We discussed the underlying supply and demand side drivers of emerging Same Day delivery models (see figure below).
Key takeaways from the session:
1) Same Day (order to door) accounts for only 1.5% of all .com orders in the U.S. in 2015, but with a rapid 150% CAGR growth and seen by many retailers as a strategic bet
2) The majority of Millennial consumers expect and are willing to pay for Same Day
3) Marketplace based platforms such as Google Express, Deliv, and Instacart will play a major role in enabling store based Same Day across key metro areas, especially for lower basket value Consumables and Grocery
4) Same/Next Day will likely play a significant role for Branded luxury in the coming 3-5 years in key markets like NY and CA
5) Effective inventory deployment and visibility across stores and forward deployed DCs remain a key challenge
Panelist (L to R): A.T. Kearney, Michael Kors, Google, Instacart; Moderator: Michael Hu