Driven by the IoT-enabled technology, digitally connected vending machines and smart-stores in the F&B industry have been identified as a new-age retail distributor which will accelerate the growth of the industry.
Daalchini Technologies organized a webinar on ‘Intelligent Retailing’ wherein Rajat Wahi, Partner at Deloitte India, Nitin Kathuria, Executive Vice President – Supply Chain at Marico, Anuj Rustagi, COO Foods – Chocolate, Coffee, Confectionery & New Category Development, ITC and Anuj Krishan, Co-Founder & CEO, BRB Popped Chips were present. At the webinar, Daalchini revealed insights from its in-house brand survey, drawn from the responses of over 250 direct-to-consumer brands, including ITC, Cremica, Tops, Bisleri, Amul, Millet Bowl, Raw Pressery to name a few.
The panellists discussed changing consumer behaviour patterns in the F&B industry, the future of shopping experience, understanding the customers with Intelligent Retail Technology and the factors driving it. Driven by the IoT-enabled technology, digitally connected vending machines and smart-stores in the F&B industry have been identified as a new-age retail distributor which will accelerate the growth of the industry.
During the period from 2021-2025, Indian food tech sector is expanding at a CAGR of ~39% according to a report by ResearchAndMarkets. This demonstrates the growth of the food tech industry, making it the fastest-growing D2C category. With the advancement of technological disruptions and owing to the pandemic, perception of customers and brands towards the intelligent retail offerings (like smart vending machines) for the F&B have changed. Leading D2C brands anticipate ‘Intelligent retail’ to be the future of the food retail industry.
Daalchini’s in-house survey revealed the same, highlighting the robust growth potential of intelligent retail as it enables the D2C brands to make data-driven product and merchandising decisions with valuable consumer insights.
Key Highlights of the Study:
Ability to acquire new customers with the lower investment rate
75% of the D2C brands believe that intelligent retail allow them to acquire new customers with low investment as compared to (65%) modern trade outlets, (52%) general trade and (42%) distribution aggregators.
95% of the D2C brands anticipate future revenue growth with intelligent retail amid the pandemic as it provides safe and contactless home-cooked meals/snacks through its phy-gital technology. Additionally, they expect better revenue growth in the near future owing to the higher margins and profits by cutting out the middlemen.
A better retail channel
75% of the D2C brands find the F&B Intelligent Retail more feasible for selling smaller Stock Keeping Units (SKUs) as compared to modern trade, general trade, and distribution which stands at 65%, 52%, and 42% rates respectively.
Source: Business World