Bachelor thesis - Ian Beck - 2015
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Exploratory research THE DISRUPTION OF ONLINE FOOD PLATFORMS IN THE DUTCH FOOD INDUSTRY Bachelor Thesis by Ian Beck - 111471 June 2015 NHTV University of Applied Sciences – International Hotel Management Graduation subject Innovation Graduation coach - Eric Andersen
Transcript of Bachelor thesis - Ian Beck - 2015
Exploratory research
THE DISRUPTION OF ONLINE FOOD PLATFORMS IN THE DUTCH FOOD INDUSTRY Bachelor Thesis by Ian Beck - 111471 June 2015 NHTV University of Applied Sciences – International Hotel Management Graduation subject Innovation Graduation coach - Eric Andersen
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GENERAL INFORMATION
STUDENT
Name: Ian Beck
Student number: 111471
Address: Minister Nelissenstraat 58, 4818 HT Breda
E-mail: [email protected]/ [email protected]
EDUCATIONAL INSTITUTE
Academy: NHTV University of Applied Sciences
Programme: International Hotel Management
Address: Sibeliuslaan 13, 4837 CA Breda
PARTNER INSTITUTES
Name: Abn-Amro
Address: Gustav Mahlerlaan 10, 1082 PP Amsterdam
Name: Foodservice Instituut Nederland
Address: Galvanistraat 1, 6716 AE Ede
E-mail: [email protected]
THESIS COACH
Name: Eric Andersen
E-mail: [email protected]
ABN-AMRO COACH
Name: Stef Driessen
E-mail: [email protected]
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EXECUTIVE SUMMARY
The new digital era we live in is disrupting the world of food and beverages. The Dutch food industry is
at the beginning of a digital revolution. The concepts of online food platforms provide new
opportunities for consumers to purchase food and beverage products. The Dutch food market lingers
around traditional thinking patterns awaiting the disruptive effects of the online food platforms.
The online disruption means that boundaries that have come to exist in the market, are fading.
The disrupting effects of online food platforms are a result of the industry’s changing environment,
while also being a driver of change itself. The rise of the concept of online food platforms is
demanding awareness, inducing urgency among existing food businesses as well as new businesses to
cope with the changing environment. The goal of this research is to identify the driving forces of the
disruption of online food platforms, what the impact is and how the food industry can react to the
changing environment.
The online disruption is driven by:
- The social-behavioural developments in the consumer-market.
- International trends and developments that play a key role in the growth of the Dutch food
industry.
The disruption of online food platforms is accelerated by the digital evolution which induces the food
industry to deal with the changing environment.
Not only should food businesses be aware of the disruptive effects of online food platforms, but by
accepting the opportunities to engage in the online food market, centralising consumers and by
thinking outside traditional processes, a food business stays relevant during the period of transition.
The data collected, derived from the insights and experiences by industry experts and professionals,
has resulted in the following implications:
The Dutch food industry should widen their perspective by means of observing foreign trends more
intensively. The current state of the industry lacks pro-activity regarding adapting to the disruption of
online food platforms. Progressed food markets suggests valuable solutions, such as expansion
strategies in order to create more volume, optimise content management via online channels, and the
extension of offered product selection.
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To compete with large firms, who obtain a larger amount of market share, collective solutions should
be set up to strengthen the positions of smaller initiatives.
Due to the wide arrange of product choice by various online and offline food companies, the
distinction of food products, brand and service in order to create uniqueness is most relevant.
Strengthen the relationship between business and consumer. Due to the digital developments, more
personal and specific consumer information is openly attainable and easy to utilise. Food businesses
should invest in strengthening the relationship with the consumer engaging more intensively to the
personal needs.
The convenience-driven society suggests online food platform as an ideal solution to traditional food
purchasing, as food business can optimise the display of their end-products as an alternative to offline
channels.
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PREFACE
This bachelor thesis is written upon my completion of the International Hotel Management
programme at NHTV University of Applied Sciences. The primary goal of this research is to identify
what the drivers are for the disruption of online food platforms in the Dutch food industry, what the
influence is and provide recommendations for food businesses to react to the disruption.
The research topic derived from the main graduation project I was assigned to. Foodservice Instituut
Nederland and the Abn-amro allowed me to assist in the development of the second edition of the
foodservice magazine the Food 500. During this project it became clear that online food platforms are
a trending development and have not been thoroughly researched in the Dutch food industry.
Therefor I choose to write the bachelor thesis on this topic with regard to the outcome being worthy
enough to graduate as beneficial to food businesses in the Dutch food industry.
To successfully complete this research I would like to start by thanking all the contributors involved
during the completion of the bachelor thesis.
First off I would like to thank Stef Driessen, my graduation coach at Abn-amro, who allowed me to be
part of the Food 500 project, providing me with the assistance and coaching to successfully complete
my tasks for Food 500, and by providing guidance during my thesis research.
I would like share my appreciation with Anique Grievink and Ubel Zuiderveld, who allowed me to be
part of the team of the Food 500 project and support me during my research. Particularly I would like
to thank Ubel Zuiderveld by taking the time to provide his knowledge and expertise on my research
topic in form of an interview.
I would like to thank Eric Andersen my graduation coach at NHTV, who provided me with frequent
feedback sessions, which where most valuable. Furthermore the assistance by Michel Altan, strategic
manager lecturer at NHTV, is very much appreciated. Additionally I would like to share my gratitude to
the individuals working at the Abn-amro at the advisory and sustainability department for always
creating a pleasant and interesting working environment.
Finally I would like to acknowledge the food industry experts and professionals who contributed to my
research, by taking the time to share their insights and experiences regarding the research topic. An
extensive acknowledgement per industry expert have been given in chapter 6. Methodology.
The process of writing my bachelor thesis was a pleasant and an educational experience. The
literature studies and field research on topics such as innovative food business concepts, food shopper
behaviour, and digitalisation provided me with inspiring insight which has led to broaden my career
goals in overall foodservice industry.
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TABLE OF CONTENT CHAPTER 1. INTRODUCTION ........................................................................... 8
1.1 ASSIGNMENT OVERVIEW .................................................................................................... 8
1.1.1. PROBLEM STATEMENT ................................................................................................................... 8
1.1.2. RESEARCH QUESTION ..................................................................................................................... 9
1.1.3. SUB QUESTIONS ............................................................................................................................. 9
1.1.4. RESEARCH METHOD ..................................................................................................................... 10
1.1.5. THE SCOPE OF THE RESEARCH ...................................................................................................... 12
1.2. FSIN & ABN-AMRO ........................................................................................................... 12
1.3. THESIS OUTLINE ............................................................................................................... 13
CHAPTER 2. DIGITAL EVOLUTION .................................................................. 14
2.1. INTRODUCTION ................................................................................................................ 14
2.2. DRIVERS OF CHANGE ........................................................................................................ 15
CHAPTER 3. STRUCTURING THE (ONLINE) FOOD INDUSTRY ........................... 17
3.1. INTRODUCTION TO THE DUTCH FOOD CHANNELS ............................................................. 17
3.2. FRAMING THE ONLINE FOOD OUTLETS ............................................................................. 19
3.2.1. INTERNATIONAL DEVELOPMENTS .............................................................................. 19
CHAPTER 4. THE FOOD SHOPPER ................................................................... 21
4.1. INTRODUCTION ................................................................................................................ 21
4.2. THE DUTCH FOOD SHOPPER ............................................................................................. 21
4.2.1. EXTERNAL FORCES THAT INFLEUNCE THE FOOD SHOPPER ........................................................... 21
4.2.2. PERSONAL NEEDS AND MOTIVES ................................................................................................. 24
4.3. INTERNATIONAL FOOD SHOPPER BUYING BEHAVIOUR ..................................................... 25
4.3.1. EXTERNAL FORCES INFLEUNCING THE FOOD SHOPPER ................................................................ 25
4.3.2. PERSONAL NEEDS AND MOTIVES ................................................................................................. 26
4.4. SEGMENTATION ............................................................................................................... 28
CHAPTER 5. ONLINE DISRUPTION .................................................................. 29
5.1. WHAT IS ONLINE DISRUPTION? ........................................................................................ 29
5.2. THE EFFECT OF ONLINE DISRUPTION IN THE FOOD INDUSTRY ............................................ 30
5.3. DEFINITION ...................................................................................................................... 31
CHAPTER 6. METHODOLOGY ......................................................................... 32
6.1. INTRODUCTION ................................................................................................................ 32
6.2. SCOPE AND LIMITATIONS ................................................................................................. 32
6.3. RESEARCH METHOD ......................................................................................................... 33
6.4. METHOD OF DATA COLLECTION ........................................................................................ 34
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6.4.1. THE FOOD INDUSTRY EXPERTS ........................................................................................ 35
6.5. ANALYSIS ......................................................................................................................... 37
CHAPTER 7. ANALYSIS ................................................................................... 38
7.1. INTRODUCTION ................................................................................................................ 38
7.2. BEHAVIOUR OF TODAY’S FOOD SHOPPER ......................................................................... 38
7.2.1. CHANGING DEMOGRAPHICS ........................................................................................................ 39
7.2.2. PRICE & QUALITY ......................................................................................................................... 39
7.2.3. CONVENIENCE-DRIVEN ................................................................................................................. 41
7.2.4. PUSH & PULL FACTORS ................................................................................................................. 41
7.2.5. INDIVIDUAL NEEDS ....................................................................................................................... 42
7.2.6. PHYSICAL EXPERIENCE .................................................................................................................. 43
7.3. THE IMPACT OF DIGITALISATION ...................................................................................... 43
7.3.1. DIGITAL FORCES INFLICTING CHANGE .......................................................................................... 43
7.3.2. THE AWERENESS OF ONLINE FOOD PURCHASING ........................................................................ 45
7.4. THE DEVELOPMENT OF THE DUTCH FOOD INDUSTRY ........................................................ 45
7.4.1. ENFORCING INTERNATIONAL DEVELOPMENTS ............................................................................ 45
7.4.2. OFFER DISTINGUISHED PRODUCT ................................................................................................. 47
7.4.3. SEEK COLLABORATION ................................................................................................................. 47
7.4.4. STRENGHTEN FOOD SHOPPER RELATIONSHIP .............................................................................. 47
7.4.5. SIMPLYFYING PROCESSES ............................................................................................................. 48
7.4.6. PROSPECT .................................................................................................................................... 49
CHAPTER 8. CONCLUSION.............................................................................. 51
8.1. INTRODUCTION ................................................................................................................ 51
8.2. ONLINE FOOD PLATFORMS ............................................................................................... 52
8.3. THE DRIVING FORCES OF ONLINE FOOD PLATFORM DISRUPTION ...................................... 53
8.4. IMPLICATIONS FOR FOOD BUSINESSES ............................................................................. 54
8.5. EXPLORING THE FUTURE .................................................................................................. 55
CHAPTER 9. DISCUSSION ............................................................................... 57
9.1. THE CURRENT PRESENCE OF ONLINE FOOD PLATFORMS ................................................... 57
9.2. THE INCREASING RELEVANCE TO ADAPT TO THE ONLINE DISRUPTION ............................... 58
9.3. THE RELEVANCE OF THE PHYSICAL EXPERIENCE ................................................................. 59
9.4 LIMITATIONS OF DISRUPTION OF ONLINE FOOD PLATFORMS ............................................. 60
CHAPTER 10. RECOMMENDATIONS ............................................................... 61
BIBLIOGRAPHY .............................................................................................. 62
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CHAPTER 1. INTRODUCTION
1.1 ASSIGNMENT OVERVIEW
This bachelor thesis is the concluding assignment of the International Hotel Management studies at
the NHTV University of Applied Sciences. This research assignment is commissioned by FoodService
Instituut Nederland (FSIN) and the Abn-Amro bank. FSIN is an independent institute that monitors
data and trends in the food industry, which they translate into market insights.
The Abn-amro bank analyses different markets to financially attend the supply and demand. Their roll
during this assignment is observing the overall condition of the food industry, providing insight on
Dutch food industry. This report is exploratory by nature and addresses the concept of “disruption” by
online food platforms and its implications in the Dutch food industry.
1.1.1. PROBLEM STATEMENT
The food industry is divided into two channels: the foodservice and the food retail. The division is
based on which food outlets the consumer purchases their food and beverage products. Traditionally,
the foodservice channels offer products to consumers via out-of-home food outlets and food retail
offers products via at-home food outlets.
FSIN indicates a new rising culture of purchasing food in form of groceries, prepared meals or meal
kits through online food platforms. Various companies now provide the option to order such food
products online. Online food platforms are becoming more popular among the Dutch consumers. The
online food margins tripled between 2012 and 2014. (Bladel et al. 2015). Well-known formulas now
focus on going digital, with Albert heijn online as the market leader in the Netherlands.
