FEATURE
Five trends shaping grocery retail in Asia in 2021
By : Nick Miles , Head of APAC Retail Insight at IGD
One of the most common questions I get asked by businesses is how will my market develop over the next few years . While there remains uncertainty over what the next 12 months will look like , there is a strong sense of optimism that 2021 will be a year to rebuild , but also to capitalise on the opportunities that have arisen in the ‘ new normal ’ across Asia . With this in mind , IGD has identified five new themes that we expect to shape the Asian market and influence retail strategy in 2021 and beyond :
1 . ACCESSIBLE RETAILING
The global pandemic has made businesses come up with new solutions to make their operations , products and services more accessible . These new solutions have provided new growth opportunities for retailers and therefore we expect this trend to continue , with an acceleration post-pandemic .
A great example of this is retailers teaming up with third party delivery providers . Over the past year we have seen loads of retailers partner with foodservice delivery businesses to make their offers more accessible and offer a new solution for ' impulse ecommerce '. Foodpanda has recently added 2,500 7-Eleven stores to its app across Singapore , Malaysia , Taiwan and the Philippines . An average of 1,000 SKUs will be shoppable with delivery times averaging 20 minutes . The agreement follows a six-month trial which saw orders via the Foodpanda app grow 50 % month-on-month .
What does this mean for your business ?
Make sure your brands are front of mind and easy to access . With movement restricted , shopping habits changing and new retail solutions emerging , ensure that your brands and products are fit for purpose and maximising growth opportunities .
2 . FAST-TRACKING ONLINE GROCERY
We saw a surge in demand for online grocery retailing in 2020 across Asia , with more people than ever both shopping online and the channel growing in importance . Retailers with existing operations have rapidly developed their services , while many retailers who were previously not online have launched services in the space of just a few months .
We expect online grocery retailing to remain elevated post-pandemic , with retailers expanding their services , strengthening their capabilities , and boosting capacity . For example , FairPrice in Singapore has upskilled its in-store pickers , plus is offering two-hour delivery , via its Shop Fast , Shop Fresh service . Delivery is free on orders over SGD79 and prices are exactly the same as you would get in-store .
What does this mean for your business ?
Invest in online grocery today , or you will have to play catch up . With retailers investing heavily in the channel in 2020 and more people shopping online for groceries , first movers will put themselves in a strong position to win in the longer term .
3 . ELEVATION OF HEALTH WELL- NESS AND HYGIENE
Health and wellness has been a growing trend for a number of years , however the importance of a healthy diet , personal well-being and hygiene have become even more important in 2020 . This provides a great opportunity for retailers and suppliers to differentiate themselves and supercharge relevancy of their offers . The most advanced businesses will elevate their attention on this going forward , providing affordable choice , new solutions and advice for shoppers .
What does this mean for your business ?
Show shoppers that you care about their well-being . Retailers will increasingly use health and wellness as a tool to differentiate . Flex your products and communication to reflect current concerns around hygiene , safety , food security and the challenges of COVID-19 .
4 . DIGITISATION OF THE PATH TO PURCHASE
The perfect storm of mobile first internet access , a young tech savvy population , highly advance social platforms , plus high social media penetration , means Asia is world leading in the digitisation of the path to purchase . Smartphones are playing an increasing role in the shopping experience with digital communication and solutions that deliver new levels of personalisation .
Retailers and suppliers will continue to enhance their capabilities and using new techniques to influence purchasing behaviours both in-store and online . Dairy Farm in Hong Kong has brought its 10 brands and 2,000 + shops together under its new digital first rewards club , yuu . With daily content , personalised offers and lots of other features , it was the most downloaded free app in Hong Kong in 2020 , 2.8m downloads in just four months .
What does this mean for your business ?
Drive shopper loyalty through your digital capabilities . Digital innovation is accelerating , upweight you abilities to target shoppers across multiple digital platforms . Engage , sell and use data to make the experience highly personalised .
5 . OMNICHANNEL EVOLUTION OF STORES
Even with the growth of ecommerce over the coming years , stores will remain vitally important , but they will need to evolve to survive . Stores have a vital role to play in supporting the growth of ecommerce , while ecommerce can also help support store operations . Shoppers will increasingly not differentiate between the two channels and therefore the challenge for retailers and suppliers is to provide a seamless experience across both . China is leading the way , while across Asia we expect more retailers to adapt and flex stores to achieve seamless operations .
What does this mean for your business ?
Collaborate with retailers to deliver omnichannel experiences . Shoppers will increasingly expect a seamless and consistent experience both in-store and online , ensure that your brands and operations deliver this , otherwise you risk disappointing your shoppers and losing their trust .
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ABOUT THE AUTHOR :
Nick leads the APAC insight team at IGD . He has over a decade of experience of researching retail across the region , regularly delivering solutions and presentations for retailers and suppliers . Prior to IGD he worked for Tesco for seven years .
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