,Singapore

Marketing Briefing: F&B, groceries to thrive in 24/7 service

This is driven by the 2.2 billion internet users in the Asia Pacific region.

A trend that is seen to continue is the “24-hour service culture”. Digital living supports the “anytime, anywhere” mindset where consumers expect to be served 24/7 by businesses regardless of the products and services that they are consuming. 

“Minimising food and grocery delivery timeframes from a few days fixed slot to on-demand few hours delivery as offered by Amazon Singapore, the exceptional rise of superapps such as Grab in the food and grocery delivery ecosystem, as well as the increasing participation of restaurants and bars to serve on-demand at-home social occasions are all part of the party to celebrate the 24-hour service culture,” said Euromonitor Research Consultant Radhika Singal. 

New technologies are creating massive upheavals in customer expectations and COVID has accelerated the move to digital for many. 51% of the APAC population are now online and there are 2.2 billion internet users in the region.

“There is a high mobile internet penetration rate of 99% as several consumers in the region leapfrogged the desktop era with them accessing the internet for the first time via their smartphones,” Singal added. 

Deloitte reported in the “Global Powers of Retailing 2021” that the impact of COVID-19 boosted a ‘stay-at-home’ focus among consumers as in-home consumption and online shopping and delivery became the trend globally.

“To avoid the risk of infection and the practicing of social distance, consumers have to spend more time at their home,” said Narain Chutijirawong, Deloitte Touche Tohmatsu Jaiyos Co., Ltd. director for Clients and Industries.

Categories leading the retailer product category mix include: food and drink, home improvement, household goods, home-based health and beauty, and home-based leisure and entertainment. Finding their places at the bottom of the  list are categories: apparel and accessories, cosmetics and suncare, and luxury goods.

“This ‘stay-at-home’ focuswhether working, being entertained, or learning from homehave created sharp rising demand in those products that are related to ‘in-home’ consumption, such as food for cooking at home or other housing activity products, like home improvement or household goods,” he added.

In another study by Euromonitor International titled, “Top 100 Retailers in Asia in 2021,” it was mentioned that curbside pickups and drive-throughs will continue to persist in the next few years as consumers turn to alternatives to physically shopping in-store.

Euromonitor Senior Consultant Emil Fazira said that drive-through and curbside pick-up are examples of last-mile solutions that enable consumers to independently collect their purchases at their convenience without having to shop in-store. 

“This is, firstly, a way for consumers to shorten the shopping journey and reduce waiting time; business models that have become more popular amidst the pandemic, like direct-to-consumer models, have helped to mould consumer expectations on how quick and easy remote purchases can be,” Fazira said.

“Secondly, consumer concerns that are still relevant, like hygiene and social distancing, further motivate consumers to seek alternative ways to receive their purchases with minimal social contact. The persistence of such concerns amongst consumers and habits that may stick following the pandemic call out a need for new last-mile solutions for both fresh food and grocery,” she concluded.

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

HongKongLand had the most growth for the day.
It surpassed the Bloomberg consensus estimate of 14.5%.
The agreement aims to grow tourism and economic activities as borders reopen. 
It will also enter a loan agreement worth $210.6m.
The acquisition will be fully funded by cash through internal resources.
These countries are Cambodia, the Maldives, Sri Lanka, Thailand, and Turkey.
The decrease was driven by profit declines in their beer and non-alcoholic businesses.
Sources say the state-owned Chinese firm is in talks with advisers about the potential divestment.
The tests start on 29 November.
Exercise CyberMaritime 2021 puts the sector's cybersecurity readiness to the test.
This is equivalent to 236 attackers per company in a year.
Genting Singapore was seen with the most growth.
The partnerships aim to improve care delivery and patient outcomes.