Since 2014, 6% of the Dutch consumers ordered their groceries from online retail stores such as Albert
Heijn online. Moreover, nearly 1% of the total Dutch food and beverage expenses were on online
meals via platforms as Just.eat.com and newyorkpizza.nl. (CBS, 2014-2015)
The internet’s reach is expanding throughout the Netherlands, increasing internet activities, such as
online food purchasing. CBS stated that 90% of the Dutch population uses internet on a daily base, via
mobile, tablet and laptop/computer.
International developments in the online food market show far more progress in the United States.
Not only food related companies focus on digital integration non-food companies, Amazon and
Google capture a fair amount of the online food share as well. (Grievink, 2015)
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According to Jan-Willem Grievink, digitalisation is a fact and the food industry cannot avoid the digital
transformation. The new digital era we live in is disrupting the world of food and beverages. We are at
the beginning of a digital revolution in the food industry. In correlation with the changing behaviour of
the food shopper the disruption of online food platforms are becoming a fact. FSIN defines
‘consumers’ as ‘food shopper’, which is apprehended during this research.
The concept of “disruption of online food platforms” is slowly integrating in the Dutch food market.
This research assignment investigates the driving forces of the disruption of the online food platforms
and how they are influencing the total food market. The purpose of this research is to identify the
factors that drive the online disruption and make recommendations for existing and new food
businesses on how to anticipate to a changing environment.
1.1.2. RESEARCH QUESTION
The main research question is as followed: “How can the Dutch food industry anticipate the disrupting
effects online food platforms have on their businesses??”
The answer to this question will be given through implications and subjects that are important to
consider when the market is disrupted. The awareness of the changing environment and the
awareness on how to anticipate are key.
1.1.3. SUB QUESTIONS
Before answering the main research question and provide recommendations, a range of factors need
to be examined and defined. The following sub questions describe those factors to answering the
main research question.
1. What are online food platforms?
Before examining the consequences of the online disruption of food platforms, it is important to
identify what food platforms are and how the operate.
2. Why are online food platforms disrupting the Dutch food industry?
In order to understand how the market is being influenced by online food platforms, it is important to
find out where they come from and the reason why they are here. By identifying what the drivers are
behind the growth of online food platforms lays the base of the concept online disruption.
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3. How should food businesses respond to online disruption in the Dutch food industry?
In order to react to the changing environment, it is important to know how to anticipate to change. It
is essential to explore the reactions to the changing environment.
1.1.4. RESEARCH METHOD
The methodology that is used to answers the main research question and sub questions consists of
literature research and field research.
In order to understand the context in which the online disruption of food platforms is examined,
chapter 2, 3, and 4 explain the changing digital environment, the consumer in the food industry, the
relevant food industry segments and international trends and developments . These chapters are
based on desk research.
Then, starting with defining what online disruption is, chapter 5 describes what already is known
about online disruption. What can be derived from food outlets in the Netherlands and abroad, and
what is written about the concept.
In combination with the previous chapters the literature research about disruption by online food
platforms has led to the definition of the concept and the integrated subjects which is used as base to
formulate the qualitative interview questions.
The process of the field research exists of semi-structured interviews with industry professionals and
experts. This research aims to find the answers and recommendations on the integrating concept
online disruption in the food industry. Nine experts from various food related organisations in the
Dutch market were selected based on their different standpoints in the Dutch food industry to discuss
their opinion. Table 1. Introduces the experts per name, organisation and position.
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Table 1.
Names
Position Organisation
Stef Driessen
Sectorbanker leisure Abn-Amro bank
Bartho Schols Manager NHTV learning company -
International Hotel Management
Academy
NHTV University of Applied
Sciences
Remko Klasen Lecturer NHTV/ Operational manager
learning company - International Hotel
Management Academy
NHTV University of Applied
Sciences
Ubel Zuiderveld Manager researcher & publisher/
foodservice watcher/ independent
publicist
Foodservice Institute
Nederland & UZMedia
Michiel van Noort
Managing senior consultant HTC advisory bureau
Liewe van der Werff
Assistant advisor HTC advisory bureau
Guido Verschoor Senior advisor Van Spronsen & Partners
Horeca - advisory
Marketing manager
Team leader/ manager marketing
department, head office.
Online food platform
organisation (fast food/ home
delivery)
Bas van der Krogt Head E-commerce manager Hoogvliet supermarkets head
office
The gathered data is analysed and themes and issues arrive from the input. The purpose of the field
research is to identify the online disruption in the Dutch food industry and to give more depth to the
concept from various viewpoints. From the conclusions and recommendations the answers to the
main research question and sub questions are given.
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1.1.5. THE SCOPE OF THE RESEARCH
This research is conducted to get a deeper insight on the impact of online food platforms in the Dutch
food industry, and how the industry should respond to the disrupting factors. It does not further
investigate non-food activities. The research deals with Business to consumer, the direct interaction
between (online) food businesses and the food consumers. Business to Business is not included, such
as food production and manufacturing companies, or food sellers to food businesses, such as catering
organisations.
The main focus of this research is limited to the effects of the online food platforms in the Dutch food
industry. However relevant trends & developments from abroad are part of the literature studies and
outcomes of the field research. These trends & developments are solely focused on the food markets
of the United States of America and Great Britain.
Finally, the emphasis lies on existing food businesses and new entrants that will come to deal with the
changing environment. The recommendations are intended for the member of the Abn-Amro bank m,
FSIN, and existing and new food businesses in Dutch food industry. The main focus lies on online sales
of food and beverage products. Not every online force of possible industry influences are thoroughly
examined due to relevance and time limitations.
1.2. FSIN & ABN-AMRO
The Foodservice institute’s mission is to contributes to the emancipation of the Out-of-home and At-
Home consumption in the Dutch food industry. It aims improve the quality of processes and activities
with this industry and increase the level of professionalization. (FSIN,2015) FSIN represents the
public’s interest of the total Dutch food industry. For the last ten years, FSIN has been monitoring the
positive and negative factors influencing the Dutch food industry.
FSIN contributes to this research by providing insight on the Dutch food market, identifying current
issues and developments that eventually set up this research. Moreover their input they contributed
to the outcome of the thesis.
ABN-AMRO bank is one of the most prominent banks in the Netherlands. They contribute to the Dutch
economy by monitoring and analysing different markets and assist in corporate credit loans to Dutch
businesses, such as in the food industry.
The department of advisory & sustainability were involved during this research. Their interest lie in
concept improvements, and the development of new business models in the food and hospitality
business. Their goal is to identify and assist in business affairs and the prospects from various sectors
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in different branches. They contribute to this report by providing Marco-economical figures and by
giving insight on relevant trends and developments in the total food industry. Moreover Abn-Amro
contribute to the findings of this research assignment.
FSIN and Abn-Amro have joined forces in order to improve the quality of the processes and activities
within the total food Dutch food industry. With that said, both parties are mutually interested in
affairs regarding the public interest and food businesses in the total food market. Both parties do
groundwork by analysing the Dutch food industry, as their research contributes to development of the
overall food market.
1.3. THESIS OUTLINE
This section describes the content of each chapter. Table 2.
Chapter 1: Introduction Problem statement description, the description of the research
question and sub questions. Research method and the scope and
limitations of the research. Introduction of commissioning
institutes and the relevance and contribution to the research
assignment.
Chapter 2: Digital Evolution Explanation of the driving force of digitalisation and its effect in the
food industry.
Chapter 3: Structuring the (online) food
industry
Overview of the (online) food industry in the Netherlands,
regarding international developments.
Chapter 4: The online food shopper Description of the food shopper’s buying behaviour in regard to
online food purchasing.
Chapter 5: Online disruption Description of the concept, and the criteria that determine the
online disruption.
Chapter 6: Methodology Explanation of the methodology used for data collection.
Description of the participants and their relevance to this research.
Chapter 7: Analysis Analysis of the input of the participants, derived from the collected
data.
Chapter 8: Conclusion Conclusion of the analysis by answering the research question and
sub questions.
Chapter 9: Discussion Discussion of the research results and literature research, regarding
the current state, the challenges, and the limitations.
Chapter 10: Recommendations List of recommendation for future research.
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CHAPTER 2. DIGITAL EVOLUTION
2.1. INTRODUCTION
Digitalisation is a fact and the food industry cannot avoid the digital transformation. “The new digital
era we live in is disrupting the world of food and beverages. We are at the beginning of a digital
revolution in the food industry.“(J.W. Grievink, 2014)
The traditional retail business is fundamentally changing due to the digital revolution. It is becoming
clear that consumers nowadays are more adapted to online food purchasing. For instance, consumers
view their products online and purchase them online, or they view their products online and purchase
them in the store. Various combinations of online purchasing are being integrated in the consumers
food shopping process. (G. Heaton, 2014)
Online food purchasing, in form of groceries and meals is becoming more popular. Since 2014, 6% of
the Dutch consumer orders groceries from online retail stores such as Albert.nl. Moreover nearly 1%
of the total spending of food and beverages was on online home delivery products, via platforms as
Just.eat.com and newyorkpizza.nl. (CBS, 2014-2015) The internet’s reach is expanding geographically,
more Dutch citizens have access to the internet. CBS stated that 90% of the Dutch population uses
internet on a daily base, via mobile, tablet and laptop/computer. Due to the reach and accessibility of
the internet online activities increase, such as online food purchasing.
In order for a food businesses to keep pace with digital trends and developments, a food business
should take the innovation curve by Roger’s into account, as can be seen in model 3. The model shows
how quickly a digital reality comes to an existence, especially for the role of online buying channels in
the food market. Trend watchers from FSIN indicate via the innovation model how rapid the digital
reality is coming to an existence, especially in the online food sector. (Bladel et al. 2015)
Model 3.
Source: Christensen, 2014. FSIN Beleidsmonitor, 2015.
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Model 3. illustrates that the Dutch online food market is still at a beginning stage at this point. Only a
small amount of companies offer food products via online platforms. These innovators and early
adopters are a small group in the Dutch food market who adapt to changing environment. Via the
innovation’s Curve by Roger’s it can be stated that when the segment ‘Early Majority’ adapts to the
digital changes in the Dutch food industry, the digital existence of the online sector will drastically
grow.
2.2. DRIVERS OF CHANGE
In order to understand the changing environment of the online food platforms in the Dutch food
industry, the drivers of digital change are identified. The digital evolution represents a fundamental
sea of change in businesses and consumer behaviour, bringing forth a force of disruption. It must be
understood that the fundamental drivers of change are trends that are driving the digital
transformation. It is clear that the digital transformation is a major challenge for small- and medium
sized organisations and as it is for large organisations.
Ira Kaufman & Chris Horton (2014) discuss the four drivers of change. Which are, internet, social,
mobile and data.
The internet nowadays has the role of the primary driver of change in marketing, its impact on the
business communication and commerce is far reaching, and continually growing. Information is
power, which makes the internet supreme. It has fundamentally changed the way of distribution,
classify, seek out, and act on information.
Social networking connects people and communities, allow them to share and transfer messages in
real time. Social media can be regarded as the virtual marketplace of online communication and
engagement in the digital culture. 27% of all time spent online is on social networking.
Unlike many forms of marketing, whose forms tends to be simple, the power of social media is in its
growing stage. Social media enlarges brand reach, empowering companies to leverage their content
and messages more efficiently. (Kaufman & Horton, 2014)
Mobile implies “proximity”, being geological located and online. The mobile is a real-time enabler of
the digital culture, it is present in the physical and virtual space of consumers. The future of mobile is
linked with social media and “proximity”. A average person uses some form of “connected device” 34
times a day. The advanced use of mobile provide (on-the-go) consumers numerous of options and
capabilities, empowering them as never before.
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Businesses may struggle with digital marketing, as a business must cope with the increasing
expectations and demands of mobile users. The mobile users now expects businesses to provide
relevant online resources that inform, entertain, and/or resolve. In short, mobile with the integration
of social media and proximity has shifted power to consumers, who are highly aware of this.
Data can be thought of as a functional brain, the underlying intelligence that provides content and
context to the digital culture. The advancement in technology and the collection of data allows
marketeers to track, review and refine every aspect of the digital business. Garten (2015) defines “big
data”, where the quantity, the speed and the diversity of data forms data sets, produced by
consumers who save more and more data via various channels. (e.g. social media platforms such as
Facebook, Google and Pinterest)
The ability to compare marketing initiatives with real-world results, allows businesses to continually
refine their brand message and marketing plans, by using content and context to better connect with
consumers.
The Dutch food industry is at a stage that it cannot avoid the impact of digitalisation. When the Dutch
food market embraces the digital forces the online industry will radically grow.
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CHAPTER 3. STRUCTURING THE (ONLINE) FOOD INDUSTRY
3.1. INTRODUCTION TO THE DUTCH FOOD CHANNELS
In order to understand the online food industry better, the traditional food industry and online food
channels are elaborated on, to draw a structure of the overall industry.
