(Last Updated On: September 8, 2022)
Taste will always remain the king
This s probably why the food eCommerce industry is one of the hardest to tackle. A food brand will only get recognition when their food – TASTES good. Nothing can replace the value of good taste.
You can have stellar packaging, amazing customer service, and affordable prices. But if your food, the CORE product does not taste good – then your business is doomed from the start.
In eCommerce, the problem of customer acquisition becomes ten-fold considering, that your online visitors cannot actually taste your product unless they order it. If you sell a faulty physical product, you can still get it exchanged or replaced. That’s rarely the case for food businesses.
So before doing ANYTHING else, focus on getting your tastes right. Do taste tests with your friends, family, communities etc.
Related read: How to start an eCommerce business in India: 8 steps from 0 to launch
A community will help you withstand DTC competition
Now that we understand that taste is what is supreme in a food business. Your business can only grow if people who liked the taste tell other people that this product tastes good via reviews or recommendations.
This is where building a community becomes important. For an independent DTC brand that wants to sell food online, they should focus on first building a community that gives them true feedback on their product.
In the food industry, a community also helps you gain loyal customers that help you gain profits in the long run. These loyal customers will end up being your “ambassadors” who talk about you within their social circles and help you gain customers organically.
Having your own community also helps you refine your product and understand consumer preferences.
Related read: How to convince customers to buy your product: 10 foolproof ways
Tap into the health food industry NOW
After the coronavirus pandemic, the health and wellness segment saw a considerable boost. People were more conscious of their lifestyle and eating habits. The food industry, accordingly also saw a pivot in interests toward food that was nutritional and healthy.
We spoke to an FMCG investor and the founder of 2 food brands – Devesh Varshney, who highlighted the duality of the eCommerce food industry.
“Your food brand either needs to focus on “functionality” or “taste”. Foods that have a functional purpose like ‘making you healthier, helping build muscles, anxiety relief etc” are considered premium. This allows you to charge more for these products. Food items like fresh food, home-cooked food, snacks etc. are based on taste and are priced accordingly.”
Related read: How to sell organic products online: the complete guide
Transparency can help you compete with the big guns
Since consumers are now more aware, it becomes the responsibility of an online seller to respect their preferences. Shoppers today want to know what is in the product. This is where even small businesses can compete with larger brands.
Businesses like Yoga Bar, PulpBrew, Organic Tattva, and Farmilicious, are setting examples by being transparent about their ingredients. We see coffee brands talking about sourcing their coffee beans from particular regions across India.
Monitoring your proprietary
Sometimes, keeping a secret can save your business! Tracking and monitoring what is yours, and keeping a close watch on everyone who knows the exact details of your food product is important.
Too many businesses don’t survive because their ideas can get stolen or copied. You can volunteer to sell recipes online, but if you are selling food products that are unique to you and are solely your creations, you should be careful about protecting your intellectual property.
Here is a blog that talks more about securing intellectual property by small business owners.
Here are a few things to keep in mind when you are starting a food business at home:
- Be aware of the robustness of your supply chain
- Try to be as ethical as possible when it comes to labour and sourcing
- Be honest and transparent about your ingredients
- Slowly build a sustainable packaging ecosystem
- Record lots of behind-the-scene videos for marketing purposes
- Allow guest walkthroughs by influencers
- Partner with other brands to send samplers out
It may sound complicated, but with the right kind of support and marketing, your food business is destined for greatness! Instamojo has all the tools and features that micro entroernuers whoa re just starting out need.
Try the Instamojo experience for free!