, 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.
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 person-dependent
2. 01 INTRODUCTION
02 MCKINSEY SURVEY
03 TRENDS & GROWTH
04 WHAT ARE DARK STORES
05 NEED OF DARK STORES
06 UPCOMING MARKETS
07
08
DARK STORES IN OTHER COUNTRIES
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3. 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 retailers play in our daily
lives has been re-clarified.
INTRODUCTION
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4. MCKINSEY
SURVEY
In all countries,
consumer
preferences lean
towards self-check-
out over assistance
from cashiers
There has a 30 to 70 percent
drop in the preference to dine-
out 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
NUMBER
03
NUMBER
02
Online spending on
food has increased
between 16 and 70
percent across
countries and this
may not change in
the near future.
NUMBER
01
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5. NEW
TRENDS
IN
TIMES
OF
COVID
19
CONTACTLESS
TRNSACTION
ONLINE
SHOPPING
IN STORE
AUTOMATIONS
DARK
STORES
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
In the times of Covid-19
disease people are
opting for contactless
transaction to prevent
exposure.
Being locked down in
their homes people
had only one way to
shop for their
necessities.
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6. E-COMMERCE
GROWTH
IN
INDIA
According to an industry report,
the Indian
e-commerce industry is set to
pivotal growth and appears not
far behind the US.
In fact, it is expected to surpass
the US and become the second-
largest
e-commerce industry by 2034.
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.
The Indian grocery market is
expected to present stiff
competition with a spam of
deep-pocketed new entrants
venturing into the field.
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7. 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
customers 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.
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8. 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.
FLIPKART
NEED
OF
DARK
STORES
The launch of InstaMart has come
amid the entry of Reliance Jio Mart,
expanding its operation to 200 cities
across India.
JIO MART
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.
SWIGGY
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9. UPCOMING
MARKETS:
Singapore-based
company offers free
next-day delivery of
more than 2,500
products.
SINGAPORE
a South East Asian ride-
hailing, payments and
delivery app, has also got
down in the game and
Announced the opening of
its first dark store in Malaysias
Klang Valley area.
MALAYSIA
Attractive market for
providers of material
handling and supply
chain solutions.
INDONESIA
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10. RISE OF DARK
STORES IN MALAYSIA
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 Malaysias 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 these items.
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11. DARK
STORES
IN
CHINA
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 Chinas e-
commerce, yet loaded with challenges around freshness, produce
and price. However, Wal-Mart's fresh produce system has turned
around these challenges.
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.
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12. DARK
STORES
IN
BANGKOK
AND
JAKARTA
Mega cities like Bangkok and Jakarta also saw a proliferation of
dark stores. In cities with congestion issues, such as these, last-
mile 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.
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13. CONCLUSION
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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.
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 person-
dependent.
Your Retail Coach
14. To know more about " Dark Stores", visit:
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/
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