A fundamental shift in consumer behavior has urged retail businesses to establish an omnichannel presence and rethink strategies. Growing inclination toward retail digitization and ultrafast order delivery drives the hyperlocal business model. About 68% of online shoppers prefer buying from platforms that offer fast shipping. In such a highly competitive ecosystem, both small and local retailers should take aggressive measures to sustain business in the post-pandemic economy. The hyperlocal business model promotes local retailers and expands their area of operation at considerably low costs.
Hyperlocal supply chain facilitates on-demand, speedy delivery. Flexible fulfillment centers and dark stores reduce delivery time significantly.
30-minute delivery is gaining traction. Dunzo, GoPuffs, and Dija are popular for their quick delivery services. Owing to its service innovation and exceptional performance, Gorillas, a German delivery start-up attained unicorn status in nine months, much quicker than other start-ups. To go hyperlocal, retailers should strategically ascertain a business strategy–choose from the aggregator model, the fulfillment model, the hybrid model, or the single retailer model–depending on the product offerings and consumer demand.
Advanced technology will render greater value to not only the retailer but also the logistics manager and the customer. Logistics providers can leverage AI & ML algorithms for route optimization and planning, multipoint pickups, autonomous logistics, and so on. Blockchain enables high response time and efficiency across the supply chain, not to mention security, traceability, and smart documentation. 5G technology will boost the performance of all the other technologies.
Autonomous delivery vehicles will address challenges related to personnel shortages and enhance overall productivity.