Confectioneries, bakeries, stores that sell pastry products and bakery specialties have had to rethink their businesses in order to withstand the crisis generated by the coronavirus. As in the field of HoReCa, the attention of companies has turned to online communication, e-commerce and home delivery. The classic business model for confectioneries and bakeries is based on trade in physical spaces, as a result most businesses in this sector have been strongly affected by the rules imposed by the pandemic. However, the brands that were already present in the virtual environment had an advantage over those that never gave importance to the online image.
The pandemic generated by COVID-19 had a significant impact on purchasing habits and meant a opportunity to increase online shopping. Rents and contracts with suppliers were renegotiated, unprofitable premises were abandoned, staff restrictions were made - all to reduce expenses. In parallel, intensive work was done on the strategy and logistics necessary to migrate the business to online and home delivery. Why online? Because that's where consumers spend many hours of the day. When surfing the Internet, Romanians prefer to spend the most time on social networks. According to a study conducted by Reveal Marketing Research between September 21-25, 2020, 83% of respondents access social media networks, while 73% communicate via email. This study once again proves that a large number of potential customers are also present in the online environment, which is why promoting brands on this channel is essential.
Online marketing strategy
Long-term success is built on well-crafted strategies. They should at the same time be flexible, so that it can be easily adapted in unforeseen situations, such as the crisis generated by the coronavirus. Online marketing strategy may not have been the most important topic for many entrepreneurs, but the current pandemic has shown that migrating businesses to the virtual environment is the only salvation. In general, the bakery-pastry and confectionery industry is poorly digitized, with small local businesses being the most affected. For most, the rapid digitization of business, and implicitly the reduction of physical contact, represented a survival solution. For others, however, this business model is a "normality", and not a "novelty".
It is important to remember that the migration of the business to the online environment involves a complex series of actions, from the organization of the team and the work space, to the rethinking of the marketed assortments and their promotion. The online marketing strategy has the role of guiding the entire process.
In times of crisis, entrepreneurs fall into one of three situations:
• I am increasing the marketing budget (investments in online communication – website, social media channels, newsletter, etc.; collaborations with specialists who have the ability to manage activities professionally)
• I keep the marketing budget the same as before the crisis (focus on short-term strategies and cost control to ensure survival)
• Reduce the marketing budget partially or completely (lack of online communication or its implementation by company employees)
Regardless of the situation in which an entrepreneur finds himself, decisions should be made only after analyzing the business. What is the ideal customer profile and where do they find it in the market? Why do customers choose my products? What are the downsides of my business? What expenses can I avoid so that the saved finances can be invested in other directions? – these are just some of the essential questions. Adaptability and speed of reaction they are two fundamental characteristics that have always made the difference between businesses that survive and those that fail.
Online/phone orders and home delivery
Online ordering and home delivery services can only be implemented on the basis of good internal organization and complete logistics. This year, a large number of confectioneries, bakeries and shops selling pastries and bakery products have started to take over phone or online orders. The aim is to avoid congestion and reduce the time customers spend inside the points of sale. Thus, the risk of SARS CoV-2 infection of customers and employees decreases. Physical contact is further reduced when the customer opts for home delivery. To make this service available, companies have implemented their own order and delivery systems or started collaborations with specialized platforms and applications.
• Own ordering and delivery system
In order to avoid the commissions charged by platforms specialized in taking and delivering orders, some entrepreneurs preferred to create their own system to help them manage their business. Whether they opted for the online store, the mobile app or both, the entire investment required high financial resources and collaboration with specialists. Also, teaching employees to use the new work system was a big challenge. As well as identifying the most efficient methods of delivering products so that they are not damaged during transport. Last but not least, it was necessary to implement contactless technologies for orders, payments and pick-up, so that the activity in laboratories and factories does not encounter difficulties.
The advantage in this case is that, with the passage of time, the business becomes stable, gaining notoriety and trust from customers. All the efforts made will contribute to the truest possible understanding of consumers and the creation of personalized marketing strategies.
Maripusc confectionery from Brașov is an example of a company that created its own online store, through which it sells "remotely". "The motivation to continue and actively involve ourselves in the home delivery sector was also given by the customers: the loyal customers that we enjoy every day, but also the new customers, those from the pandemic, who saw how serious we are and who they also became regular customers. If we have to find positive aspects for these troubled months, then surely loyalty and winning new customers are them!” says Laura Pușcaș, manager of the confectionery.
• Orders and delivery through third parties
In Romania, there are several important players on the market of food delivery services. FoodPanda, Glovo and Takeaway are the most used delivery platforms, according to a study made by iSenseSolutions between March and October 2020 (FoodPanda – 32%, Glovo – 28%, Takeaway – 13%).
Lately, the restaurants present on these applications have also been joined by confectioneries, gelaterias or stores specializing in bakery and pastry products. Some examples are: Mr. Cake Confectionery from Cluj, the confectionery Kronstadt delicacies from Brașov or Ana Pan from Bucharest.
Another way to sell on third-party platforms, specialized even for bakery, confectionery and chocolate products, is to collaborate with Bakeronline or Bapacho.
