Aeon teams with UK online grocer Ocado to boost online offer
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Japanese supermarket operator Aeon is seeking to expand its e-commerce arm by hiring British online grocer Ocado.
Aeon will use Ocado’s technology to set up a new online platform capable of fulfilling national orders to a level of ¥600 billion (US$5.52 billion) in sales by 2030, and ¥1 trillion ($9.13 billion) within the following five years.
The move is a defense effort against rivals in the territory such as Amazon and Walmart-backed Seiyu as the online grocery market appears poised to expand in Japan, according to a Reuters report.
Ocado’s software system is the basis of its £8.1 billion ($10.46 billion) market valuation, despite its meagre 1.4-per-cent share of Britain’s grocery market.
Questions & Answers
Q.What is the primary goal of Aeon's partnership with Ocado?
What is the primary goal of Aeon's partnership with Ocado?
Aeon aims to expand its e-commerce capabilities by using Ocado's technology to establish a new online platform. This platform is designed to handle national orders and achieve significant sales targets in the Japanese market.
Q.What are Aeon's sales targets for its new online platform?
What are Aeon's sales targets for its new online platform?
Aeon intends for the new platform to generate ¥600 billion (US$5.52 billion) in sales by 2030. It then targets ¥1 trillion ($9.13 billion) within the subsequent five years after that initial milestone.
Q.Why is Aeon making this move in the Japanese market?
Why is Aeon making this move in the Japanese market?
Aeon's initiative is a defensive strategy against competitors like Amazon and Walmart-backed Seiyu. The online grocery market in Japan is anticipated to grow, prompting Aeon to enhance its digital offering.
Q.What is the significance of Ocado's software system to its market value?
What is the significance of Ocado's software system to its market value?
Ocado's software system forms the foundation of its £8.1 billion ($10.46 billion) market valuation. This is notable given its relatively small 1.4-per-cent share of Britain's grocery market.