Sales Down For China Malls, Could Turn to Same-Day Delivery

When you think of e-commerce, the US has always been the primary country that is spearheading online growth. Not anymore. China's e-commerce is thriving, even to the point that mall stores are seeing the effects of it.

Mall and restaurant traffic is seeing a decline in China reported the Internet Retailer via Bloomberg News. Traffic decreased in November, which is not a good sign as the holiday shopping season begins that month. The article stated it is due to a surge of online shopping activity, according to Baidu, operator of China’s dominant search engine, and JD.com. China's wealthy shoppers are opting to go online to buy more pricier items. Less traffic translates into less sales. This is the time that retailers look forward to, even to where this season helps to compensate for any revenue losses during the course of the year.

Online retail is expected to grow to $500 billion by 2018 and China's leading retailer Alibaba is the front runner there, which also offer Same-Day Delivery in several big cities. The online retailer is the Amazon of China, even generated $18 billion in sales in one day during November. The numbers attest to the lower traffic in malls, as more and more shoppers are comfortable with buying online there. It is convenient, easy and saves our most valued commodity--time.

“China’s two-speed scenario is having a major impact on the country’s retail industry,” said Jason Yu, general manager for China at consumer research firm Kantar Worldpanel. He went on to say, “This massive explosion of online sales growth is being fueled by increasing diversification in the categories purchased online, as well as huge gains in imported products and consumers taking advantage of promotions.” One of the major attractions to online retail is that consumers have access right in the palm of their hands to real-time holiday discounts. With their mobile device, a shopper can look for online deals and instantly take advantage of them.

The question is then how will malls be able to match the surge of online growth, which shows no signs of slowing down? One strategy US department store leaders Macy's took in the US was to create the omnichannels necessary to bridge their online store with its' physical ones via same-day delivery. Macy's partnered with start-up delivery company Deliv and launched same-day delivery in multiple major US cities last year. Deliv uses a crowd-sourcing approach and delivers in-store products from Macy mall locations to online shoppers.

Macy's started its' same-day delivery program in San Francisco, Los Angeles, San Jose, Seattle, Houston, Chicago, New Jersey, and Washington DC. Its' sister company Bloomingdale's rolled out the service in San Francisco, Los Angeles, San Jose, and Chicago as well. With at least 885 mall locations, Macy's has been able to use its' store volume to its' advantage, utilizing them essentially as warehouses to fulfill online orders from. Nordstrom's has engaged in some same-day delivery also.

Like Macy's, it makes sense for mall retailers to turn to same-day delivery to improve sales. Malls can shift with the trend of getting product to the customer, versus the customer coming to the mall when they don't have to. A retailer can partner with a Same-Day Courier like A-1 Express to pick up from mall locations and then deliver to the shopper. The Washington DC Courier has a national footprint and can assist malls in regaining their shoppers back.

Reference: 12.12.16, www.internetretailer.com, Bloomberg News, China’s e-commerce boom shrinks mall shopping traffic

Sales Down For China Malls, Could Turn to Same-Day Delivery

When you think of e-commerce, the US has always been the primary country that is spearheading online growth. Not anymore. China's e-commerce is thriving, even to the point that mall stores are seeing the effects of it.

Mall and restaurant traffic is seeing a decline in China reported the Internet Retailer via Bloomberg News. Traffic decreased in November, which is not a good sign as the holiday shopping season begins that month. The article stated it is due to a surge of online shopping activity, according to Baidu, operator of China’s dominant search engine, and JD.com. China's wealthy shoppers are opting to go online to buy more pricier items. Less traffic translates into less sales. This is the time that retailers look forward to, even to where this season helps to compensate for any revenue losses during the course of the year.

Online retail is expected to grow to $500 billion by 2018 and China's leading retailer Alibaba is the front runner there, which also offer Same-Day Delivery in several big cities. The online retailer is the Amazon of China, even generated $18 billion in sales in one day during November. The numbers attest to the lower traffic in malls, as more and more shoppers are comfortable with buying online there. It is convenient, easy and saves our most valued commodity--time.

“China’s two-speed scenario is having a major impact on the country’s retail industry,” said Jason Yu, general manager for China at consumer research firm Kantar Worldpanel. He went on to say, “This massive explosion of online sales growth is being fueled by increasing diversification in the categories purchased online, as well as huge gains in imported products and consumers taking advantage of promotions.” One of the major attractions to online retail is that consumers have access right in the palm of their hands to real-time holiday discounts. With their mobile device, a shopper can look for online deals and instantly take advantage of them.

The question is then how will malls be able to match the surge of online growth, which shows no signs of slowing down? One strategy US department store leaders Macy's took in the US was to create the omnichannels necessary to bridge their online store with its' physical ones via same-day delivery. Macy's partnered with start-up delivery company Deliv and launched same-day delivery in multiple major US cities last year. Deliv uses a crowd-sourcing approach and delivers in-store products from Macy mall locations to online shoppers.

