ROLE OF THE LARGEST SPANISH FOOD RETAIL CHAINS IN ORGANIC FOOD ECOMMERCE. COMPARISON WITH A VIRTUAL CORPORATION1
Domingo Fernández Uclés (dfucles@ ujaen.es)
Adoración Mozas Moral ([email protected])
Enrique Bernal Jurado ([email protected])
Miguel Jesús Medina Viruel ([email protected])
University of Jaén
ABSTRACT
The purpose of this study was to examine the online offering of organic products by the
main food retail chains operating in Spain and compare it with that of a prominent
virtual organisation which specialises in organic food. An ad hoc checklist was
designed and applied to the websites of the companies studied. The results confirm
that the major retail distribution chains operating in Spain do not currently offer a range
that would be sufficient to satisfy all the requirements of an organic product consumer.
KEY WORDS: Electronic commerce, organic foods, retail distribution chains, virtual
organisation
ECONLIT CODES: L11, L81, O33, Q57
1
This research was funded by the Regional Government of Andalusia (Spain) through the “Estrategias de mejora de la
comercialización de los aceites de oliva” [Strategies to improve olive oil marketing] Excellence project (AGR-6132).
1
1. INTRODUCTION
Sales of organic products have grown substantially in recent decades (González &
Ruiz, 2014) owing to increasing public concern about health, environmental problems,
sustainable development and caring for the environment (GFK, 2014). Spain is in an
exceptional position compared to the rest of the world thanks to its organic food
production system and the development of its production factors (MAGRAMA, 2013;
FiBL & IFOAM, 2014). Nevertheless, the limited internal consumption of organic
products remains one of the main weaknesses of this market. In general terms, there is
consensus on the main factors that rein in greater demand for organic products in
Spain, which are the same as in other countries: the price difference between organic
foods and their conventional equivalents, limited availability and the consumer’s
unfamiliarity with this type of food, which can sometimes give rise to mistrust (RoitnerSchobesberger et al., 2008).
The various alternatives that allow consumers to purchase organic products online now
include the websites of the major food retailing chains, which compete with smaller
companies that operate exclusively on the Internet.
The general purpose of this study was to study the extent to which Spanish retail
distribution companies are making use of the potential of the Internet as a sales
channel for organic agricultural products and compare this with one of the online
organic product companies that operate on the Internet.
2. METHODS
Primary and secondary sources were used in the present study. The first step was to
select the seven largest food retailing companies in Spain (Alimarket, 2013):
Mercadona, the Carrefour group, the Eroski group, the Auchan-Alcampo group, Día,
Lidl and the El Corte Inglés group. Between them, these distribution chains have a
nation-wide market share of 47.6% in food products, cleaning products, baby products
and pet food (Alimarket, 2013). The company chosen for comparison was Mumumío,
owing to its high position in the search engines and its high profile in Internet 2.0 media
and platforms. To complete the information obtained from the websites of these eight
companies, visits were made to several of the seven retailers’ physical stores in Spain
and a face-to-face interview was held with the head of Mumumío. The data were
collected during the fourth quarter of 2013.
3. RESULT
Checklist was drawn up to measure the information provided on the organic products
offered for sale. It was made up of eleven items, classified into the main dimensions
that consumers appreciate during the purchasing process, as reported in previous
studies, namely variety, information, distribution and after-sales service. The results are
shown in Table 1. Some aspects were also compared in greater detail: information on a
large number of the products’ attributes; products by category; distribution, transport
and after-sales service; and price (Tables 2, 3, 4 and 5).
The Mercadona, Día and Lidl supermarket chains did not offer organic products for
sale through their websites in 2013. In view of Table 1, it may be concluded that the
four major Spanish retail distributors that did offer organic products online had a limited
range of these products, provided limited information, often laid out their websites
and/or physical stores inadequately and only distributed their products in some places
2
rather than throughout the country. The nature of their offering was insufficient to meet
all the needs of an organic product consumer.
In contrast, despite its relative youth, Mumumío already occupied a prominent market
niche that had allowed it to consolidate its position as one of the leading companies in
its sector (online retailing of quality fresh organic products). The space this company
had managed to find among the competition satisfied organic product clients and
covered all their possible requirements, thanks to careful use of ICTs as a tool to
achieve this purpose.