This report defines the food industry as the industry where the consumers purchases their food and
beverages for at-home consumption or out-of-home consumption.
The Dutch food industry had a rough period during the financial crisis in the last six years. At the start
of 2015 it is showing promise again, as the Dutch consumers are optimistic which influences the food
revenue streams. The online food sector plays a key role regarding the positive revenue streams. The
total online food margin between 2012 and 2014 tripled. The main actor in the online market is the
retail sector. In 2013 the online sales were estimated at €290 mil. by which the market leader Albert
Heijn already obtained two third of the revenue. (Bladel et al, 2015)
To understand the various branches in the (online) food industry, the food sector is divided into two
channels, which are foodservice and food retail. Traditionally the foodservice market provides in
products that are being consumed out-of-home and the food retail market provides in products that
are consumer at-home. (Bladel et al. 2015) FSIN makes a distinction between food outlets in the at-
home and out-of-home channels.
FSIN monitors the data of all food outlets and indicates which outlets showed growth potential or
declining results. Table 4. shows the traditional food segments plus the online food platforms,
integrated in the new (mix) retail segment. Table 4. also indicates the segment’s growth in 2014.
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Table 4.
OUT OF HOME Classic Food & Beverage Fine dining and casual dining restaurants, bar, café, coffee
place, hotel, leisure
Examples include: Wolfslaar restaurant, Humprey’s
restaurant, Coffee company, Van der Valk Hotels, Efteling
Growth
Catering Corporate catering, Institutional catering (care, education)
leisure
Examples include: Albron, Hutten, Deli Xl
Convenience Fast service restaurants, travel, petrol stations
Examples include: McDonalds, La Place, AH to Go, BP
AT HOME New (mix) retail Real food retail, evening + convenience, online/Pick up,
Food/non-food
Examples include: De Foodhallen, Albert.nl, Thuisbezorgd.nl,
the Action
Supermarket Assorted food retail
Examples include: Albert Heijn, Jumbo, Aldi, Plus
Specialty shop Specialized food retail
Examples include: Bakkerij Bart, De Keurslager
Market and other retail Specialized food retail non-fixed location.
Examples include: Local market, agricultural
Source: FSIN Beleidsmonitor 2015
The new (mix) retail is a mix of new food retailers. FSIN monitors this group due to blurring concepts
and digital food sellers. This report focuses solely on the online food sector, exclusively on the
business to consumers processes.
The online food market in the Netherlands already established different forms of food platforms, who
show constant growth. Online food retailing in form of online grocery shopping is most popular among
the Dutch consumers. Other forms of online food purchasing are via intermediary platforms which
allows consumers to order food in form of meals. The next paragraph elaborates on different
branches in the online food industry.
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3.2. FRAMING THE ONLINE FOOD OUTLETS
3.2.1. INTERNATIONAL DEVELOPMENTS
The prosperity of the Dutch food industry is mainly influenced by successful developments of foreign
food markets, such as that of the United States and in the United Kingdom. (A. Grievink, 2015)
A DESTEP analysis is created to identify similar factors in the food industries in the United States,
United Kingdom and the Netherlands.
Please see the DESTEP analysis for comparison of the Dutch and U.S. food market in appendix 1.
The online food industry is well established in the United States. Their online food market is similar to
the Dutch market as they segment their online consumer-market as followed, prepared meal delivery,
meal kit delivery, grocery/packaged goods delivery. (Food logistics, 2014)
Their formats of reaching these segments are more progressed then the Dutch industry.
Virtual businesses or e-tailers in the US market are establishing themselves by means of offering food
concepts based on the these three markets. Food logistics (2014) identifies the following types of
virtual food platforms in the United states;
Retail stores with online stores
These stores offer home delivery and pickup. The orders are fulfilled from store shelves and e-
commerce distribution centres. Examples include Target.com Meijer.com and the Freshmarket.com.
In the Netherlands Albert Heijn online is the main player acting on this format. Other food retail stores
such as Jumbo, Plus, Spar and Hoogvliet are catching up providing their own online grocery shopping
platforms. (Meijers, 2014)
Dedicated e-tailers that stock inventory
The company does not have a physical storefront, but maintains its own warehouse.
Examples include Amazon, Vitacost and MyNaturalMarket.com. Stores in the Netherlands body and
fitshop, ekokopen.nl or degroentetas.nl.
Virtual e-tailers
The company does not have a physical store or warehouse, they function as an intermediary for
manufacturers and producers. Examples include Takeaway.com. Such platforms show much potential
in the Dutch food market. Thuisbezorgd.nl, justeat.com and etenbestellen.nl are the frequently used
platforms among the Dutch consumers. (consumentenvergelijking.nl, 2015)
20
E-tailers that provide their own delivery
Examples include Newyorkpizza, Hellofresh and amazon fresh. Currently Hellofresh is a popular e-
tailer in the Netherlands. Newyorkpizza and Domino’s are presently main players in this area. (Bladel
et al.)
Virtual home delivery (food retail intermediaries)
This is a company that operates as an intermediary for food retailers.
Examples include Google Shopping Express, Amazon and Instacart. Due to the fact that Albert Heijn
online is dominating the Dutch food retail sector, no intermediate platforms are demanded by
consumers for purchasing food products from different food retailers. The future may hold such
virtual formats as more national food retailers are expanding into e-commerce. (Meijers, 2015)
It can be stated that the Dutch online food industry is comparable to that of the certain regions in the
United States due to the similar Demographic, Economic, Social-behavioural, Technological,
Environmental, and Political factors. The foundation for distinguishing such online food platforms is
well established in the food industry and will definitely grow in future of this digital era. (Bladel et al.
2015)
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CHAPTER 4. THE FOOD SHOPPER
4.1. INTRODUCTION
A series of different drivers have triggered the change of consumer buying behaviour, which has led to
a new segment in the traditional food service model, new (mix) retail. (Bladel et al. 2015) As stated
before several new entrants are integrated in this segment, only this report focuses solely on the
online food sector. The online segment is not showing an immediate threat, but due to the growth of
online food purchasing, other segments should take notice in order to anticipate future disruption.
The food shopper should be centralized in food businesses, they are now in control. The underlying
causes and conditions have influenced consumers to no longer think in channels, but in needs.
(Meijers, 2015)
Before explaining what those needs are, the following paragraph explains the external factors
influencing buying behaviour. The analysed factors in this chapter evolve around online as well as
offline buying behaviour.
4.2. THE DUTCH FOOD SHOPPER
In order to understand the general buying behaviour, all external forces influencing food buying
behaviours should be identified. These forces influence the Dutch food shopper in both the out-of-
home and the at-home channel.
4.2.1. EXTERNAL FORCES THAT INFLEUNCE THE FOOD SHOPPER
The external forces that influence food shoppers behaviour are distinguished by the following five
themes:
Figure 5.
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Figure 5. indicates which factors have a positive or negative influence on the food shopper’s buying
behaviour. (Abel et al, 2015)
Economy and the perception on welfare.
Due to the financial crisis, the consumer trust in the market declined. Since 2013 the consumers trust
in the Dutch economy is increasing again (GFK, 2015). The derived attitude of the economic time is the
financial awareness. Consumers are aware of the financial situation of the market as well as personally
and are searching for the best price-quality relation.
Innovations by technique.
Digitalisation is putting consumers in charge (Grievink, 2014)
Ira Kaufman & Chris Horton discuss the four drivers of change. (p.15) Which are, internet, social,
mobile and data. It must be understood that the fundamental drivers of change are trends that are
driving the digital transformation. Several factors are derived from the study of FSIN’s food shopper,
which are coherent to the drivers of change by Ira Kaufman & Chris Horton. These factors are, the
need for convenience, socially connected, and the role of the mobile devices in daily life. The Digital
Needs model by Microsoft (Appendix 2) supplements by illustrating the difference between internal
and external needs of consumers. On the one side people explore the external world versus the
control of their internal emotions. Consumers also switch between self-focus as an individual versus
the need to connect with others and share experiences.
Furthermore FSIN distinguishes the contrast of digitalisation between elder and young generations.
Stating that elder consumer are complex to reach in contrary to young consumer, who evolve through
digitalisation. The millennials (network generation 1985-2000) are highly involved in the digitalisation,
due to the integration of internet, mobile and social forces in their daily lives.
The generation gap between Dutch consumers regarding digital transformation is high as can be seen
in table 4.
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Table 6.
GENERATION
VALUES & PRIORITIES
INVOLVEMENT IN DIGITAL TRANSFORMATION
Silent Generation 1930-1945
Materialistic, out-of-home consumption
Protest Generation 1945-
1955
Economical behaviour, Consistency (career, family, privacy)
Generation X 1955-1970
Quality, diversity, professionalise
Pragmatic Generation 1970-
1985
Comfort, dynamics, and content
Network Generation 1985-
2000
Originality, participate in networking, and development
Source: FSIN, 2015 & CBS, 2014
Innovations in the food sector.
Due to new supply, new demand is created. Online food purchasing is a key segment of innovation in
the food sector. In the US, the research firm Food logistics (2014) defined the online food market in
three categories: prepared meal delivery, as prepared meal delivery, meal kit delivery,
grocery/packaged goods delivery market.
The aspect of purchasing online or physically influences the attitude during the food shoppers buyers
process, as the effort is minimised in buying process. (Abel et al, 2015)
Time, spare time and urgent time spending.
Saving time is the new “money”. (Abel et al, 2015) Time is short, a large part of the Dutch households
are one-person households in which the consumer behaviour orientates more individually. Food
consumption is being combined during travels, social activities (meeting friends), working and
studying. Therefor time-management regarding consumption is critical for food shoppers.
Example behaviour by friends is influential.
Social media has a major role in informing about new trends and developments. Due to distributing of
information, society has become aware on authenticity. The sense if a product or brand is genuine or
just a marketing proposition is high. (Abel et al. 2015) Food shoppers are aware of their surroundings,
making their buying behaviour more critical.
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4.2.2. PERSONAL NEEDS AND MOTIVES
FSIN indicates that the Dutch food shopper’s needs are established via the motives routine,
convenience and comfort. Additionally the location where the food shopper consumes food &
beverage products plays a role in their choice of purchasing. These are: At-home, On-the-road, and at-
location. The model identifies the food shopper’s internal factors that influences the buying process.
FSIN states the popularity of food outlets among the Dutch food shoppers.
Table 7.
As can be seen, the routine and the at-home factor are the main reasons for online food purchasing.
Routine and the at-home channel suggests online food retailing such as grocery shopping, for as the
convenience and comfort factor suggests prepared meal delivery.
Table 7. indicates that routine, convenience and comfort are main drivers for online food purchasing
in the Dutch food market. The at-home factor suggests that food shoppers demands their products
digitally ordered at-home.
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4.3. INTERNATIONAL FOOD SHOPPER BUYING BEHAVIOUR
Throughout this chapter similar social-behavioural factors compared to the food shopper in the more
progressed market of the UK are identified. For this reason the consumers buying attitude is
presumed identical, making current and future developments of online consumers behaviour in the
UK most relevant.
The Mintel Group Ltd. have done research on the online buying behaviour in the UK. The report
focuses on the incentives that influences consumers to order food via food retail outlets as well as
food take-away or home-delivery outlets. Their research is based on adult consumers aged 16+. Their
study captures data out of the Silent generation (born 1930-1945) and the Network generation (born
1985-2000). The results are based on young consumers fully integrated in the digital transformation
and elderly less involved in the virtual industry, making the results transparent.
As previously stated, identical factors are discussed, and thus the opportunities for the British industry
are applicable to the Dutch food industry.
4.3.1. EXTERNAL FORCES INFLUENCING THE FOOD SHOPPER
The Mintel Group discusses several factors that are identical to the external forces in the Dutch
market.
New technology
As previously stated, the use of mobile is a huge driver for the changing environment. The UK online
market is already at such a state that most online food home deliveries are done via a smartphone.
Internet accessibility and speed are considered to have a large impact on the online food shopping
behaviour as it increased food activities online.
Economy
The economy in the UK is recovering, wages are expected to increase faster than inflation, reducing
the pressure on incomes that drove much of the post-recession era. Despite the rising confidence
levels, the food shopper are aware on their financial situation, making them enormously price-
sensitive.
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Innovation by technology in the food sector
The consumer culture in Britain is highly convenience-driven, derived by the food shoppers need for
direct comfort and satisfaction. This is mainly influenced by the developments of digital technology as
products and services are obtained much quicker. In the UK this also reflects on the food industry, as
food companies are launching more home delivery platforms. Moreover innovating solutions are
implemented for quicker processes, by means of using different equipment and transport.
