Business

Japan’s fussy food shoppers finally go online amid pandemic

Published

4 years ago

June 30, 2020

TOKYO (Reuters) – The coronavirus has forced Japan’s notoriously fussy food shoppers to abandon doubts about online grocery stores, sending retailers such as Aeon Co (8267.T) scrambling to meet a surge in delivery demand.

Although Japanese shoppers aren’t alone in going online during the outbreak, the shift is remarkable for a country that had been expected to take years to embrace online food shopping because of a zeal for fresh and perfectly presented produce.

“I think that this pandemic has triggered an inflection point in the adoption of grocery e-commerce,” said Luke Jensen, executive director of Ocado Group (OCDO.L), hired to build a grocery e-commerce business for Japanese retail giant Aeon.

Most companies won’t disclose numbers, but retail executives and analysts estimate internet sales now account for about 5% or more of Japan’s total grocery sales, compared with 2.5% before the pandemic.

Although that is still lower than some pre-crisis estimates of 15% in China and even 7% in broadband laggard Britain, it challenges a long-held belief that Japanese shoppers will always on shopping daily and in person, checking the goods first-hand.

Yuri Ohtaka, a graphic designer living in Tokyo’s western suburbs, began ordering from multiple online supermarkets in March after seeing shoppers emptying shelves at a nearby store.

Although fears of shortages have subsided, online deliveries have made it easier as she works from home, making three meals a day for her family, including her 3-year-old son. She’s also happy to avoid stores amid fears of infections.

“There’s no need for face-to-face, dealing with registers, or standing in line,” she said, adding that she’s also persuaded her parents to go online. “They were shopping every day in the supermarket, and I really didn’t want them to.”

As more households have two people working, analysts say, people want to spend less time shopping. But they still have exacting standards for service and produce quality, which have perplexed previous foreign entrants such as Carrefour (CARR.PA) and Tesco (TSCO.L).

Such changes are closely watched as Japan is one of the world’s most valuable grocery markets, worth over 50 trillion yen ($466.42 billion) a year. Per capita, only countries such as Switzerland, Norway and Israel spend more on food.

Sudden demand

Major Japanese supermarkets, despite talking about online services for years, have only recently begun large-scale spending on e-commerce infrastructure.

Most have struggled to meet the spike in demand, and would-be-shoppers on Twitter have complained of difficulty securing delivery slots throughout the crisis.

Aeon hired British online grocery pioneer Ocado in November to build state-of-the-art robotic warehouses, aiming to fend off rivals such as Amazon (AMZN.O), Seven & i Holdings’ (3382.T) Ito-Yokado and a venture between Walmart-owned (WMT.N) Seiyu and e-commerce giant Rakuten Inc (4755.T).

But the first of those warehouses won’t start operating until 2023. In the meantime, Aeon said it is hiring more staff to help pack online grocery orders, although it is having difficulty hiring more delivery drivers.

Despite such constraints, Aeon expects online grocery sales to grow 50 percent and account for about 10 percent of sales by the end of its financial year ending next February, according to company executives.

That is not an official target unveiled to investors, but the company confirmed President Akio Yoshida, who was appointed to the top job in March, set it as a goal.

Executives expect the shift to last.

“When people increase their use of online, they stay with it rather than going back. In Japan we’d expect there to be a step up in the growth of e-commerce,” said Ocado’s Jensen, who is also chief executive of the group’s Ocado Solutions technology business.

Smart warehouses vs. Mom and pop

Analysts say the shift is also likely to favour bigger retailers who can invest in high-tech warehouses capable of handling large volumes rather than just having store staff pick items from retail shelves and package them for delivery.

That could put smaller supermarkets and mom-and-pop stores, already struggling to match the likes of Aeon and Ito-Yokado in pricing, at a further disadvantage.

But Violetta Volovich, who has researched global grocery industry trends for e-commerce consultancy Edge by Ascential, said remote and costly high-tech fulfilment centres were not the answer for all retailers.

Instead, she envisions many retailers adopting automating more jobs in existing brick-and-mortar stores and embracing features such as “click and collect”, in which shoppers pick up online purchases at the stores.

She also said the rise in food e-commerce didn’t mean an end to traditional grocery shopping.

“Just because people get pizza delivery doesn’t mean they will stop going to pizza restaurants,” she said.

($1 = 107.2000 yen)

Reporting and photo: Reuters

Events

Maldives Association of Tourism Industry (MATI) holds its 34th Annual General Meeting

Published

2 months ago

February 20, 2024

Maldives Insider

The Maldives Association of Tourism Industry (MATI) held its 34th Annual General Meeting at Kurumba Maldives today, with a total of 100 members in attendance.

The day’s events began with a welcome address from the Chairman of MATI, Mr. Mohamed Umar, who also presided over the session. The agenda included an address from the Secretary General, Mr. Ahmed Nazeer, the review and approval of the minutes of the 33rd AGM, the review and adoption of the Annual Report and Financial Reports for 2023, the approval of the 2024 budget, the appointment of auditors for 2024, the welcoming of new members and election of executive board members to the two vacant positions (by-election).