TABLE 1
CHARACTERISTICS OF THE ONLINE AVAILABILITY OF ORGANIC PRODUCTS
FROM THE MAIN SPANISH RETAIL DISTRIBUTION COMPANIES AND FROM
MUMUMIO
Virtual
Company
Major Retail Chains
ITEMS
Number of organic
products sold on the
website
 Product variety

Organic product
categories not sold
501
46
249
299
476
Limited
Fruit,
vegetables,
meat
Limited
Large
Limited
Very wide
Meat,
bread
None
None
None
Basic
Basic
Basic
Basic
Extensive
No
Yes
Yes
No
Yes
Yes
No
No
No
Yes
Yes
Yes
Yes, large
and detailed
Yes
Yes, many
and detailed
No
No
No
No
Yes
Yes
No
No
Yes
No
No
No
No
Depending
on the store
Depending
on the store
No
No
No
Virtual only
No
No
No
No
Yes
Yes
Yes
Yes
Yes
Yes
No
No
No
Yes, subject
to certain
conditions
Yes
Product information on
the website
 Other consumers’
opinions
 Advice and
recommendations

Photographs
Adequate location of
organic products
 Dedicated web space
 Uniform in all physical
stores
 Grouped together on the
same gondola
Proactive personalised
after-sales service
 Online purchase and
home delivery option
 Throughout the country
Virtual only
Source: own compilation
3
TABLE 2
INFORMATION ON ORGANIC PRODUCTS
Virtual
Company
Major Retail Chains
ATTRIBUTES
Brand
Yes
Price
Yes
Quantity of
Yes
product
Pictures of
One
product
Size of picture
Small
Description
Short
Manufacturers
No
mentioned
Attributes
No
Ingredients
Yes
Uses
No
Advice
Yes
Similar products
No
Recipes
No
Organic
No
certification
Opinions
No
Social network
No
ratings
Source: own compilation
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
One
Several
One
Several
Small
Short
With zoom
Short
Large
Short
Large
Extensive
No
No
No
Yes
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
Yes
No
No
Yes
Yes
No
No
Yes
TABLE 3
ORGANIC PRODUCTS BY CATEGORY
Virtual
Company
Retail distribution chains
PRODUCT
CATEGORIES
Fruit
0
Vegetables
0
Pulses and rice
7
Meat
0
Dairy products
59
Pasta
24
Oil
4
Bread
9
Other
398
Total organic
501
products
Source: own compilation
4
3
3
0
5
1
1
0
29
1
6
12
10
19
8
7
5
181
2
1
6
8
39
3
5
11
224
23
24
25
14
28
17
38
12
495
46
249
299
676
4
TABLE 4
DISTRIBUTION, TRANSPORT AND AFTER-SALES SERVICE
Virtual
Company
Retail distribution chains
Distribution
Shortchannel
chain
Direct contact
with
No
manufacturers
After-sales
Standard
service
Source: own compilation
Shortchain
Shortchain
Shortchain
Direct
No
No
No
Yes
Standard
Standard
Standard
Personal,
interested
TABLE 5
PRICE COMPARISON OF EQUIVALENT PRODUCTS IN THE TWO TYPES OF
ORGANISATION
COMPANY
Product
Whole milk
Whole milk
Lemons
Lemons
Extra virgin
olive oil
Extra virgin
olive oil
Pan loaf
Pan loaf
Macaroni
Macaroni
Rice
Rice
Brand
Retailer’s
brand
Producer’s
brand
Retailer’s
brand
Producer’s
brand
Retailer’s
brand
Producer’s
brand
Retailer’s
brand
Producer’s
brand
Retailer’s
brand
Producer’s
brand
Retailer’s
brand
Producer’s
brand
Quantity
Price
in €
Price in €
per Kg or L
1l
1.10
1.10
1l
1.99
1.99
1 kg
0.95
0.95
1 kg
2.81
2.85
500 ml
3.87
7.74
750 ml
7.94
10.59
260 g
3.82
14.69
520 g
4.00
7.69
500 g
1.21
2.42
500 g
2.15
4.30
500 g
1.49
2.98
500 g
1.65
3.30
Source: own compilation
5
4. CONCLUSIONS
Currently, the main retail distribution chains that operate in Spain are not solidly
committed to selling organic products through their websites. This reflects the reality of
the situation in traditional sales channels.
REFERENCES
ALIMARKET (2013): “Mercadona copa el 21% del gasto en gran consumo”, viewed at
http://www.alimarket.es/noticia/122966/Los-tres-primeros-distribuidores-copanel-37-2--del-gasto-en-gran-consumo. Revisited in May 2015.
FIBL (THE RESEARCH INSTITUTE OF ORGANIC AGRICULTURE) & IFOAM (THE
INTERNATIONAL FOUNDATION FOR ORGANIC AGRICULTURE) (2014):
The World of Organic Agriculture, Statistics & Emerging Trends 2014, viewed at
https://www.fibl.org/fileadmin/documents/shop/1636-organic-world-2014.pdf.
Revisited in May 2015.
GFK (2014): Evolución de la caracterización de la tipología y perfil sociodemográfico
del consumidor de alimentos ecológicos en España. Ministerio de Agricultura,
Alimentación
y
Medio
Ambiente,
viewed
at
http://www.magrama.gob.es/es/alimentacion/temas/la-agriculturaecologica/ESTUDIO_PERFIL_CONSUMIDOR_ECOLOGICO_2014_tcm7346684.pdf. Revisited in May 2015.
GONZÁLEZ, J. M. & RUÍZ, B. (2014): “Agricultura ecológica en España.
Caracterización, normativa y participación creciente en el mercado alimentario”,
Distribución y consumo, 28 (1): 28-35.
MAGRAMA (MINISTERIO DE AGRICULTURA, ALIMENTACIÓN Y MEDIO
AMBIENTE) (2013): Caracterización del sector de la producción ecológica
española: valor, volumen y mercado y evaluación del impacto del comercio
electrónico
en
la
producción
ecológica
española,
viewed
at
http://www.magrama.gob.es/imagenes/es/Informe%20P%20y%20M%20Ecologi
co%20-%202012-WEB%201-_tcm7-310968.pdf. Revisited in May 2015.
PUENTES, R., BERNAL, E. y MOZAS, A. (2011): “E-corporate social responsability in
socially responsible firms: the case of Spanish firms”, Service Industries Journal,
31 (12): 2033-2050.
ROITNER-SCHOBESBERGER, B., DARNHOFER, I., SOMSOOK, S. y VOGGL, C. R.
(2008): “Perceptions of organic foods in Bangkok. Thailand”, Food Policy, 33,
112-121.
6