openPR Logo
Press release

YRC (Your Retail Coach) sheds light on some of the undermined challenges in the online dairy business.

08-07-2021 09:42 AM CET | Business, Economy, Finances, Banking & Insurance

Press release from: YourRetailCoach

Challenges in the online dairy business

Challenges in the online dairy business

The market for raw and semi-processed dairy products like milk, curd, cottage cheese, ice cream, etc. is a delicate one. The products come with a very short shelf life. Unorganized hyperlocal distribution and delivery networks rule this market. Given its prowess, eCommerce could prove to be a disruption for the traditional dairy retail industry. But what has worked well for the traditional dairy businesses presents a reflection of the challenges that lie ahead for the upcoming and existing online retail dairy businesses ( ). YRC sheds light on some of these challenges.

Customer acquisition

The majority of customers are not yet ready for the eCommerce way to buy their routine dairy needs. There is a long-held association with local sellers in the unorganized market. Dairy products like milk, cottage cheese, and curd are home-delivered or are found in the local departmental or grocery stores. Customers are accustomed to offline purchasing and they do not seem to have any compelling reason to shift to online channels. They might already be procuring their dairy inventory from the best farm or distributor in the town or city. Customers will still prefer to buy from the same offline sellers when they go online instead of choosing a new brand.

Inventory Control

Inventory control can be one of the toughest in the online dairy business where businesses are dependent on local dairy farms for their supplies. There is an element of uncertainty in meeting the production targets in natural dairy production and processing. Because of the short production-sale cycle for raw or semi-processed dairy products, there is very little scope for long-duration storage. In such circumstances, ensuring inventory at the desired levels is a tough ask for businesses. But these challenges disappear with processed dairy products that come with longer shelf life and big brands are dominant in these product categories.

Quality Control

Some of the largest consuming dairy products like milk, curd, sweets or ice cream are intended for quick consumption or early refrigeration. If not, these products no longer remain suitable for consumption or further processing. The right storage facilities must be present in the supply chain including in logistics. This means an additional investment burden for businesses as local dairy farmers and farms may not possess the storage needs as required by the eCommerce business model ( ). Also, traditional QC measures may not be sufficient to convince the digital customer of quality assurance. And the short life cycle of raw dairy products renders the time window for quality checks limited.

Managing suppliers

Most suppliers of dairy inputs are active in the unorganized market. Those who enjoy a good reputation in the market already have a loyal customer base in their respective localities. These suppliers may not have any strong business case to associate with retail brands for distribution. Even if they tie up, making them adhere to SOPs for various business processes ( ) is another big challenge. If a local customer and seller informally decide to, a retail service provider will be left with no role to play. All these factors make the task of managing suppliers intricately difficult.

Distribution and delivery

The distribution and delivery approach in the dairy business is hyperlocal whether the sales channel is online or offline. Online dairy businesses cannot avoid that. From placing orders to their delivery, businesses have to bear in mind the short production-sale-consumption cycle of dairy products. If the promised value has to be delivered to customers, the order fulfilment process must be quick, safe, and accurate. What cannot be accomplished must be ruled out from the business model. The order fulfilment process must be fastidiously planned and executed with a high degree of accuracy with every single batch of order. From procurement to delivery, there must be strict adherence to quality control and quality assurance.

Competing with big brands

Sooner or later, the big brands will make an entry into the hyperlocal online dairy business in markets ( ) where they have not already. It will not take much for the big companies with deep pockets, rich experience, qualified workforce, and visionary think-tanks to come up with fierce market entry strategies and capture the target markets within a short period. They will also have the advantage of brand reputation which will help them further in customer acquisition.

Challenges are not hard to envision with a certain degree of experience and insight. But eCommerce is a new variable in the online dairy industry ( ). The challenges that begin to appear after a few months into business may not be easily foreseeable, especially for new ventures in the industry. YRC encourages businesses and entrepreneurs to do comprehensive market research and try to seek insights and make projections in all areas of business at least for the next five years.
Get advise for Retail Business Consulting :

Pune, India–411016
Phone: +91-9860-426-700

YRC is a Management Consulting Company, especially for the B-C Sector.
Our expertise lies into designing of Standard Operating Procedures (SOPs), Franchise Development, Strategy & Operations services, Process Audits & Training.
We help companies to organise their operations and expand through best management practices.

