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Blinkit Case Study: Success Story from Grofers to Blinkit

online grocery in india case study

  Table of Contents

An overview of blinkit, the business model of blinkit, blinkit revenue model and growth factors, funding rounds and the number of blinkit investors  , blinkit assets, blinkit competitors - a tough competition for bigbasket, swiggy, and amazon, challenges faced so far - blinkit, blinkit's current scenario and future plans.

One of the most popular platforms for grocery delivery in India is Blinkit, formerly known as Grofers. To date, it has received nearly $1 billion in capital from a variety of investors. Albinder Dhindsa and Saurabh Kumar founded the business in 2013. One of the few Unicron companies in India with a $1.01 billion valuation is Blinkit. The company delivered 1.25 lakh orders daily by November 2021. Blinkit is already present in more than 38 Indian cities . The company had raised roughly 630 million US dollars from investors as of 2021.

Albinder Dhindsa and Saurabh Kumar established Blinkit as Grofers in December 2013. After getting to know each other at Cambridge Systematics in the late 2000s, they teamed up to enter the supermarket delivery market. A major focus of their efforts was finding solutions to industry issues caused by a lack of organization (both at the consumer and vendor ends). Before expanding to other Indian cities, the business conducted a test run in Delhi NCR.

After operating as an online grocery delivery service for seven years, Blinkit opened dark stores across India to provide quick grocery delivery. The business claimed to have delivered over 7,000 goods in Gurgaon in 15 minutes in July 2021. Within a month of completing over 20,000 deliveries under 15 minutes a day across 10 cities, it added 10-minute delivery to the top 12 cities.

Blinkit became Grofers' brand name on December 13, 2021, as part of its commitment to facilitating quick commerce.

The third-largest grocery delivery service provider in India right now is Blinkit. It barely gains a little over 14% of the overall market share, behind BigBasket and Amazon. The business currently serves customers in more than 28 Indian cities and delivers orders in under ten minutes.

A Quick Look - Blinkit

Company Name – Blinkit

Founded – Dec 2013

Founders – Saurabh Kumar, Albinder Dhindsa

Valuation – $1.01 Billion

Revenue - $302 Million

Industry – E-commerce, Online Shopping, Grocery Delivery

Area Served – India

Parent Organisation – Grofers International Pvt. Ltd.

The number of employees – 2000 (approx.).

Website – blinkit.in / grofers.com

Blinkit Founders and Team

Albinder Dhindsa

The company's CEO and co-founder is Albinder. He graduated with a B.Tech from the Indian Institute of Technology in Delhi and an MBA from Columbia Business School.

Saurabh Kumar

Blinkit's co-founder is Saurabh. He graduated from IIT Bombay with a B.Tech in Civil Engineering and from The University of Texas at Austin with an MS in Transportation Engineering.

online grocery in india case study

Blinkit is built on the marketplace business model.  It does not possess any independent markets or warehouses. Instead, the company works in tandem with several local shops and grocery stores in the area, sending delivery personnel to pick up the needed goods from them. The delivery boys then make the necessary deliveries of the orders to the customers.

Items can be placed via Blinkit's app or website, and the tie-up mechanism enables them to reach nearby supermarkets and deliver orders to customers quickly. Because Blinkit charges a commission on these orders, these orders generate revenue for the company.

Regional suppliers, regional clients, and delivery staff comprise the three main components of Blinkit's business model.

Regional Suppliers:

Partnering with nearby retailers is part of Blinkit's offering. In particular, mall businesses without a workforce for doorstep delivery and a marketing budget to reach a wider audience.

Regional Clients:

One of the main inspirations for the idea for the company was the group of people who struggle to find time to physically go to the market for daily shopping. It includes working people, seniors, students, and even sick people.

Delivery Staff:

A team of delivery workers from Blinkit is assigned to a specific location. They collaborate with retailers to deliver daily necessities quickly to customers' doors.

Blinkit operates under a commission-based business model. It has collaborated with a variety of retailers and small business owners to deliver groceries in the neighbourhood. Blinkit receives a fixed percentage of commission from the retailers for these orders. Orders between 8% and 15% and 12% and 15%, respectively, for amounts up to ₹700, and ₹ 1000. It also charges a delivery fee for orders that customers place that have a value of less than ₹ 250.

