BUYING FOOD ONLINE: THE SITUATION IN ITALY
In recent years, the habit of buying food online has spread, especially on the channels of e-commerce giants, which have expanded by developing innovative ways of selling, paying, delivering, and retaining customers. Compared to other markets, however, the food market is distinguished by some specificities, which have generally slowed down and limited the landing on the Internet, especially in Italy. In the United States, however, the sector is already worth almost 11 billion dollars, and growth of 9.6% per year is expected until 2019.
GROWTH AND EXPORTS
Despite the delay, even in our country food sales have been increasing for some time, as evidenced by an analysis by the B2C Observatory of the School of Management of the Milan Polytechnic and Netcomm, according to which food e-commerce in Italy in 2016 it grew by 27% compared to 2015, reaching a value of 519 million Euros. Considering instead the sales from Italian sites to citizens all over the world, the turnover exceeds 650 million Euros. Overall, exports - understood as the value of sales from Italian sites to foreign consumers - account for about 10% of the sector's sales.
In this sense, a certain gap is catching up compared to other western nations, such as the United Kingdom, France, and the USA, where the habit of buying food online is more rooted. Sales in Italy, however, still represent only 3% of the turnover of digital commerce, with 8.6% of online shoppers who also buy food on the Net, according to Istat.
In comparison with other products, the food trade pays for some structural logistical difficulties mainly related to transport, especially in the case of fresh perishable products. In Italy, moreover, a certain mistrust seems to weigh more than elsewhere, caused by the inability to personally see the goods before purchasing. In light of the growth already recorded, however, these data could improve in a few years.
WHAT DO YOU BUY ON THE INTERNET?
Based on the results of the research, when you decide to buy food online, you generally focus on certain categories of products, which lend themselves more to this method of purchase. As we are about to see, however, food sales concern a wide range of goods.
PACKAGED PRODUCTS
The foods packaged in the long term and without need for refrigeration, having no particular needs in transport and storage, are the most purchased, with 60% of sales. Fresh food, to be kept at a controlled temperature, stops at 31%, while drinks and frozen foods weigh 7% and 2% respectively. Overall, the grocery food sector accounts for 36% of online food sales, while those with home delivery on traditional supermarket sites, from 2015 to 2016, would have grown by 40%, reaching a value of 188 million Euros.
These realities are flanked by platforms that operate only on the Web, such as Amazon's Prime Now, which can deliver the goods within two hours of placing the order. As for chains with physical stores, even if not all Italian cities are covered by home delivery services, it is still possible to buy food online and collect it in stores.
GASTRONOMY AND SPIRITS
The food and wine and spirits account for nearly 47% of the food sector value online, of which the first segment in economic terms, grew by 17% between 2015 and 2016, up to a figure of just over 240 million EUR. Both large retail chains with a network of stores and producers who sell directly to consumers operate in this sales sector.
The segment of convenience foods and restaurants with home delivery - grew by 29% between 2015 and 2016 - although falling sales online differs from the previous series. According to research, this type of market has particularly benefited from the diffusion of smartphones, through which today about 25% of web sales take place, with an increase of 51% between 2015 and 2016. In the food sector and in this lapse of time, purchases from mobile phones have almost doubled, reaching a value of 100 million euros, about 17% of the total e-commerce of the sector, 25% also adding expenses via a tablet.
THE BUYING GROUPS
The role of the buying groups, which above all satisfy the demand for fresh products, with methods suited to the needs of these goods, such as previously agreed delivery, should not be overlooked. These small businesses, spontaneously organized by citizens, manage to be widespread, offering the possibility of purchasing a wide range of foods, often from organic farming. Not surprisingly, those who opt for quality vegetarian shopping are generally attracted to buying groups to buy food online.
INTERNET FOOD SHOPPING: THE BENEFITS
After presenting some data on the expansion of the food market on the Web, we can consider the reasons that lead to buying food online, especially in terms of speed, convenience, and choice.
IT SAVES TIME
Beyond the merely economic data, the main advantage for those who choose to buy food online is saving time. Having no more need to go personally to the stores, moreover, represents a very welcome possibility, especially for those who lead a busy life or for those who can stand the queues in the supermarket.
COMFORT MATTERS
For the same reasons, the ability to order and pay from anywhere and at any time, combined with the home delivery of the goods, drastically reduces the commitment to devote to daily shopping. Without haste and without stress, purchases can be completed after dinner from the armchair at home.
MORE CHOICES
In addition to the reasons just mentioned, buying food online undoubtedly offers a much higher range of choice, with the possibility of comparing prices and carefully inquiring about products. Not infrequently, this advantage prevails over others, especially for those looking for quality food that is difficult to find, which requires direct contact with producers.
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THE ADVANTAGES FOR COMPANIES
Not only those who buy can benefit from online sales, but similarly, businesses and the entire food sector are favored by the expansion of the market and by the increasing invisibility, which can also involve abroad. These advantages are within the reach of even small businesses, without the need for large investments. The simplicity of use and the reduced costs of the services, in fact, favor the development and innovation of the whole food sector.
IS ONLINE SHOPPING REALLY WORTHWHILE?
Net of the strengths mentioned above, there are doubts about the effective economic convenience of purchases via the Internet compared to those in the store. In 2017, a study by the Massachusetts Institute of Technology (MIT) denied this type of convenience, following a price comparison in stores and on the web for the same vendors, in ten countries between 2014 and 2016. After having monitored 38,000 prices for 24,000 products, in 73% of cases, the figures were the same, even during sales or sales, although there were differences in the individual States and in the different categories of goods. In the case of the food sector, the data seemed even less comforting, as prices were equal in 52% of cases and even higher on the web in 32% of cases.
Although the research did not involve Italy, the results on Repubblica were substantially confirmed by Valentina Pontiggia, director of the Digital Innovation Observatory in Retail of the Politecnico di Milano. For the future, an overall price alignment is expected, while the difference between the sales channels will be determined by the added value represented by the delivery times and methods, as well as by the services related to the purchase.
THERE IS NO FIXED RULE, BUT ...
On a strictly economic level, to evaluate the real convenience of food e-commerce, some simple parameters must be adequately considered. If the store that interests us is not far from our house and we do not have to face additional costs, such as those for parking, buying food online will almost always not be convenient. Those who live near a discount store, even more so, will have less reason to buy on the Internet.Basically, to save money, it is good to evaluate your own case history in terms of the costs of goods and travel but also based on time spent and comfort. Buying food online is particularly convenient in some particular situations and can be an appropriate way to find certain products, perhaps by integrating purchases in trusted retailers.
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