India is transitioning through a revolutionary phase in food. Supermarkets and hypermarts stock variety. Gourmet foods are now the new norm. Choice is the ultimate differentiator. This case not only reaffirms the idea, but it resonates with us retailers in more ways than one.
The generations before us had limited choice and variety in food. Eating out was a novelty. No Internet to educate you on the pitfalls of over-under-bad consumption. Mineral water was a luxury and therefore roadside
pani poori and
dhaba food were considered delicacies. There was honesty in manufacturing and regulatory bodies were not required to detect contamination. Ignorance, as they say, was sheer bliss.
We have witnessed change in everything. The food habits have changed. Recreational eating (hence outside home) is the new norm, than an exception. Pre-cooked, pre-packaged foods are the new convenience foods. Fusion cuisines are a new fad. Masterchef is the new family entertainer. New categories of food products have emerged: Breakfast foods, whole foods, super foods, organic foods…. So, it is all happening out there. In a country that is already brimming with diverse food cultures, these have brought a kind of complexity that one cannot be ready for. All these are constantly evolving, changing…
When the retailer in the case says ‘15-20 per cent people are aware of what oil to buy’ — we are talking about the acutely aware urban consumers here. It is only the tip of the iceberg and the greater part of population is still clueless about impacts of reheating oils, let alone know what is MUFA, PUFA, TFA and SFA. Traditional oils still rule household choices — so mustard oil fries the fish in the East and gingelly douses dosas in the South. It’s a tradition that has been passed on for generations and oil is so integral to the final food taste delivery. I would never attempt eating my gun powder with mustard oil — whatever it be the MUFA or PUFA. India is, by far, one of the very few countries where cuisines are diverse and to die for.
That said, it is interesting to note there is a growing awareness and everyone is getting sensitised to ‘eating healthy’ except that authentic information is lacking. The interest that Vidur’s discussion brought to the shoppers is now also common topic of discussion at parties and gatherings as we overeat and discuss benefits of healthy food.
While that is happening to us as consumers, there is also a lot of action behind the scenes with food regulatory bodies getting some teeth. The various food bodies like Milk and Milk Product Order (MMPO), Prevention of Food Adulteration (PFA) and Food Processing Industry (FPI) have all been merged into one, large, omnibus body which is the Food Safety and Standards Authority of India (FSSAI). This body that stands for safety and security in food is entrusted with just that as its objective. The FSSAI makes it mandatory for manufacturers to declare on the packaging what goes into making the product. So, for example, a cashew-essence cookie can no longer pass off as a cashew cookie as we need to specify how much cashew goes into the cookies. The recently introduced microbiological standards for milk and milk products ensure that every manufacturer has to maintain high levels of hygiene in their production processes. While food processing is a set of complex chemical processes and many raw materials are products of nature, we do get sugar or salt as a byproduct of these chemical processes. Hence one cannot anymore claim to be “sugar free” and instead should declare: “No added sugar”. Which is different, even if not apparent.
So, while the regulatory body has been formed with good intentions of providing safety in food consumption, it is equally important to keep this transparent and make it robust to ensure all stakeholders are aligned to the need for ethics in food manufacture, communication and sale. Hence reporting on the pack the truth about your product.
Future Group has geared itself to build strong food brands. Building up as mega food major, integrated with a strong retail footprint, we are looking at taking good food to the next level. It is, therefore, important to communicate to customers and make them aware at the point of purchase about what they are buying into, especially when it is food. This is our guiding force. While it is important to be a responsible manufacturer and ensure high quality raw materials go into food products, it is equally essential to master the supply chain complexities of food logistics. Often, this desire to penetrate all consumer belts results in suboptimality in packaging material, for instance, or product formulation, with a view to ensure longer shelf life. All products should arrive fresh for the consumer and it needs to be ensured that the food items do not experience any thermal fatigue in their journey to the consumer’s kitchens. Thus, for a dairy product to reach the consumer kitchen ‘as-fresh’, it must receive refrigeration from source to processing, through supply chain, and then, in the retail too. The poor quality of ice creams in Indian retail is owing to this. Failure to adhere to this at every step renders food unfit for consumption.
It is also important to educate customers. Any transaction in the food and grocery retail environment is intensely operational and stores can only give the customer what she asks for and ensure speed of cash-outs for a better consumer experience. It is almost impossible to educate the 600-odd customers entering your stores in a day. And consumers don’t always enjoy the intrusion. In a supermarket, the customer is already spending a large part of the time with products — touching and feeling them, going through ingredients, looking at freshness and then making an informed, purchase decision. Store staff have limited knowledge to impart, anyway. Don’t be oblivious to the fact that the shop attendant herself may be using the cheapest oil for her cooking. She can, at best, make recommendations based on sales, “
Yeh acha bikta hai”. So, you are convinced that the product has some following and that it must be good!
However, responsible retailers can do a lot. Of course, product usage and correctness of cooking methods is one part of it, getting food technologists to come and answer queries that customers may have about health and nutrition is taking retail to a different level. This will help manufacturers know first hand what the consumer seeks rather than force their choices on the consumers.
Activation programmes are great differentiating tools that get high levels of customer engagement for our stores and build long-term loyalty. These are marketing initiatives and need investments in time and money. We believe that selling has to be responsible.
India today has a very fragmented retail sector. Majority of the small shops don’t even have hygienic food storage conditions. So, educating the masses through retail can never be a solution. The retailers themselves need sensitising about the quality of products they bring into the stores. In organised retail, when planning for assortment is done, no doubt the needs of the catchment is ensured, but it is also important that when introducing a new product, it complies with food safety.
As organised retailers, we need to be seen as peddling goods that benefit our discerning customers. We need to ensure that the products are presented well. We need to show that we care beyond mere slogans. We need to ensure that the products meet all packaging requirements. That our storage and refrigeration are dependable and not cost-effective for our profits at the cost of consumer health. These are expected from a responsible retailer.
We are what we eat. Vidur’s concern is justified. Today every company is marketing its products as healthy. They charge a premium for that. For years after consuming corn flakes as a breakfast food, I was shocked to learn two years ago that it is straight sugar into blood. So, I switched to oats. European countries are now de-growing in corn flakes while in India it is seen as a growing category with many new consumers adopting it. We are living in an information age, but are we talking to our consumers correctly, if at all? Are we enabling literacy for health and hygiene? Are our communications reaching all language belts or only benefitting the rich and English literate? Do we mean what we say and say the truth or do we say what we wish will convert a prospect into a buyer? Do our products have genuine goodness or just profits for the manufacturer? Do we have time for the ‘small stuff’?
Price is no longer key differentiator, value is. Quality is a given. And if this means having an aware and enlightened customer, we should work on educating them. An aware customer is demanding of quality and value and would thus, become the store’s potential brand ambassadors.
It is time to return the crown to the consumer and know he is King.
Also Read: Case Study | Case AnalysisThe writer is CEO, Nilgiris Dairy Farm, Future Group Company