Ageing generation
Britain’s ageing consumers pose challenges for the at-home delivery market online as the at-home
delivery is not well integrated in this segment. Moreover the British involvement in digital technology
is slightly higher than Dutch 55+. Nevertheless digitalisation is mostly integrated in the Pragmatic
generation (1970-1985) and the millennials (1985-2000).
4.3.2. PERSONAL NEEDS AND MOTIVES
Online food retailing
The study of Mintel Group Ltd. research (2014) explored the food shoppers online buying behaviour in
the at-home channel, or grocery/packaged goods delivery market (Foodlogistics, 2014). The
overarching themes in their findings were control and clarity, consumers want more information on
their products, how and when they are delivered and a finer two-way- dialogue with food retailers
regarding their order. The report state five personal needs and motives that influence food shoppers
to purchase online in food retail (at-home channels). These factors are:
Time, money, convenience, online accessibility, responsibility.
Saving time
Time is precious to today’s food shoppers. Grocery shoppers today see online as beneficial as it saves
time travelling to or from a grocery store. The research also indicates that food shoppers think they
use less time to shop online then physically in-store.
Reducing costs
The general perception of online shopping suggest consumers are saving money when shopping
online. Making it easier to stick to a budget than they would do in a physical store. Consumers
perception towards delivery costs is lower and acceptable in contrary to the costs of fuel to get to a
physical store, which would be higher.
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Minimising the effort
42% of the online British food shoppers see online as a good way to avoid the effort of shopping in-
store. The perception of numerous of grocery shoppers when entering a store is a stressful and
pressured experience. Therefore they want to avoid such environments via online retail platforms.
Online shopping accessibility
Due to online food platforms consumers can shop whenever they are willing or wherever they are,
providing a more beneficial way of grocery shopping for food shoppers further located from a physical
store.
Responsible nutrition
Consumers nowadays want to take care of themselves eating responsible and healthy and taking
notice of the environment. Organic and fresh food is a popular among the British food shoppers.
Online food home delivery
The Mintel Group Ltd. (2014) continues their research on the online prepared meal delivery and meal
kit delivery markets (Foodlogistic, 2014)
The consumers committed behaviour to convenience-driven services has influenced the growth of
home delivery and takeaway concepts. Both for online foodservice outlets as intermediary online
platforms. The results of the Mintel Group’s research identifies the main drivers that influence food
shoppers to order online in contrary to home cooked meals or physically consume in the out-of-home
channel (restaurant, café fats food etc.).
These drivers are: Convenience, price, familiarity, responsibility and diversity.
Responsibility
Consumers nowadays want to take care of themselves eating responsible, healthy and taking notice of
the environment. Organic and fresh food is becoming more popular among the British food shoppers.
Price range
The online food shopper is price-focused during their decision-making process.
40% of the online consumers stated that price range affects their decision-making process whilst 23%
say that cost delivery does. Meanwhile, 21% of the online food shopper states that special
offers/money-off deals have effect on their decisions.
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Convenience
Similar to food retail, the current food shopper culture is increasingly convenience-driven,
characterised by the consumers need for instant gratification, particularly as the growth in digital
technology has helped them get products and services quicker. Digitalisation influences the
convenient attitude of the food shopper. Particularly the growth of digital technology has helped
consumers to obtain their demanded products and services much quicker.
Familiarity of brand/products
Disrupting consumers from their ordering habits/ product is complex as the research points out that
brand familiarity is a key influencer in the purchasing behaviour. Whilst such loyalty is beneficial for
existing food operator, those looking to win market share from established players are likely to rely on
price promotions to encourage consumers to change their habits. (Mintel Group Ltd. 2014)
Diversity of products
Diversity in product possibilities stimulates online food shopping. Consumers benefit from the variety
of kitchens due to the lack of self-triggering cooking.
4.4. SEGMENTATION
The response of the online food shopper is determined by the discussed external forces and personal
needs and motives. In combination with the food shoppers own characteristics they respond to the
changes in the food industry. Their actions define their motives and needs. It can be stated that based
on DESTEP analyses, the Mintel Group Ltd and FSIN studies, factors influencing the British food
shopper are similar to the factors that drive the Dutch buying behaviour. Consequently, the future
may hold similar consumer developments to that of the British market as the UK is on a more
progressed level.
As derived from the literature studies the online food shopper can be divided in three categories, the
prepared meal food shopper, the meal kit delivery food shopper, and the grocery goods food shopper.
These market segments are integrated in both at-home as well as in the out-of-home sector.
To segment food outlets in at-home or out-of-home channels, is becoming less relevant. Instead
outlets are developing new means of meeting consumer’s needs, while reasoning out the food
shopper’s motives. FSIN has defined this as the consumer-oriented approach. The result is that all
food products from household groceries to prepared meals can be ordered and delivered at home,
eliminating the physical process, all in fulfilment of the food shoppers needs. This process can be
defined as online disruption.
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CHAPTER 5. ONLINE DISRUPTION
5.1. WHAT IS ONLINE DISRUPTION?
The term “online disruption” is defined as the change that occurs when new digital technologies and
business models affect the value proposition of existing products and services. (Christenen, 2014)
Online disruption is a concept that is slowly settling in the Dutch Food industry. The term is used to
identify disruptions in the food industry that hold consequences for doing business as well as
designing organisations. (Mesters, 2015). The concept of online disruption by food platforms is driven
by two forces, which are the consumer buying behaviour and digitalisation.
Foodservice Institute Nederland discussing four causes that lead to these radical changes.
Technology and digitalisation put food shoppers in charge
Lines between offline and online shopping experiences are blurring. The traditional retail business is
fundamentally changing due to the digital revolution. It is becoming clear that food consumers
nowadays do not make a difference between online or offline shopping. For instance, consumers view
their products online and purchase them online, or they view their products online and purchase them
in the store. Various combinations of online shopping are being integrated in the consumers food
shopping process. (Heaton, 2014) The ‘connected consumer’ does not follow standard marketing laws,
as they have the opportunity to seek own information about products in order to make decisions.
Values in today’s society are shifting
Values in today’s society is shifting thereby also the value in food. Food and lifestyle is becoming more
interconnected for the food shoppers. Food is used to distinguish a lifestyles among other food
shoppers in order to indicate what they value in life (Nieuwjaarsmonitor, 2015)
Social media plays key role in distinguishing the food shoppers values.
FSIN’s former president Frederik Masselink discussed that traditional values are shifting rapidly and
that we did not anticipated it. He quoted the chairman of Sainsbury, who stated that the supermarket
branch has changed more in twelve months than in than last twenty years. The prospects are looking
beneficial as margins are shifting back from food retail towards foodservice. Finally he demanded that
Dutch food industry professionals should adapt to the disruptive developments and engage in the
opportunities which the industry is providing.
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Lifestyle & food reinforce hybrid models
Within the food industry opportunities arise for hybrid models, FSIN defines this as “Blurring”.
Concepts that are relevant for food shoppers daily food consumption, offering a total solution for each
eating-moment during the day. These concepts distribute via various channels in order to satisfy the
consumers food consumption now, later, at-location and, at-home. Online platforms are part of this
total solution, offering virtual access to a wide variety of food products on each moment of the day.
Old business models are under pressure.
Grocery stores feel the presence of online disruption as more retail stores are integrating virtual
access to their assortment. A business model without an online platform are considered out-dated.
This pressure will be noticed in the prospect of the Dutch food retail. (Nieuwjaarsmonitor & Meijers,
2015)
5.2. THE EFFECT OF ONLINE DISRUPTION IN THE FOOD INDUSTRY
In the US, online food platforms are a well-integrated concept in the food industry. The Dutch food
market is influenced by such developments (A. Grievink, 2015) in the US, the food market
distinguishes all online food platforms in several distributions categories, Retail stores with online
stores, dedicated e-tailers that stock inventory, virtual e-tailers, e-tailers that provide their own
delivery, virtual home delivery (food retail intermediaries) (Foodlogistics, 2014)
Nevertheless, a common mistake is that organisations avoid/ignore the disruption effects made by
implementations such as online food platforms. Ignoring or avoiding the changing environment will
cause crucial damages to a company. (Mcquivey, 2014) Technological advances are rapidly creating
numerous of opportunities for more people to meet consumers’ needs at minimal costs. That is the
essence of the concept “online disruption”.
Businesses who confront digital disruption will use disruption as a forcing function. Organisations use
it as the necessity to engage consumers differently, more effectively across all interaction touch points
(Mcquivey, 2014)
Several factors derived from the rotating forces constantly influencing each other, digitalisation and
consumer behaviour, are discussed:
Pace of innovation. Technological and digital developments now occur at increasingly faster intervals.
Consumers can be sceptical about “new and improved” as new food related products will quickly
enter the market.
31
Increased competition. The concept of online disruption enforces competing ideas. The effect of new
entries in the online market can be devastating for companies operating their business with outdated
business models.
Personalisation of interactions. Large data analytics enable marketeers to communicate with
consumers on a more relevant, personalised and targeted level than ever before. By using data-driving
marketing, businesses learn how to optimize their appeal to individual food shoppers. To keep an
competitive advantage this is essential.
Speed interactions. Digital communication between consumer and organisations is also based on
speed. Consumers increasingly expect personalisation, they also increasingly expect real-time
interaction with different brands.
Complete integration. Without integration, food businesses are not able to unleash the full potential of
digital technologies. Integration is needed to create cohesion across all marketing channels and
platforms. Furthermore and integrated internal marketing attributes helps to better understand data
patterns and consumer interactions.
5.3. DEFINITION
The change in lifestyle and the effect of digitalisation changed the customs of purchasing food and
beverages. The definition of disruption by online food platforms will be indicated in the period of the
concept’s transition into the food industry. The definition is applicable in various industries as well as
situations and is not tight to the food outlets and platforms and their way of serving the food shopper.
The following chapter describes the methodology of the literature research, aiming to seek evidence
how online food platforms are disrupting the Dutch food industry, and how food businesses should
react to the developments in the food industry
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CHAPTER 6. METHODOLOGY
6.1. INTRODUCTION
This chapter explains the methodology that is used for this exploratory research. When it is unclear
what the problem and the impacts are, exploratory research is applied. This research explores the
overall concept of disruption by online food platforms as well as identifying what the impact and
implications are in the (online) food industry.
Due to the nature of this research, the data is collected via the insights of food industry experts and
professionals. Nine experts from various food related organisations in the Dutch market are selected
based on their different standpoints and experiences in the Dutch food industry.
The changing environment will confront food businesses to consider adjusting business strategies to
successfully adapt to the developments. The process of collecting data will lead to advice and
implications that can be considered as policy makers. The level of impact of online disruption differs
per business, depending via which channel and outlet a company operates. That means that some
companies are directly dealing with online disruption and others are limited to the experiences. In
order to get insight on online disruption of food platforms on various levels, it is relevant to analyse
multiple perspectives.
6.2. SCOPE AND LIMITATIONS
The intend of the research is to provide useful insight for established businesses and new entrants
that need to deal with a changing environment. Online disruption by food platforms is a result of
different factors that induce change. The collected data is focussed on the experiences and insight of
individuals operating in the online food business/platforms as well as individuals with an analysing and
consulting position in the food market.
The emphasis mostly lies on established food businesses of a certain scale who are likely to be more
flexible in adopting new strategies. In contrast with new entrants who have little obstacles to adopt
due to their nature of their organisation. This is due to their new business models which differ from
traditional business models, as they do not face transition. Nevertheless, the research
recommendations provided are also implacable for new market entrants.
33
The research is limited to the expertise and experiences of the industry professionals who are dealing
with the disruption in the Dutch food market. The experts understand the complexity of the relevant
topics and processes and have the experience to overview the overall industry, making their input
highly valuable. The author deliberately did not choose for qualitative research in form of consumer
surveys or questionnaires to identified consumer behaviour. The reason being that the principal part
of this research is the food industry’s reaction to the changing environment. A consumer inquiry
would propose a new research as the derived outcomes would be to comprehensive for this research.
Moreover, the experts interviewed provide contemporary knowledge on consumer behaviour in the
food industry in regards to the online disruption of online food platforms.
6.3. RESEARCH METHOD
The following table shows the methods of answering the sub questions, and the main research
question
Table 8.
Research question How can the Dutch food industry anticipate the disrupting effects online food
platforms have on their businesses?
Literature studies and field research
Sub questions
I What are online/virtual food platforms?
Research method Literature study
II Why are online food platforms disrupting the Dutch food industry?
Research method Literature study & field research via interviews
III How should the Dutch food industry respond to the online disruption in the
market?
Research method Desk research and field research via interviews.
The desk research is done by collecting relevant data from existing sources about a certain topic or
theme. The previous chapters were set up via the literature sources, visible evidence, and ‘authors’
experiences. The following chapters will describe the outcomes of the field research.
