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Delivery
This report comes in PPT.
Key findings
Grocery retailers slip back into decline in 2022
After China’s zero-COVID policy had proved successful in 2021, when the country’s grocery retailers channel recorded a strong recovery from the pandemic-induced losses seen a year earlier, the year 2022 posed a challenge to the zero-COVID policy, as the highly contagious Omicron variant of the virus spread across the country. This led to multiple lockdowns in cities and regions as case numbers increased, sending grocery retailers back into decline, also negatively impacting the overall Asia Pacific performance in this year.
Small local grocers helping e-tailers with last-mile delivery
Despite modern grocery retailers being favoured over wet markets in the pandemic, due to their perceived greater hygiene levels, small local grocers still dominate overall grocery retailers sales in China, as in many other countries in the region. As competition from e-commerce and modern grocery retailers puts pressure on small local grocers to adapt and modernise their operations, they are responding by partnering with e-commerce platforms like Alibaba’s Ling Shou Tong system to improve their digital capability. With Alibaba and JD.com helping to revolutionise traditional small local grocers in China by providing much-needed digital transformation and upgrading of services, mom-and-pop stores can benefit from the latest technologies and digital solutions. The small local grocers network, with its extensive reach, especially in rural areas, can also see these stores act as fulfilment centres for online players, representing a win-win scenario for both sides.
Growth in doorstep grocery deliveries likely to continue
Online giants like Tmall and JD.com and food delivery platforms like Ele.me and Meituan have been investing heavily in their online grocery businesses in recent years – leveraging their digital capabilities and logistics networks to offer fast and convenient delivery to consumers across China. Traditional supermarkets are responding by investing in their own e-commerce platforms and delivery networks or partnering with online players to expand their reach.
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