Herematic revolutionizes the vending business
On May 9th, at Venditalia 2012, participants will witness a revolution in the vending market.
Herematic, the first and one only international network for the geo-localization of vending machines, will officially enter the market. Herematic is poised to become a reference point in the vending business, with its innovative proposition that integrates web, smartphone, social network and geo-localization.
What is Herematic’s purpose?
The objectives are three; three are the needs; three are the types of users to enter the “Herematic network”.
The first objective is to enable the vendors to promote their machines by geo-referencing them, and to specify the type and availability of the products offered.
Herematic will also enable manufacturers to advertise their brands, and above all it will innovate the vending market by offering consumers a tool that lets them buy the products they want on a 24/7 basis, specifying the nearest vending machine and both its product prices and availability, simply by using a smartphone app or Facebook.
Is this an innovation that answers a market need?
The vending market amounts to 23 million vending machines world-wide, in the food sector alone (10 millions in Europe, 6 millions in the US and 5.4 millions in Japan), and it’s a growing trend, as reported by Euromonitor International (the world-wide leader of market research), also because the choice range of products offered is widening, as well as the range of product typologies (Health&Beauty, Electronics, Fashion, and so forth).
In Italy alone, the food sector TAM was Eur 2.6 billions in 2010, an increment of +7.19% relative to the previous year (source: CONFIDA). Consumer’s buy operations are also growing (+7.68%) as well as the diffusion of vending machines (+6.73%).
In light of such growing trends, Herematic seem to represent a strategically sound move to create a successful business, by placing the whole vending system on the net, promoting this particular sales channel to consumers while creating new marketing routes to handle the competition.
Specifically, the Herematic project targets the public vending system, that is, those vending machines that shops use to extend their traditional trade (tobacco resellers, gas stations, chemist shops, supermarkets and so forth) and those placed by high traffic locations (train stations, airports, malls, etc…).
This particular segment is characterized by a constant growth, and employs 10% of the total amount of vending machines world-wide; Herematic is diving into it with no competition in sight, apart from a few store locator systems that have been independently developed by a few brands, but only to let consumers know where the machines are.
Who are the project’s players, and what are their expectations?
Herematic was born on March 12 out of a Joint Venture between Trillomedia S.r.l and Fabio Russo S.r.l. The former is headed by Giuseppe Gargiulo and plays the leading role, coordinating the project and go-to market strategy. The latter (also owner of “VendingTV”, the unique web-TV channel dedicated to B2B vending), coordinates promotion and advertising.
Currently, the project lead is building a national network between the vending business’ trade unions and all its major players, with the objective of introducing at least 10.000 vending machines. Hermatic’s goal is to generate profits for Eur 100.000 within the first year, and generate ROI within 18 months since the project’s public announcement (which, again, takes place on May 9th). The machines managers will have to pay a fee to enter the network, while users will generate pay-per-click profits when interacting with the ads shown in the app.
Herematic’s Beta software is currently available online, and a marketing campaign to strategically position the service is already being rolled out by Raffaele Rota, marketing manager at Trillomedia.
While waiting for user’s feedback on such “Vending revolution”, the Ninja Community wishes the best of luck!