Business

Empowering Small Producers: How Delivered Cold Promotes Direct-to-Consumer Sales

Published

5 months ago

December 22, 2023

Over the years, but especially since working from home has become more of the norm, home delivery of food products has experienced a rapid rise in popularity. The frozen food market has seen considerable growth and is set to reach $432.55 billion by 2030 — a significant portion of which is the home delivery market.

Busy lifestyles and a desire for a wider variety of food have led people to seek the services of several home-delivery options that can deliver everything from meat to vegetables right to their door. However, the traditional direct-to-consumer frozen food market has one major downside: most are limited to one supplier per box.

Ruben Cortez, the entrepreneur behind Frozen Logistics, saw an opportunity to expand the frozen food delivery business and solve a number of pain points in the direct-to-consumer space. Cortez brings his years of experience in the entrepreneurial, technology, investment, and real estate spaces to change the traditional direct-to-consumer frozen food delivery space.

Cortez has recently unveiled Delivered Cold, a revolutionary new direct-to-consumer option that allows shoppers to add products from multiple different sellers in the same box, solving what he sees as an obvious issue with the traditional market. “We’re giving customers more options to fill their box with a variety of items they may not find elsewhere with this option,” he says, “making it easier to check out new products without a large cost commitment.”

Different from the competition

Many competing home delivery food companies often only cater to one type of consumer, whether by offering vegan options, ready-to-serve meals, or specialty products. On the other hand, Delivered Cold’s approach to home delivery, is far more streamlined.

“We are setting out to shake up an industry in need of disruption,” says Cortez. The way Delivered Cold operates is simply not possible in other marketplaces because, more often than not, sellers are left to fulfill their own product orders directly. “If a consumer buys three different items from three different sellers, the consumer will get three different boxes,” Cortez explains.

Delivered Cold focuses on empowering the small producer by eliminating the complex self-fulfillment requirement. Because Frozen Logistics operates its own cold storage facility where various products are stored, consumers can order directly from the Delivered Cold freezer, freeing up the producers to do what they do best: produce food products.

“Consumers can shop our freezers directly and access products from all of the incredible farmers, ranchers, and other producers we work with,” says Cortez.

Since the Delivered Cold approach cuts out the middleman, costly and complicated food distribution networks are simplified. By reducing touchpoints in the supply chain, consumers can count on less spoiled food and sellers have another avenue to get their products to consumers.

The sustainability factor

According to recent studies, sustainability is one of the most important factors when consumers choose a company, whether buying food or other products. In recent years, the focus on climate change has influenced every market globally, and it behooves a company to make sustainable practices a cornerstone of their service platforms.

Delivered Cold is built around a sustainability model that compresses the cold delivery supply chain required to get products from the freezer to the consumer. Their approach leads to reduced transportation costs, reduced facility requirements, and reduced material waste.

According to Cortez, Delivered Cold is dedicated to using recyclable and recycled materials throughout the shipping process. It remains cognizant of the impact of its less-than-recyclable materials that are required to get frozen products to the customer. “We plant a tree for every box we ship,” he says. “This helps offset the negative impact of materials that are not entirely sustainable but are necessary for the process.”

Additionally, the company has approached the issue of excess space in packaging that can lead to product thawing, which can cause products to arrive to the consumer in less-than-pristine condition. Traditionally, companies would fill these empty spaces with plastic or paper. Delivered Cold’s approach is decidedly technology-informed.

“Our sophisticated algorithm tracks the available space in each box as consumers shop,” Cortez explains. “We then offer appropriate products to the consumer at competitive and affordable prices, letting us fill each box with as much product as possible.” By maximizing the product-to-packaging ratio, overall waste is reduced.

Moreover, Cortez and his team also produce their own dry ice, further separating the company apart from the competition. The dry ice production process is very energy-intensive, but producing dry ice in the same facility where boxes are packaged with products means they reduce wasted dry ice which, in turn, means less energy goes into each box. By producing dry ice in-house, Delivered Cold is furthering its pledge to sustainable practices.

Growing in 2024

Delivered Cold has soft-launched as of November and will be beginning the next year with over 30 sellers. The company also hopes to host over 100 sellers by the end of 2024 — shipping over 10,000 boxes of a variety of products to consumers by December.

By merging technology, innovations, and a dedicated focus on sustainability, Delivered Cold gives customers what they want and makes shopping for a variety of products easy and accessible.

Business

Opportunities for Black Banx in Emerging Markets

Published

20 hours ago

May 5, 2024

Matthew Wiles

A significant digital transformation is underway in the world of finance, marked by the emergence of non-bank innovators offering a diverse array of financial technology products and services. This transformation is not confined to established markets; rather, it extends its reach into emerging economies, offering a compelling digital alternative to traditional banking institutions. These alternatives are particularly vital in addressing the issue of financial exclusion, which has left substantial populations underserved by traditional banking systems.