The field research is done to obtain unregistered data that is relevant for answering the research
questions. It is essential to collect data via field research as the meaning of understanding the concept
of online disruption in the food market comes from insights and experiences of the industry experts
and professionals.
34
6.4. METHOD OF DATA COLLECTION
It is vital to conduct research in such a way in order to present representative data. The concept of
online disruption of food platforms is relevant for businesses in the at-home channels and out-home
channels. Therefor it is decided to select a number of sources relevant to the subject.
To achieve the aim of this study a indeductive research will be performed consisting of a qualitative
semi-structured research interview. Indeductuve approach is reasoned as this report moves from
specific observations to broader generalizations and theories. The nature of this report is therefore
open-ended and exploratory. (Bryman & Bell, 2011)
To get an in-depth insight on the Dutch foodservice industry, a qualitative research in form of a semi-
structured interview will be held. This research aims to find the answers and recommendations on the
integrating concept of online disruption of food platforms in the food industry.
During the research assignment collecting answers from one of the industry experts was more
beneficial to gather via a written correspondence. Due to business circumstances Bas van der Krogt
was not able to share information via a physical meeting or telephone in the given time. Therefore
both parties agreed upon this method of data sharing. Unclear answers were verified in order to get
in-depth answers.
All the data collected for this research are based on experiences of experts and industry professionals.
The experts were selected on experience in the at-home and out-of-home channel as well as in the
online and offline food market. By selecting these experts the problem is examined form multiple
angles. The selection was done with the support of ABN-AMRO, and via self-effort, by contacting
various companies, industry experts and professionals relevant for this research.
During the literature research stage an conceptual model was formulated based on the literature
study. Please find the conceptual model in appendix 3.
Based on the model an interview guide was developed to formulate the interview questions.
Please find the interview guide in appendix 4.
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6.4.1. THE FOOD INDUSTRY EXPERTS
For this research various food industry experts and professionals were approached to share their
vision on the impact of online food platforms in the total food industry. These experts are highly
experienced individuals who operate and view the food industry from multiple angels, which is
relevant for assessing this research. The experts were approached based on the following aspects,
online & offline food business experience, and the experience in different food outlets in the at-home
& out-of-home channel.
Stef Driessen
Stef Driessen is the sector banker leisure and team leader at department of sustainability and advisory
at the Abn-Amro bank. He focuses on strategic affairs with management teams ore clients in de
Leisure, Travel & Hospitality Industry. His interested lie in digital innovations, changing consumer
behaviour and improving business models. Stef Driessen was approached for his experience and ability
to overview the industry and the ongoing change that the industry faces.
Bartho Schols
Bartho Schols is a the current manager of the learning company at NHTV University of Applied
sciences, International Hotel Management Breda. Next to managing the NHTV outlets he helps steer
your professionals during their operational development. He has an experienced background in Dutch
food industry, particularity in the out-of-home channel. His interest, knowledge, and experience on
the Dutch food industry lead me to approach him for an interview.
Remko Klasen
Remko Klasen is a lecturer at the NHTV International Hotel Management Breda
Next to lecturing and steering hotel students to their management degree he has an operational
management position in the food and beverage outlets at the NHTV. Remko Klasen was approached
for the interview due to his experiences and knowledge about the Dutch food industry developments
and international developments.
Ubel Zuiderveld
Ubel Zuiderveld is a foodservice watcher, an independent publicist, and a researcher. Specialised in
the foodservice industry. Furthermore he is manager researching & publishing at Foodservice Institute
Nederland. Due to his expertise in researching and defying trends and developments in the total food
industry he was approached for the interview.
36
Michiel van Noort & Liewe van der Werff
Michel van Noort & Liewe van der Werff are the managing Senior Consultant & Assistant advisor at
HTC advisory bureau. In the last 35 years HTC advisory bureau have established themselves to a
specialist position in the Dutch food industry (hotel, restaurant, café), recreation, and catering
industry. Michiel van Noort and Liewe van der Werff were particularity approached due to their
experience and knowledge on digital developments in the Dutch food industry as well as in
international markets.. Their knowledge was valuable due to the fact it gave great insight current
business activities in the food industry.
Guido Verschoor
Guido Verschoor is the Senior Horeca Advisor at van Spronsen & Partners Horeca – advise.
Van Spronsen & Partners is an advisory bureau for the hospitality and leisure industry.
Guido Verschoor was approached for his experience in strategic consultancy for traditional
foodservice companies regarding future developments in the Dutch food industry.
Bas van der Krogt
Bas van der Krogt is the E-commerce manager at the head office of Hoogvliet supermarkets. Bas van
der Krogt was approached as he is a highly experienced e-commerce manager for online food retailer.
Since 1988 he has consulted and guided offline retailers into the online sector in grating the online
channel in the overall business plan. His experiences provide insight from an internal perspective.
Marketing manager at an online food platform
The marketing manager is the marketing manager and team leader at the marketing department at
the head office of a well-established online food organisation in the Netherlands. The food company
can be categorised as fast food/ home delivery. She was approached as she is active for an online food
platform providing insight form an internal perspective. Furthermore she is well experienced in the
marketing department of the food organisation and other food industry companies. Her contribution
is valuable as company she works, gives a vision on the role of a food platform in the (online) food
industry. She wished to stay anonymous, therefore she will be referred to as the marketing manager
or candidate 8.
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6.5. ANALYSIS
The collected data from the interviews are structured via the qualitative research method coding.
The coding method is used as it is a tool that helps during the analytical process to structure
qualitative data and order it logical information. The following chapter describes the main findings per
industry expert. The findings are coded and subdivided under themes based of the conceptual model.
The codes are derived from the following criteria: relevant words, phrases, sentences or sections and
from relevant actions, activities, concepts, differences, opinions, processes.
The codes are written out and themed as follows:
1. The behaviour of today’s food shopper
2. The impact of digitalisation
3. The online food industry
The research results per industry expert can be found in following appendices: Table 9.
Industry experts Appendices
Stef Driessen Appendix 5.A. Interview Stef Driessen Appendix 5.B. Research results Stef Driessen
Bartho Schols Appendix 6.A. Interview Bartho Schols Appendix 6.B. Research results Bartho Schols
Remko Klasen Appendix 7.A. Interview Remko Klasen Appendix 7.B. Research results Remko Klasen
Ubel Zuiderveld Appendix 8.A. Interview Ubel Zuiderveld Appendix 8.B. Research results Ubel Zuiderveld
Michiel van Noort & Liewe van der Werff
Appendix 9.A. Interview Michiel van Noort & Liewe van der Werff Appendix 9.B. Research results M. van Noort & L. van der Werff
Guido Verschoor Appendix 10.A. Interview Guido Verschoor Appendix 10.B. Research results Guido Verschoor
Bas van der Krogt Appendix 11.A. Interview Bas van de Krogt Appendix 11.B. Research results Bas van de Krogt
Marketing manager online food platform
Appendix 12.A. Interview Marketing manager Appendix 12.B. Research results Marketing manager
In chapter 7 the research continues by analysing the findings, merely going in depth on the elements
derived from the conceptual model (See appendices 3 & 4 for the conceptual model and interview
guide)
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CHAPTER 7. ANALYSIS
7.1. INTRODUCTION
The analysis is derived from the interview results. The results were categorised based on themes
derived from the theoretical framework. During this chapter the findings will be analysed. See
appendix 5.B.- 6.B.- 7.B.- 8.B.- 9.B.- 10.B.- 11.B.- 12.B. for research results. The following elements
(codes) were derived during the interviewing phase and are further explained and analysed in this
chapter. The experience per industry experts varies per interview topic. For this reason, only most
valuable input in regard to disruption by online food platforms is analysed and processed.
Table 10.
Themes Outcomes
I. Behaviour of today’s food shopper: Changing demographics
Price in proportion to quality
Convenience-driven
Push & Pull factors
Individual needs
The physical experience
II. The impact of digitalisation: Digital forces inflicting change
The awareness of online food purchasing
III. The development of the (online) food industry:
Enforcing international developments
Offer distinguished product
Seek collaborations
Simplifying processes
Strengthen food shopper relationship
Prospect
7.2. BEHAVIOUR OF TODAY’S FOOD SHOPPER
The interviews have led to new insight on the consumers buying behaviour regarding current
developments in the online food industry in the Netherlands. The desk research mainly provided
insight on the general food shopping behaviour in the Netherlands and the online food purchasing
behaviour in a similar and more progressed food industry, that of the UK. The information gathered
through the interviews provides a more detailed look on the online food purchasing behaviour in the
Netherlands. The following driving factors are considered essential on a personal and external level by
means of influencing the food purchasing attitude in regard to the online food platforms.
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7.2.1. CHANGING DEMOGRAPHICS
Five of eight food experts discuss that the current demographic developments are one of the main
external influencing factors in the online and offline buying behaviour. By the demographic factor the
changing needs per generation, in regard to digitalisation is intended. Ubel Zuiderveld elaborates on
this factor by stating this is not only due to age, but to the lifestyle of the food shopper as food
shoppers identify themselves by their choice of food and via which channels they purchase their food.
Today, the food shopper is becoming more orientated on healthy and responsible products.
Stef Driessen, Liewe van der Werff and Michiel van Noort discuss the different generation groups, by
which millennials (1985-2000) and the Pragmatic generation (1970-1985) are the main generation
groups who are mostly involved with the digital developments.
Remko Klasen supplements by stating that there is a generation gap regarding the involvement in the
digital transformation of the market, 35+ food shoppers are less involved. Moreover he states that
shifting generations also induce the level of comfort for a food shopper. Digital processes are being
simplified, therefor the younger generation seek instant gratification during their processes online.
Candidate 8 who operates for an online food platform discusses that generation gap has no negative
influence in the online buying behaviour of the online food shopper. She explains that naturally online
ordering is more integrated in the younger generation, but she explains that the online disruption is
becoming more integrated in elderly segment. For the youth it is a second nature only the older
generation have become well familiarised with online channels.
The technological factors are considered as the digital transformation of the food industry. Every food
expert states that the development of technology is a major influence for the food shopper’s buying
behaviour. The technological factors will be further explained in the impact of digitalisation paragraph.
7.2.2. PRICE & QUALITY
Most of the food experts state that economic developments are a vital influence for the online and
general buying behaviour of the food shopper. By economic developments the financial situation of
the food shopper is considered by means of their trust in the economy and the reaction to the price
levels in the food market. This factor correlates with the consumer’s spending power.
Bartho schols states that considering the critical mind-set, the food shopper are not largely influenced
by changing price levels, as the need for convenience and quality overrule the financial aspect in the
food shopper’s buying process.
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Remko Klasen and Stef Driessen agree to a certain point. They state that the food shopper who seek
quality products are willing to pay extra to receive that quality. That applies for both for online as
offline buying behaviour. Candidate 8 supplements to this point by stating that discounting is a major
influencer for the online buying behaviour.
Ubel Zuiderveld argues that due to the critical mind-set, price in proportion to quality is today’s most
influential factors in the online food shopper’s buying behaviour. And that is mind-set will not quickly
change. He further states that the familiarity of products have a large influence, in other words the
experience of the quality of the product and the trust of the brand. He explains by stating online
platforms such as Albert Heijn online have an advantage as they also have a well-known physical
presence in the Dutch food market.
During the interviews, quality of products was also perceived as healthy, sustainable, responsible and
as local produced products. Remko Klasen explains that today’s food shopper is becoming more aware
on the quality and nutrition of the product. Seeking familiar products that fit their lifestyle and is
convenient to purchase. He sees that the food shopper seeks local and responsible products in which
the food shopper can orientate on the origin of the products. He explains this by stating that food
shopper purchases products from companies who provide sufficient information about the origins and
the quality, such as supermarkets, speciality shops and online platforms such a Hellofresh, Beef and
steak, or Willem & Drees. Ubel Zuiderveld supplements, by stating the food shopper of today is
developing a healthier lifestyle, leading to the more demand for local produced products.
Liewe van der Werff, Michiel van Noort and Guido Verschoor all see a changing aspect in buying
behaviour regarding the perception of quality in proportion to price. Food shoppers either choose for
luxurious quality and expensive products or basic quality and less expensive products. Such as
Biological supermarkets vs. and Aldi or a Lidl. In both cases the perception of the quality of the
product is high, stating that the quality of products is perceived on different levels. For this reason
they state that the middle class is slowly disappearing in the Dutch food industry.
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7.2.3. CONVENIENCE-DRIVEN
It is a fact that food shopper of today is immensely convenience-driven. The industry experts discuss
this factor by means of various aspects on the convenience-driven attitude. Liewe van der Werff,
Michiel van Noort, Bas van Krogt and candidate 8 explicitly state that the food shopper has less time
for extensive buying processes, therefor purchasing processes need to be convenient and simplified.
