Global Market Surferby INTAGE Inc

<Report from overseas office> [Thailand] What Japanese Don't Know About the Grab Distribution Revolution

• Release date: Dec 02, 2019
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It was just the other day, in August. I'll never forget the shock I felt when I went over my presentation materials from March for the second Thai seminar in Japan this year. It is true that the speed of change in Asia is remarkable, and I have experienced it even more since I came to live in Thailand. However, to see such dynamic changes in just five months is beyond my expectations. I have often talked about the significance of Grab. At the Thailand seminar in Japan, the question I received the most was about the details of Grab. How can Japanese companies coexist and co-prosper with Grab? This time, I would like to take another look at Grab. I hope this will help you to consider your sales strategy in Thailand.

2. Again, what is Grab?

Grab is a "magical infrastructure" for the efficient movement of people, goods, money, and information. Initially, Grab started out as a ride-sharing service, but it may be easier to call it a cab app like Uber. Grab has made it possible to hail a car to a predetermined location, with clear accounting that was not always sufficient with conventional metered taxis. This is almost the only feature that has been introduced in travel blogs for Japanese people, but this is only the tip of the iceberg, although it is an important feature of Grab.

In case you were wondering, Central Group, one of Thailand's leading conglomerates, reportedly took a stake in Grab in January 2019. In fact, Grab is still illegal, but the moment I heard this news, I had a hunch that it would be legalized in the near future. Although the dynamics and agendas of the conglomerates are at work, I think the benefits of the Grab system are largely due to the corporate philosophy of Grab: to create jobs, stimulate the economy, increase social productivity, and contribute to the realization of a better life.
Currently, people can book not only ordinary taxis, but also private cars and motorcycles driven by ordinary people, luxury cars like BMW, SUVs, and even welfare vehicles whose seats can be used as wheelchairs. And finally, it is now possible to call a driver on demand. The Grab service, also known as Grab Food, Grab Grocery, and Grab Delivery, has become so familiar that it has become a necessity, especially in urban areas where people are busy and time-conscious. The service is called Grab Food, Grab Grocery, and Grab Delivery, and is so familiar to many people that it has become a necessity, especially in urban areas where people are busy and time efficient.

Grab has been experimenting with this concept in Indonesia for a while now, and now it has expanded to Thailand. A good example is a new Thai restaurant that opened in the middle of this year in a corner of a secluded parking lot in my area. It was obviously located far away from the main street, and I remember wondering what kind of sense they had in opening a restaurant here, despite the signage. The interior was also very simple, less than the finish of a standing noodle shop in Japan, for example. I wondered how this restaurant was going to survive when there were many high-end restaurants around it. I knew the answer right away. While few customers were eating or drinking inside the restaurant, the line of Grab delivery bikes outside the restaurant was increasing day by day. This restaurant was a ghost restaurant that focuses on home delivery orders from Grab and others. When I checked the restaurant's website, there were several restaurants that clearly stated "Grab" after the restaurant's location. I later found out that this was a famous restaurant, but it was mutually beneficial for the customers to be able to enjoy the food at their homes or other places convenient for them, rather than having to go to a crowded restaurant and wait in line. Inspired by the ghost restaurant, I wondered if it would be possible to do the same thing not with food, but with products sold in drugstores. I also wondered if it would be possible to go further and sell products directly from the manufacturer. I wondered if it would be possible to deliver products to consumers through Grab even if there were no stores.
In fact, supermarkets such as Tops have "opened" stores on Grab Grocery, and with Grab, you can buy the products sold at Tops, especially fresh foods, without having to go to a physical store. You can even specify the time of delivery. All you have to do is specify a physical store near your place of residence, place an order to that store via Grab, and a Grab delivery person will deliver the goods. However, in this case, the number of stores greatly affects the convenience of users. In this case, however, the number of stores greatly affects the convenience of users. If you are a manufacturer that does not have a store but produces attractive products, you can have a "ghost shop" like Grab Food, a warehouse function that is the equivalent of a kitchen in the case of Grab Food, which will allow you to have more touch points with consumers through Grab. I conducted an independent survey to confirm this. According to our survey results, the usage rate of Grab Grocery is still around 10%. (Figure 1)

However, the purchasing need for drugstore-type products at Grab Grocery is over 80%. (Figure 2)

Figure 2

While there may be certain hurdles to setting up a warehouse, one of the best things about Grab is that it can already be used today by delivery personnel as a delivery network. Delivery services based on a certain volume of goods (Grab Subscription) are already available as a service.
Heineken also announced a beer delivery service in September in partnership with Grab. The direct sales model is now a reality with Grab. If you have an account with Kasikorn Bank, you can use Grab's cashless service, Grab Pay Wallet. As the number of stores and sites where the Grab Pay Wallet can be used increases in the future, data from other sources such as Grab Food and Grab Taxi will also be subject to analysis, increasing the possibility of greater convenience for consumers.

7. finally

In this way, people's lifestyles are undergoing a major change with Grab. Until now, it may have been thought of as merely a means of transportation for people. However, I believe that Grab will play a significant role in the future, especially in terms of mobility of goods and information. The possibility of delivering products to consumers via Grab even if there are no stores is something that needs to be explored, but the name recognition of the store itself is important as a prerequisite. However, the name recognition of the store itself is important. I personally have high expectations for Grab Regi. I think this has the potential to be a data revolution on a different level than the distribution revolution, and I will keep an eye on it along with the Grab Pay Wallet (although it is still at a fantasy level).

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  Daisuke Aoba

  Male researcher in his 40s living in Thailand. He has visited more than 30 countries in the past. He believes in seeking out the best for the consumers in the country and always trying to be close to their feelings. He continues to post his own global gourmet posts, which are viewed about 1,000 times a day, mainly in Thailand.

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  INTAGE

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