, APAC
579 views
Photo by Lum3n: https://www.pexels.com/photo/close-up-of-vegetables-in-market-319798/

Shift to modern grocery consumption slows down

This trend, however, is not observed in Malaysia and Thailand.

Spending in modern grocery, including the online channel, slowed down in the fastest-growing markets as the growth of modern grocery networks “failed to keep pace” with other channels amidst the pandemic, resulting in a decline in market share.

In a report, McKinsey said consumers in India, Indonesia, the Philippines, and Vietnam still prefer traditional grocery due to convenience and proximity.

“The slowdown of modern grocery is due not only to shifting consumer preferences but also to limited store expansion by retailers trying to balance growth and profitability,” the report read.

“In these markets, the adoption of channels such as online remains low due to either limited digital penetration (in India, for example) or fewer players in the market (as is the case in Vietnam),” it added. 

ALSO READ: China’s FMCG sector sees ‘soft recovery’: report 

For example, in Urban India, traditional grocery dominated the fast-moving consumer goods sales for the year ending in March 2023, contributing 83% to the total sales, with modern grocery accounting only for 8%.

Traditional grocery also led in Rural Vietnam (82%), Indonesia (69%), Urban Vietnam (62%), and the Philippines (48%).

On the other hand, modern grocery dominates in Malaysia and Thailand, with the channel contributing 77% and 46%, respectively, to the total sales.

“This trend could be attributed at least partially to online shoppers returning to offline channels, whose distributed network of stores offers enough convenient options for shopping close to home,” it said.

McKinsey also added that other grocery channels such as direct or door-to-door are seeing sales growth in selected markets such as South Korea and Taiwan.

 

Follow the link for more news on

Kawan Lama Indonesia mengaburkan batas antara belanja online dan offline

Pengunjung  platform e-commerce grup, Ruparupa.

K3Mart memadukan budaya Korea dan produk UMKM lokal dalam satu gerai

Convenience store itu menyediakan perbandingan produk impor dan produk lokal sebesar 50:50 di 30 outlet mereka.

Meningkatkan penelusuran dan efisiensi manajemen inventaris dengan barcode 2D GS1

Barcode 2D ini berfungsi sebagai penyimpanan data yang kompak.

The Coffee Bean & Tea Leaf menyeimbangkan kualitas dan kenyamanan melalui produk ritel

Mereka memperluas rangkaian produk termasuk berbagai kopi single-origin yang disesuaikan dengan preferensi pemanggangan yang berbeda.

KCG menguasai brand positioning untuk segmen premium di Indonesia

Mereka mengadopsi solusi berbasis teknologi terbaru untuk sukses mengelola 92 toko ritel di 20 kota di Indonesia.

Ini alasan brand-brand mewah meningkatkan investasi AI

Sektor ini telah menginvestasikan lebih dari $360 juta dalam AI selama tiga tahun terakhir.

Bacha Coffee menguasai retail kaya sensorik di Jakarta

Memadukan warisan dan kemewahan, Bacha Coffee Plaza Senayan menghadirkan pengalaman unik bagi pecinta kopi Indonesia.

Bagaimana WCT Malls meningkatkan penjualan tenant melalui pemasaran terarah

Melalui pemasaran terarah, mal ini meningkatkan penjualan tenant dan tingkat okupansi.