The Permacrisis And What It Means For Supply Chains

 

We all have a story to tell when it comes to shopping and eating out. Whether you’re going out for dinner with friends or grabbing lunch at your favorite restaurant, there are some things you can count on – like a reliable delivery driver, no matter what kind of weather hit you. You may be able to say thanks to a couple of restaurants, but one thing is sure to come up again in your mind: a grocery store. It must be hard keeping an eye on everything your family members are consuming and putting into their bodies. As if that weren’t stressful enough, we also have to worry about the ingredients that go into each dish you eat. A lot of things can happen before a plate is even finished, like the amount of time it takes to cook. And let’s not forget that everyone loves to buy organic fruits and vegetables that aren’t genetically modified but still taste good.

One of the most positive facts that emerged from the pandemic was the robustness of food supply chains. Despite the huge issues that sweep the world, bar a few items, food kept appearing on the shelves of our supermarkets and small stores. Even though this might seem a bit scary, we should realize this as just a regular part of life. However, this fact might have turned out to be more of a “perceiving reality” than anything else. Although these companies have worked relentlessly since the beginning of quarantine, they now see their profits take a hit due to consumers spending less money on them. So how will these enterprises adjust to such changes? Many already tried to use digital platforms like Google Shopping to help customers keep track of their purchases, but the process seems to have failed. But the real question then becomes: will people still prefer using online shopping instead of traditional ones? Or will retailers have to create different methods altogether? Let’s find out.

1. Why People Choose Online Shopping Sites Over Traditional Ones

As early as 2007, according to research, around 50% of retail shoppers chose to shop offline stores after learning about Amazon. It was a big shift from many years before, when e-commerce was practically unknown in most countries (in the United States, for example, only 7–13% of groceries were sold through websites). In other words, people had been accustomed to online shopping from long ago, so why did they suddenly choose it over brick-and-mortar stores? The answer could lie somewhere deeper than simply being aware of how convenient online tools make buying products. Some people believe this to be true of both online and physical shopping as well. For instance, in 2020, researchers found that 60% of respondents chose to do their shopping from home rather than a public space such as a supermarket or mall. This means that people prefer using online shopping tools because the risk of getting sick or getting exposed to danger is lower in such places. Moreover, one reason could be that people spend less time walking around and seeing people shop. They also don’t have the feeling of competition that someone else is checking things off of their lists.

While the last point sounds simple enough, we need to remember that many people tend to get stressed when trying to figure out which online store to check out first. Especially during a pandemic, we don’t want to stand in line for hours, waiting for someone else to get ready to open their cart. Instead, online shops usually offer special deals based on the size and type of things you need. Another feature that makes people choose online shopping sites is convenience. When it comes to traveling and taking care of your own needs, having everything easily accessible and in one location is much more convenient than waiting for someone to come to pick up your order in person. On top of that, a significant number of people trust online shopping sites because they don’t feel pressured by others to purchase something. After all, they don’t know exactly where they can find the item without losing their time. All they need to do is to click on a specific link on their screen and enter their information on the page. What’s more, they don’t have to wait for the payment to appear, which frees up time for them to find other solutions.

2. How Can Retailers Prepare Better for Digital Shoppers?

With COVID cases spiking globally, we as consumers should prepare ourselves for future events. While nothing else has changed, more people are becoming increasingly concerned with their health at a moment when everyone wants to stay safe as much as possible. To protect themselves from becoming infected, businesses should also start thinking about their strategies. Not only should they look for ways to maintain social distancing, but they also need to rethink their marketing strategies. According to the American Marketing Association, brands need to consider two key aspects of their campaigns: reach and consistency. Here are some guidelines we can follow to ensure our presence in the news and in every new segment of shoppers:

Reach : Make your brand known as a credible source for the product or service it offers to the average consumer. If you can provide consistent, solid content, then users will be familiar with the company and its offerings. Ensure to always mention your price and promotions to increase sales. Also, if the price seems too high, try offering free shipping in certain categories to encourage people to use your services. Consistency: Always stick to providing trustworthy information about your business. Ask potential customers questions about the company and how to interact with it, and try to find ways to add value to everyone who visits your website or app. Consumers trust brands that show them genuine interest in their interests and needs. Use social media channels to engage your community and reach people, especially those interested in topics related to you. Remember, whether they’re doing it on Facebook, Instagram, Twitter, TikTok, Snapchat, or any other platform, the purpose is to connect with the right audiences that share your values. The message here is clear: never lose sight of one thing and focus solely on one group of people. Be persistent and authentic. Your audience will eventually accept you as a trusted and well-known organization.

3. Are Food Companies Ready to Adapt Their Business Model From
Now on?

While many corporations have successfully adapted to changing conditions throughout history, with varying degrees of success, the pandemic has showed us that some businesses are better prepared to handle challenges. During 2019, Burger King experienced tremendous growth, reaching $5 billion in revenue – the highest number in the industry in almost 20 years. While it might seem strange to imagine that their owners will give them the attention they deserve, they proved to be correct. With demand increasing worldwide, customers across various age groups started craving more variety. That gave meat lovers who had previously avoided fast food options an opportunity to dine out, while young professionals were forced into working remotely in order to avoid the spread of sickness. Customers that weren’t used to dining out were thrilled by burgers and fries and asked the chain for a bigger menu with more dishes. Ultimately, they won back the favor thanks to a unique advertising campaign. Although Burger King has become famous with its beef, its biggest challenge has been finding a place to serve chicken for breakfast. By introducing new flavors to its menu, including egg-laden patties and turkey breast buns, Burger King hopes to attract more customers to try their delicious food.

If you were wondering when McDonald’s would expand its range of chicken pastries and pies, they’ve got plans. Since 2021, McDonald’s has teamed up with local chefs to incorporate plant based ingredients into their menu. While vegan-friendly options are slowly trickling in, it will take several months before consumers make the switch. Still, the idea of incorporating sustainable materials in a global corporation’s recipe is a great step forward in making a difference. McDonald’s continues to experiment with non-traditional approaches to production, like growing lettuce grown in the farm itself and repurposing existing packaging into reusable cups. They also continue looking for innovative ideas, particularly focused on satisfying animal-based desires. Currently, McDonald’s is testing the possibility of selling soft drinks made with palm oil. These products are intended to replace sugary sodas and flavored waters, which might include sweetened condensed juices, fruit juices, and sugar water

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4. Is It Time for Brands to Build New Ideas Into More Modern Methods of Delivery?

As mentioned earlier, e-commerce and online shopping have proven to be very popular with people today. Many businesses realized that their loyal clients didn’t want to carry heavy loads to receive the goods they wanted or needed. Therefore, instead of delivering things to customers directly, they resorted to direct deliveries and third-party logistics. Because they wouldn’t have to deal with the problems of dealing with warehouses or drivers themselves anymore, companies created apps that allow customers to order their purchases in advance or even collect them from their homes.

As impressive as it might sound, direct deliveries and 3PLs can’t fully satisfy their customer needs. Sure, they can reduce the chance of human error, but there is another problem: delivery times. Once every day, there are hundreds of orders placed at once for faster deliveries. Imagine having to check the status of order updates in the middle of the night to confirm it got delivered to a customer’s address. Furthermore, sometimes the speed of an electric bike is unpredictable, resulting in delays that have more negative outcomes than positive ones. Most of them end with unhappy customers trying to contact the company multiple times over the phone to get answers. Finally, most courier services charge extremely high fees for collecting an order,