In India, Blinkit delivers more than 1.25 lakh orders each day. In the last week, it reported receiving more than 1 million orders across 12 to 13 cities.

Its platform contains more than 5000 different products prepared for delivery in 10 minutes.

From FY 2020, the company's revenue increased by a net 26.2%.

It is India's third-largest platform for grocery delivery.

Every year, Blinkit serves millions of customers.

online grocery in india case study

Series A

1

US$500K

Series B

2

US$10M

Series C

2

US$36.5M

Series D

5

US$120M

Series E

3

US$58.6M

Series F

7

US$264M

Brand Name - The company's name is very fitting for the type of business they conduct. The company is called Blinkit since they deliver groceries to customers in an instant. It is a very fantastic name that fits the company perfectly.

Company Logo - The company's logo is incredibly organized and tasteful. It is orange in color, which is a representation of achievement, change, joy, and equilibrium.

Tagline - The company’s tagline is "Let's Blink it."

Although Blinkit has long been the favorite of all investors, there are still plenty of rivals in the market. A lot of large companies and supermarkets are gradually concentrating on internet sales. This makes e-commerce platforms more competitive with one another. The following are a few of the company's main rivals:

Nature’s Basket

The following are a few of the company's main obstacles:

Service and product quality problems - Blinkit has come under fire for both its slow service and quality problems. Giving excellent customer service is one of the toughest obstacles a business faces.

Massive discount offers -

The business's strategy of giving its customers steep discounts has fallen flat. More than 600 Cr. INR has already been invested by them. The expansion of their business has been slow in the last three to four months, and they are now looking to cut costs to lower their cash outflow.

Rival companies – Despite dominating the market, Blinkit is not immune to rivalry. Some of them are rapidly expanding and have a large customer base.

Retaliation - In recent months, Blinkit had to deal with a variety of criticisms. Many critics disagreed with their 10-minute grocery delivery service because they felt that it exploited the workers. Additionally, Blinkit let go of about 5% of its workforce in significant cities like Mumbai, Kolkata, and Hyderabad. They have also been linked to numerous vendors' reported delays in payment.

online grocery in india case study

Blinkit is working on a ton of exciting plans for the future. Several of the plans include the following:

After Amazon and Bigbasket, Blinkit claimed to have 13% of the market, developing it as the third online platform for grocery delivery. 

They'll soon grow their company and begin offering services in several new locations.

The main objective of Blinkit is to dominate the Indian market for grocery delivery services.

The company will also offer a wider variety of products, such as those for babies, fruits, baked goods, pets, flowers, etc.

Over the next five years, Blinkit wants to multiply by 100 its current size.

A Grand View Research estimates that the Indian online grocery sector would be worth $2.9 billion in 2020. It's interesting to note that during the next five years, it is predicted to increase at a compound annual growth rate of 37.1%. The market for grocery e-delivery services is therefore such that you're more likely to have a positive return on investment.

To succeed in this profitable prospect, however, you must provide superior services to those of well-established market competitors, such as Amazon, Big Basket, and others. You must first conduct in-depth market research for it. Try to identify any weaknesses in the way that online grocery delivery services are now provided so the organization develops a creative replacement.

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online grocery in india case study

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online grocery in india case study

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BigBasket Success Story - India's Largest Online Grocery Store

Chayanika Goswami

Chayanika Goswami

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations.

Online grocery shopping is fast gaining popularity among Indians. According to a Redseer report, India's online grocery retail market is all set to touch $10.5 billion by 2023. A company that holds a huge share of this fast-growing market is BigBasket.

Founded in 2011 by the dot-com bubble survivors V.S. Sudhakar, Hari Menon, V.S. Ramesh, Vipul Parekh, and Abhinay Choudhari, Supermarket Grocery Supplies Pvt. Ltd., trading as BigBasket, became a household name soon after it came into existence.

Headquartered in Bengaluru, BigBasket is currently known as one of India's largest online grocers and offers an impressive selection of products from over 1,000 brands, delighting over 6 million satisfied customers.