Bas van Krogt further states that food shoppers are seeking life hacks, whereas the food shoppers
mind-set is oriented on convenient daily activities, processes and food products.
He further states that the online buying behaviour in regard to convenience factors are driven by the
convenience of home delivery, the option to compare products, the obtainability of the assortment of
products. All industry experts agree on the point made by Bas van Krogt by defying this as the concept
of anywhere, anyplace, anytime.
Ubel Zuiderveld contributes to this concept by stating that during the orientation process of the food
shopper, decisions are made at the last minute. for instance, whether to order food online vs. to go
out or physically purchase groceries vs. ordering them online. These processes are more
spontaneously and instantly based, making the process shorter. Impulse decisions are therefore
becoming more popular in the food industry, and are important for the online food market.
7.2.4. PUSH & PULL FACTORS
Stef Driessen states that the food shopper of today needs assistance steering their choices during
their buying process. This reflects back to the convenience-driven attitude, as choices are being
steered via push and pull factors.
Remko Klasen, Bartho Schols, Guido Verschoor, Liewe van der Werff and Michiel van Noort all state
that food shoppers behaviour is largely influenced by others. Media and social media play an
important role in inspiring food shoppers to obtain quality. Examples are given, such as 24 kitchen,
and the concept of Hellofresh. Ubel Zuiderveld discusses the instigating driver as the power of
“friends” of the same mind. In the past their were society groupings such as Calvinists, now there are
internet society groups such as Facebook or Instagram friends, who are important for steering the
choices of food affairs that consumers feel most comfortable with. Furthermore he states that the
reason for last minute decisions is also influenced by factors such as the media, social media and
internet friends.
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Michiel van Noort and Remko Klasen agree on the factor that is often overlooked. That is the influence
of food bloggers. Beside the influence other food shoppers will inflict, food bloggers are also becoming
more active via offline channels to present their ideas and views on online platform experiences or
other related food activities and products. Liewe van der Werff, Guido Verschoor and the other
experts agree on the point that the food shopper’s power to research and compare products and
services is immensely increasing. Only Liewe van der Werff and Guido Verschoor state that this is due
to the food shopper’s trust in different food brands. Food shoppers are seeking the “truth”, constantly
searching for confirmation by others. Experiences by others are there for a powerful influencer in the
online buying behaviour.
Bartho Schols explains push & pull factors in the form of content management of a food company. He
states that food companies need to extensively present their content, via online as well as offline
channels in order to push the brand or products to consumers. Liewe van der Werff and Michiel van
Noort elaborate via a pull factor, as they previously state that it is vital to collect food shopper data to
optimally present individualised content of a food company.
Ubel Zuiderveld explains this concept by stating that that today’s online culture is driven on emotional
images. Consumers are being triggered by images and illustrations. Facts and words will hold less
value in the future. Consumers will be driven by illustrations that stimulate their emotions. He
elaborates by indicating this development as a convenience-driven attitude.
Candidate 8 particularity describes the online content factor, as this is a major driver in the online
buying process. Via online channels, businesses can optimise the display of their end-products instead
of offline, allowing more information to be provided to consumers.
7.2.5. INDIVIDUAL NEEDS
A frequent discussed topic with all experts is the individual needs of the food shopper of today. The
individual needs are defined as the food shoppers demand products and service to be customized to
their personal needs. Despite the individual needs, Stef Driessen explicitly states that the food shopper
needs assistance in their buying process, by means of steering their decisions due to customized
content. Customizing products and services based on the food shoppers needs is also discussed in the
form of utilizing consumer data. Utilizing consumer data will be further analysed in the paragraph,
impact of digitalisation.
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Ubel Zuiderveld elaborates that due to the technological developments the food shopper’s needs are
becoming more individually supplied. He explains consumers have the option to seek information to
satisfy personal needs via multiple digital channels, with the internet as the main driver. He sees
outdated large society groups disappearing and individual smaller groups with specific needs
emerging.
7.2.6. PHYSICAL EXPERIENCE
The industry experts all agree that online food platforms are becoming more present in the Dutch
food industry. The physical experiences described in this paragraph are considered as the physical
experience when purchasing food and beverage products, such as in out-of-home outlets (restaurant,
café, bar, ect.), or at at-home outlets such as supermarkets, speciality shops or food markets.
All industry experts agree that the need for physical experiences is very much present and growing in
form of food markets/festivals and smaller initiatives such as speciality shops. Ubel Zuiderveld further
argues that even though consumers are becoming more individualised, consumers also demand group
efforts in a physical forms. Social in correlation with physical activities have a primary position in the
consumer’s behaviour. Which can be seen with the rise of food markets and food festivals where
consumers go to for the social experience.
Michiel van Noort, Stef Driessen and Ubel Zuiderveld argue that the adaption to online food sales is
not immediately required in all Dutch regions. Particularly the need for online grocery shopping is in
his perspective not widely required in the Dutch food industry mainly due to the density of food
outlets in both the at-home and out-of-home channels.
7.3. THE IMPACT OF DIGITALISATION
From the interviews a range of similar issues regarding digitalisation were addressed by different
experts. The issues were gathered and formulated to the following headings: Digital forces inflicting
change, and the awareness of online food purchasing. The following factors are considered most
powerful in inflicting change in the environment as well as the food shopper’s buying behaviour.
7.3.1. DIGITAL FORCES INFLICTING CHANGE
The greater part of the experts have argued that the rapid growth of technology such as the use of
mobile devices is a major digital development inflicting change in the online and offline food industry.
Stef Driessen sees mobile devices becoming more than merely a tool, he states that a mobile device
will become a food shopper’s personal assistant. The mobile will completely adapt to the personal
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lifestyle of the consumer. He specifically explains via the utilisation of mobile Apps, as Apps will assist
more with personal preferences and lifestyle.
Candidate 8 discusses a new and growing form of online ordering, by means of ordering via smart-
televisions. She states that mobile and smart-television ordering will play a larger role in the future of
online food ordering.
Liewe van der Werff agrees with the statement of Stef Driessen. He discusses that the use of mobile
devices deliver information to satisfy food shopper’s needs directly into the palm of their hand. Stating
that digital developments regarding mobile use are increasing expectations as it inflicts instant
gratification. The experts all agree that utilisation of the food shopper’s digital shared data is key to
optimise buying processes and ultimately business objectives. Ubel Zuiderveld states that measuring
digital data will have an immense impact on the business of food industry companies. The data is
becoming more detailed, creating opportunities for companies to identify specific needs of their food
shoppers.
Both Ubel Zuiderveld and Stef Driessen particularly mention the concept of ‘self-teaching algorithm.
Stef Driessen discusses that the future lies with this digital force of change. More data is being
generated and measured, and society is becoming a censored driven society. Self-teaching algorithm
assists in measuring how a consumer behaves, and it continues to learn and react based on that
information.
Liewe van der Werff and Michiel van Noort supplement to the statements of Stef Driessen and Ubel
Zuiderveld, by discussing that filtering the large amount of accessible food shopper data, or ‘Big data’
to smart data, by which he means, utilising the data to beneficial results such as personalising
products. This will immensely grow in the near future, the relationship between consumer and
business will grow more intimate due to the knowledge and utilization of consumer information. They
further discussed that this is a two way street, as consumers also expect to receive more in-depth
content from a food businesses. Food companies are required to get more transparent.
Bartho Schols and Bas van der Krogt both argue that considering the presence of digital forces that
inflict change in the food industry such as mobile use, data utilization, and internet spread, the
coherence between such developments is not optimal and require fine-tuning.
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7.3.2. THE AWERENESS OF ONLINE FOOD PURCHASING
Ubel Zuiderveld states that digitalisation in regard to disruption of online food platforms is in its
beginning stage and will immensely grow in the near future. This will be fatal for numerous smaller
initiatives such as local supermarkets, and traditional restaurants and cafes.
Remko Klasen strongly agrees, as he states that the digitalisation is killing for the out-of-home
segment, traditional outlets such as hotels, restaurants and cafés. Remko Klasen argues that the need
for modernisation is taking over. This reflect to the younger generation, who demand modern and hip
concepts such as sushi delivery concept and sparerib expresses. Such concepts are easy to integrate
via online channels, therefor they fiercely compete with the traditional food outlets.
Remko Klasen and Bas van der Krogt agree on the point of the atomisation of processes. To keep costs
low processes are being automated and digitalised. This is due the critical mind-set of consumers. This
forms a hazard for online food businesses, as the general perception of online food products are
cheaper than the physical purchases.
7.4. THE DEVELOPMENT OF THE DUTCH FOOD INDUSTRY
This section provides insight on the experts visions on how to respond to the disruption of online food
platforms in Dutch food industry. Recurring and most valuable recommendations and implications in
regard to the disruption are analysed. The following themes were derived:
Enforcing international developments, offer distinguished products, seek collaborations, strengthen
food shopper relationship, simplify processes, and prospect.
7.4.1. ENFORCING INTERNATIONAL DEVELOPMENTS
The industry experts have different views and opinions on the progression in international food
industries such as in the US and the UK. That also counts for the matter of utilising or adapting
industry trends and developments in the Dutch industry. The experts all agree to a certain point that
the Dutch industry should learn from trends and development in international food industries such as
in the US and UK.
Steff Driessen states that the Dutch food industry should focus on administrating expansion strategies
in which parties are actively taken over in order to create more volume. He gives examples by naming
Thuisbezorgd.nl and Justeat.com, by which he indicates more of such expansion formulas should be
administered.
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Bas van der Krogt states that the Dutch food industry can definitely learn from the food industries in
the US and UK, however, the Dutch industry does not quickly adapt to new trends and developments
or experiment on the matter of online food platforms.
Ubel Zuiderveld largely agrees with the statement by Bas van de Krogt. He discusses that the
Netherlands have been weak adapting to new international trends and developments such an online
food concepts, as they were excessively observing internal developments, not considering the
international progression regarding the online food platforms. Presently, it is considered that the
market is showing initiative again, observing foreign industry trends. Due to the lack of observations
the Netherlands lost their guiding position as trend setter in Europe. That being said, Ubel Zuiderveld
discusses that globally various food concepts regarding digitalisation are emerging. Indicating that
various countries create innovative concepts and set new trends instead of the US food industry being
the main instigator.
Bartho Schols defines the utilisation of international developments on product-quality level. He
describes the product-quality level as the main difference between the US and Dutch food market, by
means of the healthy, organic, local and responsible lifestyle. The Dutch food industry as well as other
food industries in Europe are more progressed on this matter. He further explains that due to scale
size it is different to compare both markets.
Ubel Zuiderveld and Bas van der Krogt agree with Bartho Schols on the minimum scale size of the
Dutch food market in proportion to that of the US and British food industry. Hence, the strength of the
Dutch industry, as the density of the Dutch infrastructure makes distribution channels, such as at-
home delivery platforms, easy to implement. He elaborates with the example of food retailing in the
at-home channel. The online food retailing in form of online grocery shopping is far less progressed in
comparison to the British market. Therefore, the online food retailing segment should definitely learn
from the progression in the UK.
Liewe van der Werff suggests that the Dutch online food market, particularly at-home channels, offer
a wider range of products, such as non-food products. An example is given of certain US supermarket
in the US who additionally sell car tires via their online platform.
It is largely accepted that the food industries in the US and UK are instigators to the development of
the Dutch food industry. It is agreed upon that the Dutch food industry is considered weak adapting to
international trends. Nevertheless, the industry is showing progress again, observing international
developments regarding food concepts.
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7.4.2. OFFER DISTINGUISHED PRODUCT
A frequent discussed topic by the food experts is distinguishing a food company’s product in order to
obtain a distinct position in the food market.
Michiel van Noort discusses the distinction of products in form of branding. He particularly means in
the out-of-home channel, in which online food platforms can form new competition for restaurants,
cafes, bars etc. He states that creating a specific brand or product in order to create uniqueness, is the
solution for smaller initiatives to survive in this changing online and offline environment. A
disadvantage of digitalisation regarding an online business, is eliminating the surprise factor in the
experience, as consumer’s needs are instantly attainable.
Ubel Zuiderveld supplements by stating that the competition in the online and offline food industry in
the Netherlands is growing, creating diversity and numerous of options for consumer to attain their
needed product.
Bartho Schols supplements to the statement regarding the out-of-home channel by stating not to
disclose the adaption to doing business online. However he argues that food businesses who adapt to
the online disruption are to maintain their quality. E.g. restaurants who will deliver at home will not be
perceived as fast food restaurants. Food businesses should be innovative and authentic at offering
their products online in order to be unique and capture market share. Food shoppers require genuine
experiences and sense if it is just a marketing proposition.
Stef Driessen describes this aspect as creating the needed value for the consumers.
