Increased diversification as category boundaries blur
People are switching between beverage options with increased frequency, as well as showing greater willingness to try completely new types of drinks – from hard seltzers to craft beers and canned cocktails. There’s a growing appetite for experimentation and unconventional new taste sensations, and brands are meeting this demand with new product lines.
With loyalty no longer such a safe bet, brands need to step up their innovation credentials to retain their place in such a jostling and vibrant category. Logistically, however, this means many more SKUs to manage and keep track of, more potential for confusion and delays to creep into the picking and packing process, and of course, the possibility of frustrating customers if problems occur once the order has been placed.
Capable warehouse management systems are essential if these issues are to be avoided. It’s not about haphazardly piling products up to the rafters in vast warehouses, but more about using smaller, self-contained hubs to easily store and manage multiple SKUs, all belonging to one brand, all in one accessible space.
A balancing act between luxury and discount products
People may be watching their wallets, but this doesn’t mean they are immune to special occasions or to treating themselves. The premium alcohol category has performed strongly over the past few years, echoing similar lifts in wellbeing and health-focused products, where discerning consumers have shown a willingness to pay extra for better quality goods.
Consumers have limited resources to spend on non-essentials, so outside of these luxury consumption moments, they’re proving perfectly content to purchase discount brands for everyday indulgence – creating opportunities for more affordable market entrants and challenging everyone priced in the middle of the category to do more to differentiate their offering.
Whatever the price of your product, and whether you’re selling premium spirits or low-alcohol sparkling wine, your fulfilment needs to be treated with the same care, accuracy and attention, ensuring that every customer is left satisfied with the online purchasing experience, as well as the drink in their glass.