Wineries: trends, projections and recommendations for the sector after the pandemic

With the health emergency caused by Covid-19, businesses around the world are implementing new measures, strategies and offers , amid a growing transformation in demand.

For some sectors, the contingency has become an economic challenge, in the face of the decrease in sales, but for others it is representing an unprecedented expectation. One of them is ecommerce.

Ecommerce, electronic commerce or online commerce is the way to buy and sell products or services through the internet, in a more efficient, comfortable and secure way, unlike traditional commerce (1).

This modality was already betting on new markets, strategies and products, however, as a result of the emergency due to the coronavirus, delivery services and online platforms have shown upturns at this time (2).

Currently, the strongest reasons for buying online are divided into “not wanting to leave home” (55%) and “avoiding crowds at the physical store” (48%) (3).

Thus, it is essential that , if your business deals with the receipt of products, equipment or materials, manage a space to administer and continue the supply process , taking into account the recommendations and the general panorama of the sector.

Warehouses for rent Vallejo Properties
It is essential to look for warehouses for rent to grow your business in the area of your interest.

Wineries: ecommerce, warehousing and last mile

The wineries fulfill four specific functions: safeguard, custody, control and supply of materials and products (4). Based on this, any company in the sector requires specific spaces to carry out these tasks.

Currently, with the demand for e-commerce, the industries that have the most presence in the subject of online commerce are those that work in the categories of electronics and video games, fashion, home and furniture, travel, and food and beverages (3) .

Currently, the strongest reasons for buying online are divided into “not wanting to leave home” (55%) and “avoiding crowds at the physical store” (48%) (3).

In addition, the industries that will have the greatest growth after the impact of the coronavirus are: fresh and packaged food, care of the house, pets, toys and games, hygiene products, alcoholic beverages and electronic products (3), same as already is being offered online.

If you work in one of these sectors, it is essential that you implement digital strategies hand in hand with a digital marketing agency so that your business does not stop growing in these variable times of economic acceleration.

If you are rather interested in finding a commercial premises, we recommend that you read:
“Rent of commercial premises in CDMX: costs and benefits”.

Wineries: recommendations for ecommerce after the pandemic

The Mexican Association of Online Sales (AMVO) presented a Recommendations guide focused on e-commerce companies in Mexico , to give continuity to this sector after the contingency. The guide is divided into three points: employees, businesses and customers (5).

Regarding employees:

  • Communicate effectively the sanitary recommendations produced at the state, federal and international level, to the entire work team, especially those who make the deliveries.
  • Avoid “hand-in-hand” delivery, to reduce the possibility of contagion or its spread, when contacting the end consumer.
  • Reassign schedules and promote remote work to avoid the concentration of personnel at work sites or in storage warehouses.
  • Use the technology of online platforms to coordinate communication and establish safe work dynamics.

Electronic commerce has grown 500% in some areas, such as supermarkets or pharmacies. In addition, ecommerce will grow 60% annually after the contingency (6).

For business:

  • Design a renewal or update plan to facilitate the positioning of the business in the sector, after the contingency.
  • Detect new needs, consumption habits, platforms and supports that are demanded after the emergency has passed.
  • Specify the type of product with the greatest demand, especially if it is essential, or evaluate its inclusion in the catalog that is offered. Update inventories and prices, in addition to maintaining contact with various suppliers to continuously supply your warehouse.
  • Take into account that the delivery addresses will have to be updated to avoid making failed deliveries, which represent a loss.
  • Maintain communication with delivery logistics providers to know the scope of their service, and notify users clearly. In some cases, if you have your own staff to make deliveries, it could be an appropriate alternative, employing and training employees in this task.
  • Update sales channels, especially digital ones.
  • Define the best-selling days to estimate the duration of the inventory.
  • Take into account the refill times.
  • Promote digital payments, to reduce cash handling. Consider the channels and options that exist to offer secure alternatives to your customers: payment with credit card, debit card, transfers, QR code, among others.
  • Constantly disinfect and sanitize the warehouse, respecting the recommended cleaning and hygiene measures, in addition to evaluating the safety of the packaging used.

With the clients:

  • It is very important to communicate effectively and clearly why the reception of a package is safe, as well as the health protocols that must be complied with in the delivery of the products, favoring the minimum contact through specific rules between final consumers and distributors.
  • Be accurate with the actual level of the operation.
  • Keep the client informed about the status of their order at all times, through the platforms available for such communication.
  • Be clear with the inventory at the time of order.
  • Implement a live chat customer service, so that there is remote, efficient and real-time communication between both parties.

If you are interested in knowing more about industrial warehouses, we suggest you read:
“Industrial warehouses: characteristics, areas and recommendations.”

Warehouse leasing to improve product distribution Vallejo Properties
E-commerce has accelerated as a result of the pandemic, with the leasing of warehouses being a key element to improve the distribution of products and articles.

Warehouses: Suggestions for Post-Pandemic Storage

In principle, it is essential to rethink or consider, if it is the first time, the best type of storage for the distribution of your merchandise or product. The types of wineries can be divided as follows (7):

According to the material.