7.4.3. SEEK COLLABORATION
Seeking collaboration to strengthen the position of an online food company (platform) is widely
suggested by all industry experts. Stef Driessen, Remko Klasen, Michiel van Noort and Bartho Schols
explicitly state that there is not enough joined effort in the market to increase volume and market
share. Collaborations between food outlets offering various types of brands and products allow
enhanced online platforms to be created. For small initiatives a collaboration is essential in order to
stay competitive in the competing market, particularly the at-home outlets, such as speciality shops.
7.4.4. STRENGHTEN FOOD SHOPPER RELATIONSHIP
In the first paragraph the experts discussed the changing buying behaviour of today’s food shopper
regarding the online disruption. The food shopper’s needs are shifting, numerous of options are
provided to satisfy those needs via online and offline channels. Creating unique experiences and
seeking collaborations to attain market share do not alone suffice for a prosperous online or offline
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food businesses. Steff Driessen additionally states, it is vital for a food company to invest in the
relationship with the food shopper, in order to respond to their particular needs.
Bartho Schols sees that the at-home channel, with regard to large organisation such as supermarkets,
should be more active customizing their products to the needs of their consumers. Smaller initiatives
should emphasis more on their specialised products as that will capture market share from larger
organisations.
Ubel Zuiderveld agrees with Bartho Schols. He elaborates by stating that food industry entrepreneurs
are too conservative and need to react quicker to new trends and developments. He emphasises by
stating that online and offline food businesses should not think in providing a channel but think in
providing a personalised product and service. He further elaborates by stating digitalisation will have
its disadvantages, as can be seen in the US food market. The integration level per consumer will vary,
creating a gap between well adapted users and less adapted users.
Guido Verschoor supplements to the statement by Bartho Schols as he sees that the out-of-home
channel, regarding smaller initiatives such as speciality shops are developing communities around
their product/brand. The relationship between a business and a consumer is becoming more intimate.
Candidate 8 also gives recommendations with regard to digitalisation as she specifically states that
consumer databases are key for food businesses, in which personal information can be required to
stunt with prices.
7.4.5. SIMPLYFYING PROCESSES
Simplifying processes is the result of the convenience-driven attitude of the food shopper of today.
Candidate 8 states that due to the convenience-driven buying behaviour, food shoppers seek quick
buying processes that consume minimal time. An online food platform is therefore an ideal method to
purchase food and beverages products as a food business can optimise the display of their end-
products as an alternative to offline channels. More detailed and required information about a
product can be obtained via such simple buying processes.
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Stef Driessen elaborates on simple buying processes with the example of convenient payment
procedures. He states that the Dutch food industry is not as progressed as in the UK and US in regard
to simplifying payment procedures. In these industries consumer processes are more personalised,
shorter and simpler. He discusses that food businesses invest in simplifying the process of payment
and ordering in combination with obtaining consumer data to offer products more customized to the
needs of the consumer.
As stated by Ubel Zuiderveld, today’s culture is transforming to an online culture driven on emotional
images, triggering food shopper with images and illustrations. This form is also considered as a
simplified and effective method of selling a product.
7.4.6. PROSPECT
The industry experts have different opinions on the future of the position of Dutch online food
platforms. Bartho Schols and Remko Klasen agree that the concept of ‘online disruption’ will grow and
will form to the concept ‘online merging’. Online and offline food businesses will fuse in the next 10 to
20 years, creating new business opportunities in the Dutch food industry. Bartho Schols state that
online food purchasing will outgrow the physical purchasing experiences, due to the required
simplified processes eliminating negative physical experiences, such as from staff and other food
shoppers. Remko Klasen noticed that the physical experience will keep the upper hand, as this is due
to physical attention and interaction consumers require.
On top of that both Remko Klasen and Bartho Schols state that considering the merging in the food
industry, a fine line will be created between online and physical food related experiences in the future,
as a gap will form between the two types of experiences. Ubel Zuiderveld predicts that due to the
growth of online platforms a countermovement will arise. Food shoppers will seek physical
experiences to dissociate from the online food purchasing concept.
Remko Klasen, Guido Verschoor and candidate 8 state that the online disruption will be fatal for
traditional food outlets in the out-of-home channel. Most of the experts recommend existing food
businesses and new entrants to emphasise on their uniqueness of their products and services online
or offline to stay competitive. Moreover food businesses should emphasise on their price and quality
proportion. Eventually plain concepts will not exist anymore in the future of the Dutch food industry.
He further states that new and traditional businesses should consider the integration level of an online
platform in a company as the investment costs are high.
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Guido Verschoor, Michiel van Noort and Liewe van der Werff argue that the adaption to online sales
of food is not immediately needed in all Dutch regions. Particularly the need for online grocery
shopping is in their perspective not widely required in the Dutch food industry mainly due to the
density of food outlets such as supermarkets, and the large investment of online sales.
Stef Driessen expects that online food ordering in at-home and out-of-home channels will grow in the
future, especially in regard to the digital “personal assistants”. Measuring consumer data will be more
fine-tuned and customized to their needs. Cash will disappear from the payment process, digital
payments will be the future. Furthermore he expects that the at-home channel will compete heavily
with the out-home-channel as at-home channels are slowly offering various products of out-of-home
standards. Especially in regard to online home delivery and pick up points.
Ubel Zuiderveld and candidate 8 see a similar development in the future of the Dutch food industry.
They expect wholesalers and manufacturers to play a larger role in de distribution process, by directly
selling to consumers. Such as Nespresso and Deli XL. They see traditional thinking patterns expiring
which forming new business models.
Bas van der Krogt states that 10 years from now the supply chain will operate more in real-time, by
means of groceries being ordered and delivered just in time (last minute) The consumer today still
stocks to much supplies which leads to food perish. From a business perspective food retailers are too
busy organising their warehouse by which consumers spend too much time planning and organising
their daily groceries. This will influence impulse decisions and it will simplify buying processes.
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CHAPTER 8. CONCLUSION
8.1. INTRODUCTION
The disruption of online food platforms is a present concept in the Dutch food industry. Online food
platforms are at a beginning stage in the Dutch food market in contrast to leading food markets in the
United States and Great Britain, who are more progressed and have an example position.
The changing consumer behaviour in correlation with digitalisation cause the environment of the food
industry to change. Due to this change, traditional thinking patterns expire. Research and actual online
business developments have shown that adapting to the online disruption have proposed valuable
outcomes. However, investing in an online platform are high and most food businesses are tied to
traditional business models making the adaption to go online questionable for feasibility. Eventually
new market entrants (online platforms) will force traditional businesses to consider the online
integration. The purpose of this research is to define the disrupting effects online platforms have on
the traditional food businesses. These effects will be translated into recommendations for new and
existing food businesses. This chapter will give conclusions derived from the interview results and
analysis. The conclusions are given to answer the main research question and sub questions of this
research assignment.
Table 11.
Research question How can the Dutch food industry anticipate the disrupting effects online food platforms have on their businesses?
Analyses of the driver forces of online food platform disruption, recommendations for existing businesses and new entrants in the (online) food industry in the Netherlands.
Sub questions I. What are virtual/online food platforms? Literature research
Description of structuring online food platforms in the food industry.
II. Why are online food platforms disrupting the Dutch food industry? Literature research & field research via interviews
Behaviour of today’s food shopper: Changing demographics, Price in proportion to quality , Convenience-driven, Push & Pull factors, Individual needs, The physical experience The impact of digitalisation: Digital forces inflicting change, The awareness of online food purchasing
III. How should food businesses respond to the online disruption in the Dutch food industry? Literature research & field research by interviews
The development of the of the (online) food industry: Enforcing international developments, Offer distinguished product, Seek collaborations, Simplifying processes, Strengthen food shopper relationship, Prospects.
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8.2. THE CURRENT STATE OF ONLINE FOOD PLATFORMS
Various forms of online food platforms are already established in the Dutch food industry and
continue to grow. Foreign progression in the US industry (Foodlogistic, 2014) structures the online
food platform market by categorising them as followed:
Retail stores with online stores
These stores offer home-delivery and pick-up. The orders are fulfilled from store shelves and e-
commerce distribution centres. Examples include Target.com Meijer.com and the Freshmarket.com.
In the Netherlands Albert Heijn online is the main player acting on this format. Other food retail stores
such as Jumbo, Plus, Spar and Hoogvliet are catching up providing their online grocery shopping
platforms.
Dedicated e-tailers that stock inventory
The company does not have a physical storefront, but maintains its own warehouse.
Examples include Amazon, Vitacost and MyNaturalMarket.com. Stores in the Netherlands body and
fitshop, ekokopen.nl or degroentetas.nl,
Virtual e-tailers
The company does not have a physical store or warehouse, they function as an intermediary for
manufacturers. Examples include Takeaway.com. Such platforms show much potential in the Dutch
food e-commerce, thuisbezorgd.nl, justeat.com and etenbestellen.nl are the frequently used
platforms among the Dutch consumers.
E-tailers that provide their own delivery
Examples include Newyorkpizza, Hellofresh and amazon fresh. Currently Hellofresh is a popular e-
tailer in the Netherlands. Furthermore Newyorkpizza and Domino’s are main players in this area.
Virtual home delivery (food retail intermediaries)
This is a company that operates as an intermediary for food retailers.
Examples include Google Shopping Express, Amazon and Instacart. Due to the fact that Albert Heijn
online is dominating the Dutch food retail sector no intermediate platforms are demanded by
consumers for purchasing food products from different food retailers.
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8.3. THE DRIVING FORCES OF ONLINE DISRUPTION BY FOOD PLATFORMS
The following conclusions where derived based on the industry experts opinions on why online food
platforms have a disrupting effect in the food market. The disrupting effects can be explained by two
driving forces, 1. The food shopper’s buying behaviour. the environment of the food industry is
changing, influencing the food shopper’s attitude to the process of food purchasing.
2. Digital transformation. The impact of digital developments inflicts change in food shopper’s buying
behaviour as well as for business strategies. The two drivers are intertwined, who constantly influence
each other.
Digitalisation is a rapid growing force that has an immense impact on the buying behaviour of the food
shopper. Through the aging generations the adaption of digital trends and technology is integrating as
a second nature. Food shoppers needs are steered by digital tools to a convenience-driven society.
Buying processes are getting shorter, simpler and less time consuming. Moreover, with the digital
transformation, the limit to privacy is declining as personal digital data is shared and utilised by food
companies to satisfy the specific and personal needs of today’s food shopper.
Moreover, due to the convenience mind-set, food shoppers still require assistance during their buying
process, by being triggered by food businesses to purchase their product. Personalisation is an
effective approach to push products.
It is agreed upon that food shoppers seek confirmation in their buying process. In regard to the
technological and digital developments, the food shopper have instant access to infinite reviews, ideas
and visions on food related products and activities, which have an immense impact on their decisions.
The concept of anywhere, anyplace, anytime is well integrated in the digitalised consumer market.
In regard to digitalisation simplifying consumer processes, the need for quality is largely required in
the Dutch food market. Due to power and accessibility to research, consumers are becoming more
knowledgeable of their demanded products. Origin, responsible/sustainability, local, and health are
considered essential in the lifestyle of the food shopper of today. Food businesses are aware of the
this quality that is demanded, offering different levels of quality in different price scales, such as an
Aldi vs. an Albert Heijn.
The financial situation could bound the food shopper to attain the required quality, as the consumer
still has a critical mind-set. Nevertheless it is discussed that the price should not form an obstacle
when seeking for quality, as food shoppers are willing to spend more to attain that quality.
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Regardless of the digital transformation of the food market, the need for physical experiences stays
present. Currently traditional out-of-home and at-home food outlets do not see the online food
platforms as an immediate threat. Only future online growth will force existing food businesses to
consider potential business opportunities or threats regarding the online disruption.
8.4. IMPLICATIONS FOR FOOD BUSINESSES
During the period of transiting, the following recommendations were discussed applicable to
traditional food businesses and new market entrants in order to benefit from the changing
environment versus refusing to adapt.
First off all, the Dutch food industry should widen their perspective and start observing international
trends more intensively. The state of the Dutch food market regarding online food platforms is lacking
pro-activity. Food entrepreneurs are too conservative and do not quickly adapt to new trends.
The following implications where derived by observing the international trends in the food industries
of the US and UK in comparison to the Dutch food industry:
- administrating expansion strategies in which parties are actively taken over in order to
create more volume. E.g. concept of an online food intermediary such as Thuisbezorgd
- Content management of a business, by means of providing consumers extensive
knowledge about the offered products, such as origin, nutrition level, or sustainability.
- The density of the Dutch food market provide opportunities for enhanced meal delivery
platforms, due to a smaller scale for distribution chains.
- Extend the range of products offered, including non-food products via online platforms.
Furthermore, recurring and most valuable recommendations that were derived by the experts input
are discussed.
