Aeon plans foray into on-demand delivery services

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Aeon Co (M) Bhd signed a memorandum of understanding (MoU) with Singapore-based online concierge and delivery service, honestbee, to venture into on-demand delivery services.
This new delivery option, which uses personal shoppers to pick up and deliver orders, will enable Aeon customers to make their purchases online, via honestbee mobile app or website.
Speaking at the signing ceremony, Aeon executive director Poh Ying Loo said the alliance is part of the group’s strategy to speed up its e-commerce business and at the same time add value to its outlets.
Aeon joined the e-commerce bandwagon in late 2015 through its online website called shoppu.com.my, offering various product categories including electronics, fashion and household items.
Asked on how this new service will help to elevate its e-commerce sales growth, Poh said at this point of time, it is still early to determine. It was reported that the group’s online website shoppu.com.my contribution in financial year 2016 (FY16) remained marginal.
For now, Poh said the new online marketplace platform will only offer delivery service for grocery items at its flagship store, Aeon Mid Valley. He said customer who live within 17km radius from the store will enjoy a minimum one-hour delivery service.
Commenting on its future plans for e-commerce segment, Aeon managing director Shinobu Washizawa said going forward, the group will have more such innovations in the pipeline.
“In order to enhance the value for our customers by moving towards an omni-channel retailer, we want to combine our strengths with honestbee’s expertise to digitalise our customer’s shopping experience.”
“We will closely monitor the feedback and demands from our customers, and consider to expand this service both in terms of regional and in merchandise offering,” Washizawa added.
At present, Aeon has 26 malls, 33 Aeon outlets and two Maxvalu prime supermarkets across the country.
Launched in 2015, honestbee currently has presence in eight markets including Singapore, Hong Kong, Taiwan, Japan, Malaysia, Indonesia and Thailand. To date, it has 112 partners, providing more than 90,000 products across the markets.
Questions & Answers
Q.What specific type of products will be available through the new delivery service initially?
What specific type of products will be available through the new delivery service initially?
Initially, the new online marketplace platform will only offer delivery service for grocery items. This service will be available from Aeon's flagship store, Aeon Mid Valley.
Q.What is the intended delivery radius and timeframe for customers using this new service?
What is the intended delivery radius and timeframe for customers using this new service?
Customers living within a 17km radius from the Aeon Mid Valley store will be eligible for the service. They will be able to enjoy a minimum one-hour delivery service for their orders.
Q.How significant has Aeon's existing online website, shoppu.com.my, been to its overall sales?
How significant has Aeon's existing online website, shoppu.com.my, been to its overall sales?
The contribution of Aeon's online website, shoppu.com.my, to the group’s sales remained marginal in financial year 2016 (FY16). It is still early to determine the new service's impact.
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