HYPERLOCAL SUPPLY CHAIN

 

The term ‘hyperlocal’ refers to ‘a small area’ or ‘very specific demography.’ Hyperlocal on-demand delivery model is defined as a business model in which the service provider acquires requested product(s) locally and deliver the same to the customer in the same geographical area. Grocery delivery, ordering food, house care, personal care services, etc. have taken another dimension altogether ever since the popularity of hyperlocal e-commerce platforms rose.  The USP of hyperlocal e-commerce businesses lies in their ability to deliver products and services at unbelievably fast speed. Getting hold of the product you ordered within a short span of time as less as an hour is something that hyperlocal delivery models promise to their customers. Be it ordering food from restaurants that otherwise do not home deliver to ordering groceries needed by you in a short time has become very much possible and easier credits to the hyperlocal platforms.

 

How does an e-commerce hyperlocal marketplace work?

The hyperlocal marketplace model is a perfect example of how the technical advancements can amalgamate with the age-old favorite shopping methods and come up with a unique formula for success. A hyperlocal marketplace works by providing goods and services to the customers from the offline stores available within the proximity of a few kilometres. Think not only FMCG but also house maintenance, grooming and other services that are valuable for customers.

 

A fertile environment

Given the very focused geographic spread of a hyperlocal space, the local ventures are almost guaranteed visibility and customers until they ensure good product and service quality. It ensures product delivery at a great speed that too from the customer’s very local trusted store.

Indian retail is still dominated by brick-and-mortar stores and hyperlocal provides an opportunity for amalgamation of physical and digital stores.

Hyperlocal business models spell instant, on-demand delivery as they cater to needs of a more immediate nature. The gratification is far more accelerated – the entire transaction can be completed in an hour sometimes. Customers also tend to trust hyperlocals more than non-hyperlocal e-commerce websites, as the stores they buy from through online platforms have a physical presence, making it possible to attend to any grievances quickly. Further, the start-up can tap into existing infrastructure, acting as a bridge between existing retailers and the consumer.

 

A word of caution

Replication of a services model is difficult as maintaining uniformity across markets becomes difficult. When a product delivery happens, local people deliver it but if a person is coming to give a service, he represents the brand and should know how to handle a customer. This is where training becomes essential. As the services industry is rather fragmented, it is difficult to form partnerships with associations or groups of such service providers, as specialists are spread out across the country. The biggest learning will be the capability to scale. A hyperlocal that focuses on a single ‘locality’ will find it difficult to get the scale needed to create an economically viable model. Being able to identify a widespread but local need, and having a model that adapts to each new market will be crucial.