EGrocery Marketing in India
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Transcript of EGrocery Marketing in India
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8/10/2019 EGrocery Marketing in India
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E- Grocery Market In India
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India is 6th Largest Grocery Market in the World
2
Size of Food & Grocery Market in USDBillion
2006 2010 2020
Source: IGD Research & Estimates
236302
482
Indian Retail Sector Quick Facts
Organized Retail penetration 5-8 %
No. UnorganizedKiranasShops
12 mn
Growth rate of Retail Market 15-20%
Growth rate of Online RetailMarket
35%30%Rest
70%Food & Grocery
Market
Total Retail Market $470bn 2011
6%
94%
Organized Retail
Market ($27bn)
Un-Organized Retail
Market ($443bn)
16% Food& Grocery
$4.32bn
Marketing White Book 2011-12
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Indian Organized Retail and Grocery Sales are growing at 18.4%
16.3%
6.1%3.1%
3.1%6.1%
1.0%
2.0%
7.1%7.1%
8.2%
19.4%
2.0%9.2%
9.2%
Share of Categories in organised Retail
F&G
Footwear
Furnishing
Furniture
Pharmacy
Home Improvement
Books And Music
Jewellery andWatches
Nonstore
Restaurant
Apparel
Entertainment
Misc Products
CDITMarketing White Book 2011-12
18.4
12.411.1 10
3 20
Source :India Retail Forum,2010
Grocery Sales Growth Across
Countries (2010) in %
3
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Different Modern Store Formats in India
Hyper Markets
Shopping Malls
Departmental Stores
Super Markets
Online Web StoresModern Formats
90%
10%
Share of Spends
TraditionalFormat
Modern Format
Purchase of..TraditionalFormat Store
ModernFormat Store
Staples, Packed Food Items andother non-foodHousehold products
96% 15%
Perishables-Milk Eggs, Bread,Vegetables, Fruits
99% 6%
4Source: DEssence Research
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Growth Drivers for e- Grocery Market in India
5
D
emand
Su
pply
Growing Younger Population
Growing Internet Usage / Online Shoppers
Rising Disposable Income
Increasing Affluence Levels
Quality /Organic Products
Customer Driven And not Investment Driven
Growing e-Commerce Market in India
Multiple Channel Distribution
Flexible Delivery Options
Presence of Major Players
Convenience
Increasing supply of Packaged Grains and food products
Multiple Mode of Payments like Credit Cards, Debit Cards,
Net Banking, Mobile Payments like Airtel Money,
Mosambee (Swipe Credit & Debit Card on Mobile)
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The Hybrid Model
6
Wholesale/Imports
LDC Stores
Cross DockingTerminals
Individual Households
B2B
B2C
LocalityLevel
City-City Level
Pan-India
Dairy Meat Bakeries Breweries Others
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Business Models of e-Grocery currently in practice
77
CDT
LDC
LDC 1 LDC 2 LDC 3
CDT
LC D LCD LCD
Manufacturer ImporterWholesaler
Customer
The Operation Model Can Be Divided In Two Approaches:
1. Stock It Yourself Limited Warehouses To Fulfill The Orders.
2. Outsourcing Warehouse Model-using Logistics Specialists Which Do The Work Of Stockpiling And Shipping Web
Stores.
