Picnic is possible competitor of Albert Heijn and other supermarkets. A lot of startups tried to accomplish to be an online supermarket. Picnic is one of them. The different with Picnic is that the delivering costs are low because of a good logistic system, unlike other startups. Picnic does not have francize companies and does not have expensive buildings. Overall, this can lead to a low cost online supermarket company (z24.nl, 2015). Online shopping will be the new standard as if people are getting used to the fact that the daily groceries at scheduled times are delivered to the door. The consumentus digitalis is coming. Albert Heijn was for a long time the only supermarket with a delivery service. Nowadays, Jumbo also Jumbo started online shopping and a delivery service. Picnic is the first company that get guarantee very low delivery costs.
The online supermarket phenomena has a quite interesting history. In the United Kingdom, according to research of IDG, less than 5% of the daily groceries ordered online. So overall, as if it is possible for consumers to order groceries online, firms are losing money. In Netherlands less than 2% of the consumers orders daily groceries online. But, as I told before, as if people are getting used to it, it can be the new standard. Overall, selling food over the internet is not easy, but there are more products of which everyone mistakenly thought that no one would buy them digitally. A very good example is shoes. Zalando disrupted this market.
On the other hand, Albert Heijn targets consumers also in a inventive way. Albert Heijn opens stores, which are close to the consumer in terms of location and product offering. Molenaar (2013): in the Netherlands, we see a growth of one-person households. Smaller quantities, get something to eat on the go and not necessary eating at home are characteristics of this people. AH to go creates value for this kind of consumers.
What do you guys think? Will Picnic be the next big thing? I’m curious what the future holds.
FD (2015). Boodschappen bezorgen heeft de toekomst. Available at: http://fd.nl/ondernemen/1115647/boodschappen-bezorgen-heeft-de-toekomst
Z24.nl, (2015). 3 redenen waarom Picnic Albert Heijn en Jumbo pijn kan doen. [online] Z24. Available at: http://www.z24.nl/ondernemen/3-reden-waarom-picnic-met-succes-albert-heijn-en-jumbo-kan-kietelen-580179 [Accessed 22 Sep. 2015].
Rijlaarsdam, B. (2015). Zo maak je Albert Heijn weer succesvol. [online] NRC Q. Available at: http://www.nrcq.nl/2015/01/16/dit-is-de-to-do-list-van-de-nieuwe-directeur-van-albert-heijn [Accessed 22 Sep. 2015].
Over the past years, the attitude towards consumption have shift and brought a increasing concern over sustainability. Despite of the succes of some sustainable initiatives, the overall trend follows the unsustainable path. That is why new approaches are needed. How can we solve this problem? What can firms do?
The development of information technologies and the growth of web 2.0 has enabled the development of online platforms. This online platforms promote user generated content, sharing and collaboration (Kaplan & Haenlein, 2010). Examples are open source software, collaborative online encyclopedias (e.g. Wikipedia) and sites like YouTube and Instagram. All together we can call this the sharing economy. The sharing economy thus emerges from a number of technological developments that have simplified sharing of both physical and non-physical goods and services through the availability of various information systems on the Internet (Hamari, et al., 2015). According to Heinrichs (2013), this collaborative lifestyle will disrupt mainstream economies and consumerism, improve social cohesion, and contribute to the minimization of resource use.
Now a day, the world choose Uber over car ownership, Spotify over music ownership and Netflix over the movie ownership. This brought Michael Cassua (2015), founder of the startup ByeBuy, on an idea:”Ownership as a concept is becoming obsolete and it is really not necessary at all to own any of these items to enjoy cool gadgets. We are here to eliminate ownership of product goods and introduce a pay-as-you-go system instead.” This means that you can have unlimited acces to the newest technology like the new iPhone 6S or a Playstation game at lower costs (95% less than if you bought the item). You just have to pay a subscription fee. The consequence is, that you are not constantly engaged in buying and selling. You download the ByeBuy app, suppliers will give you stuff and afterwards you can give it back. So ByeBuy is an intermediary company in a sharing economy.
Overall, I think the sharing economic will benefit our world. This lifestyle will disrupt mainstream economies and consumerism, improve social cohesion, and contribute to the minimization of resource use. ByeBuy is a good example of an intermediary company in the electronic market that can disrupt industry structures.
Hamari, J., Sjöklint, M., & Ukkonen, A. (2015). The sharing economy: Why people participate in collaborative consumption. Journal of the Association for Information Science and Technology
Heinrichs, H. (2013) Sharing Economy: A Potential New Pathway to Sustainability, Leuphana University Lüneburg, Faculty of Sustainability
Kaplan, A. M., & Haenlein, M. (2010). Users of the world, unite! The challenges and opportunities of Social Media. Business horizons, 53, 1, 59-68.
Wired (2015) ‘Startup of the week: ByeBuy’ http://www.wired.co.uk/news/archive/2015-06/05/startup-of-the-week-byebuy, 14 September 2015