GoXo: Is there room for premium delivery?
IN A NUTSHELL:
The use of “unconventional” channels is a route for premium brands that are looking to renew their offer and generate new business without losing their relevance or credibility with their consumers.
THE GREAT STRATEGIC TAKEOUT:
The current situation, particularly underpinned by the pandemic, has resulted in an adjustment in the approach of certain brands to their audiences. Strategies or channels that were previously associated with the base of the pyramid or interpreted as “value detractors”, are today offering new business.
Why should I read this?
Because correctly interpreting and implementing the range of channels a brand can work with is probably one of the most impactful manoeuvres today. Those who can determine how these channels are evolving will be defusing an obvious anguish and tension in the contemporary consumer.
What are we talking about?
The catering sector has always been considered a preferable space for positioning premium brands compared to supermarkets, in-home or even delivery services, which fulfilled other objectives and generated a different type of experience.
As a result of the radicalisation of a new lifestyle, some brands have started to break free from some of their fears, and they are diversifying their offer and making experiential connections to exploit new relationships with the channel.
Madrid-born chef Dabiz Muñoz, the visible face of a brand with three Michelin stars, has been able to reinterpret the use of channels by launching GoXo, a version of home-delivered haute cuisine with recipes prepared to create a brand experience outside the sphere where his experiences usually happen.
It taps into the niche of signature cuisine and offers it for €20 without sacrificing credentials. The partnership with Glovo —an expert in this channel that ensures correct implementation and delivery— demonstrates the synergy of these new relational models.
The coverage obtained with this initiative leads to a logical expansion: at the end of 2020, a physical food truck appears, parked at the door to the Gourmet Experience area in El Corte Inglés. Another example of how to diversify the offer, connect with broader targets and cover different occasions and consumer motivations. All this trying not to lose brand credentials.
The result goes beyond “continuing to sell”: a very contemporary way of responding to the needs of the new consumer has been found without losing the aura of premiumness and credibility that the brand already had.
Links and what to pay attention to:
Instagram GoXo
Glovo app Madrid
Instagram, Davizdiverxo
- On the presentation of the dishes and recipes that elevate haute cuisine codes without adapting or “lowering” them because they are present in another type of channel (which would not have historically been “accepted”). The same person who presents €300 dishes is also offering €20 dishes.
- How they connect with the new trends of contemporary consumers (“the new basic” experiences, contemporary gourmet, etc.).
- On the way in which chefs describe their creations: they do it in the same way for their more gourmet offerings as they do for the experience in traditional settings and without detracting from it. On the contrary, they describe them by putting value on the new experience they generate: “You can finish cooking this dish at home in the three-Michelin-star way”.
- On the presence of the brand in the channels of communications of the creators, who position and present it in the same way as the others.
WHY YOU SHOULD BE INTERESTED:
Brands and companies can and must review their strategy for approaching channels that are unconventional in their categories. In this way, they will be able to diversify and generate new businesses and honestly connect with the new contemporary consumer.
What tension does it resolve?
COVID-19 has led to an acceleration and a change in shopping and consumer habits that, in some cases, cause tensions in the consumer: not being able to do or buy everything I like, having to spend more time at home, not having everything on offer, etc. The brands that know how to defuse this tension will be able to be part of a new reality that takes the different channels as allies of their experiences and business.
From a strategic perspective:
Traditional channels are mutating and modernising. The in-home experience is transforming, and brands need to construct strategies that connect with this new reality and seize opportunities.
Who might be interested?
Any category that wants to revise its channel strategy.
Where do I implement it?
In the development and the architecture of your offer of products and services. Assigning channel-specific targets that go beyond sales. Reconsider the relationship we have as a brand/company with the channels that are perceived to “detract from equity”.
How do I implement it?
Through a new or expanded brand proposition that does not lose coherence and rigour.
How innovative is it?
Questioning the role and value generation of the channel is not new. What does invite us to reconsider our strategy is how we can create new experiences based on the different relationship with the channels.
Key concepts:
Channels, delivery, diversification, premium, value, business
I WANT IT FOR MY COMPANY/BRAND. WHAT DO I NEED TO KNOW?
Who is using it already?
It is worth exploring the different brands that have diversified their offer through new channels and in different categories:
- In the world of gastronomy, GoXo in Madrid and Disfrutar Barcelona are success stories that can be looked at.
- In other categories, such as glasses and skincare, Warby Parker and Glossier found a way to build a more personalised and contemporary consumer experience through online DTC. It has been such a success that they have reversed their strategy and have also opened physical stores where they can broaden the experience: Warby Parker or Glossier
Things to keep in mind:
Avoid short-sightedness and anchoring proposals too much to exceptional contextual situations such as COVID-19.
How do I get a clearer idea?
Placing an order through Glovo for one of the brands that have updated their value proposition.
How do I share it with my network?
“Are we delivering full value across the different channels our brand can work with? Have we revised the channel strategy thinking about the recent big changes and evolutions?”
