Ten leading global online grocery markets are predicted to experience combined growth of $227 billion, at an annual rate of 20%, by 2023

As the global leader in grocery eCommerce, China will grow at a 31% CAGR over the next five years, taking market share from 3.8% to 11.2%, according to figures unveiled by IGD.

Over the next five years, the Chinese online grocery market will grow by the same size as the entire combined market of all ten countries in 2018.  

IGD also forecasts extensive growth in the US with online set to more than double its market share, driven by the rapid expansion of pick-up points, Instacart’s expansion and integration of businesses such as Shipt and Home Chef. Market share will grow to 3.5%, creating an additional $37 billion opportunity for American retailers and manufacturers.  

IGD’s research shows that around the globe, online grocery market growth is being driven by the twin enablers of rapidly evolving shopper expectations and exciting tech innovations. Shopper expectations of price, quality, choice, convenience, speed, personalisation, health, information and empowerment are changing fast, and the online channel is well placed to deliver against these.  

Looking at the online growth opportunity in Europe, Jon Wright, Head of Retail Insight EMEA at IGD, said: “We’re anticipating continued online growth opportunities across mature Western European markets. In the UK, France, Germany and Spain we forecast above market average growth rates for online grocery retailing, all growing market share. It provides a significant growth opportunity as retailers and manufacturers in the region invest in personalisation, ease and convenience and combining online and offline to meet a range of shopper needs.”  

Commenting on online growth in Asia, IGD Asia’s Programme Director Shirley Zhu said: “China, Japan and South Korea are the Asian markets leading the way in online grocery shopping, and we’re seeing significant market share penetration in these three countries. They lead the way globally in terms of market share, and in 2023 all three will be nearing double digit share for online grocery, with South Korea over 14%.  

“The acceleration of online and offline integration has been accentuated by partnerships between eCommerce players and bricks and mortar retailers. Physical retailers in China, having recognised the importance of the online and digital channel, are collaborating with eCommerce and delivery partners to offer more targeted ranges, promotions and expanding their omnichannel presence. It’s for this reason China comes out on top globally with value growth of $145.4 billion predicted by 2023.”  

Shirley Zhu, IGD Asia’s Programme Director

Addressing US online growth, IGD’s North American Programme Director Stewart Samuel said:

“The US online grocery market has experienced a rapid pace of growth this year, driven by expanding services and new entrants. We’re seeing a major focus on offering same-day delivery with many companies partnering with Instacart to scale up quickly, including Aldi. Target acquired Shipt, enabling it to move its same-day delivery plans forward by about two years.   Plated and Home Chef meal kit companies were acquired by Albertsons and Kroger respectively, enabling them to offer a multi-channel solution in the category, and we’re also seeing a strong pipeline of innovation including Walmart’s automated picking warehouse, Alphabot, Kroger’s partnership with Ocado and Albertsons’ online organic and natural foods marketplace. With all the developments in the market, and the rate at which retailers are entering the channel and expanding their offers, growth for the next five years is likely to be strong.”

Two things drive the UK stock market and investor confidence: Fear and Greed. Either one has the ability to send prices and currencies tumbling which in turn erodes confidence.

Seasoned investors will tell you that as a business owner, you need to look past the short-term bumps and keep focused on the long-term strategy of your business, but what if the event or events are protracted and wear down on confidence both in the City and for your employees?

Brexit’s effects have already chipped away at day-to-day commerce and employee’s lives. Whether it’s simple things like the price of petrol or a sausage roll at the high street bakery, or more major things like mortgage interest rates. Left to fester for long enough, the nation becomes weary and despondent from hearing all the negative back and forth over the stalemate caused by Brexit.

It’s hard not to get political over such a big issue as Brexit but there is a clear lesson to be drawn from the chaos; leadership is directly connected to confidence. Politicians managing the Brexit deal are simply not confident of their ability to see through something that they fundamentally do not believe in.

Likewise, your workforce won’t feel confident if they think that you don’t have a plan in place to help secure their long-term future.

New business becomes harder to win and the marketing industry retrenches and pulls back from plans because it lacks confidence. Marketing budgets are an indicator of market confidence.

Your role in new business is to help restore confidence and there are many ways to do this, but one surefire way to help build confidence in your new business activity is to Add Value.

Adding Value

The long tail of new business development gets even longer during low-energy times caused by events such as Brexit. Budgets are scaled back and only those imperative projects get underway.

Adding value to existing activity by knowing what your prospects are doing and why, is crucial. In your limited opportunities to engage a new business prospect, instilling confidence by demonstrating you are aware of what needs to be done and what projects are underway is a surefire way of letting your prospect know they are dealing with someone who can add value. If not now, then later. This means delivering on your promises. If you schedule a call, do not miss it, even if they do. If you schedule a meeting, get straight to the point, acknowledge you know their time is limited and give them facts, numbers and as much proof as you can deliver. Who wants to leave things to chance in a downturn? These uncertain times are a perfect chance to hone your ability to convey a sales point in a concise and direct manner.

