Tetra Pak Index What opportunities does smart packaging offer food and beverage producers in online grocery? Pack Summit, 31 October 2018

Transcription

1 Tetra Pak Index 2018 What opportunities does smart packaging offer food and beverage producers in online grocery? Pack Summit, 31 October 2018

2 What we are going to discuss today Growth of Online Groceries The changing landscape Opportunities opening up for F&B producers Q&A session / 2

3 Introduction The 11 th annual Tetra Pak Index AC/Monday 25 June / 3

4 The Growth of Online Groceries and the impact on Retail

5 Products 1970s Products + Services 1990s Customer Centric 2000s Relationship centric Today WE ARE SHIFITNG FROM PRODUCTS TO RELATIONSHIPS

6 A Changing Landscape / 6

7 Creating new macro trends Consumers are looking for a fast and easy shopping experience / 7

8 Online Grocery shopping Frequency in 2018 Monthly average 5,8 4,4 4,5 6,4 6,8 AC/Monday 25 June / 6

9 Leading to a strong rise in online grocery A catalyst for wider industry transformation / 9

10 While online is growing faster than other channels, the picture varies market by market / 10

11 Four key trends are shaping the online grocery marketplace Convenience Technology Sustainability Personalisation AC/Monday 25 June / 11

12 How to respond to position your business for future? Responding to the new trends within e-grocery 4 Key Trends driving growth Convenience Technology Sustainability Personalisation Personalization E-retailer & Consumer Feedback Super fast same day delivery that can be tracked Robust and non-leaking packaging for first moment of truth Ease of replenishment, favourites and personalised lists Track and Trace Unique digital code identifier Consumer engagement and data capture Desktop and Mobile friendly designs, integrated offline and online experience Renewable packaging Logistically optimised solutions optimal weight and size Minimal secondary package D2C opportunities for non-retail brands Physical stores evolving digitally and capturing data Personal experiences, packaging and products Seamless, frictionless consumer experience = Omni-channel As delivering in sustainable manner becomes licence to operate TAP 6/ December 2016 / 12

13 The Key Elements of the Changing Landscape

14 The battle for the consumer intensifies, as new channels emerge Retailers Raw material Production Customer Manufacturing Consumer Food Service / 14

15 The battle for the consumer intensifies, as new channels emerge Raw material Production Customer Manufacturing Omni-Channel Consumer Retailers Food Service / 15

16 Intensified pressure in retail industry leads to an increased power shift More choice and new digital players creating new consumer needs: E.g. - Online grocery Power of Buyers Innovation & investment in food service Different models to cater to specific needs: -Home delivery -Meal-box subscription Threat of substitutes Retailer rivalry Threat of new entrants New pure-play & hybrid digital competitors rising Goal: disrupt business model & overtake consumer interaction -E.g. -Amazon -Ocado Power of suppliers Increased pressure on suppliers / 16

17 Changes rewriting the global ranking of retailers Alibaba to become largest retail by 2023 Rank 2012 Sales ( bn) Est Sales ( bn) Est Sales ( bn) 1 Walmart: Walmart: Alibaba: Carrefour: Alibaba: Walmart: Seven & i: Amazon: Amazon: Tesco: JD.com: JD.com: Costco: Costco: Pinduoduo: 227 Predominantly store-based retailer Predominantly ecommerce-based retailer Source: PlanetRetail RNG / 17

18 But going omni-channel is difficult operationally COST Home Delivery COST SUSTAINABILITY Customer Manufacturing Brick & Mortar Store Consumer LOYALTY E-COMM READY SUPPLY CHAIN Fulfillment Centre Home Delivery COST COST SUSTAINABILITY / 18

19 The Opportunities Opening up

20 Digital disruption is changing the game New business models give new channel opportunities cross-boundary CPG Bricks & Mortar Online pureplay 1 Retailer brands 2 Direct 2 Consumer Food Service Start-ups and small brands 4 4 Start-ups and small brands / 20

21 Understanding the new consumer journey Last Mile Delivery Package shape and design impacted Order Order Zero moment of truth Zero moment of truth Receive Receive First moment of truth First moment of truth logistics Research Experience Second moment of truth Unwrapping experience Unwrapping experience Share Second moment of truth Share Share Sharing Sharing Third moment of truth / 21

22 The key to technology is digital printing Unique code-based consumer engagement solutions Now smart packaging allows each carton to be tracked, monitored and interacted with throughout the supply chain, creating new opportunities for efficient stock management, distribution and automation. It creates new opportunities for consumer interaction too We are re-inventing the package by adding a layer of digital experiences for the consumer, for example first piloted unique code-based customer engagement solution with Binzagr CoRo s SunTop orange juice in Saudi Arabia in January 2017 and is now being used by Puleva, in Spain, for a promotion for its flavoured milk drinks and many others. AC/Monday 25 June / 22

23 Digitalisation of things Packaging global volume driver 10 APPLIANCES Billion 100APPAREL Billion 10 Trillion CONSUMABLES

24 Our journey to an intelligent packaging platform Codified Package Connected Package Intelligent Package

25 Summary Fast-growing online grocery is a major disrupter of the entire industry 1. Offline and online are merging 5. Personalisation is crucial 2. Convenience is the main driver of online grocery 3. Mobile is the device of choice 4. Delivery is getting faster 6. Direct-to-consumer models are increasing 7. Packaging specifically designed to survive in ecommerce is vital 8. Smart packaging can unlock opportunities / 25

26 Thank You! Initials/YYYY-MM-DD / 26

27 Questions

28 The Tetra Pak report can be downloaded here: / 28