New Face of Retail: What Trends Food Producers Should Focus on When Promoting Them

01.04.2019

Today, the agricultural products retail market is entering a phase of active growth and prosperity. This is happening both in Russia and worldwide. The development of new technologies and introduction of innovations at all production stages makes it possible to create high-quality products, to offer convenient formats of shopping for consumers (for example, dairy machines), to develop local brands and small-scale production. For the industry, this is a doubtless advantage. However, the producers themselves in such conditions face a whole range of problems which they have to find solutions to.

How to develop business if it is already impossible to compete in terms of quality parameters? How to promote your product if everyone is producing roughly the same? How to offer a favourable price to buyers if business expenses for new technologies, equipment and raw materials only grow every year? These issues will be discussed in detail at the Meat and Poultry Industry Russia 2019 international specialised exhibition which will be held from 28 to 30 May at Crocus Expo, in Moscow.

The organiser of the event is Asti Group, a company with 18 years of experience in exhibition activities that has partnerships with major Western exhibition venues, which for many years include the VIV. Asti Group has international expertise in the agricultural sector, which makes it possible to effectively translate the processes taking place in the industry from the language of global trends into the projects and solutions that are understandable to business.

"All the latest studies in retail suggest that consumers lack emotional contact with the product, but it is not easy to translate this trend into the language of business," says Nariner Bagmanyan, the Head of Asti Group. "To understand the situation better, it is worth looking at Western examples, studying the experience of retail chains and manufacturers. For example, the Polish supermarket chain Mila has created a special bouncing packaging for frozen fish, thus showing that owing to the new technologies frozen products have all the properties of living ones. Buyers liked this idea. It can be developed in different ways. For example, to publish an interesting recipe right on the package of chicken or turkey involving the buyer in the joint work. Companies in the market today need to develop not only production technologies but also flexibility of their business thinking."

The main trend of the last few years is offering natural, high-quality and safe products to buyers. To comply with it, companies invest a lot of money: they buy the most advanced raw materials and feed, change the technology of cultivation and slaughter, switch to more efficient and expensive logistics models. All for the sake that their products on a retail counter stand on a par with similar products of competitors. The exit from this deadlock situation for business development is to change the format of communication with customers of all categories: from retailers to final consumers.

"Today, most agricultural producers do not have a clear understanding of how to talk to the consumer and what information to convey," says Nariner Bagmanyan. "As a result, we see the situation when manufacturers introduce innovations, produce a unique product in their niche based on them but cannot competently present it to customers and lose a real competitive advantage. Today, consumers want to know about the means and advanced technologies that were used in manufacturing the product rather than about the advertising advantages of the product. Based on this, they make conclusions on the quality and safety of products."

In such circumstances, a pool of partners and suppliers, each of which is a guarantor of the quality of the product at a certain stage, takes on great importance. While previously, information about the suppliers of equipment, feed, cleaning systems, consumables was of interest to investors and banks, today it becomes important for end users.

Producers from all the sectors will be represented at the Meat and Poultry Industry Russia 2019. They include the German turkey meat producer Moorgut Kartzfehn, BDW Feedmill Systems GmbH&Co.KG— a supplier of technical solutions for feed production, the Italian manufacturer of sectional bins made of fiberglass Eurosilos Sirp and its country colleagues from the poultry sector—Victoria (industrial incubators) and VALLI (equipment and systems for poultry breeding). Moreover, the Russian-Dutch manufacturer of feed and additives Koudijs MKorma. American companies Jarvis (production of equipment for slaughter and primary processing) and Hog Slat (manufacturer of equipment for pig and poultry farming) are also among the participants.

The Russian block of companies is represented by recognised leaders in the industry. The exhibition will feature the participation of the manufacturer of equipment for post-harvest processing and storage of grain crops Melinvest, which has been on the market for 160 years, the Russian representative office of the world leader of broiler crosses COBB Russia, the manufacturer of energy-efficient sandwich panels with polyurethane ProfHolod, Voronezh plant ROMAX specialising in the manufacture of equipment for elevators and complexes for processing of crops, the company VAL -CO Russia, a manufacturer of disinfectants, systems of feeding, watering and creating microclimate for livestock and poultry farms using the most advanced technologies, the manufacturer of equipment for poultry breeding TEXNA, Rezerv, a company developing led lamps for livestock breeding, and others. Relatively new companies will also be among the participants, for example, Kombitech and Oestergaard producing equipment for manufacturing fish meal.

Another trend is associated with gastronomic fashion for certain products, which is dictated by cafes and restaurants. Residents of large cities want to cook at home dishes they tried from a chef. Thus, for example, a few years ago a demand for turkey meat as an alternative to chicken was formed, then the buyer's interest moved towards quail meat and eggs. These are local trends with a short life cycle, but their constant change creates a steady demand for poultry meat in general. Consumers understand this product and they are happy to buy it.

It is much more difficult to track these trends than the mood of the market or actions of competitors. To facilitate this task for companies, Asti Group has created the Discover Russian Cuisine professional gastronomic show which is a part of the agenda of the Meat and Poultry Industry Russia 2019 exhibition. Famous chefs from different countries of the world will cook dishes from Russian-made products, conduct workshops and tell about trends. Representatives of federal retail chains and their foreign colleagues interested in purchasing products of Russian manufacturers are also invited to the exhibition.