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.
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?
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.
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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