Your Retail Coach
RISE OF DARK STORES IN ASIA
Your Retail Coach
01 02 03 04 05 06 07 08
INTRODUCTION MCKINSEY SURVEY TRENDS & GROWTH WHAT ARE DARK STORES NEED OF DARK STORES UPCOMING MARKETS DARK STORES IN OTHER COUNTRIES CONCLUSION
Your Retail Coach
INTRODUCTION There is no escaping the reality now. As preventive actions continue to be enforced by governments across the globe, commuting has been abandoned for work from home facilities. This drastic change due to the pandemic has been imbibed into all of our lives last year and to say, one of the many biggest knockouts, as a consequence, has been that people are now shopping differently. Amidst market disruptions and unprecedented economic slowdown, the role that grocery retailer’s play in our daily lives has been re-clarified. INDEX
MCKINSEY SURVEY
Your Retail Coach
INDEX
NUMBER 01
NUMBER 02
NUMBER 03
There has a 30 to 70 percent drop in the preference to dineout spending and a sharp increase in grocery shopping purchase of ready-made food from grocery stores, as compared to food delivery from restaurants in most countries
Online spending on food has increased between 16 and 70 percent across countries and this may not change in the near future.
In all countries, consumer preferences lean towards self-checkout over assistance from cashiers
CONTACTLESS TRNSACTION
IN STORE AUTOMATIONS In the times of Covid-19 disease people are opting for contactless transaction to prevent exposure.
ONLINE SHOPPING
Being locked down in their homes people had only one way to shop for their necessities. DARK
Various stores are using automations for preventing the disease from spreading.
As people are choosing to shop online. So, the dark stores are growing accordingly
NEW TRENDS IN TIMES OF COVID 19
Your Retail Coach
STORES
INDEX
According to an industry report, the Indian e-commerce industry is set to pivotal growth and appears not far behind the US.
With consumer preferences for door-step delivering hastening with ongoing state and nation-wide lockdowns, existing players including Amazon, Big Basket and Dunzo have also heightened focus on this category.
INDEX
In fact, it is expected to surpass the US and become the secondlargest e-commerce industry by 2034.
The Indian grocery market is expected to present stiff competition with a spam of deep-pocketed new entrants venturing into the field.
E-COMMERCE GROWTH IN INDIA
Your Retail Coach
WHAT ARE DARK STORES? Dark stores are non-customer facing mini warehouses full of groceries where ‘pickers’ pick the goods that have been ordered online by customers. These goods are then shipped directly to the customer’s door. The store aisles are laid out almost like a mock supermarket and pickers roll baskets around these aisles almost like how the public goes shopping. What they are enacting essentially, is the manual part of the routine grocery shopping, on behalf of the customer who simply receives the delivery.
INDEX
Your Retail Coach
Swiggy had announced plans to partner with a chain of dark stores enabling it to offer over 2500 items and delivery grocery and household items within 45 minutes.
FLIPKART
NEED OF DARK STORES
SWIGGY
Flipkart Quick. With its own independent network of dark stores aka kirana stores, Flipkart can now push to a 90-minute delivery model for an assortment of handpicked products.
JIO MART
INDEX
The launch of InstaMart has come amid the entry of Reliance Jio Mart, expanding its operation to 200 cities across India.
Your Retail Coach
Singapore-based company offers free next-day delivery of more than 2,500 products.
MALAYSI a South East Asian rideA
hailing, payments and delivery app, has also got down in the game and Announced the opening of its first dark store in Malaysia’s Klang Valley area.
UPCOMING MARKETS:
SINGAPORE
INDONESIA INDEX
Attractive market for providers of material handling and supply chain solutions.
Your Retail Coach
RISE OF DARK STORES IN MALAYSIA
INDEX
FoodPanda, a Singapore based food delivery service, has forayed into the on-demand grocery delivery service in Malaysia featuring 3,500 daily essentials including groceries, household items and fresh produce delivered to its customers within 20 minutes. Pandmart, officially opened its first dark store in July and there are currently 25 Pandamart dark stores across Malaysia. In a statement published recently in a virtual press conference, Foodpanda Malaysia’s Dark Stores director Ashutosh Gandhi claimed that over 100 local and international brands source products to Pandmart facilities and expiry checks are done on a daily basis tracking the perishability of Your Retail Coach these items.
• Tapping out the potential of the Chinese market, the second largest e-commerce platform, Wal-Mart launched its online operations in China with the largest hi-tech AI(Artificial Intelligence) automation and drones delivery system in the world, in collaboration with e-commerce giant JD aka JingDong. • Fresh produce is considered one of the benchmarks for China’s ecommerce, yet loaded with challenges around freshness, produce and price. However, Wal-Mart's fresh produce system has turned around these challenges.
DARK STORES IN CHINA
Your Retail Coach
• The key success factor driving Wal-Mart's strategy is the dark store facilities located more than 3 miles from Wal-Mart to respond to customer orders as soon as possible. • The store admin prints out the customer orders, picks items according from the respective aisles, and bags the items which are then received by the delivery driver. With the automated system, the picking agents handle customer orders in the dark stores with drones speeding up the process. INDEX
Your Retail Coach
DARK STORES IN BANGKOK AND JAKARTA
Your Retail Coach
INDEX
Mega cities like Bangkok and Jakarta also saw a proliferation of dark stores. In cities with congestion issues, such as these, ‘lastmile delivery’ has been a major roadblock. The one way is to set up as many dark stores in the cities, as close to customers as possible, reducing the impact on the last mile and hence speeding up the product delivery.
CONCLUSIO N
Your Retail Coach
This unique and innovative model emerging from the Covid-19 pandemic will remain one of the key focus areas for retail industry leaders, not only to achieve operation efficiency and maintain business continuity, but also future proof the supply chain model. Understanding these insights, retail consulting firm, Your Retail Coach (YRC) is working with retail businesses to set up dark stores across the region to further optimize their supply chain and operations, as the world steps into the next normal.
INDEX
Your Retail Coach (YRC) assists retail businesses in managing their supply chain via retail management consulting services in warehouse management, procurement, inventory management, dispatch and team management riding on proven models of logistics and use of technology across every process, making it system-dependent and less persondependent.
Your Retail Coach
FOR MORE DETAILS:-
To know more about " Dark Stores", visit:
INDEX
▪
https://www.yourretailcoach.in/rise-of-dark-stores-in-asia/
▪
For India & South Asia: https://www.yourretailcoach.in/
▪
For Dubai & Middle East: https://www.yourretailcoach.ae/
▪
For Africa: https://www.yourretailcoach.africa/
▪
Business Process Xperts: https://www.businessprocessxperts.com/
Your Retail Coach
THANKS Your Retail Coach Pune, India-411016 Email: consult@mindamend.net