Over the last week or so Hello Fresh became a public company on the Frankfurt stock exchange. This follows Blue Apron listing on Nasdaq earlier in the summer. Both companies (along with Gousto in the UK) have raised many. many millions of investment, mainly pumped into customer recruitment.
I do agree that FMCG will move – more and more online – as consumer habits change from large central supermarket purchases to more local smaller retailers (such as Sainsbury’s Local or Tesco Metro) but I don’t agree that any of these companies have yet grown into their current (and sagging) valuations.
Customer recruitment costs continue to increase with stiff competition and poor retention and margin statistics does not suggest that growth will continue.
There is a business here, but I think trying to force growth with more discounted offers and higher recruitment cost is only good for new customers – not for shareholders.
Some consolidation may well happen to remove duplication over geographies and headcount – but until then I will stick to shopping for myself either online or at my local store.
If you need to know more check this video out on marketing as a percentage of sales
We launched our latest brand Parsley Box around 8 weeks ago. In this age of digital media and engagement we have seen a lack of digital channels that work for this demographic but have rejoiced in moving back into traditional media (print, direct mail, catalogues!).
Today most digital media talks about response rate, click through rate and conversion rate – all skills that have been prevalent in traditional direct response for many years before it was taken over by digital.
Having recruited more than 1,000 customers in this short period we are using old mechanics like the catalogue to engage in the same way that we use email in many of our other brands.
The majority of our orders are taken on the telephone and we are hearing great stories from our customers that we plan to use in future media.
Finally, TV is going to play a part – and next week we plan to shoot our first TV ad for Parsley Box.
While recipe box companies pile into competitive areas hankering after the aloof millennial we are sticky to the knitting and using direct marketing techniques to broaden our customer base.
Stay tuned for our latest advert once it’s complete in the next few weeks
With the Harvey Weinstein allegations and recent news from Westminster sexism and discrimination is very much on the agenda.
As a child of the 1970’s I do feel very old when I look back on the media of my youth and see what was considered acceptable at that time.
Watching Benny Hill or the Carry On films today is quite hard: essentially the jokes are about sexual harassment or in some cases sexual assault on women. It’s very hard nowadays to see how that could possibly have been seen as funny.
The positive side is that it is great to see the progress we have made and how unacceptable the humour of the past is today. What would have been regarded as radical feminism is the 1970’s is today completely mainstream.
A couple of days ago my parents celebrated their 50th wedding anniversary and I said a few words about life in 1967 when they married. In the UK in 1967 it was illegal to consummate a male gay relationship and jobs were advertised with one salary for a female employee and a higher salary for a male employee doing the same job. Racial discrimination was also legal and widespread although 1967 saw the very first black policeman in the UK.
At Move Fresh we have a very diverse customer base, more female than male with many races and religions well represented. Kevin and I are both middle aged white men but we love having diverse customers and staff. We both have daughters which I think makes both of us think more about sexism.
All of us are looking for healthy, tasty food and drink delivered to our homes in a convenient way at a good price. We very much hope that everyone feels welcome at Move Fresh.