ECommerce stock prices soar high, thanks to Coronavirus and social distancing.
The contemporary wave of online shopping has seen an interesting new dimension to the COVID-19 Crisis. While traditional shopping gets limited due to lockdown measures, online shopping has become more dynamic.
People who previously wouldn’t purchase things online are now compelled by the present situation to start looking online. Many businesses have also migrated online in the past 3 months in the wake of the present COVID-19 Pandemic.
The positive growth trend in online retail trades
Series 1: % of users during COVID-19 pandemic
Series 2: % of customers willing to stick with online shopping after COVID-19
Although the present crisis has altered online shopping activities and what people purchase online, what has remained unchanged is the positive growth trend in online sales. The recent positive change in online sales is only the beginning of a trend that is set to escalate more going forward.
What does this mean for logistic companies?
Global retail e-commerce sales rose by 16.6 % CAGR Between 2019 to 23E and constitute 22% of total retail sales
Logistic companies in Asia have benefited immensely from this recent development. While many businesses are experiencing an economic meltdown, Asian logistics have seen their economy grow from the current work at home measures and the associated increased rate of online spending.
To meet up with the growing demand, they need to boost their level of inventories. This would prevent any form of interruption in supply chain management.
What can logistic companies do?
Increasing demands for logistics space due to this speedy growth in online sales equally lead to growing demands for logistic services.
1. Build additional grade a warehouses and storage spaces
Asia has a shortage of Grade A warehouses. These types of warehouse gain from the extra requirement for storage space due to rising demands in e-commerce sales and modern warehouses. Grade A warehouses commonly have big bulky floor platters, extensive columns, elevated ceilings, and ramp-ups.
2. Use IoT technology to boost the efficiency of logistic protocols
While maintaining social distancing measures, logistic companies must work hard to remain efficient. To meet with the challenges of this increasing number of online orders, logistics companies need to automate their processes with the use of the Internet of things (IoT).
This will enhance their operational protocols, including monitoring inventories, tracking vehicles, and grading services. It will equally help them to make informed decisions about supply chain management. This will highly benefit companies that deal with industrial machinery and electronic equipment. Besides, it will additionally boost the demands for drones and self-driving vehicles to help fulfill last-minute deliveries.
3. Use Of Automated Robotic Processes
10 top technologies that will revolutionize warehouse operations
The escalating awareness of globalization risk and the transfer of production centers outside of China will bring the production processes locally and nearer to end-users. This will equally result in a boost in the use of production robots in mature developed countries.
Conclusion
The new wave of this emerging trend in online sales is going to re-shape how we shop for things in the contemporary world. Therefore, investors looking for alternative investments should consider investing in e-commerce stock given the recent growth in the industry.