Bakeronline is the first online trading platform in Romania for small and medium businesses in the industry, made by Puratos. Registering a company involves a cost of 200 LEI/month. It guarantees creating an "online store" functional in just 72 hours after sending the documents. In addition, entrepreneurs benefit from training, technical support and marketing consulting, so that account management is as simple and fast as possible. Both the website and the mobile application have an easy-to-use interface, which allows the intuition of each functionality. The digital platform was thought and created for the needs of bakers, pastry chefs and confectioners, as well as customers. That's why every registered business profile includes full product descriptions, suggestive images, manufacturer information and contact details. Customers order their favorite products online, and delivery is done at home or with store pick-up. Payment can be by card or cash, but it is recommended to choose the first option. One of the producers who decided to register on Bakeronline.ro is the confectioner Ciprian Zobuian, and its products can be ordered are here.
The Bakeronline.ro platform was created by Puratos Romania, one of the most important global players in the production of raw materials. The technology has been successfully applied in Belgium and is in continuous expansion in France, Holland, Germany, Spain, Chile and Costa Rica. In Romania, the company aims to reach a community of over 2020 producers that have active virtual stores and generate sales of at least 100 million LEI by the end of 1.
"Certainly, it is a project in which we have invested and we will continue to invest not only this year. A long-term commitment is needed to support the industry to adapt to < >", explained Gabriela Bereș, Regional Director of Central and Eastern Europe in the Puratos group. Regarding the openness of entrepreneurs to be present on the platform created by Puratos, Gabriela Bereș also stated: "It could be that the change announced by us is a little early. People were desperate, they were scared, they didn't understand anything that was happening. Out of the blue, they saw closed shops, zero consumption, and probably no change was necessarily viewed with openness. They needed time to get used to it. After all, bakers and confectioners are also consumers. Over time it was seen that digitization is a solution. They needed time to understand that it would help them. Maybe it was too early when we came in March-April, I don't think they were mentally prepared. They did not accept this solution, because they thought it was a short-term solution. It was later seen that the solution is long-term."
Bapacho is another online platform launched by Zeelandia in November of this year. Its purpose is similar to that of the platform presented above, namely to help bakeries, patisseries and confectioneries to create their own online store. Thus, manufacturers will be able to sell their products online to existing and new customers, while meeting the demand for online orders. Consumers can easily find stores around them through the Bapacho web or mobile app, pay online or in-store, and opt for on-site pickup or home delivery.
Account creation involves filling out a short form, and a Bapacho representative will then contact the respective manufacturer. The companies present on this platform will then be responsible for managing the profile (timetables, delivery/pickup options, images and product information, etc.), with of course the support of Bapacho in case they encounter difficulties.
The main Bapacho merchants are Zeelandia customers, but company representatives encourage all bakery, pastry, confectionery or chocolate shops to register on the platform. Bapacho also differentiates itself by its focus on local products and producers. Even the slogan highlights this aspect: "Your local baker online".
Zeelandia is an international producer of ingredients for bakery, pastry and confectionery shops. The company was founded in 1900, in Holland, by the Doeleman family. The branch in Romania was born in 1998, and over time it has become a strong player in the bakery, pastry and confectionery industry. Through products marketed by Zeelandia include: powdered mixes, improvers, natural liquid mayo, whole grain and boiled seed mixes, confectionary mixes, glazes and creams, etc.
Study on the e-commerce sector in Romania (2020 vs. 2019)
• The number of online orders has increased
• The average amount of online spending almost doubled
• More users pay with the card
• Reviews play an important role in the purchase decision
The e-commerce market in 2019 recorded transactions worth 4,25 billion euros, while estimates for this year announce an increase in sales totaling up to 6 billion euros.
The number of people shopping online increased by 13% compared to 2019, and the average amount spent shopping online saw a significant increase of 41% compared to the previous year.
The largest increase in online sales was recorded for Catering/Cooked food delivery services, from 212 LEI in 2019 to 475 LEI in 2020 (124% increase). So, the habit of consumers to frequently order culinary preparations is a sign that bakery, pastry and confectionery products can also be successful in the e-commerce market.
Another behavioral change was the way customers chose to pay for purchases, with the incidence of online card payments increasing by 17% compared to 2019.
Reviews play a very important role in the online purchase process. Especially in 2020, when the number and value of online orders increased, reviews contributed to brand awareness. According to the study, 55% of respondents would not buy from an online store for which they cannot find reviews, while 75% actively look for reviews before making a purchase. The main reason users read reviews is to check if the products have the quality advertised by the merchant (74%). Other reasons are: responses to negative reviews (50%), how real the reviews seem to be (47%), if there is a mix of positive and negative reviews (36%), information about speed of delivery (36%) .
In terms of trust, 37% trust reviews on websites independent of stores, 36% in opinions from Social Media and 27% in testimonials displayed by online stores on their own pages.
The study on the e-commerce sector in Romania was carried out by iSenseSolutions between March and October 2020. The sample is representative of the urban environment, and the data were collected biannually, in May (at the end of the quarantine period) and in October.
Nicoleta Banu, editor of Arta Albă
