There is this independent,
silent yet powerful grocery segment awaiting massive disruption

* Source NGA annual report 2018

Question is
how prepared are they to embrace the future with a smile?

In the past, the wars for power and trade on land got small nations to unite and defend themselves.

Now those are being fought in the invisible digital space; in order to survive, a purpose driven consolidation of like-minded business is a must.

The wars which will be fought in these invisible spaces today will become far more intense tomorrow! It’s time to get the act “together”.

The territorial understanding

The intelligence of today’s consumers will be exponentially superseded by the future consumer’s intelligence and awareness levels. In this new age of total consumer awareness, TRUST and GENUINENESS are going to be a scarce commodity.

Consumers of the future will be much more sensitive to their health than today. To cite an example Thanksgiving 2018 witnessed the large sized Turkey sales going down by 8.3% from previous year sales whereas Toms went up by 6.5%. One of the key reasons cited is that people have become more informed about industrial farming, hence they're a little turned off by practices like antibiotics and caging necessary to produce a 30-lb turkey. So the point is, industry will see more responsible consumers than their predecessors.

To illustrate the point about trust, consider this. I have Amazon Prime on my phone, I also have a Safeway and Traders Joe within a mile, but I prefer Traders Joe despite the fact that they are totally ignorant about both the conventional digital conveniences and those traditional loyalty programs. I go there because I trust them, I go there because I get to feel their value is rooted in their efforts to ensure the right food for the right people and they managed to bring enough joy on the face of their store agents.

Understanding the threat dimensions for independent Retailers

  1. Consolidation of business: Amazon, Walmart and Kroger will continue to increase their market shares, forcing pressure on independent business.
  2. The likes of Instacarts shielding brands from consumers and such intermediaries themselves are susceptible for consolidation.
  3. Lack of preparation and response from the independent supermarkets to the emerging digital future of retailing

Preparing for the uncertain times

Coupling the genuineness of independent retailers with the possibilities of what digital future can offer will help this unstructured segment thrive in the age of uncertain times. Here are some ways of doing it.

  1. Purpose driven consolidation: Unlike the equity-based alliances, the independent retailers will be collaborating on the larger purpose which has the market size of $130b and is the first step towards uniting the distributed segment, which NGA can facilitate.
  2. Reimagining business for a frictionless retailing:
    • All business as stores
    • Delivering unified consumer experience across the consortium
    • All connected feeder businesses as services to help design business agility, way beyond any technologically advanced business can ever achieve.
  3. Connected consumer: Connecting isolated consumers for a better cause and their health.
    • Re-visioning the purpose around Genuineness (cause and delight) and therefore establishing Trust that can never be broken.
    • Connecting the decentralized consumer community through “Farm-To-Table Green” Loyalty Program designed specifically for driving good health programs. NGA to lobby and influence the Congress to get those consumers capitalize their sustainability score to get discount on their utility bills.
    • Green Score (Sustainability): Driving awareness around sustainability among consumers through the Green Score. Today only the relatively richest can afford electric cars and renewable energy and they are given subsidy for their sustainable quotient. However, that community is probably less than 10% of the total population. NGA can be that agent who drives sustainability quotient to the rest of the world and be the world’s first agent to lobby and help their consumers get subsidy on utility bills for supporting farm-to-table efforts of NGA grocers.
  4. Driving convenience together:
    • Business connecting to Instacart for delivery than consumers choosing them
    • “You Won’t Run Out of Stock”! Grocers know what their consumers bought and has the ability to track and replenish their home inventory
    • Always delivering convenience ahead of industry
  5. Value beyond grocery. Beyond delivering grocery, helping consumers with insights into their lifestyle through the following services:
    • Dietary check
    • Food budget check
    • Sustainability score
    • Subscribe to events and meet-ups
  6. OneSystem® model to drive efficiency (digital future at a negligible cost).
  7. ConsumerX (Intelligent Consumer): Delivering extreme consumer experience by converting todays transactional consumer into an intelligent one.

If yesterday was for the size, tomorrow is for intelligence but at all times, people loved peace and compassion! Care for them and they will protect you!

All businesses flourish when the consumer loves the brand or service! NGA can help the independent grocers enter the new age with a smile. Embracing the models designed for the intelligence of a consumer in 1960’s won’t help win the consumer of the future.

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© 2019 Litmus7 Systems Consulting Ltd.