In May 2021, Tata Group became the owner of BigBasket by acquiring a majority stake of 64% in the company. Tata Sons has acquired a majority stake in BigBasket, putting the Indian conglomerate in a direct race with e-commerce players Amazon, Walmart, Flipkart, and Reliance Industries. The stake was bought by Tata Digital Limited, a unit of Tata Sons.

In this article, you can find detailed information about BigBasket, including the company's founders, journey, business model, revenue, funding, acquisitions, and more.

BigBasket Company Details

Startup Name BigBasket
Headquarter Bengaluru, Karnataka, India
Industry E-commerce, Grocery, Grocery Delivery
Founders V.S. Sudhakar, Hari Menon, V.S. Ramesh, Vipul Parekh, Abhinay Choudhari
Founded 2011
Valuation $3.2 billion
Parent Company Tata Group
Website bigbasket.com

BigBasket - About BigBasket - Founders and Team BigBasket - Startup Story | How BigBasket Started? BigBasket - Name, Tagline, and Logo BigBasket - Business and Revenue Model BigBasket - Startup Challenges BigBasket - Funding and Investors BigBasket - Acquisitions BigBasket - Growth and Revenue BigBasket - Partnerships BigBasket - Awards and Recognitions BigBasket - Competitors BigBasket - Future Plans

The Rise of BigBasket

Big Basket Company Details

BigBasket - About

BigBasket is into delivering everyday cooking essentials like ghee (clarified butter), diced coconut, fragrant basmati rice, and more, amounting to a total of over 40,000 items, along with other household products ranging from bread to laundry detergents for the customers to shop from. The company gets all of them delivered to their doorsteps. The target motive of the company is to enable the ease of grocery shopping online to avoid traffic and the drudgery of supermarket visits.

To explore new opportunities, the company has also launched 3 new businesses - bb Daily, bb Instant, and bbnow.

bb Daily is a subscription-based service that allows customers to order milk and fresh groceries. With this platform, the customers have to place the order before 10 PM, and they eventually get the goods delivered between 5 AM - 7 AM the next day.

bb Instant is BigBasket's unmanned vending machine that is mostly available in corporate offices, tech parks, and apartment buildings in Tier I cities.

bbnow , the rapid grocery delivery service by BigBasket, allows you to order daily essentials like fruits, vegetables, cooking necessities, and household items and have them delivered to your doorstep within just 15-30 minutes.

BigBasket has also launched Fresho stores, which is currently serving as the first offline retail store of BigBasket that has already been opened at Basaveshwar Nagar in Bangalore. These BigBasket stores are technology-driven, self-service stores for customers.

BigBasket - Founders and Team

BigBasket was founded by V.S. Sudhakar , Hari Menon , V.S. Ramesh , Vipul Parekh, and Abhinay Choudhari in 2011. Prior to BigBasket, the founders also founded Fabmart.com, an online platform that sold books, toys, and groceries in the year 1999. Fabmart was sold to a grocery chain in 2006.

Big Basket Founders

V.S. Sudhakar

BigBasket Co-founder V S Sudhakar was the CEO of Planetasia . He has vast experience working in the IT sector.

BigBasket CEO Hari Menon comes with vast experience in diverse fields. Prior to Big Basket, Menon was the CEO of Indiaskills, the Vocational Education joint venture of Manipal Group with City & Guilds, UK. An alumnus of BITS Pilani, Hari Menon also worked as the Country Head at Planetasia, one of India’s first Internet services businesses. Hari also held top positions with IT majors like Wipro Infotech .

V.S. Ramesh

V.S. Ramesh is the Head of Logistics & Supply Chain at Big B asket . An Electronics Engineering graduate from Karnataka University, V.S. Ramesh has over 21 years of experience in the Indian Navy handling Operations and Logistics . Ramesh is an Electronics Engineer, who earlier co-founded Fabmall.

Vipul Parekh

Vipul Parekh is the Head of Finance & Marketing at Big B asket. Vipul is an alumnus of IIM Bangalore and worked with a range of companies holding key leadership positions including Wipro Limited and Trinethra Super Retail Ltd. He also worked with Peepul Capital Advisors Pvt Ltd., a leading Private Equity Fund as an Investment Director. Parekh also co-founded Fabmall before co-founding BigBasket.  

