Monday, February 8, 2016

Grocery Retail Online in India

Of the total e-commerce market, approx 80% is online grocery travel. Even in the Rs 2800 crore Internet market, Grocery and Food is negligible as of now, with electronics, books, lifestyle etc dominating the grocery product retail.

This category has potential to contribute significantly to the total internet market in next 10 years. However, at an overall level this will still remain a very small part of total food and Grocery market of Delhi NCR, Mumbai, Chennai, Mumbai, Pune, Kolkata and Ahmedabad.

Non-availability of India Retail space will drive established retailers to approach online channel more seriously and have online presence to compliment physical presence. While initially Grocery a difficult category to service through this channel, Food Categories which are relatively more branded like baby care, personal care, Home Care, gym Care, etc will more easily more internet (Online) In the long-run, consumers will mix the channels they use for their weekly or monthly Grocery Shopping.

The Problems:

1). Achieving Standerdisation, when a large part of Grocery is still sold as loose in India, and convincing buyers of the quality and consistency will some time.

2).Developing a comprehensive and efficient delivery network across geographies.

3). The Online Grocery Portal does not satisfy sensory needs of buyers, so this category will be slower to get adopted on the online channel as compared to other e-commerce like book, electronics, lifestyle, etc.

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