THE SHIFT TO LUXURY VEGAN PRODUCTS 28-03-2019

A Manager of a supermarket in The Netherlands walks around the store and is worried about the future of the supermarket. Too much cheap and convenience products. Some customers even asked for products that were not in their product range. Time for a change this manager figured out.

A new presentation of the supermarket, 100 old products out and 100 new products in. A big investment in the branding of the supermarket also brings luxury food products to their range of products. Items like walnuts (oil), luxury sandwiches with a choice in real or vegan meat, a wide variety of microwave meals, also with three vegan options and a fresh products section. 

During the 1970’s-1980’s big supermarkets took over the niche shops with speciality products. Some examples are the butchers, dairy shops and vegetable/fruit niche who filed for bankruptcy or were bought by big players like Walmart, Tesco, SPAR and Aldi. 30 years later we turn around 180 degrees. More people appreciate quality above quantity and price, and willing to buy the luxury items again . 

In just two months the manager discussed the figures for months February and march. A growth in revenue of approximately 8%, with an increase in net profit of 3%. If the figures explain a growth in demand of new luxury (vegan) products, we can conclude that the shift to niche shops and niche products is growing.

Another story about a cafeteria in The Netherlands confirms this succes story. A cafeteria (in The Netherlands) is a shop were you can buy cheap but convenient food like that of McDonald’s and Burger King. Like French fries and burgers. The new name of this new cafeteria in The Netherlands is named a Qualityteria. The succes is mainly in the name, quality sandwiches, fresh juices, coffee and even vegan burgers. Again, the figures of this story explains its succes. After 1 year they will make a profit and after just 4 years these entrepreneurs expect to earn their entire investment back.  

Recapitulating we can state that the shift to niche shops with quality products started again. The last decade people are becomming more aware of what they eat. Product specifications are changing and expanding, consumers want to know everything about the products they buy. Most niche shops benefit from this change and as stated above they benefit also financially. Some big supermarkets are also shifting to this niche. They hire butchers, bakers to run this department from within the supermarkets. No doubt this niche will grow for many years to come. 

 

This Post Has One Comment

  1. Great article, indeed there is a lot of vague content regarding luxury items, we think the coming years this will change.

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