Abhinay Choudhari

Abhinay Choudhari was the Head of New Initiatives at Big B asket along with being a Co-founder. Abhinay is an IIM Ahmedabad alumnus. Besides working with leading IT companies like iGATE & Infosys, Abhinay also founded Stylecountry.com, one of India's first online fashion retail stores. Stylecountry.com had to be closed down as it did not turn out to be profitable.

Abhinay Choudhari has taken a silent exit from BigBasket on August 5, 2021. Soon after Tata acquired BigBasket in May 2021, Abhinay decided not to continue working in the same firm, which he finally managed to do in August. As a parting note to his employees, Choudhari has mentioned that he left BigBasket only to build another company from scratch due to "the start-up itch" that has been growing in him for nine years. Choudhari hinted to “solve another equally painful chore for many Indian households” in the form of a new business that he will found. Next, he will be looking forward to an online laundry business, as per reports.

TN Hari, who served as the Chief Human Resources Officer (CHRO) at BigBasket for 7 long years , has let people know that he has decided to do something different via his Linkedin handle . TN Hari, in his career with BB, which has now found a new, safe home with the Tata Group acquisition, has already spent 20 years in the Indian startup ecosystem. During these years, he boasts of wearing many different hats as an Angel Investor, Advisor to other VC Firms, Mentor at Startup Accelerators, Sounding Board to Founders, Author, and Columnist. Hari has also revealed that he has been a part of 5 startups to date , 3 out of which have already turned into unicorns . TN Hari has also been identified by Linkedin as one of the top voices of India for 3 consecutive years. Establishing the Artha School of Entrepreneurship is the new goal of this top executive of BB. The mission of Artha would be to accelerate the " journeys of the entrepreneurs in scaling their ventures and contributing to economic and social prosperity of their communities."

RainCan, which was originally a daily essential subscription-based startup, later acquired by Big Basket in 2018, was eventually rebranded as BBDaily.

BigBasket currently boasts of being a 5000+ strong company.

online grocery in india case study

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BigBasket - Startup Story | How BigBasket Started?

All of this began when the BigBasket founders decided to exploit the experience they got post the massive failure of the dot com bubble. Hence, they decided to create a unique website that was never done before. All the founders of Big Basket had garnered relevant experiences in eCommerce when they created Fabmart.com.

Fabmart.com was an online platform that sold books, toys, and groceries in the year 1999. Back then, only within a few months, they realized that not just our country but the whole world was not ready to take this buzz of digitization. In the year 2006, Fabmart was merged with a brick-and-mortar grocery chain and the founders ended up selling their startup for a lump sum amount.

Then came the golden year of 2011, when the team reunited and started re-evaluating the idea of again coming up with something new and exciting. Despite all the criticism they had received back in 1999, they stood very strong on the fact that the time to do something that’d put them on the map was then. In 2011, the smartphone market was booming and anything and everything was available except groceries, of course, and that right then was their Eureka moment.

BigBasket used to fulfill its orders by purchasing products from Metro Cash and Carry stores, prior to setting up its first warehouse.

"We had people in the Metro stores, literally operating that as our warehouse" says Hari Menon, Co-founder & CEO of BigBasket.

BigBasket - Name, Tagline, and Logo

BigBasket Logo

Supermarket Grocery Supplies Pvt. Ltd., trades as " BigBasket," the name of which is drawn from the idea of shopping baskets, which the company extends to their customers online.  

The recent tagline of the brand reflects "Har Din Sasta."

BigBasket - Business and Revenue Model

BigBasket’s private label business is driven by lower prices and higher margins. Roughly 35% of the revenue comes from private labels. The aim here is to fill the gap in distinct categories like organic food, and high-end consumer products, to name a few. Also, the company offers a lower price point for staples and fruits and vegetables. They also provide idli/dosa batter on their online platform, which is very rare and does not have a lot of competition.

Moreover, on the B2B side, BigBasket serves its private label to about a thousand Kirana stores, huge corporates, and HoReCa (hotels, restaurants, cafes). Regarding Big Basket's Business Model , Big Basket follows both the 'inventory model' and ‘the hyper-local model ’ .