  • Raw Materials.
  • Semi-finished products.
  • Finished products.
  • Spare parts
  • Auxiliary materials.

According to its function in the distribution chain.

  • Central. It is located near the factory, contains the main stock and from there the rest of the warehouses are supplied by zones.
  • Regional. It is close to the point of consumption and from there it is distributed to both retailers and wholesalers.
  • Platform. They have less stock, but focus more on fast and efficient customer service.
  • Temporary or deposit. They are occupied in short periods and do not manage return tasks.

According to its legal regime.

Take into account that the general characteristics of the wineries will allow you to implement correct actions after the pandemic , in terms of ventilated accesses, distribution routes with sanitary protocols and facilities adapted to your needs.

The fact of having a special and optimized place for the storage and protection of goods and work equipment is essential for your business.

You must have safe spaces to classify and expedite the reception and departure of products, their surveillance and the execution of security measures with your team, unlike other spaces where it would be difficult to carry out a specific control.

Therefore, if until now you do not have a distribution center, it is important that you rethink the need to have one, or more, to improve the transport route of your product efficiently and safely, extending the scope of your business.

It is also relevant to take into account the suggested measures that must be followed for the total restoration of economic activities after the contingency (8):

  • Provide more security to warehouses and more efficient routes for delivery.
  • Have alternative spaces to extend the coverage of the warehouse and support merchandise inventory, if applicable.
  • Consider the progressive opening of roads and borders , in addition to the possible delay in customs or the lack of general personnel for some phases of the distribution, which can impact your delivery times.
  • Establish updated communication tools to monitor goods at all times in their entry, exit and transit phase.
  • Take better care of perishable products , in case the demand is fluctuating.
  • Maintain communication with customers to verify the receipt and correct delivery of the products, through advanced monitoring.
  • Be aware of the rates, dynamics and updated rules for the distribution of goods in land, sea, air and rail transport. It is important to have different routes as an option to speed up deliveries.

If what you are looking for are offices for rent, we invite you to read:
“Offices for rent in CDMX: areas and recommendations.”

These points will allow you to constantly monitor five fundamental aspects: identify backlogs, locate merchandise, analyze the route, identify equipment and make any necessary adjustments . At Vallejo Properties we advise you at all times, not only to find a suitable space, but to optimize it with the necessary measures. Get in contact with us.

Consider that, for now, there will be no stable scheme and it could be changing, according to official regulations, so your business must be flexible to this (9), especially regarding return policies, considering the general emergency (10).

Further, within the winery, it is very important to implement permanent sanitation processes focused on surfaces, objects, spaces and vehicles, while following hygiene measures for operators, who must have a gel kit, cloths and face masks, as well as general protective equipment.

Of course, It is essential to be attentive to any symptoms among the employees in the plant and the distributors to proceed with the respective care . In addition, the use of jewelry should be avoided, frequent hand washing, keeping a healthy distance, not touching the face and when sneezing, the internal angle of the arm should be used (10).

If you want to know the new trends in office rental, we suggest you read:
“Office rental: trend guide and recommendations for the new normal”.

Vallejo Properties storage warehouse
When expanding your business, you must verify the warehouse sizes that best suit your merchandise, according to the corresponding distribution stage.

Wineries: Post-Pandemic Trends of the Last Mile

One of the most critical phases in moving products is the last mile. This is known as “capillary distribution” because it focuses on the last journey, where several packages are gathered to be delivered directly to the customer (11).

This point brings together the detailed aspects of the delivery: it must be done as soon as possible, but be in tune with the costs of personnel and transport (11). That is why it is very important to take into account the keys to optimizing the transportation of items with the end customer: routes, type of transport, parcels and compliance with delivery conditions (eleven).

As online commerce has multiplied 2.5 times during the quarantine, there are proposals that are emerging to renew the last mile (12).

On the one hand, the fact that once the “new normal” is installed, the traffic in the city will return and the dispersion of customers to locate them in their homes, since now they will find themselves continuously moving to other spaces and will no longer be so locatable (12).

Thus, a trend that is gaining strength is the grouping of deliveries, where the distribution of several packages is managed for a week for the same client. Thus, all your orders are gathered and your indication is awaited to know the day and location in which you prefer to receive them.

This would also mean a change in the distribution logic express , which will depend on consumers and their relationship with e-commerce in general, to become premium customers and receive these types of benefits (12). In addition to this trend, there are four more, globally recognizable, that are gaining relevance after the pandemic (13):

  1. Deliveries with autonomous robots. This is intended to replace the interaction between customers and deliverymen, in order to provide greater confidence when delivering packages. Of course, this policy poses significant costs for the industry in terms of hardware and the regulatory issues to be addressed in the coming months.
  2. Free delivery the same day. This policy has been in high demand due to the high expectation for all types of deliveries, especially urgent ones. Somehow, this requirement will be preserved and will be a competitive policy with the big e-commerce companies.
  3. Ecological fleets. It will be important to commit to the use of electric and autonomous vehicles, as well as the use of bicycles for micromobility between warehouses and delivery areas, as long as they are close. That is why you must have a good location (at least central) for the distribution warehouse.
  4. Micro-storage. This type of warehouse will be in great demand, in small and large businesses, in order to distribute the merchandise in different areas. In Vallejo Properties We have various complexes and locations in the industrial zones of Vallejo and Tultitlán to install your distribution centers.

