The largest professional agricultural association in Spain, the Agricultural Association of Young Farmers (ASAJA JAEN), has launched Meteo Protect’s dedicated weather insurance platform in order to provide its 22,000 affiliates access to Meteo Protect’s fully customized index-based weather insurance and increase their resiliency against climate-related risks.
In London this past week, FinTech City announced the FinTech50- an annual list of the 50 hottest FinTechs in Europe selected by the biggest names in European FinTech. Now in its 5th year, the international expert panel of investors, financial organisations and global tech and influencers narrowed down their list from 1500 companies. Of these, Meteo Protect, an SAP® Startup Focus member, and Europe’s leading provider of weather risk insurance, was recognized at this event as a Hot Ten 2017, “the one to watch” in 2017.
When it comes to weather affecting consumer behaviour and purchase decisions, it has long been known that weather has an impact on consumer demand. The food we eat, clothes we wear, and how, where and how much we buy has all been scientifically proven to be influenced by the weather, it being second only to the economy in being the biggest single influencer on consumer behaviour.
Indeed, every day people make purchasing decisions based on the weather, from buying ice cream, sandals and swimsuits in the summer, hot soups and snow tyres in the winter, and less of beer and bottled water as autumn approaches. In turn, the seasonal cycle of weather purchases are accounted for by supply chain managers in stocking store rooms and giving discounts to clear out product before the seasonal event- or the season itself- leaves stockpiles of unsellable wares in their hands.
But what if everything we have known to be true about how the weather affects consumer behaviour and our ability to control this relationship was wrong? What if the seemingly uni-directional, unmanipulatable relationship between the weather and consumer behaviour was now being found to be being turned on its head? Specifically, what if a business could influence the relationship between the weather and consumers to its advantage?
DOI: 10.15200/winn.146521.13799 provided by The Winnower, a DIY scholarly publishing platform
When the business objective is entice retailers to pre-order a winter product despite promises of a warm winter, how do you overcome their reluctance due to risks associated with uncertain sales? As a result of climate change, this challenge is an increasingly common one, as retailers face going into seasons fearing “unseasonal weather”, whether that may be an unusually dry spring, cool summer, warm autumn, or any other weather condition or event considered adverse, unexpected, or unfavourable.
For the French sales team of Bridgestone, the reluctance of retailers to pre-order winter tyres in the July to September sales period because of the risk of Western Europe having a green winter this past year was causing just such a challenge. Retailers were understandably reluctant to stock up on a product that was for a weather condition that might not transpire, instead preferring to wait to order in the event of snow, which would result in Bridgestone losing sales and being vulnerable to logistical bottlenecks in case of sudden demand.
DOI: 10.15200/winn.146460.06194 provided by The Winnower, a DIY scholarly publishing platform