The Fresh Imperative – Executive Summary
In the rapidly changing Asian markets, a retailer’s Fresh Food offer is one of the most critical success factors, and a key competitive differentiator. Fresh Food Categories, such as vegetables, fruits, poultry, fish and meat are the critical store traffic and shopping frequency drivers that attract consumers and create additional opportunities for retailers to engage with their customers in other grocery categories. To get their Fresh Food offer right, retailers need information and insights into their customers and their markets. There is a need to examine all aspects of Fresh Food retail operations, from supply chain management through replenishment to assortment and marketing, and benchmark them against the market and consumer preferences. More than 50%1 of the Asian consumer’s food bill is spent on Fresh Food categories. Food will continue to be Asian consumers’ biggest single area of expenditure, and is increasing at 2.6% a year2 – faster than the rate of Asia’s population growth. Not only will Asian consumers be spending more per capita on food in the future, but there will soon be hundreds of millions more consumers. By 2020, it is estimated that there will be 700 million new consumers in Asia3. In this context, the retail industry faces twin challenges of keeping more consumers supplied, as well as satisfying their rapidly changing tastes and preferences. The Coca-Cola Retailing Research Council Asia has commissioned this study with the aim of identifying the future needs and expectations of Asian consumers across key Fresh Food categories, and to create a platform to drive Fresh Food retail excellence in the Asian region. The study began with 54 in-depth interviews and connected shopping trips across five Asian countries. It then moved to in-depth discussions with close to 1000 shoppers across the region. These discussions were selected to provide insights into the current and emerging needs and expectations in the area of Fresh Food. These interviews were supported by a series of discussions with retail industry leaders working around Asia. Accenture’s network of global industry practitioners was also leveraged in this project to provide additional perspective on world’s leading practice. The study results are presented in country clusters to ease the navigation and extraction of insights across the 11 sampled markets. The groupings are based on overall criteria of economic market development and, where possible, cultural similarities: • Cluster 1 – China • Cluster 2 – India • Cluster 3 – Indonesia and Philippines • Cluster 4 – Malaysia and Thailand • Cluster 5 – South Korea and Japan • Cluster 6 – Hong Kong, Singapore and Taiwan
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Source: AC Nielsen, Asia Pacific Retail and Shopper Trends Report 2004 Source: Euromonitor International 2005 Source: Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat, World Population Prospects: The 2004 Revision, accessed at http://esa.un.org/unpp, October 2004
The study also links consumer insights with trends in key operational areas of retail practice in Asia. It seeks to understand what consumers view as excellence in Fresh Food retailing, and the drivers which determine not only their choice of product, but also their choice of retailer. From there, it seeks to identify ‘leading practices’ in the key areas of retail operations, and how these can be developed to improve the Fresh Food offer.
Consumer Segmentation and Preferences Insights
ConsumerCentric Retailer Fresh Strategies
Consumer-Led Retail Practices Development Guide
The research confirmed that perceptions of Fresh Food go well beyond the produce for sale. The retail environment sends powerful signals to consumers, who respond to the store layout and also the volume of traffic. A busy store sends a message that the produce is replenished more regularly, and is likely to be fresher....