Under the inventory model , the company buys products from leading suppliers like P&G, HUL, mills, farmers, etc., stores the products in warehouses, and supplies the same to the customers on order. In the case of perishable goods, BigBasket further has tie-ups with local farmers and suppliers from whom it procures the goods as per orders and supplies the same to the customers.

Under the 'hyper-local model', BigBasket has a tie-up with 2000+ grocery stores across India to deliver products within one hour from the neighborhood.

With the opening of its physical store, Fresho, BigBasket is also a step ahead in the physical grocery space , which is soon expected to be a revenue generator for the company.

BigBasket - Startup Challenges

One of the main challenges of any startup in India is getting the customers to try the service first since the resistance level is really high. This is followed by retaining these consumers despite all the other factors in the market like competitors, local vendors, and buying habits, which were there for BigBasket too.

Also, since it was one of a kind startup dealing with groceries, which was never the case before, it took a while for the consumers to place trust in a brand like BigBasket and start using its services.

Data Breach Issues

Online grocery store BigBasket faced a massive data breach in November 2020 as the company had allegedly leaked the data of over 2 crore users on the dark web. BigBasket, funded by Jack Ma -owned Alibaba Group, Mirae Asset-Naver Asia Growth Fund, and CDC group has filed a complaint in this regard with Cyber Crime Cell in Bengaluru.

According to media reports, Cyble, a cyber intelligence firm, informed that the grocery e-commerce platform BigBasket leaked data including names, email IDs, password hashes, contact numbers, addresses, etc, on the dark web. Also, Cyble informed that a hacker had put the data on sale for over Rs 30 lakh.

Reacting to this, BigBasket said: "A few days ago, we learned about a potential data breach at Bigbasket and are evaluating the extent of the breach and authenticity of the claim in consultation with cybersecurity experts and finding immediate ways to contain it. We have also lodged a complaint with the Cyber Crime Cell in Bengaluru and intend to pursue this vigorously to bring the culprits to book."

Bengaluru-based BigBasket also ensured that the confidentiality and security of customers are their priority and it does not store any financial data (including credit card numbers) etc and is positive that this financial data is secure.

"The only customer data that we maintain are email IDs, phone numbers, order details, and addresses so these are the details that could potentially have been accessed. We have a robust information security framework that employs best-in-class resources and technologies to manage our information. We will continue to proactively engage with best-in-class information security experts to strengthen this further,” the statement by BigBasket read.

Cyble also claimed that the breach may have occurred on October 30, 2020, and it has already informed Bigbasket about it.

online grocery in india case study

BigBasket - Funding and Investors

BigBasket has raised a total of $1.5 billion in funding over 20 rounds . The latest funding for the company was raised on December 21, 2022, when BigBasket raised $200 million from its majority stakeholder, Tata Digital. This funding round raised BigBasker's valuation to $3.2 billion .

Here are the details of the latest funding raised by Big Basket:

Date Stage Amount Investors
December 21, 2022 Venture Round $200 million Tata Digital
June 2, 2022 Venture Round $45 million Supermarket Grocery Supplies
April 13, 2022 Venture Round $121 million Supermarket Grocery Supplies
April 15, 2020 Debt Financing $51.8 million Alibaba Group
April 9, 2020 Venture Round $60 million Alibaba Group
July 2019 Debt Financing $14 million Trifecta Capital
May 2019 Series F $150 million Mirae Asset-Naver Asia Growth Fund
January 2019 Venture Round - Growth Story
February 2018 Series E $300 million Alibaba Group
October 25, 2017 Venture Round $4.3 million Helion Ventures Partners
October 10, 2017 Debt Financing $838.1K Trifecta Capital Advisors
October 1, 2017 Venture Round $5 million Bessemer Venture Partners
September 2017 Series E $280 million Alibaba Group, Paytm Mall
March 2017 Debt Financing $6.9 million Trifecta Capital Advisors
March 2016 Series D $150 million Abraaj Group
August 2015 Series C $50 million Bessemer Venture Partners
September 2014 Series B $33 million Helion Venture Partners
April 2014 Bridge Round $3 million Singapore-based private investor
March 2012 Series A $10 million Ascent Capital

BigBasket - Acquisitions

Big Basket has made 6 acquisitions to date . Their most recent acquisition was of Agrima Infotech, which the company acquired on February 19, 2022. The Tata-owned online grocery delivery platform has acquired the enterprise business segment of the Kerala-based deep tech company. This deal would allow the company to implement the unique computer vision technology platform, Psyight, at the self-checkout counters of the retail stores of BigBasket. Psyight behaves as a food recognition platform that is powered by the all-new computer vision technology to differentiate raw, cooked, and packaged food items, which will help its parent ahead.  