Macy's started its same-day delivery program in San Francisco, Los Angeles, San Jose, Seattle, Houston, Chicago, New Jersey, and Washington DC. Its sister company Bloomingdale's rolled out the service in San Francisco, Los Angeles, San Jose, and Chicago as well. With at least 885 mall locations, Macy's has been able to use its' store volume to its' advantage, utilizing them essentially as warehouses to fulfill online orders from. Nordstrom's has engaged in some same-day delivery also.

Like Macy's, it makes sense for mall retailers to turn to same-day delivery to improve sales. Malls can shift with the trend of getting product to the customer, versus the customer coming to the mall when they don't have to. A retailer can partner with a Same-Day Courier like A-1 Express to pick up from mall locations and then deliver to the shopper. The Washington DC Courier has a national footprint and can assist malls in regaining their shoppers back.

Reference: 12.12.16, www.internetretailer.com, Bloomberg News, China’s e-commerce boom shrinks mall shopping traffic

Volkswagen Talks Pros and Cons of Same-Day Parts Delivery

It's not just retailers that have dived into Same-Day Delivery. Big name automakers have also begun to implement same-day delivery of parts to strengthen service efficiencies. So far for Toyota, for example, getting parts to dealerships the same day is working. The bottom line is that the service has moved beyond just being a trend for any company, even car manufacturers. However, one of them is not ready yet to say whether same-day delivery is the positive turn that the industry needs to improve dealership part inventory and operations.

Auto News recently discussed in an article about Volkswagen not in favor of pursuing same-day delivery for its' business model yet. VW has a greater focus on developing a supply chain process that helps dealers actually change what they are stocking. The part inventory itself will result in dealerships having the parts for operation efficiency. Service repair is one of the areas of a dealerships that customers complain about the most. It is imperative that the lead time to receive parts it minimized to improve repair times. This in turn, creates less miscellaneous costs to take care of the customer to make up for a lack of on-time repairs.

Anu Goel, Vice President of Parts and Logistics at Volkswagen Group of America, commented in the article about same-day delivery, questioning its' ability to be a viable solution. He stated in the article, "If you've got dealers stocking the right parts in the first place, why do you need same-day service?" The key for Volkswagen that would make same-day part delivery work is its' distribution system, which currently would have to expand to be successful at this type of program. The pros is that it works; however, the con specifically for Volkswagen is the automaker has seven distribution centers and would have to add more to establish a close-proximity system. This ultimately means a huge level of costs that VW isn't ready to provide.

Volkswagen currently does offer next-day delivery, which is productive and the company appears to be satisfied with it. Goel said, "We are good for now. With a 1 p.m. cutoff [for parts orders], we can make 7 a.m. to 8 a.m. delivery the next day. Seven buildings around the country allow us to meet that commitment." On the other hand, other big name car manufacturers are seeing same-day delivery aid in part inventory and service success. Toyota, which implemented same-day parts availability to their dealerships this past August, has seen a difference in real time repairs and customer service. BMW and Fait Chrysler US have also launched same-day part deliveries.

There are pros and cons to same-day parts delivery, yet it is all contingent upon the automaker's current distribution model, and how much would it take to shift from traditional warehousing to fast deliveries. A Same-Day Courier like A-1 Express is a viable option for care manufacturers to partner with to have parts delivered. The Los Angeles Courier has a national footprint, enabling it to pick up and delivery parts to dealership locations across the US. It does take delivery expertise and a large driver fleet to get parts from one dealership to another. A-1 Express could be just what other automakers need to compete and increase their service repair efficiencies.

Reference: 11.21.16, www.autonews.com, Jim Henry, VW's Goel: Same-day delivery? Not yet

SOUQ.com Brings Same-Day Delivery to Middle East

Most of the trending for Same-Day Delivery has the US in the forefront, as well as Canada, London, India, and China. Yet now, the Middle East is being reported on as being another area where same-day delivery is being launched in to help online retail thrive.

Arabian Supply Chain recently discussed how SOUQ.com, the Middle East's largest online retail and marketplace platform, has announced the launch of its' new same-day delivery program in the region. This will be the very first e-commerce company to offer this level of delivery in that area, which could prove to pioneer the service there. The retailer will begin in Dubai with plans to expand. The service for "Fulfilled by SOUQ" (FBS) will be for all online orders placed by 3pm.

