Circling the COVID-19 pandemic, online shopping for groceries has picked an unimaginable pace. A drastic change in the buying patterns of the consumers has triggered grocery retailers to invent new techniques and scale. Since the severity and extent of the pandemic are still to be discovered, retailers might have to address multiple challenges and bear extreme pressure. In this grim situation, let’s take a look at what lessons the grocery retailers in the US extract from China. Read the full blog at https://www.fatbit.com/fab/coronavirus-covid19-lockdown-lessons-from-china-for-us-grocery-retailers/

1. What Can
US Grocery Retailers
Learn From China?
Lockdown Lessons On Grocery Delivery System

2. US Grocery Industry: Current Scenario
Amid coronavirus, the US grocery
retailers are responding to an
unprecedented demand that strains
the entire industry. Customers from all
demographics have shifted to digital
ordering.
You can see how drastically the
grocery app downloads have
increased over the period of a month.
Source: FATbit Technologies

3. US Grocery Industry: Current Scenario: Cont..
The grocery delivery services in the US were supposed to offer
ultimate convenience amid the coronavirus pandemic. But they appear
to be falling short of user expectations.
So, US retailers could learn a few things from other countries that are
weeks ahead in responding to this global pandemic. We are talking
about China.
Source: FATbit Technologies

4. In the middle of March, Amazon suspended its Prime Pantry service
in the US to catch up with the excess volume of orders. Also,
according to numerous complaints on social media, there was no
delivery available on Amazon Fresh, Walmart, Instacart, and Shipt.
These companies were and are still facing a huge logistic challenge.
Source: FATbit Technologies
WHAT PROBLEM DID AMERICA FACE?

5. What advantages did China have?
● Chinese grocery delivery services were
immune to logistical issues.
● Chinese consumers were already
purchasing most of their groceries from mobile apps.
● Both consumers and companies were used to aggressive buying.
Source: FATbit Technologies

6. ● China’s online retail market was worth nearly $2 trillion in
2019. And around 33 percent of users were ordering online
groceries through mobile apps.
● China’s eCommerce companies have invested immensely in
warehouse automation and contactless delivery. American
grocery retailers can’t demonstrate such flexibility.
Source: FATbit Technologies
What advantages did China have? Cont..

7. China’s Grocery Delivery System
Source: FATbit Technologies

8. Digitally Enabled
Delivery System
They deployed their smart
vehicles (driverless) to Wuhan
borders, loaded the city map,
and delivered the grocery items
and other necessities.
Source: FATbit Technologies

9. Use Of Talent
JD.com’s 7Fresh branch &
Freshippo hired workers from
shuttered restaurants & outlets.
With limited training in the e-
commerce context, they could
leverage these workers’ supply
chain and logistics skills.
Source: FATbit Technologies

10. Offline To Online
Transformation
Many offline grocery stores in
China have started delivery
services and have invested
heavily in digital marketing for
offline-to-online transformation.
Source: FATbit Technologies

11. Smart Partnership
In China, big online grocery
retailers have established
partnerships with local retailers
in various provinces and enlist
them on their websites so that
people can order groceries from
these stores.
Source: FATbit Technologies

12. CONCLUSION
How America can improve its
grocery delivery services?
Source: FATbit Technologies

13. Situational Thinking + Phased Execution

14. How Situational Thinking & Phased Execution Can Help US?
Situational Thinking
Grocery retailers should monitor changes in consumption habits
by identifying the impact of stress during coronavirus on
consumers’ behavior and other vital points in the consumption
experience.
Source: FATbit Technologies

15. How Situational Thinking & Phased Execution Can Help US?
Phased Execution: Plan your strategies in three phases.
● Short Term: Fulfill your social responsibilities of providing
groceries.
● Medium Term: Design & optimize services by analyzing
changes in consumer habits.
● Long-Term: Make strategic arrangements by predicting possible
consumption growth with comprehensive consumer data.
Source: FATbit Technologies

16. CONNECT WITH US
Website: www.yogrowcer.com
Phone: +1 469 844 3346
THANK YOU!