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Thailand: Mobile retail races ahead
The Covid-19 pandemic has forced many changes to the retail market, to the point that reinvention and reformatting have become essential for survival at a time when restrictions are everywhere.
In recent years, we have seen the rise of food trucks as an effective and agile way to introduce new brands while reducing the cost of setting up a store. The idea has now spread to other types of businesses such as stationery, plants and fashion.
The growth of the food truck industry in Thailand clearly started last year, building on the momentum of the Food Truck Expo in 2019 and riding the wave of changing retail trends. The number of food trucks in Thailand almost tripled to 2,800 by the beginning of 2021.
Yet, the concept is not truly new in Thailand. Grocery trucks or rod poom puang, driving around communities with a loudspeaker announcing their arrival, have been around for decades and could be called the original agile retail concept.
It is basically a mobile supermarket, selling pre-packed fresh ingredients from the market, penetrating communities and serving people who do not want to travel to the market.
The other unique point is the shopping experience and interactions with the seller. With menus for lunch or dinner in mind, buyers can just let the seller know what they want to cook, and the seller can pick for them all the ingredients needed for that day right away. Bargaining is also on the table, so buyers can get the best price, or even cooking tips from the seller.
In the Covid era, mobile grocery trucks also reduce points of contact as buyers would be dealing with only one or two sellers per truck, and they eliminate the need to go to a crowded market or supermarket.
In May of this year, the Commerce Ministry launched more than 700 mobile grocery trucks to serve people in Bangkok and its vicinity, selling products at relatively low cost to help those who do not want to leave their homes.
Mainstream retailers have also adopted this format. In early 2021, Tops Supermarket teamed up with AP Thailand Group to offer mobile supermarkets to residents of the property developer’s Life and Aspire condominium projects. They can be found at selected locations at a given time on a weekly basis and focus on selling fresh produce.
Agility, flexibility and affordability have been the keywords for businesses since 2020 and will likely continue to be for this year as well. While innovative ideas are needed in the changing retail scene, a look back at what we already have and what we could capitalise on offers valuable insights into what can be done.
Source: https://www.bangkokpost.com/business/2137663/mobile-retail-races-ahead