Technology is driving last-mile retail delivery in the GCC: CRTKL
Changing consumer behaviors are driving a growing need for faster and cheaper online deliveries, which are driving the growth of technology for last-mile deliveries in the GCC, according to a report by CRTKL, a global cultural agency.
The CRTKL has highlighted opportunities to adapt retail design in the region to meet the growing e-commerce trend, in an industry-leading micro-grants report.
E-commerce market growth in the GCC has accelerated at a steady pace, with 64% of consumers in the region ordering online at least once a week, compared to 40% globally. Additionally, data from Euromonitor shows that the UAE mobile commerce retail market is expected to grow with a compound annual growth rate (CAGR) of 18.9% through 2025.
According to the report, consumers are browsing products online to have their purchases delivered to their front door or easily picked up from a nearby area.
Advances in software engineering for online delivery platforms, as well as in city infrastructure and logistics, have increased the efficiency and speed of deliveries, as the pandemic intensifies the trend of online shopping.
Paul Firth, Associate Principal at CRTKL commented: “The region is perfectly positioned for last mile delivery due to rapid urbanization and excellent road infrastructure within the retail radius. As hybrid malls evolve into experiences, some areas can be repurposed as fulfillment centers for online sales with a greater emphasis on flexibility as health and wellness becomes increasingly important.
“At CRTKL, we are reimagining mixed use by enhancing functionality for retail with increased accessibility for future technologies such as drones. We are committed to positive design for the planet and improving connectivity through the implementation of innovative last mile solutions, essential for an enhanced and convenient retail experience. »
Key factors driving the growth of technology for last mile deliveries include:
Today, more than half of the population lives in urban areas, with 1.5 million people adding to the world’s urban population every week. Businesses are responding to the global urban transition by changing the way humans consume goods and interact with online shopping to drive growth.
The last mile is the costliest and most complex stage of the supply chain within urban infrastructure with current options including bike couriers, droids, autonomous ground vehicles and drones. The use of robotics can speed up deliveries, allowing for more flexibility and reliability in how goods are delivered through intelligent integrated systems.
Adjustments in retail store design and delivery systems that support digital demand are delivering many benefits to consumers in how they experience physical stores.
More and more businesses are transforming their storefront spaces into “enhanced dressing rooms,” using technology and data from online ordering.
Integrating automated systems into their back office gives retailers the opportunity to spend more time with customers who visit the store. Retailers have a more compact and customer-friendly inventory based on online shopping trends, with pickups and deliveries becoming easier and faster through micro fulfillment centers.
Newly developed logistics technologies, such as autonomous vehicles and drone technology, require replenishment of existing infrastructure and urban elements such as sidewalk design. With an intelligent logistics management platform, companies can reduce last-mile delivery costs by 14% and increase deliveries per driver by more than 13%.
Middle Eastern shoppers are increasingly influenced by sustainability issues, with 83% of UAE residents being aware of their environmental footprint and the impact their shopping choices have on the planet. The advent of new technologies and their increasing implementation in the Middle East will lead to a rising trend of faster deliveries and smart tracking to improve sustainability with different sectors advancing carbon reduction capabilities.
Envisioning “the mall of the future”, CRTKL has developed a Droneport concept to make last mile delivery more compact and efficient, reducing power consumption and increasing range. An automated drone helipad accommodates drones of various sizes and has storage or retrieval of goods that takes place underground, then transported to the upper ring by a vertical conveyor to load the drone for distribution.
The Droneport of the future has an arch beam supporting the top of the tower instead of a typical vertical structure, making it both lighter and more structurally efficient, significantly minimizing the need for human labor , creating a safer working environment. Malls in the Middle East are accessible from highways and allow online retailers to tailor spaces for maximum satisfaction using elevated drones as technology advances.– TradeArabia Press Service