Online, convenience, speed and traceability are the new consideration factors in fresh produce sector. The status quo of traditional marketing channels are strongly challenged by upcoming technological trends.It’s been predicted that around 50% of fruit and vegetables market will shift online in the next 10 to 15 years. According to a Nielsen study, around 9% of fresh fruit and vegetables are bought online. Some of the examples depicting this trend are:
1. Chinese e-commerce site JD.com has ventured into fresh fruit and vegetables sector. JD.com invested more than $70 million into Fruitday.com, a company working in the fruit and vegetables sector.
2. Government department in Thailand launched an e-commerce platform for direct sales of fruits. Eastfruit.tarad.com provide details about the availability of fruits with their price and make the process of fruit buying and selling more convenient.
3. Fruitbox.cc is selling more than 10 million boxes yearly in China. They focus their marketing strategy around fruit festivals in China, which exceeds 2000 per annum.
Despite having enormous opportunities in online sales of fruit and vegetables there are some limitation factors viz. lack of sensory factors (see, feel and smell) during buying and no immediate availability of product.
The pros, cons and trends discussed above provide some strategic insights in the online produce industry. As a reader, please add any of your insights in the comments section to have a multi-dimensional view of the sector.