Adding value might also mean extending opportunities to prospects by including them in ongoing activities that may benefit them. A rising tide floats all boats and inviting them to a networking event you are already going to might help build a case for your pitch. This doesn’t mean trying to be their friend but it does mean helping them do things that help their business will reflect well on you further down the line.

In new business, you can afford the time to shore up existing prospects and making each-and-every outreach meaningful. Make every interaction count by adding value to the transaction. Stand out by being helpful and it will pay dividends at a time when all your competitors are doing is shouting like a carnival barker on a street corner.

Keith Smith – Owner of TheAdvertist.com

The biggest challenge for agencies and marketers in 2019 is the uncertainty and unpredictability Brexit presents. PR (& marketing) is often the first budget to be cut when companies are not performing well.

Bellweather reported recently that marketing budgets are stagnant after 6 years of growth. The unpredictability of Brexit will mean that it’s even harder to rely on new business pipelines – agencies just won’t know when projects are likely to get signed off and many will be postponed. Agencies need to have more in the pipeline just to hold steady.

Agencies should ramp up their new business activities as much as possible. Don’t just rely on your new business team or person, but get everybody involved from leadership team down. Are you all really making the most of all potential contacts across the agency?

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Would you cold call a prospect at 4pm on a Friday?

How many times have you held yourself back from making a cold call because you didn’t think it would be the best timing?

Why? Do you know your prospect’s habits?

When you’re making a cold call, it’s never about you, it’s about them. Cold calls need to come heavily armed with intuition and dare.

And if you have the chops to make a cold call on a Friday afternoon, you’d better be at the top of your game because you need instant cut-through.

But more than that, if you have been given their mobile number or direct line, that’s your first clue.

I mean really, these days, how many executives walk out of the office, telling all their colleagues that they can reach them on the mobile? It’s much more natural these days to be reached on a mobile.

And generally, they should think it’s OK to be called late in the day on a mobile because what prospect worth reaching only works half days anyway?

So remember, just because YOU think it might not be the right timing, doesn’t mean they feel the same. More often than not, they’ll appreciate the eagerness and initiative.

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Get in the best shape you’ve been in for years, with the affordable, practical and easy-to-use service from The Advertist.

Be new business confident for 2019 with The Advertist

“We designed The Advertist to provide professional new business executives with an affordable and accurate source of intelligence and data on UK companies and brands. We appeal to the market because we provide the tools for prospectors to work in a variety of different ways to boost their agency’s sales. There is no competition for the quality and service that we provide.” – Managing Director, The Advertist.

For me, it’s bloody useful and covers a lot of new-biz bases.” – Mark Young, A & R and new ventures, Liquorice

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More newfangled legislation relating to the protection of personal data, triggered by bad actors such as PPI salespeople and ambulance-chasing lawyers.

As 2018 rolls around, we will begin to see consumers’ growing awareness of the value of their personal data and how nonchalantly brands and companies have been trading in it. This important and wide-ranging piece of regulatory reform will have a significant impact on the operations of any business using personal data. Specifically, banking and payments are set to be two of the sectors most affected.

Above all else, this legislation is designed to be used against brands and companies illegally using consumers’ data. As such this is focused on the B2C channels.

In an interview with one of the companies tasked with generating awareness of the new rules – Trunomi (www.trunomi.com) The Advertist was advised that the normal processes of B2B outreach should not be affected. Companies still have to do business with other companies and the new GDPR laws have not been designed to impede this.

However, although the laws have been designed as a tax on banks, insurance and consumer products, these very companies are usually the first to hire expensive lawyers to fight any impending prosecution. So there is a chance that the enforcers of GDPR may start to manipulate the rules to target those brands and companies less likely to lawyer up.

Any lawyer will tell you that at the heart of the new GDPR rules is the word consent.

For new business developers, it’s all about consent. What constitutes consent? In the B2B world, having one’s contact information on a company web site or details generally available through limited research online constitutes consent.

In its gathering and curation of contact data, The Advertist guarantees that no misleading or disingenuous means have been used to gather our data. We don’t buy in lists, we generate data ourselves using exactly the same methods that would be expected to be used to pull together company and marketing contact information. No misleading telephone calls are made to dupe companies into handing out sensitive data, unlike some of our competitors. We do it all through thorough human research, doing all the hard work, so you don’t have to.

While we recognise that not all new business services are created equal, we are pleased to assure our clients that they will be able to continue to use our hand-crafted data for their own new business outreach, confident that it is all in full compliance with the new GDPR rules.