Note: Today’s post is part of our ‘Editor’s Picks’ series in which we highlight recent posts from our sponsors that provide supply chain insights and advice. This article comes from Manhattan Associates and examines the rapid growth of commerce.
Fast trade, fast delivery, serving the “instant needs” market. Call it what you will, but the convenience boom has arrived and is here to stay.
What was perhaps initially seen as a pandemic pivot will have lasting implications for the retail sector and its supply chains. Forget about same-day or one-hour delivery; 15-minute grocery delivery is quickly becoming the norm in many urban areas around the world.
But does he really need it? Are grocery orders really that urgent? And how financially viable is this model? In this blog, we dig deeper into some of these topics and explore what 2022 could bring.
First, let’s recognize that we live in a ubiquitously connected world. A digitally accessible world with conveniences at your fingertips. A world where we can spend hours consuming digital content, a world of home comfort and endless choice. A world with instant access to millions of products to buy, songs to listen to and movies to watch.
We may be living in an on-demand era, but when it comes to grocery missions, until recently it was mostly the weekly grocery store that was made online. the recharge grocery shopping was still an analog experience.
the incomparable the disruption caused by the pandemic has not only accelerated the adoption of online grocery shopping, it has also created a whole new channel – we are finally seeing the digitization of the refill store.
Supermarkets 15 minutes away – like Gorillas, GoPuff, Getir and Zapp – came at full speed, boldly launching their new brands and elevating the customer experience to new heights, seemingly oblivious to little or no crowds. nature of the margin of this industry.
These fast delivery platforms basically act like a 21st century-old version of the corner store, catering to those convenience/crisis-oriented shopping missions – shoppers who need an ingredient or two for tonight’s dinner, who are out of diapers or beer, or who may be in quarantine and struggling to secure a suitable slot with one of the big grocers. They disrupt the status quo and redefine immediacy. Niche, but very relevant in today’s climate.
While shoppers will always say yes to faster delivery and better service, you have to wonder if this small segment of the grocery channel is worth disrupting? And I say “small” for three reasons:
1) As above, 15-Minute Grocery Delivery caters to niche shopping missions – refill, “for tonight” and food to go
2) Let’s face it, this kind of model requires a high population density and will therefore be largely limited to cities
3) Despite all efforts to democratize it, super-fast delivery is a premium service for shoppers who are short on time and often cash-strapped
So, is the hype around fast trading justified? Or will this become another pandemic innovation that is quietly fading as we settle into another new normal?
To read the full article, click here.