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March 19, 2022updated 18 Aug 2022 11:37am

Delivery Innovations: Consumer trends

Delivery innovation has been key following the outbreak of Covid-19 in early 2020. Many consumers shifted their spending from brick-and-mortar stores to online and are continuing to demand the fast and convenient delivery of products to their doorsteps. This has put significant strain on retailers and delivery companies working to fulfill last-mile deliveries. Last-mile delivery refers to the final stage of supply chain operations and is often described as the most challenging phase of any supply chain.

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Spot leading innovative companies with GlobalData’s Innovation Scorecard

Innovation remains a necessity in a disruptive ecosystem, as continuous innovation allows companies to adapt, evolve, and grow through disruption. Using our in-house alternative datasets, we are excited to launch GlobalData’s Innovation Scorecard. This scorecard will allow clients to rank 3,500+ companies on their innovation activity, impact, and disruptive potential across geography, sector, and theme. The scorecard provides a data-driven framework to rank leading companies on the potential of their intellectual property (IP) portfolio. GlobalData’s Innovation Scorecard focuses not only on the activity of innovation in the organization but also on its impact and disruptive potential using the 3I framework: Intensity, Impact, and Ingenuity. The tool helps clients to identify the most innovative companies that are disruptive leaders and challengers and can create alpha for their portfolio using the insights driven by 19+ high-value KPIs. Download our report to find out more about this innovative tool. Key findings derived from this tool include:
  • Alphabet, Tencent, and Qualcomm are the top three innovative companies in the last 10 years
  • The scorecard finds Technology & Communications and Pharma & Healthcare as the two main sectors driving innovation
  • Loreal placed as ‘Disruptive Leader’ in the Consumer sector, while Revlon has been identified as a traditional laggard
  • Companies such as Etsy and H&M are challenging retail ‘Disruptive Leaders’ Amazon and Walmart
by GlobalData
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Listed below are the key consumer trends impacting the delivery innovation in retail theme, as identified by GlobalData.

Sustainability

The popularity of organic and sustainable products will continue to grow. There has been a sudden spike in the number of retailers offering sustainable products to appeal to millennials and Gen Z. These consumer demographics are particularly concerned about climate protection and the general well-being of the environment, especially after the global pandemic. Retailers will have to re-align their delivery approach to keep up with consumer demands surrounding sustainability.

Amazon has been at the forefront of promoting sustainability in its supply chain; for example, it has committed to becoming net-zero carbon by 2040 and pledged to power all its operations with 100% renewable energy by 2025. In January 2020, Amazon India launched a fleet of electric delivery rickshaws aimed at reducing its carbon footprint during the delivery process and announced plans to expand the fleet to include 10,000 electric vehicles (EVs) by 2025. Also, other aspects such as its commitment to reduce water usage in data centres, usage of only sustainable aviation fuel, innovation in packaging that eliminates waste, and efforts to ensure that products arrive intact and undamaged are reflective of its intentions to create a sustainable business model.

Similarly, in October 2021, Monoprix Group inaugurated its first certified carbon-neutral logistics platform in Seine-et-Marne, Paris. Ocado has expanded its partnership with technology company Bedeo in a bid to ensure its transition to sustainable last-mile delivery is achieved. In 2019, Ocado launched a fleet of 15 electric vans powered by Bedeo for its last-mile deliveries. It is bringing more vehicles into the service and is aiming to increase the fleet size to 32 electric vans by the end of 2021.

Apparel companies are also striving to promote sustainability in their supply chains. For example, on 15 July 2021, Inditex unveiled the sustainability goals it has set up for the coming years at its Annual General Meeting. The zero-emission target for its supply chain, which was previously set for 2050, was brought forward by a decade to 2040. The retailer also plans to ensure that energy used in operations across its supply chain will be from renewable sources by 2022 and aims to reduce water usage in its supply chain by 25% by 2025.

This is an edited extract from the Delivery Innovation in Retail – Thematic Research report produced by GlobalData Thematic Research.

Free Report
img

Spot leading innovative companies with GlobalData’s Innovation Scorecard

Innovation remains a necessity in a disruptive ecosystem, as continuous innovation allows companies to adapt, evolve, and grow through disruption. Using our in-house alternative datasets, we are excited to launch GlobalData’s Innovation Scorecard. This scorecard will allow clients to rank 3,500+ companies on their innovation activity, impact, and disruptive potential across geography, sector, and theme. The scorecard provides a data-driven framework to rank leading companies on the potential of their intellectual property (IP) portfolio. GlobalData’s Innovation Scorecard focuses not only on the activity of innovation in the organization but also on its impact and disruptive potential using the 3I framework: Intensity, Impact, and Ingenuity. The tool helps clients to identify the most innovative companies that are disruptive leaders and challengers and can create alpha for their portfolio using the insights driven by 19+ high-value KPIs. Download our report to find out more about this innovative tool. Key findings derived from this tool include:
  • Alphabet, Tencent, and Qualcomm are the top three innovative companies in the last 10 years
  • The scorecard finds Technology & Communications and Pharma & Healthcare as the two main sectors driving innovation
  • Loreal placed as ‘Disruptive Leader’ in the Consumer sector, while Revlon has been identified as a traditional laggard
  • Companies such as Etsy and H&M are challenging retail ‘Disruptive Leaders’ Amazon and Walmart
by GlobalData
Enter your details here to receive your free Report.