CONSUMERS ARE CHANGING, THE MARKET IS EVOLVING
The retail and manufacturing sectors are experiencing a profound transformation.
With increasingly diverse consumer profiles—led by Millennials and Generation Z—the market requires quick, targeted responses:
-Millennials: They seek authenticity, shared values, and sustainability from the brands they engage with. -Generation Z: As digital natives, they effortlessly move between online and offline experiences, yet remain drawn to physical stores as spaces for inspiration and discovery.
For example, 88% of young consumers consult promotional flyers, and 49% visit stores not necessarily to purchase but to explore ideas. This underscores the enduring importance of physical retail as a key touchpoint in the shopping journey, even in today’s digital age.
How Are Producers and Retailers Addressing These Shifts?
In this fast-moving landscape, we spoke to industry experts like Riccardo Astolfi, Buyer & Open Innovation Manager at Euro Company, and Daniele Tirelli, Professor of Product Innovation, Consumption & Marketing, to explore how the food sector is adapting and the role technology plays in driving change.
Key Food Innovation Trends
“Data interpretation is essential, but real innovation requires looking beyond the numbers,” says Astolfi. Companies must actively listen to consumers and foster collaboration to uncover hidden opportunities. Tirelli adds that shifts in eating habits are a significant force behind this ongoing evolution.
The Rise of Speed and Convenience
In today’s fast-paced world, innovations centered on convenience and efficiency are thriving. These solutions address the increasing demand for quick, hassle-free food options without compromising on quality. Tirelli highlights the popularity of ready-made meals, which save time while maintaining high standards.
Notable examples include:
-Barilla Ready Pasta, microwavable in just 60 seconds.
-Heinz’s canned carbonara, recently launched in the UK.
-Galbani’s Perfect Tiramisu and Cheesecake, simplifying the preparation of beloved desserts.
In Switzerland, Emmi’s "I Am Your Meal" offers a balanced, ready-to-drink meal for time-pressed individuals. Although this concept has yet to gain significant traction in Italy, it appeals strongly to Gen Z, who value the simplicity and reliability of “fail-proof” solutions. These trends often emerge in specific markets but quickly scale globally, influenced by evolving multicultural preferences. Yet, with already-crowded shelves, how can retailers make room for these innovations?
The Role of AI in Assortment Management
The adoption of artificial intelligence (AI) in retail is increasingly recognized as essential for optimizing product assortment and shelf organization. Tirelli highlights that AI enhances product rotation, allowing businesses to respond swiftly to changing consumer preferences. By analyzing purchasing behaviors in real-time, AI can predict trends, fine-tune product offerings, and boost efficiency while reducing human error.
A LinkedIn survey conducted by Giulio Bonini, Trade Marketing Expert at Galbusera, revealed that 54% of respondents believe a well-curated product assortment significantly improves a store’s positioning. This demonstrates the need for retailers to prioritize selections that directly meet consumer demands. Here, AI emerges as a powerful tool, dynamically managing assortments, identifying the most relevant products, and optimizing shelf space.
The Importance of Assortment Quality Effective assortment management goes beyond quantity; quality and differentiation are the keys to attracting and retaining consumers.
Category management, which fosters closer collaboration between manufacturers and retailers, is essential for driving value and optimizing the entire supply chain. Retailers must focus on offering more sustainable and diverse product selections to meet the increasingly complex demands of today’s consumers. AI stands as a critical enabler, helping businesses achieve these goals with precision and agility.
Revolutionizing Retail with Tuidi At Tuidi, we’re on a mission to transform retail and production management. With Delphi, our advanced AI-powered platform, we are expanding capabilities to automate the entire process—from demand planning and category management to workforce optimization and dynamic pricing. Our goal is to empower retailers and producers to stay ahead of evolving consumer demands, optimizing every aspect of the supply chain with innovative, tailored solutions. Stay tuned! In the next issue of our newsletter, we’ll showcase exactly how Tuidi can keep you a step ahead in a rapidly changing market. Curious to learn more? Contact us!
