More New Natural Foods Businesses Skipping Traditional Retail
Retail in the food industry is changing rapidly. Industry researchers forecast that in five to seven years, 80% of grocery purchases will be made digitally and not at the store. Because of this, creating online access to a merchant's food product with a strong digital brand and brand community is more important than ever. In fact, many new natural food businesses are choosing to skip tradition bricks and mortar retail completely, and start their business online.
According to the New Hope Network, which organizes the Natural Products Expo West trade show, in the last three years, more than half of the brands that launched did so online only. This trend is indicative of retail in general, but highlights that the traditional approach of trying to get on the shelves at the big groceries stores is either getting harder or is less important to their growth strategy. It's probably a combination of both.
When you walk down the aisle at any grocery store and certainly at the big trades shows, there are a lot of duplication of products. Just look at how many brands of almond milk exists to get a sense of the growth of the competition. To stand out, the digital approach seems to have more appeal since you can move quickly, build a tribe of followers, and spend more time marketing than contacting grocery store buyers.
This doesn't mean that it's easy. The digital space is just as crowded as the shelf space. But by forming partnerships with digital businesses and e-tailers, there is an opportunity to grow faster. This is certainly true as grocery shopping shifts from traditional to online retail. By focusing on this growth channel, the payback over time is most likely to be larger.
Treatmo App offers an excellent digital shopping experience for customers seeking new natural and locally made food merchants with simple discovery of products, a wide range of items to attract a variety of shoppers, easy checkout, and an app that doesn't have feature overload. Its store set up is fast and easy for merchants. Treatmo is a mobile commerce platform designed specifically for small food businesses and allows for scalable growth as more grocery goes digital in the next couple of years.