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RISE OF
DARK STORES
IN ASIA
Your Retail Coach
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
CONCLUSION
Your Retail Coach
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.
INTRODUCTION
INDEX
Your Retail Coach
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
INDEX
Your Retail Coach
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.
INDEX
Your Retail Coach
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.
INDEX
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
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
INDEX Your Retail Coach
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 Malaysia’s
Klang Valley area.
MALAYSIA
Attractive market for
providers of material
handling and supply
chain solutions.
INDONESIA
INDEX
Your Retail Coach
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 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 these items.
INDEX
Your Retail Coach
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 China’s 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.
INDEX
Your Retail Coach
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.
INDEX
Your Retail Coach
CONCLUSION
INDEX
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
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/
FOR MORE DETAILS:-
INDEX
Your Retail Coach
Your Retail Coach
Email: consult@mindamend.net
THANKS
Your Retail Coach

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YRC - Rise of Dark Stores in Asia (1).pptx

  • 1. RISE OF DARK STORES IN ASIA Your Retail Coach
  • 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 CONCLUSION Your Retail Coach
  • 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 retailer’s play in our daily lives has been re-clarified. INTRODUCTION INDEX Your Retail Coach
  • 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 INDEX Your Retail Coach
  • 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. INDEX Your Retail Coach
  • 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. INDEX Your Retail Coach
  • 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 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
  • 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 INDEX Your Retail Coach
  • 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 Malaysia’s Klang Valley area. MALAYSIA Attractive market for providers of material handling and supply chain solutions. INDONESIA INDEX Your Retail Coach
  • 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 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 these items. INDEX Your Retail Coach
  • 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 China’s 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. INDEX Your Retail Coach
  • 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. INDEX Your Retail Coach
  • 13. CONCLUSION INDEX 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/ FOR MORE DETAILS:- INDEX Your Retail Coach
  • 15. Your Retail Coach Email: consult@mindamend.net THANKS Your Retail Coach