PMA, the Produce Marketing Association, is a trade association representing companies across the globe, focusing on the fresh produce industry and the supply chain.
According to King, retail is constantly in revolution. "Having been in the industry for over 30 years, both as a supplier and retailer, there has never been a time when industry leaders haven't been saying that we face the most dramatic change we've ever experienced." It's the nature of a dynamic, customer-centric business in an ever-changing world, he explained.
We asked King to share some interesting retail trends, and how these changes in the UK grocery market could have an impact on South African suppliers.
King: With the economic downturn in 2007/8, the biggest single change we saw in the UK was the move towards convenience shopping as a key component of reducing waste in the weekly shop. This has driven convenience shopping, but also discounters, as customers have become more promiscuous and top up more. In world terms, we are seeing significant disruption to supply chains and the free movement of goods, both due to the weather and geopolitical issues. This seems set to increase and requires retailers to have a clearer, long-term view of their approach to sourcing.
Has there been a significant change in customer behaviour? How so?
The most notable, as I said, is top-up shopping. Helping customers to reduce waste. There has not been a 'race to the bottom' on price, in fact, far from it. All the major trends in ethical, value-driven purchasing remain.
How do you think these changes in the UK could have an impact on the SA market?
There is great potential for South Africa to become an even larger supplier to the UK market, supplanting traditional or historical sourcing areas.
What is currently the biggest challenge facing major grocers, i.e. the rise of discounters, the internet, convenience shopping, etc.?
Addressing legacy issues that no longer align with customer shopping behaviour. For some, this is about real estate - too large stores in poor locations. For others its pricing and promotional strategy, a dependence on high/low pricing, which an ever-increasing number of customers has rejected.
What does all of this imply for quality and the sourcing of fresh produce?
Almost nothing. Or at least nothing negative. Throughout the downturn, trends in quality and ethical purchasing continued. Quality, if anything, is more of the competitive mix today than it has ever been.
Do you think the slow food movement and the more recent uptake in sustainability, and organic produce and whole foods, have affected the sector? If so, how? Is this positive or negative, and why?
Well things like slow food and organic remain of minority interest. And probably will. But you might say they are the tip of the quality and sustainability iceberg. And, as I have said, these trends are growing and are more widely demanded than ever before.
For the full programme, go to: PMA.com
PMA is giving away two delegate tickets to our readers, valued at R4,880 each.
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Entrants are to send their answers to az.oc.snoitacinummockoobyrots@amp. Competition deadline is Wednesday, 5 August.
