This paper explains general aspects of E-Commerce with groceries and focuses on potential customers as well as on factors influencing the suppliers. Besides, it deals with recent characteristics of Germany’s food industry, hence concentrates on the actual demand and supply at both the retail sector and the online trading sector. Subsequently, possible effects of E-Commerce with groceries on the food market are described and summarized.
Diese Arbeit befasst sich mit den wichtigsten Aspekten von E-Commerce mit Lebensmitteln, mit potentiellen Zielgruppen, und mit verschiedenen Faktoren, die die Service-Anbieter beeinflussen. Des Weiteren wird die aktuelle Situation der deutschen Lebensmittelindustrie beschrieben - mit Bezug auf "traditionelle" Einzelhändler sowie Online-Händler. Schließlich werden mögliche Auswirkungen auf die Nahrungsmittelindustrie analysiert und zusammengefasst.
Table of Contents
1. Introduction
2. Basics of E-Commerce with groceries
2.1 Potential customer groups and their benefits
2.2 Success factors
2.3 Problems
3. Current situation in Germany
3.1 German food retail industry
3.2 E-Commerce with groceries: Status Quo
4. Discussion: How online shopping of groceries could affect the food industry
5. Conclusion
Objectives and Research Focus
The primary objective of this paper is to investigate the potential impact of the internet, specifically through e-commerce, on the traditional German food industry, analyzing how changing consumer demand and new distribution models might shift market structures.
- Analysis of consumer profiles and benefits associated with online grocery shopping.
- Examination of success factors and operational challenges for online food retailers.
- Evaluation of the current state of the German food retail sector and its online market.
- Assessment of potential shifts in distribution channels from traditional retail to e-commerce.
- Review of international comparisons and lessons from successful business models in the UK and Switzerland.
Excerpt from the Book
2. Basics of E-Commerce with groceries
In order to examine the possible effects on the food industry, it is a matter of considerable importance to understand how E-Commerce in this sector works. According to Morganosky and Cude (2000), there are basically two different types of online food retailers. Online retailers, which are like virtual supermarkets, only exist on the Internet and deliver the food to the customers’ home. In contrast to this, store-based shopping services enable customers to pick up the groceries at the store once they have ordered them online or they can decide that the retailer should deliver the food directly to their homes. The range of possibilities is enormous and many different business models exist.
Several studies found that there are different profiles of Internet shoppers who are attracted to purchasing their food online. These profiles primarily focus on demographic and psychographic criteria (Ramus & Nielsen, 2005). From a general point of view, the study of Allred, Smith and Swinyard (2006) emphasizes the significant differences between online-shoppers and online non-shoppers. For instance, online shoppers are “younger, wealthier, better educated, have higher ‘computer literacy’ and are bigger retail spenders” (p. 328), compared to online non-shoppers. Interestingly, they also tend to be “less fearful about financial loss resulting from online transactions” (p. 328).
Morganosky and Cude (2000) analyze in their study the demand for and the consumer response to online grocery shopping. It emerges that many shoppers are young and have children and have a relatively high income, which seems to be an important factor. But not only mothers with small children could benefit from online grocery shopping; also people with physical disabilities are a potential consumer group. For example, elderly customers, who may have problems with carrying or lifting groceries, are more likely to use food delivery services.
Summary of Chapters
1. Introduction: This chapter introduces the rapid growth of e-commerce and outlines the research purpose regarding its influence on the traditional German food sector.
2. Basics of E-Commerce with groceries: This section defines the types of online food retailers, profiles potential customer groups based on demographic criteria, and outlines critical success factors and challenges for suppliers.
3. Current situation in Germany: This chapter analyzes the competitive landscape of the German food retail industry and examines the current, relatively small status quo of the online grocery market.
4. Discussion: How online shopping of groceries could affect the food industry: This section discusses the cost-benefit principles driving online adoption and predicts a future shift in distribution channels from physical stores to online platforms.
5. Conclusion: The concluding chapter summarizes that while growth potential is significant, companies must act cautiously and adopt successful multichannel-concepts to succeed.
Keywords
E-Commerce, Online Grocery Shopping, Germany, Food Industry, Consumer Behavior, Distribution Channels, Multichannel-Concepts, Retail, Logistics, Business Models, Market Trends, Digitalization, Customer Benefits, Food Retailing, Online Supply.
Frequently Asked Questions
What is the core focus of this research paper?
The paper examines the growing influence of e-commerce on the traditional German food industry and investigates the potential effects of online grocery shopping on the market structure.
What are the primary thematic areas covered?
The study covers the basics of online grocery retail models, demographic consumer profiling, market success factors, the current status of the German food sector, and an analysis of future distribution trends.
What is the main objective or research question?
The objective is to determine how the introduction and expansion of internet-based grocery trade might impact or disrupt the established traditional food retail industry in Germany.
Which scientific methodology is employed?
The paper utilizes a literature-based research approach, drawing on academic studies and industry reports to analyze market data, consumer behavior, and existing business models in the e-commerce sector.
What topics are discussed in the main body?
The main body addresses the mechanics of online grocery retailers, profiles of online shoppers, logistical requirements such as cold chain management, and the competitive environment of German food retailers.
Which keywords best characterize this work?
Key terms include E-Commerce, Online Grocery Shopping, German Food Industry, Consumer Behavior, Multichannel-Concepts, and Market Distribution.
How do 'store-based' and 'virtual' online retailers differ according to the text?
Virtual retailers exist solely on the internet and deliver directly to the home, whereas store-based services often offer the flexibility of picking up groceries at a physical location after an online order.
Why is Germany's online grocery market currently described as 'weakly developed'?
The text notes that online grocery sales account for less than 0.1 percent of the total market, largely due to a lack of nationwide, broad-assortment suppliers compared to other sectors or countries like the UK.
- Citation du texte
- Manuel Zander (Auteur), 2013, The Effects of E-Commerce with Groceries on Germany’s Food Industry, Munich, GRIN Verlag, https://www.grin.com/document/283300
