Tuesday, September 12, 2006

Vendors Slow to Respond to the Ethnic Market

Antares vending operators on the lookout for ethnic products are having an easier time than they were a few years ago. A survey found that 90 percent of operators believe that product suppliers are providing enough variety of food, snacks or beverages to meet their customers’ requests.

This is a welcome development for those operators who recognize the rising demand for ethnic products. The industry as a whole, however, seems to be slow to recognize the need to cater to this growing market.

Ethnic market expands

Nearly three-fourths of vending operators recognize that their customer base is becoming more ethnically diverse. Antares operators reported that the biggest gain was in Hispanic customers.

A large percentage of operators also cited African Americans as an ethnic group being served. However, other surveys have indicated that this group does not have specific product demands.

While most Antares operators recognized a gain in ethnic customers, only about 40 percent of all operators reported success with the products targeted to these consumers. This reflects the fact the fact that only a minority of vending operators have offered these products to this group.

The Antares operators that have met ethnic demands have reported positive results. The challenge, however, has been in determining how much of the product mix should be geared to the ethnic audience when the customer base is mixed.

Ethnic products for all categories

The largest portion of ethnic products has been offered in the salted snack segment, closely followed by food. This category has offered the greatest product variety for several years, and snack machines have more facings than other types of machines.

Antares vending operators have also provided ethnic choices in the cold drink category. The Jarritos soft drinks have proven particularly popular, and not only among ethnic customers.

As ethnic customers continue to rise in number, vending operators will find it necessary to carry products that target ethnic customers.

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