What’s too
become of legacy grocery stores? With Eataly, Eatzi’s, Sprouts Farmers Market,
and Whole Foods all selling Ready-2-Eat and Heat-N-Eat fresh prepared food
garnering market share and customer frequency; we ask will Online
E-tailors be the end of legacy grocery
stores?
The global
consumer demand for grocerant niche fresh prepared food is driving change and
points of fresh food distribution. In the U.S.
Whole
Foods as partnered with startup Instacart for delivery
as are many others.
In Singapore
one startup Redmart just might be positioning to compete in the U.S. providing
additional points of distribution. David Moth of E-consultancy recently took a look at Redmart and here is what he
found:
“In Singapore an online grocery startup
named Redmart has been grabbing a lot of media attention and backing from high profile investors thanks largely to its focus on
delivering an excellent customer experience.
Though it only sells groceries Redmart
describes itself as a ‘technology company focused on retail. ’The founders hope
to dominate ecommerce in Singapore by creating a best-in-class operations and
logistics network, in much the same way that Amazon has done elsewhere.
Free and same day delivery
Delivery costs $7, which seems a bit
steep to me, but if you spend more than $75 then delivery is free. An
additional selling point is that customers can opt for same-day delivery if
they order before 10am.
Nominated delivery slots
As a pure-play online retailer
Redmart’s only physical customer touch-point is on delivery of orders.
Consequently it puts huge emphasis on getting fulfilment right and ensuring its
customers always have a great experience.
CEO Richard Egan III said that though
the company was initially planning to rely on third-party logistics firms, it
soon became apparent that the company would need to own the last mile to ensure
an excellent customer experience.
As well as designing and optimizing its
own warehouse, Redmart created its own app for delivery drivers called Delivery
Buddy. It acts as a satellite navigation system and also updates in real-time
so drivers can be notified if a customer won’t be in to accept their delivery.
Shoppers can nominate a two-hour delivery slot between 10am and 10pm seven days
a week.
Mobile app
Many major grocery retailers have a
mobile app so this is nothing new, but it definitely helps to improve the
customer experience. Redmart has both iOS and Android apps. The apps also store
the customer’s account details so they can make an order using a
one-click payment method.
How’s that for convenience?
‘My list’
Redmart customers can access a list of
all the items they have previously purchased from the site, which is
conveniently called ‘My List’. This makes re-ordering easy, but also acts as
customer retention tool. Customers are sent email reminders when it’s time to
restock each item so they never run out.
Analytics
As a sweeping generalization, I’d say
that pureplay online retailers tend to be a step ahead of multichannel
retailers when it comes to customer analytics. The reason for this is that the
website is their only opportunity to observe customer behavior, plus CRO takes a higher priority as it’s the
only opportunity to make a sale.
Redmart creates highly targeted,
relevant offers by combining demographic information with on-site and purchase
behavior data. This is good for customers as personalization improves the customer experience, but
it also means that Redmart’s suppliers can achieve greater ROI on their
marketing activities.”
New
Points of Distribution
Much of what Redmart offers is actually
fairly common in the U.S. but what is important is how well funded Redmart is,
its goals and current success. With Eataly, Eatzi’s, Sprouts Farmers Market,
and Whole Foods all selling Ready-2-Eat and Heat-N-Eat fresh prepared food
garnering market share and customer frequency; we ask how and where are you
selling Restaurant, C-store, Drug Store, and grocery Ready-2-Eat and Heat-N-Eat
fresh food?
Interested in learning how can you work grocerant niche products into
your establishment to grow profits and capture customers while they are in your
store? Call 253-759-7869 as for the Grocerant Guru™,
visit www.FoodserviceSolutions.us or Email: Steve@FoodserviceSolutions.us
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