E-grocery is an opportunity to reach the next 200-300 million Indian consumers at their door step, said Walmart-owned Flipkart.
The company said it considered grocery as the `next big frontier’ for online shopping in the country and would continue to leverage its existing overall customer base to grow the e-grocery segment.
``E-grocery offers an opportunity to connect with the next 200-300 million consumers at their door step. Flipkart has seen a 3X increase in grocery orders in the last six months. We have also witnessed increased demand for groceries from tier 2 cities,’’ said the company in response to a query from The Hindu.
Smartphones currently account for 40% of Flipkart’s GMV (gross merchandise value), fashion 30% and the remaining GMV is spread between appliances, books, furniture and grocery (presently sub 5%), as per industry observers.
Flipkart forayed into egrocery space in early 2020 and also launched Flipkart Quick, a 90-minute grocery service, in April this year.
“During these challenging times, e-commerce has emerged as a safe means of making purchases. We are continuously engaging with brands and marketplace partners to ensure stock availability across the country,’’ Smrithi Ravichandran, Vice President - Grocery, Flipkart had earlier said.
Grocery is a huge market in India but a very tough market to get in, scale up and make money, According to said Satish Meena, a leading e-com analyst.
Even global players were not yet succeeded in finding a suitable business model for e-grocery as the business required local and hyperlocal fulfilment centres and strong logistics which called for a different kind of preparedness and focus added Meena.
“We regularly receive consumer feedback on Big Basket, Amazon Pantry & Fresh, Flipkart Grocery/Quick as well as Jio Mart and others. So far the inputs received on Flipkart Grocery indicate an average consumer experience. Limited option is one of the top concerns raised by consumers,’’ said Sachin Taparia, Founder & Chairman, LocalCircles, a community response channel.
Flipkart said, building a resilient and inclusive agri-supply chain was a key pillar of its growth agenda. It already has invested in fresh produce supply chain firm, Ninjacart and other local vendors to build a supportive ecosystem. It also roped in logistics firm Shadowfax to build last-mile support for Flipkart Quick.
`’Our fresh produce sourcing boosts farmer livelihoods and the local food processing industry through enhanced market linkages,’’ added the company.
In 2020, over $3 billion worth grocery was sold online in the country, which was close to double of 2019 volumes, and the industry is expecting a 25 to 30% growth in sales this year, according to market information.
