How Asian grocery giant DFI is bringing one-hour delivery to Singapore
In a move that promises to redefine the online grocery shopping landscape in Singapore, Foodpanda has teamed up with DFI Retail Group to bring consumers a one-of-a-kind shopping experience that is fast, fresh, and fuss-free.
Offering delivery within an hour for nearly 20,000 grocery items from retail giants Cold Storage, CS Fresh, and Giant, the partnership is expected to reach a whopping 95 per cent of Singaporeans.
DFI Retail Group’s managing director for food in Singapore, Yoep Man, recently shared his thoughts on this strategic partnership and what it means for the future of ‘quick commerce’ in the city-state.
The story so far
“DFI Retail Group, with over 120 years of expertise in the grocery industry, continuously adapts and enhances the shopping experience to resonate with our customers’ evolving needs and preferences,” Man told Inside Retail.
Lately, he said, online shopping has become more prevalent, mirroring consumers’ increased focus on convenience as daily life becomes busier for many Singaporeans.
The partnership with Foodpanda will enable DFI to tap into this shift and offer customers a seamless delivery experience.
“We are also glad to have ‘Yuu Rewards Club’ as part of this partnership as we have gotten an overwhelming positive response from Singaporeans since it was introduced, and they will definitely appreciate the ability to earn points via online shopping as well,” Man added.
Customer experience
Man hopes that the collaboration will boost customer retention and loyalty. He believes it will enable DFI to cater to a broader spectrum of customers; from those confined to their homes to individuals who value the convenience of home delivery.
“For those tech-savvy enthusiasts who favour online shopping, this collaboration offers a variety of delivery options – same-day delivery, scheduled delivery, etc. This flexibility further emphasises our commitment to serving our customers in the most convenient way possible,” he noted.
Balancing online and offline
While the bulk of DFI’s business currently is offline, Man believes that the future of retail lies in the seamless combination of in-person and e-commerce shopping, with customers choosing the option that is most convenient for them at any given time, and utilising both options to meet different needs.
“For example, we observed that many Singaporeans are choosing to supplement their in-store shopping with online purchases throughout the week or when they need a specific ingredient or product urgently. With delivery under one-hour, we’re able to meet this need,” he explained.
In addition, he said that online shopping enables Singaporeans to purchase bulky items easily, without worrying about transportation.
“While there are many benefits to this partnership, we do believe that there’s nothing quite like the in-store experience and DFI will continue to strengthen both in-store and online shopping experience to ensure a seamless shopping experience for all,” he elaborated.
Quality assurance
For those worried about quality standards, Man reiterated that store pickers are trained to identify stale products and adhere to strict picking processes to maintain freshness. Inventories are updated daily so that customers can select the freshest products.
“We are planning to expand the product selection to health, personal care and beauty products through Guardian. This means that Foodpanda will become the one-stop-shop for groceries, personal care, healthcare and beauty products,” he said.
A recent survey highlighted that many Singaporeans spend almost a full working day a month on grocery shopping. Beyond that, 70 per cent of respondents cited the challenge of carrying heavy shopping bags and 64 per cent cited frustration with crowds during peak periods.
“These insights reinforced our decision to partner with Foodpanda in order to provide customers with a more convenient and enjoyable shopping experience from the comfort of their homes,” Man added.
Additionally, the survey insights revealed that consumers value on-demand, fast delivery, along with rewards that can be redeemed across multiple lifestyle brands.
Sustainability is key
As on-demand delivery becomes more popular around the world, there is a growing concern about the environmental impact. But Man is quick to dispel these worries.
“Sustainability is a big part of our DNA, and we are currently working closely with our suppliers for more sustainable packaging solutions in service of the overall reduction of plastic use,” he noted.
Man also said that DFI’s team members are briefed to ensure there is no wasteful usage of packaging when preparing delivery orders.
“As DFI works towards carbon neutrality by 2050, we have implemented various strategies across the board, including the use of sustainable materials across our stores. This includes recycled glass for counters and tabletops, bamboo for fixtures and reclaimed wood for countertops,” he stressed.
Man said that DFI will continue to work closely with its suppliers and partners to innovate on more sustainable options for both in-store and online operations as well.
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