Channel Success: Why vending machines continue to thrive in ...

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E-commerce&#;s recent COVID-19-fuelled boom has accelerated the arrival of new forms of delivery and delivery-related services. &#;As-fast-as-you-want&#; companies allow goods to be delivered when a buyer needs them &#; especially useful for perishable merchandise. Pick-up lockers are rapidly growing in popularity. Drones are another approach that many businesses are considering. 

For those looking further into the future, even more exciting are the totally automated stores piloted by companies such as Amazon Go and Hema Fresh, where shoppers put purchases straight into their bags and have the bill settled by their mobile  as they walk out.  

Yet there&#;s also one other channel that shouldn&#;t be overlooked &#; the one found on streets, in malls and in office and school lobbies across Asia &#; the vending machine.  

Japan has long been the world&#;s vending machine heartland, with its more than 4 million machines offering everything from soft and alcoholic drinks to food, cigarettes and even toys. At one for just over every 30 people, its penetration rate is nearly double that of the US.  

The machines&#; longstanding strengths &#; their low cost to operate, round-the-clock presence and brand promotion and advertising role &#; remain as powerful as ever. Coca Cola Bottlers Japan Inc, which operates nearly a quarter of all Japan&#;s machines, says they are its single most profitable channel.  

DALIAN, China -- In a sign that China is quickly becoming a cashless society, vending machines that accept mobile payments through advanced identification systems are cropping up by the tens of thousands.

Several of the machines can be found at a mixed-use building in Shanghai. At first glance, they appear to be refrigerated food display cases, similar to ones at convenience stores. But a closer look reveals palm readers.

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