DailyNinja was last acquired startup by BigBasket and the deal was materialized on Mar 24, 2020.

In June 2015, the company acquired ' Delyver ', an online platform that connects offline retailers with customers in a neighborhood. In October 2018, Big Basket acquired ' Raincan ' a subscription-based service provider for morning and breakfast essentials, headquartered in Pune . In October 2018, Big Basket also acquired ' KWIK24 ' a company that manufactures and designs smart vending machines. On October 19, 2018, Big Basket announced the acquisition of the Bangalore-based startup ' Morning Cart '. Morning Cart is a daily essential ordering platform.

Here are the details of the Acquisitions by BigBasket:

Acquired Date
Agrima Infotech February 19, 2022
DailyNinja March 24, 2020
Morning Cart October 19, 2018
KWIK24 October 19, 2018
Raincan October 18, 2018
Delyver June 12, 2015

BigBasket - Growth and Revenue

Tata Digital's acquisition of controlling stakes in BigBasket in May 2021 has played a pivotal role in fueling the company's growth trajectory.

BBNow marks a significant game plan for BigBasket's growth strategy. Officially launched in Bengaluru, this quick-commerce service enables lightning-fast grocery deliveries to customers within 15–30 minutes, catering to the urgent needs of its existing customer base. With BBNow, BigBasket aims to further solidify its position in the e-grocery market and tap into the increasing demand for rapid and convenient grocery delivery services. The introduction of BBNow allows the company to compete more effectively with other quick-commerce players like Swiggy Instamart and Zepto , presenting exciting growth opportunities for BigBasket in the fast-paced and competitive market landscape.

BigBasket launched its first physical store, "Fresho" in Bangalore , in the last week of October 2021, as confirmed via an internal company email. The mentioned store has been open to the customers of Bangalore's Basaveshwar Nagar since October 25, 2021 , according to BigBasket co-founder VS Sudhakar, who informed the same to all the employees of the company. While writing about Fresho in his email, Sudhakar described the opening of the store, which is currently operational from 8 in the morning to 9 in the night, as an “extremely key, strategic initiative.”

BigBasket User Acquisition

BigBasket's mobile app is currently accessed by over 6 million customers across the country, being operational in 26+ cities in India.

An interesting strategy that BigBasket follows to attract customers is that the company keeps into account the varied needs and different shopping habits of its customers belonging to different cities. The amount of attention the founders paid to little details put them in a competitively better position.

The team did their planning city-wise. They increased the number of leafy greens in Mumbai, supplied a special kind of rice (called Sona Masoori) in Bangalore, and went as far as providing eight different kinds of eggplants to picky customers. All in all, the company ensured its quality was nothing short of perfection.

Timely delivery is the essence of online shopping hence the team put a focused approach to this. They devised a model of customized software that automatically guides drivers to their destinations and helps the company achieve a near-perfect on-time rate. Late deliveries earn customers a 10% discount. Missing items are refunded at a cost that is 50% of whatever the item cost is.

BigBasket Financials

BigBasket Financials

BigBasket's B2C arm reported revenue from operations of Rs 7,434 crore in FY23 , reflecting a modest 4.8% growth compared to FY22, when the company's revenue stood at Rs 7,095 crore.

In FY23, BigBasket's B2C arm witnessed an 89% surge in losses, reaching Rs 1,535 crore , compared to Rs 813 crore in FY22.

Total expenses for the B2C arm increased by around 13% from Rs 7,929 crore in FY22 to Rs 8,998 crore in FY23. This rise in expenses was primarily attributed to higher employee benefit expenses, finance costs, and other miscellaneous expenses. Specifically, Innovative Retail spent Rs 916 crore on employee benefits in FY23, representing a 24% increase compared to Rs 739 crore spent in FY22.

