Indo Tekno Podcast

Transforming Groceries: Guillem Segarra of HappyFresh

November 17, 2020 Alan Hellawell Season 1 Episode 24
Indo Tekno Podcast
Transforming Groceries: Guillem Segarra of HappyFresh
Show Notes Chapter Markers

Nearly 50% of grocery delivery customers in the past six months had never used such services prior to COVID, according to the new Google Temasek Bain "e-Conomy SEA 2020" report. In this episode, we invite on Guillem Segarra, CEO of HappyFresh. Guillem discusses this radical growth in demand; how HappyFresh as the region's leading pure-play has dealt with an influx of competition from Gojek, Grab and others; and what the future looks like for Indonesia's supermarkets.

Having adopted an asset-light model that connects brick-and-mortar grocery stores to customers, HappyFresh's trinity of priorities is: 1) selection, 2) ease-of-use and 3) value-for-money. The company's marketplace approach enables easy scaling and profitable unit economics, leaving consistency of experience and customer satisfaction as crucial initiatives in competing with its more asset-heavy, vertically-integrated competition.

The 2021 plan is to help deepen the digital sophistication of its supermarket partners, expand geographically and grow its intimacy with the customer through loyalty programs and the like, as HappyFresh pursues a share of what should be a USD10b market by 2025.

(Transkrip Bahasa Indonesia di sini)

Introduction: COVID drives 47% new users to grocery delivery
Our guest is Guillem Segarra, CEO of HappyFresh
From Barcelona to Beijing to Jakarta: Guillem's journey
Arrived Indonesia in 2016 as an intern at Lazada
The HappyFresh business model: seeking to deliver selection, ease-of-use & value-for-money
An asset-light model that connects brick-and-mortar grocery stores to customers
Global peers: BigBasket and Grofers in India, Missfresh in China, Ocado in Europe, Instacart in the US
Market opportunity could reach USD10b by 2025
Three revenue sources: delivery to customer, profit sharing with grocers, ads & insights for brands
Comparing HappyFresh behaviors in Indo, Malaysia, Thailand
Challenges abound in logistics, payments, maintaining freshness. HF famous for 1-hr delivery
Being asset-light enables massive scale & coverage, profitable unit economics
How to enter a new urban market: 1) grocery store partners, 2) team of personal shoppers, 3) responsive customers
HappyFresh prides itself on quality levels, customer satisfaction (important if you link 3rd party grocers)
The 2021 plan: helping supermarket partners with digital channels, geographic expansion, customer loyalty program
The competition includes pure-plays, Grab, Gojek, etc. But few direct competitors with scale
Digital literacy: helping supermarkets with forecasting, inventory management, customer insights and planning campaigns & promotions
HappyFresh's COVID story: panic buying evolves in to every day shopping; driving up retention rates is key
The Indonesian grocery store of the future: 80% of needs fullfilled by ordering via smartphone, brick-and-mortars become experience centers
Conclusion