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JUN 2017 FOOD FOCUSTHAILAND
education, income, and types of frequently
ordered foods, among others parameters. The
data can then help stores improve quality or
develop new services. For example, Tesco in
SouthKoreahas startedbuilding virtual shops in
underground train stations in order to drive up
purchases by office workers. The company
openedvirtual shopsbecausedata indicated that
officeworkers tendnot toshopat retail storesand
donot shoponline, asmost of their time is spent
working. Data also showed that most office
workers use the underground train daily. Tesco
thussaw theopportunity toprovideanew typeof
service that would respond to the needs of this
customergroup.Productsorderedatvirtualshops
can be shipped directly to customer’s house, so
they no longer have to go to retail locations.
Indeed, in the futureEICexpectsnew technologies
to further improve services, such as the use of
screen-based Hologram or Augmented Reality
(AR),be it throughsmartphonesorvirtual screens
thatcandisplay3-D information tocustomers from
the cultivation process through to material
sourcing, production processing, and delivery.
Thesepredictionsarenot pipedreams, thanks to
the rapidly advancing development of new
technologies.Betterdataprocessingsystemswill
also facilitateonline foodmenu recommendations
and targeted nutritional advice by experts.
New consumer behavior, as well as new
downstream businessmodels, means upstream
andmidstreambusinesseswillalsohave toadjust.
Take, for example, Moley’s use of artificial
intelligence tocreatea robotickitchen,whichcan
cook according to the user’s wishes, while
displaying the foodand itsnutritional valueon its
screen. Users can also upload recipes. The
kitchencaneven learnhow tocookaspecificdish
by imitating theuser’scooking.Midstreamplayers,
suchasproducersof food ingredients,seasoning,
andpackaging,willhave todevelopnewproducts
that include microchips allowing communication
between their products, the robotic kitchen, and
other AI-enhanced cooking utensils. Moreover,
consumers todayhavebecome fastidious in their
foodchoicesandmoreknowledgeableabout food
than in thepast,and theyadjust theireatinghabits
accordingly.Thereareconsumerswhoareallergic
to particular foods, seniors who wish to avoid
high-fat foods, or fans of organic produces.
Changing consumer behavior means that
upstream playerswill also have to upgrade their
manufacturing processes accordingly, such as
organic vegetable producers having to invest in
linking togetherchemicaldetectionandelimination
systems, humiditydetection systems, soil quality
measuring equipment, various types of seeding
machines, as well as automated watering
systems, in order to process the data centrally
andaccuratelycalculate theyields.Theirsystems
will alsohave tobeable to trackstockandpredict
consumerdemandbasedondownstreamdata in
order togrowanddeliver freshorganicproduces
to retail stores in a timelymanner, reducewaste
from overstock, and satisfy health-conscious
consumers.
Nonetheless, in upgrading to Industry 4.0,
businesseswill alsohave to strike the right balancebetween theuseof new technology
and the local context ofThai foodand identity, includingproductsandservices.The food
industry ismorecomplex thanmanyother industriesdue to themyriad typesof products,
services, and dining experience. Creativity or innovation is not only limited to the
development of new products, but also includes new presentationmethods leading to
new customer experiences. For example, 3-D printing technologymay be used instead
of skilled labor to carve food in specific shapes, which normally is very time-consuming
and requiresgreatcare.Theuseof3-Dprintingwillshortenpreparation timesand increase
product consistency. Chefs will then prepare final flavoring adjustments before serving
to customers. Nanotechnology canalsoenhancepackaging, for example, bydisplaying
differentcolors reflecting thequalityof the food inside.Thiswillnotonlypreventconsumers
from eating foods that have gone bad, but allow them to better manage their soon-to-
expire stock. Investments in theseadvanced technologiesarenecessaryand cannot be
overlooked in the4.0era if businesseswant toensure their competitiveadvantage in the
long run.
