Chipping away at convenience

London based, Hughes works with major food companies worldwide, focussing on consumer trends. Topping his list is ‘convenience’. 

For Hughes, the example is the Amazon Go stores now springing up all over the US. They use a technology which NZ needs to be aware of to capture high value consumers, he says. 

Amazon Go stores have no checkouts. Consumers download the Amazon Go app on their phone, walk into the shops and begin shopping. Technology called Just Walk Out automatically detects products taken from or returned to the shelves and it tracks them in a virtual cart. 

When finished shopping the consumer just leaves the store and later will get a receipt and their purchases will be charged to their Amazon account. 

The technologies in the app resemble those in self-driving cars, computer vision, sensor fusion and deep learning. 

Hughes says the Amazon stores offer a limited range of products such as ready-to-eat breakfasts, lunches, dinners, snack options and grocery essentials, eg staples like bread, milk, artisan cheeses and locally made chocolates.

“It’s quick shopping and convenience,” he explains. “People don’t go in for a bag of carrots. They are not going to buy whole produce there. They want a solution -- a snack or a meal as they are going home or a snack as they go for lunch.” 

The technology is now used only in the US but Hughes forsees it rapidly spreading worldwide. “Every apartment block in every major city [will] have one of these stores and potentially every office block as well.” 

The technology has profound implications for companies, including NZ ones wanting to connect with valuable consumers.

“You can have the healthiest product in the world, but if it’s not convenient these consumers will not buy it. It has to be healthy and tasty yes, but if it’s not convenient they won’t buy.”