Central
DistributionTerminal
LocalDistributionTerminal
Importer(Wholesaler)
Wholesaler
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Key Indian e-Grocery Players focused on Metro Markets
8
Key Players Location
Business
Model Delivery Slots
Minimum
Order for FreeDelivery Funded
Aaramshop.com All India Aggregator 24*7 Rs.500 Yes
Farm2Kitchen.com Delhi Own Supply chainProcessed within 1-3
daysRs. 500 No
MyGrahak.com Delhi NCR Own Supply Chain
48 Hr Delivery & 24*7
Support
No Minimum
Order No
Callandorder.com Mumbai Own Supply chain Next Day Rs 500 No
FreshnDaily.com MumbaiSpecific Localities &
Self Delivery10am to 7pm & NoDelivery on Sunday
Rs. 150 No
Shopveg.in MumbaiSpecific Localities &
Self Delivery Same & Next Day Rs. 200 No
Atmydoorsteps.com Bangalore Own Supply Chain Same & Next Day Rs 500 No
BigBasket.com Bangalore Own Supply Chain Same & Next Day Rs.1000 Yes
Zopnow.com Bangalore Own Supply Chain Everyday Delivery Rs.500 No
VeggiBazaar.com Chennai Own Supply Chain 3pm-9pm, NextBusiness day Rs. 150 No
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Product Portfolio Of Key e-Grocery Players In India
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Key Players Grocery
Fruit&Vegetables
Confectionary
Dairyproducts,Eggs
Organicfood
Non-Veg
Beverages &snacks
Petfood
Homecare
PersonalCare
Toiletries
Aaramshop NA NA NA
Farm2kitchen
MyGrahak NA
Callandorder NA NA
Freshndaily NA NA NA NA NA
Shopveg NA NA NA NA NA NA
Atmydoorsteps NA NA
BigBaskets NA NA NA NA
Zopnow NA NA NA
Veggibazaar NA NA NA NA NA
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International e-Grocery Players
10
United States Of America
Amazon.com Americagrocer.com AULSuperstore.com Netgrocer.com ShopfoodEX.com
United Kingdom
Tesco.com
Ucado.com Waitrose.com Foodfullstop.com
Canada
E-Z Grocer.com Canadagrocer.ca Grocerygateway.com
Onlinegrocer.ca Telegrocer.com
Singapore
Singaporegrocerystore.com Egrocy.com Yumtrade.com
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37%63%
11Source: SOGS,india
2461
11 3
5332
11 5
85% of Online Shoppers are between age
of 22 to 45Female Male
38 37 3532 30 30 28
2522 20 20
15
Reasons For Purchasing GroceriesOnline
65
40 3832 31
22 20 18 15
Barriers to Purchasing Groceries Online
Whose buying Grocery Online?
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What Motivates Shoppers to Buy Grocery Online?
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Stated Critical Needs The Commitment Drivers
The TraditionalFormat
Shopper
The ModernFormat Shopper
The OnlineShopper
Polite, Courteous Store Staff
Availability of store Staff
Credit Available
Fresh, Quality Services
Reasonability Prices
Trust Level
Aware what a regular customer
wants
Personalized Services
Return /Exchange Policy
Less Impulsive buying
Stick to budget policy
Polite, Courteous Store Staff
Fresh High Quality Stocks
Availability of Latest Products,
brands
Larger shelf display
Bulk buying
Modern Shopping Experience
Discount
Coupons/Promotions/Freebies
Increasing Affluent levels
Convenience Shopping
Already a Online shopper
Grabbing Bargain deals
Use of Credit facilities
Better way of spending
Easy and convenient
Delivery at stated timings
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Key Challenges in the Operating e-Grocery Model
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Solid supplyChain Management
KeyChallenges
Source: Booz and Company Analysis
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Do Investors Think investing in E-grocery is a Good Deal?
E-Grocery companies in India have early-start up advantage. Largely predictable business cycle helps ,even the conservative investors
find the business appealing.
New players coming up with specialty models (like farm2kitchen.com
organised food and organised Products ) which is appealing to customers.
Low Costs and logistics costs is still concern for many.
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DEssence Consulting Services
15
DEssence Consulting is a Management Consulting, Business Strategy and M&A
Advisory firm
Build GrowRemain
CompetitiveM&A
Advisory
303, Aar Pee Center, 11th Road, MIDC, Andheri (E), Mumbai- 400093
www.dessenceconsulting.com
+91 22 28347425
Services
Market Entry & Growth Strategy
Business Plans & Financial Projections
Start-up Acceleration Services
Market Assessment
B2B Market/Consumer Insights
Solutions to transform Food and Retail Sector
Access to Capital through our Investor
Network
http://www.dessenceconsulting.com/mailto:[email protected]:[email protected]://www.dessenceconsulting.com/