McGinn eCommerce Consulting, in her presentation, "Mastering Your E-Commerce Strategy." "People said, it's not for us, it's not our model, the pricing will kill us. Now, most companies are in clubs—some have specific divisions to handle them." E-commerce isn't something companies can ignore, stressed McGinn. "If you're not moving with this e-commerce model, then you're being left behind."—D.P. Denise Purcell is editor of Specialty Food Magazine. Deanna Ting is the former managing editor of Specialty Food Magazine. Gretchen VanEsselstyn is the education programs director for the Specialty Food Association. The reasons why aren't hard to figure out—convenience drives e-commerce with harried young parents as well as every other consumer group. Consumers are asking, why should I lug all these groceries when it is faster to order them when I want, and have them delivered to my door, said Whitfield. Selection and assortment are more major drivers. Online shop- ping provides a simple solution to consumers not finding what they want in store and not wishing to shop around in search of it. It also makes it easy to find niche products that are not widely distributed. "Shoppers are looking for things that speak to them, whether local, organic, and so on," continued Whitfield. "It is easy to aggregate those things into an online basket." And while price is not meaningless in the decision to purchase, convenience as a motivator can't be overstressed. "Don't underestimate the power of time as currency," she advised. Benefits and Challenges Selling on an e-commerce platform offers many benefits for expo- sure. In addition to reaching consumers in the way they want to shop, merchants can expand their retail experience to a far wider audience than those who enter the physical store. On the manufac- turer end, e-commerce provides a way to distribute a product nation- ally without the sometimes prohibitive expenses of doing so at retail. But the ecommerce space is ever-changing and not without its challenges. Retailers need to assess how to address customers' "Millennials grew up with digital technology and have no qualms about changing up how they think about grocery shopping. And, once they become parents, their online interactions become much more purposeful," says Whitfeld. (continued from p. 42) 46 ❘ SPECIALTY FOOD MAGAZINE specialtyfood.com