Retailers must embrace the web
The old way of writing a list and queuing up in a supermarket is far from obsolete but more of us are choosing to get our groceries online.
Modern technology is taking over to such an extent that shoppers today need not leave the comfort of their own home for “the messages”.
With the click of a mouse, consumers can compare prices on websites, make choices and buy what they want.
Even butchers’ shops have embraced online shopping to provide a range of meats, special offers and guarantees of doorstep delivery from refrigerated vans.
The increasing use of online shopping is also part of a national effort to develop the internet as a resource for everyone.
Communications Minister Pat Rabbitte explained in a foreword to the National Digital Strategy published last year that the internet provides all of us with new ways to interact, communicate, and be creative and productive.
“This means new possibilities and opportunities in terms of how we live, work, conduct business, and learn.
“To achieve more of the potential we need to address the level of engagement with technology, which is enabled by the internet — both its extent and its depth.
“It is a central goal of mine that we help more people and businesses to get online. This goal is at the heart of the first phase of the National Digital Strategy,” he wrote.
Meanwhile, Irish food businesses are set to maximise their online presence and sales with the help of a new and innovative training programme launched by Bord Bia in partnership with Google Ireland.
A total of 21 Irish food companies have been selected to participate in the inaugural seven-month “Digital Food Hub” programme, specifically tailored for the Irish food industry
It will include workshops, training modules and one-to-one mentoring delivered by Google digital experts at its European headquarters in Dublin.
Bord Bia research shows that 94% of shoppers in Ireland now purchase online. Mobile and social commerce are also growing, facilitated by portable, handheld devices and speedier networks.
By 2015, nine out of 10 consumers in Ireland will own a smartphone, with tablet ownership projected to reach 50%.
The study found that many consumers are using these devices to research products and services before they buy.
Bord Bia says the use of social networks, such as Facebook, for purchasing goods and services represent a significant opportunity for companies.
Over 50% of all internet sales globally are expected to take place via social media by 2015.
Bord Bia chief executive Aidan Cotter said the partnership with Google is an exciting development for the Irish food and drink industry.
“It is widely recognised that technology is one of the key drivers of change in terms of consumer buying behaviour.
“Both brands and retailers need to think outside the confines of the ‘bricks and mortar’ store to build stronger and longer lasting relationships with consumers.”
Mr Cotter said Irish food and drink companies with the capability to collect, understand, and leverage specific consumer information using digital technology will be best positioned to deliver value added benefits to shoppers.
The “Digital Hub” programme outline was developed after Bord Bia research last year with 12 Irish food companies.
The study set out to report on the challenges and opportunities facing companies wishing to develop a trade online. It also sought to identify where companies required additional support, advice, education and training.
The study found that Irish food companies had taken some initial basic steps.
But they required further guidance in terms of technology infrastructure, best-practice case studies and training on how to build and develop in-house expertise.
According to Ruth McEntee, industry manager, Google, the Bord Bia study highlighted a number of barriers to both online selling and digital brand building for many in the Irish food and drink industry.
“Through this programme, we hope to address some of these gaps and develop skills within the industry in measuring and evaluating e-commerce sales as well as in video and social media communication,” she said.
According to Bord Bia, a second Digital Food Hub programme is already in planning for January 2015.
European online sales are meanwhile expected to double to €323bn by 2018. Irish online sales are expected to account for €11.5bn of that total figure.
Currently, 73% of all money spent online in Ireland goes to overseas sites and 50% of Irish retailers are still not trading online.
This represents a substantial growth opportunity for Ireland’s digital economy, which is already growing at 10 times the rate of the rest of the economy.