Among these innovative digital banking entities stands Black Banx, a fintech brand dedicated to fostering financial inclusion in emerging markets by seamlessly integrating banking services into digital ecosystems. Founded in 2014 as a visionary concept by German billionaire Michael Gastauer, Black Banx swiftly evolved into a global force in the global financial market Officially launched in 2015, the institution rapidly garnered international recognition, extending its services to 180 countries and territories from its inception. Within a mere 12 months of operation, Black Banx amassed over 1 million customers, marking its initial expansions in key regions such as the United States, United Kingdom, and Hong Kong. At present, with a customer base exceeding 40 million as of February 2024, Black Banx stands as one of the fastest-growing digital banks not only in developed countries but also in emerging markets.

What Are Emerging Markets?

An emerging market mostly describes the economic landscape of a developing nation progressively engaging with global markets during its growth trajectory. These economies possess some but not all of the defining characteristics of developed markets, which typically exhibit robust economic growth, high per capita income, well-established equity and debt markets, foreign investor accessibility, and a reliable regulatory framework, according to Investopedia.

As emerging market economies evolve, they tend to integrate more deeply into the global economy. This integration fosters increased liquidity within local debt and equity markets, heightened trade volume, and augmented foreign direct investment. Moreover, these economies witness the emergence of modern financial and regulatory institutions as they transition from low-income, less developed, often pre-industrial states to modern industrial economies with elevated standards of living.

With improving standards of living, the demand for financial security and opportunities escalates, underscoring the pivotal role of banking services. However, traditional banks face challenges stemming from bureaucratic processes and sometimes limited services. Conversely, fintech firms are gaining prominence owing to their convenience, user-friendly interfaces, and expedited signup procedures. Furthermore, their accessibility anytime and anywhere with internet connectivity enhances their appeal to the public.

Strong Demand for Financial Technology

The surge in digital banking adoption, particularly conspicuous in emerging markets, owes much to innovations originating in these regions. For instance, nearly nine out of ten consumers in the Asia-Pacific region, encompassing both emerging and developed markets, actively utilize digital banking services, with a significant portion expressing openness to expanding their usage through digital channels.

Enthusiastic adoption of fintech tools and e-wallets among consumers in emerging markets has propelled the market penetration of these innovative solutions beyond levels observed in developed markets. In the emerging Asia-Pacific region, the penetration of fintech apps and e-wallets surged to 54 percent in 2021, compared to 43 percent in the developed segment. This is indicative of the accelerating shift towards fintech transactions and services, as per McKinsey & Company.

A portmanteau of finance and technology, fintech refers to the burgeoning industry of companies utilizing computer programs and other technologies to provide support or enable banking and other financial services. In developed nations, there’s been a rapid expansion and adoption of fintech technologies ever since businesses and even governments started accepting digital financial transactions as a standard mode of payment. But even in emerging markets, the demand for fintech has also skyrocketed as more people report a diminishing reliance on cash for weekly expenditures.

Identifying Opportunities in Emerging Markets

Launching a successful digital bank entails navigating a myriad of challenges, irrespective of the market’s maturity. However, digital banking in emerging markets presents its own unique set of hurdles, particularly in securing widespread adoption among mass-market consumers. To thrive in any market landscape, a digital bank must first establish meaningful access to its target customers. While the initial interaction may appear straightforward in the digital realm, the reality proves more nuanced.

The proliferation of digital advertising notwithstanding, capturing customer attention remains a formidable task, compounded by the intricacies of onboarding procedures, even for digitally savvy clients. Moreover, the reliance on app downloads as a precursor to engagement further heightens the barriers to entry as first-time users may find them intimidating.

Building a solid trust relationship with customers is important for digital banks to maximize their opportunities in emerging markets. Trust, arguably the linchpin of sustained usage, demands meticulous investment in creating positive onboarding experiences and fostering comprehension of banking channels and products. However, achieving this trust quotient is not easy, especially in emerging markets with lower access to financial services and digital literacy.

Black Banx’s Success in Emerging Markets

Black Banx is a digital bank focused on empowering financial inclusion in emerging markets by integrating banking into digital ecosystems. It was founded by German billionaire Michael Gastauer who always believed that well-designed financial services have the potential to uplift even the most marginalized segments of society, providing them with enhanced economic opportunities.

Consequently, Black Banx is steadfast in its mission to promote financial inclusion while harnessing the advancements within the fintech landscape. Today’s digital technologies offer unprecedented tools to reconstruct banking paradigms, especially for those underserved by traditional financial institutions, with smartphones and laptops serving as gateways to financial empowerment. But while Black Banx makes use of the most advanced fintech technologies, including blockchain and artificial intelligence, it delivers an intuitive and easy-to-navigate user experience through its website and mobile app so even the inexperienced or less tech-savvy consumers won’t have a hard time using its platform to carry out financial transactions.

With his expertise and decades of experience in the financial industry, Gastauer has a keen eye for trends and what works in different markets. So instead of delivering different experiences for developed and emerging markets, the renowned fintech mogul opted to roll out the same suite of services to both because of his motivation to realize financial inclusion and offer only the best banking experience to all. As such, Black Banx facilitates seamless transitions between physical and digital currencies and even cryptocurrencies. The digital bank also tailors its channels to accommodate customers at various stages of their digital journey, ensuring that they feel guided every step of the way until they achieve their financial goals. All of these contribute to Black Banx’s success in emerging markets.