YRC - Rise of Dark Stores in Asia (1)

1. Your Retail Coach RISE OF DARK STORESIN ASIA

2. INTRODUCTION Your Retail Coach MCKINSEY SURVEY 02 03 TRENDS & GROWTH 01 04 WHAT ARE DARK STORES NEED OF DARK STORES 05 06 UPCOMING MARKETS 07 DARK STORES IN OTHER COUNTRIES 08 CONCLUSION

3. Your Retail Coach INTRODUCTION 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. INDEX

4. Your Retail Coach MCKINSEY SURVEY NUMBER01 NUMBER02 NUMBER03 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 Online spending on food has increased between 16 and 70 percent across countries and this may not change in the near future. In all countries, consumer preferences lean towards self-check-out over assistance from cashiers INDEX

5. CONTACTLESS TRNSACTION ONLINE SHOPPING IN STOREAUTOMATIONS DARKSTORES 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. Your Retail Coach NEW TRENDS IN TIMES OF COVID 19 INDEX

6. Your Retail Coach 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. E-COMMERCE GROWTH IN INDIA 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

7. Your Retail Coach WHAT AREDARK 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

8. SWIGGY 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. NEED OFDARK STORES FLIPKART 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. JIO MART The launch of InstaMart has come amid the entry of Reliance Jio Mart, expanding its operation to 200 cities across India. Your Retail Coach INDEX

9. SINGAPORE MALAYSIA Your Retail Coach Singapore-based company offers free next-day delivery of more than 2,500 products. 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. UPCOMINGMARKETS: INDONESIA Attractive market for providers of material handling and supply chain solutions. INDEX

10. Your Retail Coach RISE OF DARKSTORES 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 Pandmartfacilities and expiry checks are done on a daily basis tracking the perishability of these items. INDEX

11. Your Retail Coach • 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. DARK STORES IN CHINA INDEX

12. Your Retail Coach DARK STORESIN 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

13. Your Retail Coach CONCLUSION 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. INDEX

14. FOR MORE DETAILS:- 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/ INDEX

15. THANKS Your Retail Coach Your Retail Coach Email:consult@mindamend.net