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Industry Analysis Grocery Retail
FACTS & STATS
Indian Retail one of the fastest growing in the world.
Expected to grow $1.3 trillion by 2020, CAGR 16.7% ( KPMG reports)
Online retail : $6 billion to $70 billion in 2015 -2020.
Grocery Sector 6th largest in the World $383 billion (E $1 Trillion 2020)
Online Grocery market - $600 million; Expected to touch $5 billion in 2020,
CAGR 72%
NEED FOR ONLINE GROCERY
Change in working conditions
Urbanization & soaring land prices
Long billing queues
Distance to hyper-local stores
Internet penetration
Industry Analysis Online Grocery Retail
MAJOR GROWTH DRIVERS
Increase in income levels by 70%
100 million youth entering the market
Increasing nuclear families
35% of Indian population in Urban areas
Increase in demand for wider variety, convenience & better price
KEY PLAYERS IN ONLINE GROCERY SECTOR
Name Launch Year Funding Current Status
BigBasket 2011 $271 milliom Operational in 25 cities
Grofers 2013 $167 million Operational in 17 cities
Peppertap 2013 $51 million Shut down - Closed operations
ZopNow 2011 $10 million Partnership with more & Hypercity, 11 cities
Local Banya 2012 $5 million Closed all the operations
Amazon 2017 $ 500 million - E 4 cities, partnership with hypercity, bigbazaar etc.
Reliance Fresh 2017 Started campaign in Bengaluru
Flipkart 2017 ( E)
Industry Analysis Online Grocery Retail
PORTERS FIVE FORCE ANALYSIS 3 prominent Business Models
Hyper-local model
Inventory Model
Hybrid Model
Value Proposition of Big Basket

In-bound:
Just-in time philosophy
Being at the customers doorstep at the promised time.
No questions asked return policy
Different qualities of groceries available
4 time slots as per convenience
 Out- bound
50 % discount if delivery is not made in time
City-specific marketing
BTL activites in malls and apartments
Focussing on impulse buyers
Competitive Advantage of Big Basket

Same day delivery. On time delivery.

Own logistics network. City-wise model for last mile delivery.
Farm-to-Home philosophy for perishables.
Customer Loyalty
Technology
Automatic sourcing

GPS tracking of delivery vans

Order clustering and route planning.

POS systems