Brands are converting or combining stores into micro-fulfillment spaces
Trend - "Dark stores" are miniature warehouse-adjacent spaces, whose sole purpose is to pack online orders for pick-up or delivery. Many retailers are turning their brick-and-mortar locations into micro-fulfillment hubs, or hybridizing these spaces as a bit of both, in order to satisfy demand during COVID-19. As a result, customers are not allowed inside.
Insight - During the COVID-19 pandemic, consumers have increasingly turned to e-commerce as a means to get products they need or want. The increase in online spending can be attributed to the fact that the experience offers them a convenient and safer alternative than going in-store. Often plagued by impatience—from dealing with an online interface to getting the product fast or in time for an occasion—individuals are emphasizing the need for efficiency in this space that allows for a seamless experience.
Insight - During the COVID-19 pandemic, consumers have increasingly turned to e-commerce as a means to get products they need or want. The increase in online spending can be attributed to the fact that the experience offers them a convenient and safer alternative than going in-store. Often plagued by impatience—from dealing with an online interface to getting the product fast or in time for an occasion—individuals are emphasizing the need for efficiency in this space that allows for a seamless experience.
Workshop Question - How might your brand create a seamless experience in the e-commerce sector?
Trend Themes
1. Micro-fulfillment Hubs - Brands are transforming brick-and-mortar stores into micro-fulfillment centers to satisfy the demand during COVID-19 with a delivery-only model.
2. Dedicated Fulfillment Hubs - Retailers are turning stores into regional fulfillment centers to improve inventory management and fast delivery in the e-commerce experience.
3. Commercial Micro-fulfillment Solutions - Automated technology and Dematic iQ software constitute micro-fulfillment solutions that bring industry-leading speed and efficiency to the fulfillment process.
Industry Implications
1. E-commerce - Brands are transforming brick-and-mortar stores into delivery-only spaces and fulfillment centers to keep up with the growing demand for online shopping.
2. Retail - Dedicated and micro-fulfillment hubs, coupled with automated technologies, can help retailers optimize the inventory process and deliver efficient online orders.
3. Logistics - Automated micro-fulfillment solutions can help logistics companies fast-track the e-commerce process and improve consumers' delivery experience.