The food shopper’s needs are changing and the surprise factor is disappearing in the food purchasing
experience. This is due to the instant access to all sorts of food related information and reviews.
On top of that, the food shopper has a wide selection of various online and offline food companies to
choose from. With the rise of online food platforms, the industry is becoming even more competitive.
Distinctions of products, services or a brands should be implemented, in order to offer unique and
authentic experiences that will capture the interest of the food shopper of today.
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Smaller food initiatives in the at-home and out-of-home channel are struggling. To compete with the
larger firms collective solutions should be set up in order strengthen the position of a group of smaller
initiatives. Seeking collaborations to offer joined food platforms is an much-discussed example. Due to
the collaborations food outlets stay competitive by increasing market share and volume.
The food shopper’s needs are shifting, and food companies must be proactive to thoroughly invest in
the these needs. Personal information about the food shopper is openly attainable and easy to utilise.
Food companies should invest in strengthening the relationship with the food shopper by engaging
further to their personal needs. Digitalisation provides the tools to this success, as online channels
technological developments provide numerous ways to reach the food shopper. That being said, the
digital gap between well adapted and lesser adapted users is still present. Food companies should
consider the integration level of all their food shoppers, in order to apply appropriate strategies to
reach consumers in different generations.
The convenience-driven attitude of food shopper is the main reason for the success of online food
platforms. Today’s society is transforming to an online culture driven on emotional images triggering
food shoppers with images and illustrations, indicating a simpler form of orientation during online
purchasing processes. Food purchasing processes should be simple, efficient, quick, and preferable
cheap. For these reasons an online platform is an ideal method to purchase food and beverage
products as a food business can optimise the display of their end-products as an alternative to offline
channels.
It can be concluded that numerous of online and offline market strategies for traditional and new food
business are considered, yet not fully implemented in the food industry. Which still leaves a great deal
of business opportunities to widen the market share.
8.5. EXPLORING THE FUTURE
Different opinions came up throughout the interviews in regard to the future of the food industry.
Suppose food businesses will not adopt to the given recommendations, maintain the traditional
business patterns, the industry’s environment is undoubtedly to change. The correlation of the rapid
growth of digitalisation and change in consumer buying behaviour translates to the leading concept of
the online disruption of food platforms. The coherence between the changing consumer behaviour
and the digital transformation inflicts new businesses proposals. Business to consumer processes are
reshaping due to convenient, personalised, and price- quality sensitive factors. Physical forms of food
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purchasing are expiring as new online channels fulfils the changing need of the food shopper. It is
expected that existing food businesses will adapt to the online transformation, with new entrants
forming a digital revolution. The concept of ‘online disruption’ will transform to ‘online merging’.
That being said, the need for physical food shopping experiences will maintain a strong position is the
food industry. Through the merging of the online and physical food market, a fine line will form
between both experiences. The gap will distinguish the food shopper’s attitude towards physical or
digital purchases of food and beverage products. Due to the growth of online food platforms, a
countermovement will arise. Food shoppers will seek physical experiences to dissociate from the
online food purchasing concept.
Traditional business models are considered to be fatal in the future regarding the online disruption.
The recommendations should be considered before adapting to the online transformation, as it
requires a large investment. Dissociating from the online concept by means of offering unique physical
experiences can form a solution. Eventually plain food concept will disappear from the food industry.
The conclusion of the experts opinions is that the online disruption of food platforms is a powerful
phenomenon. It leads to numerous of possibilities for businesses to find new means of adding value
for food shoppers and stay successful in the competitive market. This means that the change
determines which food businesses are capable of being innovative and distinguished, determining
which food bushiness fall behind due to the clinging on to traditional strategies.
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CHAPTER 9. DISCUSSION
This chapter will describe the author’s interpretations on the research results. The research is
evaluated by means of discussing the expectations, causes and effects of the results, and the
limitations of online disruption. The author clarifies the expectations derived from the literature
research, field research and the authors own knowledge.
9.1. THE CURRENT PRESENCE OF ONLINE FOOD PLATFORMS
It has becomes clear that concept of the online disruption of food platforms is reasonably present in
the Dutch food industry. The initial starting point of this research came down to reviewing what types
of online food platforms could be categorised as an online food platform, why they are becoming so
popular and in what way in would challenge the industry to this new type of general food purchasing.
Throughout this research is became clear that the Dutch market is actually waiting for the disruption
to hit the food industry. The Dutch food industry is not as progressed and striving as the consumers
and food businesses think. FSIN illustrated the beginning stage of the online food market with the
innovations Curve model by Roger’s, it which is it can be seen how quickly the disruption comes to
existence, especially for the online food market. (P.13)
As the experts state, the Dutch food industry has been poor in observing and utilising international
trends indicating the poor progressed state of the Dutch food industry regarding online disruption.
Furthermore the complexity of the intertwined forces that drive the online disruption, digitalisation
and consumer buying behaviour, are intensified when discussed by the industry experts. The results of
the literature studies and field research define the driving factors of today’s food shopper buying
attitude, as they are convenience seeking, price-quality sensitive, personalised, and digitally
orientated. The digital consumer needs model by Microsoft (2015) is an accurate illustration on how
needs are orientated based on digitalisation,
as it explains how consumers move between focusing on themselves as an individual versus the need
to connect with others and share experiences. (Appendix 2)
The food shoppers require stimulation and guidance throughout the wide selection of food purchasing
possibilities. The continues growth and progressing developments intensify the identified driving
factors. In short, the concept of online food purchasing orientates on what the added value is for the
food shoppers of today.
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Recent information on the difference between online and offline buying behaviour was gathered by
the author. The author attended the summer congress 2015 of Foodservice Instituut Nederland where
Jan-Willem Grievink, FSIN founder, Paul Bringman, La Place founder and FSIN board member, and
Christian van Someren, advisor and entrepreneur in E-commerce, provided lectures on the current
developments in the Dutch food industry with regard to online disruption.
During the congress the changing environment in the food industry and the online transformation
were discussed. The added knowledge of the industry experts, supplements the findings of the
literature- and field research, as it can be derived that the consumer-market of today evolves around
the experiences food companies can deliver, by creating added value. The consumers mind-set is
changing, the new and younger generations do not adjust their needs to the provided food channels
anymore, merely in food channels adjusting their supply to satisfy their personal needs. Despite the
food shoppers need for guidance and stimulation in their decision process, the need and access for
knowledge sets the food shopper on a decisive position as on a larger scale they steer the direction of
the food industry.
The food market is digitalizing, creating new consumer demand and potential business opportunities.
The next paragraph discusses why it essential to adapt the online disruption.
9.2. THE INCREASING RELEVANCE TO ADAPT TO THE ONLINE DISRUPTION
Most industry experts are right about adapting to the online disruption. However an existing food
business should consider to what extend they should transform regarding the online disruption. As
chapter 2 and 5 describe, new market entrants imply an extensive and new form of competition that is
considered as the digital evolution.
Going online does not explicitly mean offering online food sales, as the experts state that being active
via online channels, such as via social media, is also considered as a marketing tool to push products.
Various food businesses already integrated this online strategy during the digital transformation of the
food market. This research focused merely on online sales businesses. Therefore the questions arises
if online food sales via an online platform, is profitable for every food business in the Dutch food
industry. The derived topic is that traditional business models will not cope in the future of the online
disrupted food market. The Dutch food industry has been sitting still regarding online developments,
with traditional business patterns still integrated in numerous of Dutch food businesses. Much can be
learned from the effects of online disruption by food platforms in foreign food markets such as the US
59
and GB. Apart from the fact that trending online food concepts in international markets are not fully
embraced yet by the Dutch food market, the attention to these developments is there, for example,
Amazon is entering the Dutch online market with an combined food and non-food platform. Other
examples of foreign developments such as supermarket intermediary food platforms (Google,
instacart) will be demanded by the consumers-market.
As the literature- and field research show, the food shoppers require simple, efficient, quick, and
preferable cheap buying processes, indicating that their attitude towards food shopping is becoming
more effective and efficient. Derived from these processes, it can be stated that food shoppers seek
instant value. For this reason the concept of online food purchasing will have an huge impact in the
future on the food shoppers buying behaviour. Therefore food business must think outside of the
traditional patterns and focus on adapting accordingly to the changing environment
Digitalisation implies new technological and digital innovations that effect the food purchasing
behaviour of the food shopper, by means of instant accessibility to food related information. Food
shopper have more control due to mobile devices, and instant internet access.
This development is a two way street, as personal information becomes more openly accessible,
providing businesses to create more intimate relationships with food shoppers, as they can respond
more appropriate to the specific and personal needs of the food shopper.
To anticipate the effects of online food platforms it is crucial for food businesses to constantly observe
the changing needs of the consumer and the continues growth of digitalisation. Adapting
appropriately to the online disruption and diminishing traditional thinking patterns are key. The food
businesses that prematurely adapt will survive the powerful effects of the online disruption
9.3. THE RELEVANCE OF THE PHYSICAL EXPERIENCE
Ubel Zuiderveld is right with his statement, “every movement has its counter movement”, as it can be
stated that the physical food purchasing activities are very much present in the Dutch food industry.
The need for the physical food purchasing experiences is very much visible in the Dutch food market,
with the movement of food markets/ festivals and small speciality shops being growing concepts.
Nevertheless the industry experts have all acknowledged the consumer’s value for physical
experiences and state that the physical food industry will be immensely affected by the online
adaption and integration in the food industry.
60
For this reason solutions were suggested regarding the effects of online disruption. Synergies must be
sought in the online and offline operations of a food business. As the online transformation requires a
large investment, physical food business should consider the extend of implementing an online
channel. Therefore a much discussed solution, in which the author can relate to, is that food
companies should dissociate from the online sales transformation. Focussing solely on offering a
unique experiences only attainable via the physical form of food purchasing. Plain and simple will not
survive the online disruption. In other words, a traditional food businesses should implement an
online food platform only if they can fully commit to the online business, or not at all. Partly
integrating to online food sales will be a waste of an investment.
9.4 LIMITATIONS OF DISRUPTION OF ONLINE FOOD PLATFORMS
As result of the field research the online disruption of online food platforms will have it limits. As
previously stated, the investment to offer the range of food products online is large, questioning the
feasibility. Which indicates that food businesses should consider to what extent to exploit their
business via online channels. Large food related firms possess the resources to implement such
channels, in which smaller initiatives do not. The level of integration will define the chances of
potential business opportunities.
Integrating or adapting to online purchasing channels will increase businesses opportunities for the
competitors. New entrants will enter market which can be devastating for the businesses who still
administer traditional business models.
The pace of innovations. Technological and digital developments now occur with a rapid pace. Food
shoppers can get sceptical about the idea of ‘new and improved’. As new (online) food related
products, or services enter the food industry.
Furthermore due to the pace technology, the integration level per consumer will vary, creating a gap
between well adapted users and less adapted users.
Due to the shift of generations and digital access more knowledge is required by younger food
shoppers, forcing food businesses to share more sensitive information on products, services etc. in
order to capture the interest of the food shopper.
The limitations for Dutch food businesses in the industry are consequent to the quickness of
international organisation entering the Dutch food industry. As foreign markets are far more
progressed to the Dutch market, entering the industry could face more complex competitors for
traditional Dutch food businesses and new Dutch market entrants.
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CHAPTER 10. RECOMMENDATIONS
This research assignment is the first that looks into the driving factors of the disruption of online food
platforms, how the food market is disrupted and how food businesses could react to this phenomena.
Throughout the research assignment various themes have passed by that relates to the online
disruption of online food platforms and are interesting for future research. This chapter indicates
these topics that are recommended for future research.
The disruptive effects of online platforms between business to business. This assignment
focused solely on the digital developments between a business to consumer. The role of
producers and manufactures in relation with food sellers have not been thoroughly reviewed
neither have producing businesses been approached and interviewed in this process. The
online integration is mainly visible in the lower level of food industry, however this does not
mean that producers and manufactures will face such challenges or opportunities.
The supply chain in the online food industry. The logistic process in both the at-home and out-
of-home channel will encounter challenging developments. The literature studies reviewed a
fragment of the progression in the online food market in the US. Future growth will set up
interesting research opportunities to identify new or adjusted distribution processes within
the online food market.
The buying behaviour of the online food shopper in the Netherlands. This research has
researched this topic to certain limit. Interpretations where made based on literature research
and knowledge, and experiences of food industry experts. The progressing growth of online
food platform will intensify the needs and motives of the food shopper. Therefore further
research is suggested via quantitative reached methods, such as national surveys and
questionnaires in order to directly identify the driving factors.
Organisational challenges that food business will face when implementing or establishing
online purchasing channels. Research on challenges for existing food businesses and new
entrants are both interesting topics. Further research on strategies and organisational
structures is recommended as it is a relevant implication yet challenging to achieve.
It is recommended to conduct research on a specific food business.
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