In the member discussion session, the following topics were covered: the Government’s aim to reach net-zero emissions by 2023 and renewable energy generation in the Tourism Industry, new terminal of Velana International Airport and developments, employment challenges, the Industrial Relations Act and trade unions, environmental conservation and the significance of creating and executing efficient management plans for protected areas like the South Ari Marine Protected Area (SAMPA).

Following the official proceedings, the Minister of Tourism Hon. Ibrahim Faisal and the Minister of Economic Development and Trade Hon. Mohamed Saeed joined the forum. The Ministers provided remarks and engaged in a Member Q&A session. This session provided members with the chance to directly engage with the Ministers and delve into crucial industry topics. The queries focused on the Economic Outlook, forthcoming development plans and immediate challenges and issues affecting the Tourism Industry.

A video presentation was also showcased that delved into the extensive work undertaken by MATI in 2023. The video also touched upon the Tourism Industry’s performance over the past 5 years, as well as the current and projected human resource capacity of the sector.

In his closing remarks, the Secretary General highlighted the importance of collaborative efforts in addressing industry challenges and called for greater unison amongst industry stakeholders, ending with an acknowledgement of the promising start to the year in terms of arrivals.

Executive Board Members elected to the 2 vacant positions (by-election):

Ibrahim Shareef, CEO and Managing Director of Maldives Airports Company Limited
Renato De Olivera, General Manager of The Ritz-Carlton Maldives, Fari Islands and representative of Marriott International

Business

Unlocking power of travel storytelling at Travel Creators Exchange 2024

Published

3 months ago

January 30, 2024

m@ldives

Join us for the Travel Creators Exchange 2024, taking place on February 1, 2024, at the Hotel Jen in Male’, Maldives.

This dynamic event provides a platform for networking and collaboration among Maldives-based travel creators, fostering connections, idea-sharing, and the establishment of lasting partnerships to expand opportunities and monetise content.

Our lineup of distinguished speakers includes:

Zihuny Rasheed, Deputy Managing Director of MMPRC, will present on “Power of Digital Storytelling: Collaborative Strategies for Destination Promotion.” MMPRC actively markets the Maldives globally, utilising a comprehensive approach that includes travel trade shows, roadshows, digital marketing, and more.
Amjad Thaufeeg, Commercial Director of Kuda Villingili Maldives Resort, brings over 23 years of hospitality industry experience. He will discuss “The Role of Content in Tourism Marketing,” drawing on expertise in revenue, customer service, sales & marketing, and human capital development.
Suresh Dissanayake, Assistant Vice President of Sales & Marketing of Heritance Aarah & Adaaran Resorts, with nearly two decades of experience, will shed light on “What does a Sales and Marketing Director Do?” He brings extensive luxury hospitality experience and a proven track record in sales, distribution, and marketing.
Vishal Amir Ahmed, a versatile cinematographer and content creator, will explore “Who is a Content Creator.” Currently associated with Various Arts Studio, he specialises in providing multimedia solutions to various clients.

Organised by Maldives Insider, Maldives Virtual Tour, Travel Trade Maldives, and Hotelier Maldives, this collaborative effort aims to empower Maldives-based travel content creators and elevate the Maldives as a premier destination for captivating travel storytelling.

Events

Acclaimed contemporary artist Ana Pušica explores perpetuality and community at Patina Maldives

Published

4 months ago

January 3, 2024

Maldives Insider

Ana Pušica Kramer, an internationally acclaimed contemporary artist, joins Patina Maldives for an exclusive art residency in the now infamous Fari Art Atelier. From January 22 to February 22, 2024, Ana Pušica will grace the shores of the Fari Islands, weaving a vibrant narrative of colour and emotion across her larger than-life canvases.

Her artistry transcends boundaries, melding abstraction and figuration into awe-inspiring masterpieces. Having exhibited globally, from New York to Beijing, Ana’s paintings are a physical, intuitive act rooted in movement. Described as a “beautiful fluorescent thunderstorm,” Ana’s art explores light and colour, capturing the energy of life itself.

The Fari Art Atelier which has previously hosted the likes of Daniel Arsham, Chris Stamp and David Nott, will be transformed into Ana’s studio and gallery showcasing her enthralling artworks—a mesmerising journey through poetry, memory, and the vibrant interplay of colour. Guests at Patina are invited to delve into Ana’s world, where each stroke reveals layers of meaning, evoking sensations of intense lightness and boundless interpretation.

At Patina Maldives, Ana will immerse herself in a month-long residency, inviting the Patina Malidves community or guests and team to witness her artistic fervour firsthand. Guests will have the rare opportunity not only to observe her creative process but also to engage with and create art alongside this luminary.

Experience artistry at its most exclusive

Art Exhibition
Experience Ana’s captivating exploration of colour and emotion in her spellbinding artworks displayed at the Fari Atelier.

Art Workshops: Message in a Bottle
As part of a collaborative artwork, Ana invites Patina guests to participate in short workshops, actively contributing to the creation of a permanent installation at Patina Maldives.

Open Studio Session
Join Ana for an exclusive open studio session, offering guests a behind the-scenes look at her creative process.

Ana Pušica residency package
Discover a world where creativity knows no bounds as Ana Pušica, the maestro of contemporary art, transforms Patina Maldives into an immersive canvas of inspiration.

Book now to secure your experience.
For more information and reservations, please visit Patina Maldives or contact
reservations.maldives@patinahotels.com