We are living in the era of digitization and Hyperlocal is the future. Revolutionalising the way we shop, hyperlocal has brought stores with their plethora of products to our doorsteps.
Hyperlocal delivery not only provides the much-needed delivery services within a small geographical area but also helps the local vendors connect with their target audience. It is beneficial for both the commerce behemoths and neighbourhood stores.
As hyperlocal continues to gain popularity, here are the five key trends that will shape its future-
1. Advancements in SaaS
Advancements in technologies like AI, blockchain and big data provide an inducement to the commerce sector to adapt to hyperlocal. Deliveries continue to become speedier and hassle-free imbuing the shopping experience with the traditional warmth and familiarity of visiting neighbourhood stores while doing so from the comfort of their couch. The way forward to ace hyperlocal get on board with intelligent SaaS platforms. The coordination between, multi-point picks ups and places of delivery while nailing end-to-end visibility is only possible with SaaS. The increase in Hyperlocal will be accelerated with more technological advancements in SaaS, making it more cost and time-efficient.
2. Democratization of Smart Phones
The lockdowns during the pandemic pushed us to find solace in our mobile phones for both information and entertainment. It even helped the boomers get on the digitization bandwagon and this furthering of our presence in the digital space gave hyperlocal its platform to shine. E-commerce and Q-commerce now, found a strong foothold in even two-tier and three-tier cities, thanks to almost everyone owning a smartphone.
The tech advancements in mobile technology and the applications compatible with them will widen the ambit of hyperlocal.
3. Advanced robotics
The logistics robotics market is the current buzzword. With established players like twiggy already testing drone deliveries, the possibilities are endless. More robots will continue to be deployed, especially in intra-logistics and services which will advance hyperlocal as well.
4. Standardization of Products
While ordering perishable products online, the only concern for the consumer is consistent quality.
Product standardisation is cost-effective and provides customers with a carefree purchase experience. Product standardization makes sure that a product upholds a pre-set standard for quality and this standardization application to the dairy, eggs and meat industry especially for Q-commerce has made it easier for consumers and vendors to defend upon hyperlocal.
5. Investment in Logistics and Supply Chain Space
Innovation and adaptation are the backbones of Logistics. The urgency to adapt to the ever-changing consumer behaviour, mobility restrictions, demand and supply dynamics and a volatile economy led to a surge in hyperlocal deliveries, e-commerce and Q-commerce changing the way the industry operates. This continues to sprout unprecedented challenges that have to be stormed with innovative solutions. This solution-based growth and technological advancements are leading many entrepreneurs and visionaries to invest their time, efforts and knowledge into specialized startups that make logistics and supply chain management seamless. Angel investors, acquisition experts and industry behemoths are also investing in these startups to not only support their growth but also the growth of the hyperlocal sector.
Considering the opportunities that India’s demography offers and the growth of technology in our country, the hyperlocal sector is set for unprecedented growth.
From E-commerce to Q-commerce the growth graph for online commerce is positive, steep and set to touch new records owing to digitization. The pandemic has further given a stimulus to the hyperlocal and e-Commerce boom. An increasing number of consumers in metropolitan cities and small towns are making a paradigm shift in their shopping behaviour and adapting to digitisation. The sector has entirely changed how it functions and continues to metamorphose and change every day depending on real-time insights.
The industry-agnostic hyperlocal delivery model offers both convenience and efficiency to the seller and the buyer. The need for instant gratification when it comes to shopping, lightning-fast fulfilment and delivery and tech-savvy revolutions like Geolocation and contextual targeting tools are driving the e-Commerce sector into hyper localism, solving key challenges like optimum route planning, managing peak hours, order consolidation, multi-point pick up, time slots, fleet management etc.
Directly proportional to the variable consumer behaviour, here’s how Hyperlocal and E-commerce market trends are changing:
New Consumer and Products Segments in Play:
The pandemic and life in a post-crisis world brought with them border restrictions, lockdowns, supply chain disruption etc which caused a declension in global connectivity pushing both retailers and consumers to rely on locally available products and resources.
This gave an impetus for growth to the small businesses and local vendors, who pivoted to online commerce giving the consumers the comfort of buying from their neighbourhood stores. This in turn has helped the e-commerce and Q-commerce sector move beyond just essentials like groceries, medicines, and hygiene products, and bring non-essential items such as gym equipment, entertainment products, fashion and lifestyle products etc into its fold.
Evolved Shopping Experience:
E-commerce is not just quick, it is also flexible, reliable, time-efficient and asset-light providing consumers with an enhanced shopping experience. With the easy availability of every product under the sun online and with options such as lighting fast delivery, there’s been a change in cart sizes and an increase in frequent buying. Standardisation of products such as eggs and meat has helped in the growth of Q-commerce. Besides this, the proliferation of personalized shopping experiences, hands-on experiences customer service and easy returns have increased consumer coherence to e-commerce.
Burgeoning Digital Payments:
The pandemic not only changed how consumers shop but also how they pay. The bifurcation in the modality of payments and the rise of digitized, contact-less, one-click payments has led E-commerce and hyperlocal players to focus on implementing tech-savvy, secure and convenient payment options.
The global hyperlocal services market is estimated to record groundbreaking growth in the coming years. To maximize and optimize operations, retailers are re-branding and re-inventing ways that help them stand out and reach a wider audience.