“Our primary objective is to deliver the highest quality products and a service as efficient and quick as possible to our customers,” said Ronaldo Mouchawar, SOUQ.com CEO & Co-Founder in the article. He went on to say, “With the Fulfilled by SOUQ (FBS) program, we manage the fulfilment and logistics for third-party sellers, saving them time and money, and our home-grown logistics arm Q-Express as well as our partnership with WING.ae provide us with the most efficient delivery service in the region with real-time order tracking. We believe that our same day delivery and SOUQ delivery promise initiatives are a huge step forward in corresponding supply with customers’ demand and further making online shopping experience seamless and enjoyable.”

One of the main drivers for online retailers implementing same-day delivery is online giant Amazon. The largest e-retailer in the US has possibly by itself revolutionized e-commerce via same-day delivery. Amazon currently has free same-day delivery in 27 city markets, including the New York, Boston, Dallas-Fort Worth, Indianapolis, Tampa Bay, Baltimore, Washington DC, Chicago, San Francisco Bay Area, San Diego, Seattle-Tacoma, Orlando, Nashville, Raleigh, Richmond, Tucson, Atlanta, and others. The e-retailer has Amazon Prime Now in London, as well as its' recent launch of free same-day delivery in Toronto and Vancouver this past October.

Wisam Daoud, COO of SOUQ.com also said in the article, “This innovative initiative is one of the region’s first- enabling customers to choose from the largest assortment of products and categories at the quickest turnaround. This landmark service will allow customers to buy their products in just a few clicks and receive their purchases just a few hours later- a testament to our constant endeavour of utilising technology and our operational expertise to further drive the e-commerce growth in the region.”

Same-day delivery is forecasted to grow to over $987 million by 2019. This equates to more involvement by countries engaging the service into their shipping options, meeting today's shopper demands. Customers want speed and convenience, and a Same-Day Courier like A-1 Express may be just what retailers need to shift how they ultimately sell product. The New York Courier has a national footprint in the US, with a track record of consistently providing same-day solutions.

Reference: 11.10.16, www.arabiansupplychain.com, ASC Staff, SOUQ.com enhances logistics with same-day delivery

PetSmart Launches New Same-Day Delivery in Eight Cities

It doesn't take retailers long to understand that if Amazon continues at its pace of growth, they will lose their relevance in the coming years. Google, Wal-Mart, Macy's, Best Buy, Ace Hardware, and others aren't the only retailers implementing Same-Day Delivery to compete with Amazon. Now PetSmart has decided to do the same and has announced it will roll out the service in several areas this November, right before the holiday shopping season begins.

Flagship.com recently reported that PetSmart will offer same-day and scheduled deliveries in eight US cities in an effort to push against the growth of e-retail leader Amazon. The cities will include Dallas, Houston, Philadelphia, Boston, New York City, Yonkers, Northern New Jersey and Washington DC, most of which are the same cities that Amazon provides free same-day delivery in. Like Macy's, the pet product retailer has partnered with start-up delivery company Deliv to establish the program and perform the actual deliveries. Deliv utilizes a crowd-sourcing model to execute its' pick up and deliveries.

PetSmart is hopeful relative to creating efficient omnichannels to generate online and brick-and-mortar sales. Eran Cohen, chief customer experience officer at PetSmart, said in the article, "As the trusted partner to pet parents and pets in every moment of their lives, we are continually looking for ways to make the shopping experience easier and more convenient for our customers. Our omnichannel strategy is aimed at giving pet parents options tailored to their needs and desires".

Its main driver for taking their online retail to another level via same-day delivery is because of the pressure Amazon is putting on all retailers. Prime Now is in 27 major city markets, including New York, Chicago, Boston, Indianapolis, Dallas-Fort Worth, Baltimore, Washington DC, Orlando, Nashville, Raleigh, Richmond, Tucson, Atlanta, Seattle-Tacoma, San Francisco Bay Area, and San Diego. Amazon also has free same-day delivery in Toronto and Vancouver, showing the e-retail leader is very aggressive when it comes to same-day delivery. For anyone to compete, they will have to do the same with last-mile deliveries, utilizing their store locations as warehouses.

Also like Amazon, PetSmart will be launching a subscription option for shoppers. Others have done it as well, such as Wal-Mart, which is testing its' new service ShippingPass for a $49 per year subscription. E-retailer Google also offers shoppers a $95 annual subscription fee for its' same-day delivery service Google Express, partnering with companies like Costco, Whole Foods, Walgreen's, and others.

Instead of Deliv, other retailers have chosen to partner with a Same-Day Courier like A-1 Express to develop a same-day delivery solution for them. The Chicago Courier has an abundance of service areas, having a nationwide footprint and has a driver fleet to perform deliveries as well. Whether it is in Chicago, New York, San Francisco, and more, A-1 Express can pick up and deliver within a few hours, making for a superior option for same-day delivery. Companies like PetSmart and Amazon, can call on A-1 Express anytime for same-day services, especially to capture online shoppers during the holiday season.

Reference: 11.12.16, www.flagship.com, PetSmart Launches Same-Day Delivery