Ease of Order and Convenience to Drive the Online Grocery Market in India: Ken Research


Online grocery is a grocery store, which allows a standalone e-commerce service. It includes grocery items. This online ordering is done through e-commerce apps and websites such as Spencers, DMart, Kiranacart, and BazaarCart.com etc.

According to study, “Online Grocery Market in India 2017” some of the major companies that are currently working in the online grocery market in India are SoCoMo Technologies Pvt. Ltd., Grofers India Pvt. Ltd., Town Essentials Pvt Ltd., Nuvo Logistics Private Limited, MN&C Supply Links Retail Pvt Ltd., BigBasket India Pvt. Ltd., Aaram Shop Pvt. Ltd., Natures Basket Limited, Local Banya Pvt. Ltd., Supermarket Grocery Supplies Pvt. Ltd., Fiora Hypermarket Limited, Godrej Nature’s Basket Ltd., Ekstop Pvt. Ltd., MyGrahak Shopping Online Limited, Jiffstore Software Labs Pvt. Ltd., PepperTap Ltd., SRS E-Retail Limited, Reliance Retail Pvt. Ltd., ZopNow Retail Pvt. Ltd.

The products of the online grocery market are classified by FMCG, breakfast & cereal, meat & poultry products, fruits & vegetables, dairy products & bakery, fresh produce, and grocery & staple. FMCG is segmented into home care, family care, packaged food, and beverages. On the basis of the business model, the market is segmented into the hyperlocal delivery business model, inventory-based business model, a mixed business model, and pure play business model. The hyperlocal model takes groceries from neighborhood shops and delivers it to customer’s doorstep. Pure play models have huge functional distribution centers and warehouses. On the basis of the type of shopper, the market is segmented into millennials, generation Z, baby boomers, generation X and silent generation etc.

The online grocery market is increasing its share due to a wide range of choice, Omni-channel experience, and convenience for the customers, cash on delivery and timely deliveries. Some of the weaknesses associated with the online grocery market are expanding, high logistics costs and lack of personal touch etc. In addition, some of the key opportunities include the size of the market, rising number of double income families, growing base of replicated customers and rising demand for imported food & gourmet products.

The market of online grocery is mainly driven by increasing E-Commerce industry. Rising penetration of high-speed internet service, rising income resulting in increasing purchasing power and rising smart-phones users are increasing significantly which led to the growth of the market. Apart from some of the major concerns is lack of proper infrastructure, domination of traditional stores and competition from top E-commerce firms. In addition, some new trends are smart shopping, attracting heavy investments and competitive delivery services & timing.

The online grocery based on the availability of branded and organic products at a click, increasing internet usage amongst Indians and followed by the convenience of availing a daily discount. Mumbai, Chennai, Bangalore, and Delhi NCR are major cities of the market. Customers in urban hubs driving substantial growth in India for online grocery market, a large portion of Indian customers, residing in remote cities and locations, still remain untapped due to lack of confidence, low awareness, and price-conscious behavior. The increase in competition in the market has led to an increasing number of e-grocers targeting remote and new markets to increase their presence in the country.

India is the second largest market of online grocery in the world. The market is growing increasingly, at a rate of 25 % to 30 %, annually. In near future, it is estimated that the online grocery market will be a big opportunity and turn into a multibillion-dollar category, due to high order volumes and repeat purchases of groceries.

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Ankur Gupta, Head Marketing & Communications