Online sales and distribution of the last mile
they will take off after the advance of the “new normal”.

That is why it is important to have options that strengthen your business and the distribution of your articles. Get in contact with us and we will help you find the best space for your business.

If you want to know more about real estate in the CDMX, consult our text:
“Real Estate in CDMX: guide to trends, companies and recommendations after the pandemic”.

Wineries: built to suit trends after the pandemic

The Built To Suit (BTS) construction, which has in the center custom construction , is an option that allows the investment to be efficient, profitable and precise to build projects that adapt to your needs (14).

In Vallejo Properties We have this option for the specific design of the winery you need: either for general, industrial storage or some type of manufacturing, where we take into account the necessary productivity and health measures.

Thus, BTS construction is essential because it allows compliance, from site planning, to the requirements of general and specific sanitary protection of the industrial sector or business line have your business .

Another important point is social distancing, so the warehouse may not be 100% occupied , replacing some tasks with machinery or equipped technology, in addition to improving the optimal climatic conditions for ventilation of the place and spaces (14).

If what you are looking for is an industrial warehouse, we recommend you read:
“Industrial building: guide with everything you need to know”.

Built to suit for design of bodegas Vallejo Properties
The trend of built to suit will be essential in the rental of warehouses because it will allow you to design, from the beginning, the space you need for your business.

Wineries: post-pandemic projections

It is essential to locate the main changes in the sector as a result of the contingency to implement new trade routes in your business.

Regarding physical purchase patterns, many new ecommerce consumers , actually, they came to stay , since they will prefer these ways to the traditional ones (like going to a shopping center).

The home shopping boom will not end and there will be more demand for industrial spaces, such as storage warehouses, that bring products and businesses closer to consumers (15).

Therefore, it is very important to take advantage of the transition moment to Finding suitable spaces, which although it implies making visits -with health protocol- to the site, will be an unprecedented investment for your business .

These types of aspects should consider health regulations and the inclusion of remote work as a change in commercial and industrial habit, in addition to the adoption of digital measures to be present in the Internet sales , and customer service in electronic media and direct messaging (15).

Conclusions

Definitely, this time is an invaluable opportunity to promote electronic and distributive commerce, since it will not only be important to take into account the panorama of the sector, but the importance of its role in Mexican society as a facilitator of articles and services in the midst of the return to the ‘new normal’.

In this way, it is important to review the distribution strategy, the storage site as the final point of contact with the consumer, and the commercial and strategic route of your business. At Vallejo Properties you can count on us to find the ideal space and relaunch your business in this time of change. Contact us and we will support you on the journey towards your business acceleration.

References

  1. Rain. E-commerce: what it is, how it works and where to start. Rain, 2020. Retrieved June 15, 2020.
  2. MX logistics. E-commerce grows despite the coronavirus: AMVO. Logistics MX, 2020. Retrieved June 15, 2020.
  3. AMVO. Report 2.0 Impact of Covid-19 on online sales in Mexico. Mexican Association of Online Sales (AMVO), 2020. Retrieved June 15, 2020.
  4. Logycom. 5 points to know if you need to rent a winery. Logycom, s / f. Retrieved June 15, 2020.
  5. AMVO. Coronavirus: impact for e-commerce and advice for companies. Mexican Association of Online Sales (AMVO), 2020. Retrieved June 15, 2020.
  6. Azucena Vasquez. Covid-19 benefits logistics employment. Reform, 2020. Retrieved June 15, 2020.
  7. Logycom. Types of storage of goods. Logycom, s / f. Retrieved June 15, 2020.
  8. Logycom. Impact of Covid-19 on the storage and distribution of goods. Logycom, s / f. Retrieved June 15, 2020.
  9. Logycom. Picking and warehousing costs. Logycom, s / f. Retrieved June 15, 2020.
  10. Veronica Hernandez . How to protect operators of the last mile from COVID-19? Transport and Tourism Magazine (T&T), 2020.
  11. Larch. The last mile: what it is and why it matters in logistics. Larch, 2019. Retrieved June 16, 2020.
  12. The Economist. Logistics fear a collapse in the last mile. The Economist, 2020. Retrieved June 16, 2020.
  13. MX logistics. 4 trends in logistics last mile post Covid-19. Logistics MX, 2020. Retrieved June 16, 2020.
  14. ACIS. Built to suit: a trend that reinvents construction. ACIS, 2020. Retrieved June 16, 2020.
  15. Free market. How to act today and what to do tomorrow in the real estate industry? Free Market Webinar, Cubic Meters and NocNok, 2020. Retrieved June 11, 2020.

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