Retail Asia 2018 RA September.October 2018 (Online) | Page 49

LOGISTICS
Driving the trends in
delivering daily essentials
As grocery delivery services today increasingly innovate to convey the best user
experience for customers, Muneerah Bee speaks with some online grocery players
to gather their thoughts on the significant changes happening in grocery delivery that
retailers in Asia should be aware of.
T
here has been rapid growth in
the grocery delivery industry in
Asia, especially in the past two
years, with the introduction
of more players in the space offering
various benefits such as shorter delivery
times, regular discounts and a wider
selection of items.
Christina Lim, vice-president,
Marketing, honestbee (Singapore),
observes that introducing shopper-
focused innovation has been a key
priority for most players in the Asian
retail scene, along with the growing
importance of leveraging data science
and business intelligence to introduce
product improvements that enhance the
consumer experience.
“The online environment in Asia
is also more fluid compared to other
markets. The line between online and
offline is now becoming increasingly
blurred as online businesses partner with
offline retailers, while offline retailers
experiment with online solutions.
Collaboration between online and
bricks-and-mortar retailers are set to
increase,” she explains.
Shoppers also want free shipping
without a minimum order size,
according to Rajni Gupta, chief
operating officer and founder of
sustainability-focused online mart
TwentyOff, and they are becoming more
demanding with emphasis on on-time
delivery in full.
HappyFresh Malaysia managing
director Hunhui Hu adds that
customers’ busy lives have made it a
hassle to do groceries offline and people
from all walks of life are starting to rely
more on online grocery delivery. He
says: “Throughout the year, customers
are expecting constant development,
service quality and, at the end of the day,
better price. Pricing is one of the factors
that impact our customers, be it mass or
upscale, everyone pays more attention
to prices, especially after the Sales and
Services Tax (SST) implementation [in
Malaysia]. What we do at HappyFresh
is to ensure we give impeccable
service quality and prices through our
campaigns and product discount.”
Given that the platforms to purchase
and receive grocery products are
becoming more and more plentiful and
sophisticated for the end-consumer, the
basic convenience offered by last-mile
logistic delivery is no longer added
value but is becoming a ubiquitous new
normal, observes Neil Beckitt, head
“Logistics is always one of our ever-
growing areas. One of
our missions is to make
logistics from store to door
seamless.”
— Hunhui Hu, Managing Director,
HappyFresh Malaysia
HappyFresh Malaysia has expanded its
range of service to the Klang Valley area,
Penang, and Johor Bahru, and it is also
planning to expand to other cities in
Malaysia in the near future.
of Global Supply Chain and Data at
BottlesXO International, which delivers
wines, craft beers and spirits. “Retailers in
this area need to adapt to find new ways
to offer unique added value in order to
attract and retain their customer base.
The plethora of options at the consumers’
fingertips mean it’s never been more
important to be dynamic in your product
offering and engaging with your content.
Customers are also much more educated
when it comes to food safety and quality
assurance processes; they need to feel
confident that you are a retailer they
can trust. And if your company doesn't
provide this, there will be several others
who will be waiting behind you,” he
comments.
Challenges on the road
Needless to say, running a grocery
delivery business in Asia, especially a
large-scale one, is competitive and comes
with several logistical challenges. Trying
to meet the needs of the increasingly
demanding shoppers is adding a lot of
cost to the operations and for a low-
Retail Asia September/October 2018
47