Online, Mobile and Delivery: What we can Learn from Four Key Markets

Strategy Briefing

About This Report

Sep 2016

Online, mobile and delivery channels have become an important part of consumer foodservice strategies. While it is clear that long-term growth opportunities exist, local execution is far more complicated. This briefing takes a look at the online, mobile and delivery landscapes in four key markets (China, India, South Korea and Brazil), offering insights that can be applied in markets all over the world.

Want to find out more about this report?
Request more information
Why buy this report?

Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.

Your Recently Viewed Reports

Online, Mobile and Delivery: What we can Learn from Four Key Markets

Online, mobile, delivery are cornerstones of growth

Online ordering, mobile payments and delivery service together form the foundation of much of the long-term growth opportunities in global foodservice. While these trends are consistent worldwide, the landscape and local context that surrounds them are highly varied. Operators looking to mine growth will need to implement localised strategies, based on the conditions and challenges of each market in which they are hoping to grow.

Digital opportunities in China have consolidated

China is home to a number of strong third-party online payment and delivery services, all of which are backed by influential local companies. This is a benefit for operators looking to expand their sales through such channels, but they will need to do so through partnerships rather than proprietary platforms.

India offers an appealing landscape

India offers long-term opportunities, with much better competitive odds. Consumer interest in digital ordering and delivery is still growing rapidly; however, third-party providers have so far failed to gain significant traction. The market is still highly fragmented, with significant room for new players and expanded offerings.

Demand is growing in South Korea

Dining out culture in South Korea is shifting toward less social dining, and even towards dining alone. This has opened up opportunities for faster, more convenient restaurant options, as well as services like delivery that cater to more utilitarian meal occasions. South Korea is already highly dependent on delivery, but there is still room to grow.

Online and delivery are paths to growth in troubled Brazil

Despite very poor economic conditions, online and delivery offered rare concentrations of growth in Brazil in 2015. Delivery offers higher income consumers and families a way to enjoy a non-home cooked meal at a lower cost than a full-service restaurant, while investing in online ordering and delivery has helped operators build sales without making significant capital investment in new outlets.

Introduction

Scope
Key findings
The intersection of online, mobile and delivery
Emerging markets offer immense opportunity despite challenges
Why these markets?

The Global Growth Picture

First, a look at global foodservice value and growth for context
Emerging market consumers are demanding digital and delivery
Delivery demand is a near universal global trend
Where is the opportunity, exactly?
Finding the growth: Online ordering value 2015-2020
Finding the growth: Delivery value 2015-2020
Finding the growth: Remote CFS payments 2015-2020

China

China has the highest share of online orders in the world
Local delivery demand is strong, and still growing quickly
Digital payments are already deeply ingrained in foodservice
But the competitive landscape has already consolidated
Case study: How chains in China are navigating m-commerce
Key takeaways: Digital opportunities in China

India

India’s online channel is much less developed, with great potential
Delivery in India offers similar conditions for long-term growth
Within digital purchases, mobile is driving growth
Opportunities abound, but many have already tried and failed
A study in two strategies: In-house fleets vs partner platforms
Key takeaways: Digital opportunities in India

South Korea

Economic challenges driving South Korean demand toward value
Luxury at low cost also has high appeal
Demographic changes mean more consumers are dining alone
Convenience is also a significant driver
Key takeaways: Digital opportunities in South Korea

Brazil

Amidst Brazil’s downturn, online and delivery are centres of growth
Delivery also gives operators the ability to expand at low cost
Digital channels hampered by distrust in online transactions
Key takeaways: Digital opportunities in Brazil

Key Takeaways

What are the long-term implications? London offers a preview
What can operators learn from these markets?