Hyperlocal ecommerce- Going after the evolving consumer behavior

“Out of the many factors that have made ecommerce speedy, is the evolving behavior of consumers and that has perhaps paved way for all the hyperlocal ecommerce which is there.”

Introduction

Consumer behavior is an intriguing phenomenon. It has grown and changed enormously in the previous decade. Businesses which have failed to read and interpret the behavior of consumers are deemed to be unsuccessful in achieving what they ever wanted. Now, with businesses getting highly digitalized and automated, they can easily and conveniently satisfy the consumers’ needs and demands, no matter how challenging and daunting. It is the incorporation of technology into businesses that has given way to hyperlocal ecommerce and the reason how the evolving consumers needs are getting met so instantly and conveniently, every day, everywhere around.

What is consumer behavior?

Consumer behavior is the study of individuals, groups, or organizations and all the activities associated with the purchase, use and disposal of goods and services. Consumer behaviour consists of how the consumer's emotions, attitudes, and preferences affect buying behaviour. In other words, it is the study of how consumers make decisions relating to their need, want, and desire and how do they buy and use products.

Evolution of consumer behavior and role of technology in it

Consumers have evolved tremendously and so has their behavior. From a time when they had to move out, commute and shop for products and merchandise of their need, to a time when they can avail any product or merchandise of their liking and need with the help of just a few clicks and taps. Yes! Courtesy to the growing technology and digitalization, the modern-day consumers have evolved in a way that they are liking the merits and perks that come along with online buying.

Several businesses have understood that the consumers going for online buying is an unavoidable trend and hence they want more of it from businesses. Realizing an opportunity in this trend, many of them have adopted the hyperlocal model of ecommerce and have turned hyperlocal. This is the major reason why hyperlocal ecommerce delivery software companies have come on the front, lending help to the aspiring ecommerce businesses. In contrast to businesses of yesteryears, the contemporary businesses have boldly gone hyperlocal to provide the customers brilliant on-demand delivery solutions.

This step on the part of businesses has paved way for a lot of hyperlocal ecommerce. From ordering meals, groceries, and medicines to other major household essentials, everything is available at the fingertips of the modern-day consumers.

The modern consumers and hyperlocal ecommerce

The contemporary consumers have become increasingly habitual of buying from their local neighborhood mom-and-pop shops. All mom-and-pop stores, neighborhood milk booths, nearby grocery and vegetable stores and a Domino’s pizza outlet are good examples of a hyperlocal economy.

With the emergence of hyperlocal ecommerce, consumers have been left wanting for more hyperlocal deliveries. It would not be wrong to say that today’s consumers have just become ravenous about hyperlocal ecommerce delivery software and apps and associated hyperlocal deliveries.

The USP of hyperlocal ecommerce business is to deliver products and services to the doorsteps of customers at an extremely fast pace. Two hours or even less from order to delivery is something that hyperlocal delivery models are typically promising to their customers although lately, a few grocery players are piloting a rapid fulfilment cycle of fifteen minutes. Be it ordering food from restaurants that otherwise do not home deliver to ordering groceries in a short time has become very much possible and easier, courtesy to highly efficient and robust hyperlocal ecommerce delivery software and apps.

In the recent few years, as the trends have been tracked, hyperlocal delivery of groceries, fruits and vegetables has accelerated with the introduction of multiple online grocery stores, ecommerce platforms and other delivery-based startups that have forged partnerships with the local neighborhood stores and supermarkets.

The pandemic too has contributed immensely to the hyperlocal space. It has accelerated the growth of the hyperlocal ecommerce sector with an increasing number of consumers both in metropolitan cities and small towns. In fact, the covid19 pandemic made the modern consumers reorganize their lives in a way that they get the basic utility items with the blink of an eye- that too, conveniently and economically.

Since then, the pandemic has entirely changed the markets and the way businesses operated. The entire retail paradigm has shifted from hypermarkets and mega malls to hyperlocal economical units in just a few months. As the economy plunged during the lockdown, businesses started relying on locally available produce or resources to replenish demand. This is where the aspiring hyperlocal businesses realized the need and came forward to step up their hyperlocal game.

The positives of hyperlocal ecommerce

Hyperlocal ecommerce comes along with its sets of benefits. The hyperlocal delivery model offers utmost convenience and efficiency both to the seller and the buyer. Since products are delivered to the customers relatively quickly, the model is rapidly expanding to food, grocery, health and wellness, homecare & personal care services, among others.

The need for faster fulfilment & the emergence of the latest technologies like geolocation and contextual targeting tools are driving the ecommerce sector into hyperlocalism.

Hyperlocal players are likely to extensively use artificial intelligence (AI) and machine learning (ML) technologies to solve key challenges in hyperlocal fulfilment like managing peaks, route planning, order consolidation, timeslots and overall servicing costs. Similarly, the use of robotics and drone deliveries does not seem to be far away from the hyperlocal grasp of businesses, given the growing fascination of consumers for hyperlocal ecommerce.

Quick, flexible, convenient and asset-light are a few of the key factors working in favor of a hyperlocal ecosystem. Ease of life and convenience for the end consumers as drivers results in the hyperlocal commerce model not only exploding in metro cities but also getting solid traction in tier two and tier three cities.

Wrapping up

Hyperlocal ecommerce is a disruptive model. And this disruption promises increased convenience and economy for the buyers and the sellers at an unprecedented pace. Enabling hyperlocal ecommerce involves figuring out the overall supply chain planning & design and the management of logistical operations. It must be ensured by businesses that reliable last mile connectivity is available maintaining unit economics.

Moreover, as consumer needs evolve and their behavior becomes difficult to understand, more onus will lie on futuristic hyperlocal businesses to uncover their needs and demands and fulfil them instantly and conveniently. This sense of urgency is likely to make businesses go for increased digitalization and automation incorporated into business processes and operational activities.

What’s more? A burgeoning network will make it imperative for businesses to have real-time visibility & big data analytics capability to ensure optimal inventory levels to ensure no stockouts, thereby simultaneously keeping inventory costs in control. Additionally, the increasing hyperlocal responsibility of businesses towards consumers is surely going to make them unleash their capabilities to the fullest in the times to arrive.

It would be interesting to see how the esoteric consumers of today and their evolving behavior responds to such unleashed hyperlocal capabilities. Only time will tell whether the hyperlocal businesses will be able to meet the customers’ expectations or not, the way they have been doing all this while.