This release was published on openPR.

Permanent link to this press release:

Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release YRC (Your Retail Coach) sheds light on some of the undermined challenges in the online dairy business. here

News-ID: 2349298 • Views: 600

More Releases from YourRetailCoach

Business Model Development for online grocery startups: Explained by Retail Cons …
Developing a retail business model based on an identified business opportunity and then delivering a value-based offering can make any idea a reality and profitable. Regardless of the type of business, the business model determines its success or failure. There is no exception to this when it comes to online grocery stores. Through a decade of experience developing business models ( ), YRC helps online grocery startups identify valuable
How AR Is Redefining Retail in the Pandemic
There are a lot of important factors involved in running a successful business. One of these factors is to adapt to changes in the industry and make the relevant transformations in your business to meet the needs and requirements of customers, and that's where technology comes into the picture. AR, AI, machine learning are some of the great tools that have become the most game-changing technologies for retail in 2022.
Importance of Branding for Ecommerce Startups
Branding involves identifying, creating, and managing assets and actions that shape stakeholder perception. The importance of branding cannot be overstated since it not only creates a lasting impression on consumers but also enables them to know what to expect from your online business. You can use it to differentiate yourself from the competition and explain why you are the better choice. As an eCommerce business ( ), your brand should
Importance of high-quality eCommerce product photography for ecommerce startups
Getting into eCommerce can be a lucrative move. In order to maximize your profits as an eCommerce merchant, there are a few things you should do to stay competitive and one of them is investing in high-quality eCommerce product photography. Why high-quality eCommerce product photography is important? A product image is incredibly critical in eCommerce whether you run your own website or sell on a marketplace. Here is how photography helps

All 5 Releases

More Releases for Challenges

Challenges: Tissue Diagnostics Market by Key Driver, Challenges and Opportunitie …
According to a new report published by Research Dive, the global tissue diagnostics market is anticipated to register a revenue of $5.0 billion. The rising number of a cancer patient’s around the globe. Moreover, technological advancements such as 3D cell culture that was developed recently that are used in the field of tissue engineering. In addition, it can be used in unique applications such as the restoration of damaged tissues.
Manufacturing Challenges 2020
Manufacturing is like never before; and, fresh challenges await the ever-evolving industry already hit by a myriad of speed bumps in 2019. Manufacturing challenges for 2020 Local to a global manufacturing approach Changing customer buying behavior has forced many manufacturing companies to go digital and this has opened doors for companies across the globe. If the local companies really have to thrive, they must come up with a fresh approach to
Proteomics Market: Opportunities & Challenges
The Global Proteomics Market is projected to reach USD 38.74 billion by 2024 from USD 19.49 billion in 2019, at a CAGR of 14.7% during the forecast period. An increase in the research activity, especially in the area of personalized medicine and drug discovery is the primary growth driver for this market. In addition, the increasing R&D expenditure by pharmaceutical and biotechnology companies, increasing government funding, and technological advancements are
Biosurgery Market: Opportunities and Challenges
The global biosurgery market expected to reach USD 20.12 billion by 2027 from an estimated USD 11.36 billion in 2018, at a CAGR of 6.6% during the forecast period. Download PDF Brochure: How will the untapped emerging markets create opportunities for players in the biosurgery market? The penetration of biosurgery products is very low in the Asia Pacific, Latin America, and the Middle East & Africa. In the coming years, countries such
Document Management System-(Qatar Airways Market) Deployment Process & Challenge …
"Case Study: Document Management System - Qatar Airways", a Best Practices report by GlobalData, is one among the many offerings in Digital Industry product line up, which provides business overview of the company, and a case study focused on the implementation of DMS within the enterprise. Get Sample Copy of This Report at Scope - Business Challenges: This section provides key business challenges faced by the company and how the company addressed
Document Management System-Qatar Airways Market Deployment Process & Challenges, …
"Case Study: Document Management System - Qatar Airways", a Best Practices report by GlobalData, is one among the many offerings in Digital Industry product line up, which provides business overview of the company, and a case study focused on the implementation of DMS within the enterprise. Get Sample Copy of This Report at Scope - Business Challenges: This section provides key business challenges faced by the company and how the company addressed them. -