Retail News CRM

Tag: Happy fresh

  • Indonesia shines for retail investment

    Indonesia shines for retail investment

    Southeast Asia’s largest economy, Indonesia, is ranked the world’s fifth most-attractive market for retail investment in AT Kearney’s 2016 Global Retail Development Index.

    In previous years it has ranked in the top 20.

    It is an exciting time to be investing in Indonesia’s retail sector, the index says. The country scores 64.3 in market size (out of a 0-100 scale) and low in country risk (38.9) – lower than the top three markets, China, India and Malaysia. Urgency to enter the market is rated at 68.9, and the overall score of 55.6 is just one point behind Kazakhstan.

    “Despite its relatively low retail sales per capita and currency volatility, Indonesia’s huge population and cities make it quite attractive to foreign retailers, which see untapped potential in the country and are investing heavily in new development,” says the report, which covers 30 developing countries that represent more than half of total global retail sales.

    This is reflected by burgeoning foreign retail investments in the country, reports the Jakarta Post. It cites Dubai-based Lulu, which opened its first hypermarket in Indonesia this month with an investment plan of US$500 million covering nine hypermarkets and a warehouse. Meanwhile, Singapore’s Courts, South Korea’s Lotte, and Ikea and H&M from Sweden all have a presence and expansion plans in Indonesia. Courts plans to open four stores by next March to add to its existing five, and has seen its sales growth double since opening in 2014.

    Indonesian convenience stores Alfamart and Indomaret have also been expanding. Indomaret plans to add 1600 outlets this year to its 12,210 stores, while Alfamart is aiming for six-fold sales growth this year driven by its upgraded online presence.

    The government has opened up eCommerce to foreign ownership where the business value is more than Rp100 billion (US$7.49 million). According to the Indonesian eCommerce Association (Idea), eCommerce transactions are expected to reach $24.6 billion this year, three times more than in 2013.

    Indonesian retailers Matahari and Mitra Adi Perkasa have launched online shopping, while grocers Alfamart and Happy Fresh are extending their online offering.

    Lees ook:

  • Happy Fresh pilots next hour grocery delivery in Southeast Asia

    Happy Fresh pilots next hour grocery delivery in Southeast Asia

    Groceries delivered to customers’ doorstep in an hour by professional shoppers. This was the promise of online grocery delivery service Happy Fresh when it started last March in Kuala Lumpur and Jakarta.

    Today, the service is available as well in Bangkok and will soon open in Taipei.

    “Our plan is to become Southeast Asia’s leading food marketplace company, and we want to operate in all major, traffic-congested mega cities in the region,” said Markus Bihler, Group CEO and Co-founder of HappyFresh.

    Bihler is optimistic that online grocery delivery in the region is poised for take off.

    “The outlook for the retail industry in Southeast Asia has never been more promising. Opportunities abound in this region with its ever more sophisticated and food-loving consumers, growing populations and steady economies,” he said, adding that Kuala Lumpur and Jakarta, in particular, are very interesting markets.

    “Spending power and credit card penetration are higher in KL than in Jakarta, and in general people are more used to buying things online there. Jakarta, on the other hand, is interesting because we really feel we can solve a huge problem here. We all know about the infrastructure challenges this city faces, and the traffic problems this often leads to,” he explained.

    Happy Fresh believes that with online grocery shopping, it’s one fewer trip customers need to make, which often translates into several hours saved that they can now spend on other activities.

    “In Indonesia, Bihler he said middle and upper-income consumers will continue to drive the growth of modern, online retailers as customers are increasingly quality-conscious, demanding higher levels of service and quality,” Biller said.  “Demand for processed foods and dairy is growing, particularly in urban areas, driven by changing lifestyles as people work longer hours and seek greater convenience.

    Happy Fresh targets to bring the service to the capital cities of Southeast Asia one step at a time.

    Though it does not plan to set up a physical store, it partners with the most established offline grocery retailers in a locality. In-house trained professional shoppers who pick  the best fresh products for customers also provide an advantage.

    Delivery hours are based on the opening hours of its partner stores, which is usually between 10 a.m. and 10 p.m.

    “Our message to our partners is simple: Focus on what you are really good at, which is running grocery stores. Then let us help you bring your brand and your products to an incremental set of customer groups: those one mobile devices, those who would like to order from their home, office or wherever they happen to be, and those who value the convenience of next hour delivery,” he said.

    Happy Fresh also strive to help partners reach customers that are normally outside of their catchment area or would have otherwise ordered a pizza rather than next hour ingredients for home cooking.

    Bihler said they offer ready to use solution to its retail partners at no upfront cost, a  fleet of drivers, and customer service agents. “In short: we help supermarkets grow, reach new customers and move into digital,” he said.

    “The food industry is among those that will always remain a physical, haptic, very sensual core. Yet – as any other – it will see heavy disruption by mobile technologies, ever-changing supply chains and faster lifestyles,” he added.

    Lees ook: