Which Industries Thrived After Pandemic in Malaysia based on the Logistic Trends in 2022?

Logistic technology adapts to user's demand for faster delivery in many industries

During the economic recovery since the pandemic, artificial intelligence (AI) technology has improved the algorithms and made mobile applications more efficient which gave rise to the growth of various markets in 2022 such as retail, grocery and ‘dark stores’ — based on market analysis on pandemic delivery service conducted by Borzo, an express delivery startup.

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Last mile delivery shapes the customer experience

Last-mile companies are crucial to the e-commerce route, as they are responsible for delivering the product to the customer’s door. This sets the trends in terms of logistics and can impact the customer’s overall shopping experience.
“Delivery time is currently one of the main reasons why a customer turns from browsing to purchase, and with this demand, major local e-commerce platforms are providing delivery time in less than 5 days,” explains Lingesh Thayala, Country Manager of Borzo Malaysia.
Consumers prefer the online shopping model more than it was before the pandemic as people have become accustomed to the convenience and health benefits of shopping from home with delivery during pandemic times. Lingesh added “Since the lockdown during the pandemic, online grocery shopping has grown substantially. The advent of online groceries platforms has provided convenience to people to get their groceries delivered immediately without leaving their homes which reduces their exposure from the pandemic.”

Reduce logistic costs with technology to improve business profitability

Businesses need to convince customers to make their first purchase, and shipping costs play a huge role in their purchase decisions. Therefore, logistics companies can source different technologies provider to streamline routes and change shipping costs accordingly.
Mobile logistics applications are increasingly being adapted to vendors, who can use them to automate delivery routes and optimize costs. According to Lingesh, there is the option of shipments from RM6.60, with the possibility of insuring the order of up to RM200.

Impacts of logistics technology on the market trends in Malaysia

According to Borzo analysts, the pandemic logistic trends showed that retail sales are expected to grow by 30% to 40% in 2022, which leads to the personalization of instant messaging services so that the customer has a link from which they can track their orders, which reduces their waiting anxiety and improves businesses logistics reliability.
The commitment to increase logistics services for pharmacies and pets is also positive, with sectors growth between 30% and 40%, all linked to the efficiency of delivery, the use of more advanced logistics delivery technology, better customer service and the renewal of products to keep customers loyal.
“The grocery industry will also see significant growth this year, with delivery services increasing from 30% to 50%. People are finding more efficient ways to stock up on household essentials, at a similar cost to commuting physically to brick-and-mortar department stores”, confirms the manager.
The frozen goods industry also benefits from last mile delivery solutions significantly especially on their stock movement as their cold chain has high-cost operations due to urgent deliveries.

Cloud kitchens are on the rise in Malaysia

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Added to this trend is that of dark stores, those businesses that are not physically open to the public, but comply with the regulations of the online platforms to fill orders for various items. Cloud kitchens that offers online delivery in pandemic times are among those that are growing, as food brands can save more with this business model.
In Malaysia, a cloud kitchen is an attractive alternative to physical restaurants with rising real estate prices, especially in urbanised areas such as Kuala Lumpur and Petaling Jaya where a typical outlet of around 1,800 square feet can cost around RM7,500 per month.

Boost customer loyalty with a superior delivery experience

“Customer service is extremely important, particularly when it comes to assuring the customers that their parcels will be delivered safely to the intended destinations and offering contactless delivery options. Borzo even takes their customer experience beyond for their business clients by offering assistance with bulk orders, saving a significant amount of time for clients in placing their orders.
With advanced automation of deliveries and routing algorithms, we make delivery within the same day possible, and will shift the current delivery landscape where consumers prefer same-day delivery compared to traditional logistics that takes many days to complete ”, explains Lingesh.

Anticipating these trends, Borzo will always be there to support your business delivery needs – just drop your details here, and our sales team will be in touch to bring your business to higher grounds. 🚀