Delivery Service to the rescue for consumer demand in a pandemic-driven world
A global event as prominent as the COVID-19 outbreak is likely to have an impact on the life style of people all over the world. Thus, a sudden change in consumer behavior is not surprising, rather rational. However, the success of a business depends on how fast and efficiently it can cope up with any unfavorable situation as risk is a fundamental element of any business. Before pandemic, the biggest vertical to deliver for logistic service providers of the country was e-commerce and f-commerce, covering around 60% of the whole pie which mostly consisted luxury products. After the corona virus outbreak, in no time the demand for grocery and essentials reached sky-rocket. The market leader, Chaldal was receiving 16,000 orders per day which was only 2,500 before pandemic. On the other hand, food delivery services dropped by 80% since all the restaurants were closed. However, when the whole country was staying inside home in order to minimize Covid-19 contamination, the logistics service providers were serving day and night to cater the sudden shift of the consumer demand. They responded to the situation swiftly by either extending their verticals or shifting their concentration to adjust the shift in market dynamics. As we are moving on with this new normal arrangements, the booming sectors must capitalize on this opening at once and focus on practices like consumer retention, that will make this growth more sustainable. On the other hand, a post COVID-19 boom for the verticals which are lagging behind, seems to be on the cards.
Sushmita Saha
Assistant Manager
IDLC Finance Limited