Amid the rapid growth of e-commerce in Southeast Asia The Quick Commerce business model has become the latest hot market trend. But the next question is Retailers have been paying attention to a new business model that is gaining a lot of attention.
The popularity of Quick Commerce shipping is well known. from the promise of ultra-fast delivery. Within a period of no more than 10-20 minutes began to become popular. During the online retail market Driven by digital transformation
Kristie Davison, VP Sales, Asia-Pacific, RELEX Solutions, provides an interesting perspective on this matter: How is Quick Commerce different from? General sales in the traditional way They have to manage a wide range of products, as Quick Commerce uses a small number of SKUs (approximately 1,000-4,000 units). This will be a small basket purchase. And trading is often based on premium selling prices. including service charges and shipping cost
Profitability of this business model depend on order quantity and the density of customers within the service area. However, furthermore, the more intense competition, the lower profit margins. while other economic factors such as higher inflation and economic recession All of this can cause consumers to lose interest quickly.
There are also other problems that business operators must overcome, such as operating the logistics system by themselves and inefficient Consumer reliance on cash, as well as a lack of consumer trust
According to data from research firm Forrester on e-commerce in the Southeast Asia region, revenues will exceed $50 billion in 2020 and are expected to increase to $143 billion by 2025. for the fastest growing shopping experience with a 97% growth rate compared to the same period last year.
Although point-of-sale retailers and even e-commerce operators are already employing omni-channel strategies to meet growing consumer demand But there are still many challenges retailers must overcome in order to stand up to the e-commerce battlefield. The penetration rate for grocers in the Southeast Asia online market is only 2%.
However, with challenges comes opportunity when many leading tech companies The rapid rise of Quick Commerce services has driven traditional and digital retailers. They must turn to study the integration of online and offline channels to enhance their presence in the market.
One of the keys to success is effective supply chain management that helps businesses achieve profitability and dominate the market. innovation in technology and is the system or application that supports it. Ability to forecast product demand inventory planning system and the readiness system of the distribution center All of these are another important factor driving the retail industry forward.
The ability to maximize operational efficiency is critical to scaling a business. Retailers not only have to ensure product availability for both in-store and online channels, but also face challenges. such as handling returns For non-grocery items and adjusting the ratio of ready-to-use goods to perishable goods for fresh
Today, technological innovation has become a key component of a successful strategy to dominate the market. innovations From inventory management software systems to automated order picking robots are critical. in understanding the needs of consumers as well as maximizing efficiency and profitability from distribution centers. and warehouse
With more new entrants in the e-commerce arena, the industry is expected to become more competitive. When a small group of players is inevitable Companies need to have a strong and sustainable business plan. and at the same time improving measurable planning capabilities with data-driven technologies.
The Southeast Asian market has boundless potential. According to Google and Bain’s e-Conomy report, it is estimated that by 2030 the e-commerce economy will reach $1 trillion in total product value.
And of course, Quick Commerce businesses are part of that trend. if performed correctly
