The Consumer Trust in Food & Beverage emergency scenario

Tourism, trade, agriculture, fairs. The spread of Coronavirus in Italy is threatening the growth rate of the national economic system. We have been hearing about the economic crisis for years, we are used to hearing that.

Among the countries that will pay the highest price for this emergency, there is certainly Italy, together with other states that base their economy above all on the Food & Beverage sector and on all sectors related to it, such as tourism and the exportation.

As said by the Ministry of Economy, the fallout is heavy and “tangible in the short term”, above all because 3 pillar regions on which about 40% of Italian GDP (credit: IlSole24Ore) is based (Lombardy, Veneto, and Emilia-Romagna) suffer a serious crisis, humanitarian and beyond.

Waiting for the final numbers and to get through this crisis as soon as possible and in the best way, some segments are already beginning to calculate the economic damage of the virus, that has “chosen” Italy as its main outbreak in Europe.

Would you like to know more about Emergency Management in the Food Industry?

Experts from large companies, such as Deloitte, Group M and ENI have already found an innovative way to use this technological cookieless model for their creative strategies.

Currently, the general attention is focused on the interest of citizens’ health, on the health system and on the search to find medical care and improve the logistical arrangements of patients.

On the other hand, we have a duty to look beyond, trying to make the best use of this emergency, to find new useful solutions.

Taking a look at the main Italian industries, we can see that the Food & Beverage sector has suffered an impressive fall in the last period.

Many entrepreneurs linked to this sector and to agriculture have been damaged by the situation that we are experiencing but also by the necessary measures implemented by the National Government to stop the infection.

Looking at the latest update of the FTSE Italy index, we can see a sensational drop in the stock price of companies in the Food & Beverage sector in recent weeks. A drastic drop that includes all sectors of the food supply chain horizontally.

The letter by Giuseppe Ambrosi, Assolatte President, about the current crisis due to coronavirus is very incisive. ù

Assocarni makes the same considerations on the total and sudden closure imposed by the law of the catering chains in Italy and the progressive closure that is affecting the other countries: “the price of the animals coming from the farms and their demand is going down.”

In these pandemic times, Coldiretti ( the largest association representing Italian agriculture) states that it is important to support producers and raise our agro-food excellence, supporting the production system to rebuild a climate of trust, towards companies and consumers.

To improve that, we can happily see is the spread of the #Mangioitaliano campaign, born with the need to support the consumption of Made in Italy food products, with the choice of suppliers able to guarantee the national origin of food and drinks.

Coldiretti’s invitation, therefore, is to favor 100% Made in Italy products. The Made in Italy sector is definitely connected to the food sector. As one of the main source of Italian pride worldwide, even the food sector’s abroad sales  can be a victim of the emergency that we are experiencing

In addition to the crisis that the fashion sector has already been experiencing since early January, coronavirus psychosis may trigger speculations against Italian products, favoring foreign plagiarisms (Italian sounding), ruining export trade.

A particular event is what is happening in large-scale distribution. On the one hand, all the food industries are experiencing a difficult time, not only in turnover, on the other hand, large retailers are experiencing absolute growth peaks.

People’s concerns, their frustration in cannot leaving the house, in not being able to go out in the evening, eating in restaurants and clubs, are evolving in spasmodic purchases in supermarkets.

This is simply due to the anxiety arisen among the people, who rushed to stockpile, as we have seen in recent weeks.

According to the Nielsen index, the GDO is experiencing a period of good health, recording its best performances.

With the coronavirus emergency, many Italians not only started their run in supermarkets, but they also started to test online shopping, with many difficulties and controversies.

Would you like to know more about Emergency Management in the Food Industry?

Experts from large companies, such as Deloitte, Group M and ENI have already found an innovative way to use this technological cookieless model for their creative strategies.

What we have to do now is to show the world that Italy is a country to trust in. 

This could be an opportunity to show the world that we are without filters and transparent people, but above all authentic people.

It is in this spirit that excellent products, food and non-food, were born and appreciated and often imitated all over the world. And once again Italy can serve as a teacher.

Everything that is happening in our country today can serve as a starting point and study for other states, so as not to be found unprepared for the crisis.

Foreign companies have a great opportunity. They have the great advantage of being able to rebuild themselves after a crisis that they have not yet experienced,  because they can observe the problems of Italian businesses and consumers. 

They can watch the way we move, the way we analyze, the way companies look at consumers’ need and use AI technologies. 

So, what can really help companies in this crisis period?

The use of Artificial Intelligence technologies can be very helpful to Food sector companies to buffer current losses and to plan future strategies.

In this emergency period, the only thing that could save businesses from decline is an intangible thing: the data.

The web and social media are full of opinions, emotions, needs and consumer behaviors.

It is very important to listen to online conversations to understand the consumers’ needs, but also to understand their main research.

In this scenario, Artificial Intelligence is the best ally that the food industry could have to fight the crisis. Thanks to AI technologies, it is possible to analyze all this large amount of data, exploit their potential and be used in various decision-making processes.

In KPI6 we are conscious of the importance of data-driven strategies, but we have understood how important it is to move very quickly and use data and technologies to find useful solutions.

Find the problems to solve them!

Understanding the relevance of the Confidence Consumer Index, we decided to work on an Index that will change forever the old approach to consumers ‘confidence and it will help companies understand and predict consumers’ spending intentions, so important in this emergency moment.

An index of all the projections, past data, current data that can be useful for preparing for the post-crisis phase and above all for anticipating changing trends.

Within the webinar that we will hold in collaboration with PwC, we will introduce our personal interpretation of this index and try to understand together when the moment of recovery will come.

Are you ready to beat the crisis with data force?

Would you like to know more about Emergency Management in the Food Industry?

Experts from large companies, such as Deloitte, Group M and ENI have already found an innovative way to use this technological cookieless model for their creative strategies.