Increase in E-Commerce Penetration coupled with Development of Infrastructure - Dark Stores and Micro Fulfilment Centres across The Archipelago Will drive the Indonesia Online Grocery Market: Ken Research

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Expanding Partnerships: It is anticipated that e-grocery companies would be extending tie ups with suppliers, grocery stores (hypermarkets, supermarket), food delivery companies, e-wallet companies and other fintech firms to leverage their capabilities to fulfil consumer orders. Other future strategies which the companies might adopt are Introducing express delivery, regional expansion, product portfolio diversification, focus on achieving operational efficiency and establishment of dark store and micro-fulfilment centres. 

Application of AI: Drone Technology, Voice Ordering, Artificial Intelligence & Machine Learning, Warehouse Automation is anticipated to drive the online grocery market in future. AI & Machine learning technologies can be used to provide a personalised shopping experience to the customer. As the industry is in growth stage a strong supply chain accompanied by enhanced demand prediction and consumer behaviour analysis is crucial to ensure sufficient availability of products timely delivery of the fresh produce at minimum wastage.

According to the report by Ken Research titled "Indonesia Online Grocery Market Outlook to 2026 – Driven by Changing Shopping Habits of Consumers and Regional Expansion of Local & International Players in the Archipalego" the online Grocery Delivery Market will increase at a CAGR of 31.1% during outlook period 2021P – 2026F. The market will witness growth owing to introduction of subscription models & innovative strategies adopted by service provides, coupled with increasing demand from the population under the age bracket (25 – 37 years). Moreover, growing working population and rising internet penetration will further comprehend the market growth.

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Indonesia Online Grocery Market

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