BigBasket - Partnerships

Some of the BigBasket partnerships include:

  • Bigbasket partnered with Uber on April 3, 2020, where Uber's driver-partners sought an association with the former to help the company deliver everyday essentials to its customers and others during the pandemic onslaught. Bengaluru, Hyderabad, Chandigarh, and Noida were the first four cities to witness the same.
  • BigBasket partnered with Rajasthan Royals on September 16, 2020, who was declared as the official partner of the IPL team for the 2020 edition of the Indian Premier League.  
  • BigBasket also became a partner with the New Zealand Trade and Enterprise on October 19, 2021, to deliver food products and groceries in India.

BigBasket - Awards and Recognitions

Among the major awards and recognitions that BigBasket won are:

  • BigBasket is recognized as one of the 'Top 50 India's Best Companies To Work For - 2023' by Great Place to Work® India.
  • BigBasket ranked in the 'Top 3 Best Places to Work' in E-commerce and 'India's Best Workplaces in Retail' for the third consecutive year in 2023.
  • It was declared the 'Retail and eCommerce App of the Year' at YourStory's AWS Mobility Awards in 2017.
  • Owler has conferred upon BigBasket CEO Hari Menon the Top Rated CEO Award in 2017.
  • The company was placed 2nd at the Global E-Commerce Award ceremony hosted by Ecommerce Europe in Barcelona.
  • BigBasket Co-founder Abhinay Choudhari was awarded the IIMA Alumni Young Achievers’ Award.

BigBasket - Competitors

Despite growing at an increasing rate, BigBasket faces cut-throat competition in the market. Some of the major competitors of BigBasket are:

  • Reliance Fresh
  • FreshTohome

Though these players are acquiring strong market standing with time, the company tends to stand fit and fine and win the market with its large and ever-increasing consumer base. BigBasket is now doubly strong under the management of Tata.

BigBasket - Future Plans

BigBasket has strong plans of retaining its post as the largest grocery delivery platform in India . So, the plan is to set up warehouses in all 26 operating cities of India to bring down the delivery time to 3 hours .

Big Basket has launched Fresho stores, and opened the first of their kind in Bengaluru, thereby entering the offline retail market. According to BigBasket's co-founder and CEO Hari Menon, the goal is to achieve Rs 12,000 crore in sales by 2026 through 800 Fresho stores spread across 10 tier-1 cities.

As part of its future plans, Tata-owned BigBasket is considering launching an initial public offering (IPO) by 2025.

What is BigBasket?

BigBasket is an Indian online grocery delivery service founded in 2011 and headquartered in Bangalore, offering a wide range of products delivered to customers' doorsteps.

Who is BigBasket's owner?

BigBasket is owned by the Tata Group.

Who are BigBasket's founders?

BigBasket was founded by V.S. Sudhakar, Hari Menon, V.S. Ramesh, Vipul Parekh, and Abhinay Choudhari.

What is bigbasket bbnow?

bbnow, the rapid grocery delivery service by BigBasket, allows you to order daily essentials like fruits, vegetables, cooking necessities, and household items and have them delivered to your doorstep within just 15–30 minutes.

What is Bigbasket Wallet?

The Bigbasket Wallet is a pre-paid credit account that is associated with your Bigbasket account. This prepaid account allows you to pay a lump sum amount once to Bigbasket and then shop multiple times without having to pay each time.

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Factors Affecting Online Grocery Shopping in Indian Culture

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online grocery in india case study

  • Ashish Kumar Singh 26 &
  • Nishi Pathak 26  

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Today the online grocery shopping (OGS) is helping customers by making their life convenient by offering best and comfortable deals. Scope of online grocery shopping is increasing exponentially. Therefore, this study aims at examining the influencing role played by personal innovativeness (PI), economic values (EV), design aesthetic (DA), perceived enjoyment (PEJ) and convenience (CON) attributes on development of positive attitude to use OGS by Indian customers. For testing the variables and relationship of the proposed model, a structured questionnaire was formed and dispersed among 351 Ghaziabad and Delhi residents, out of which 232 were used for analysis. The Smart PLS 3.0 programme has been used to provide partial least square structural equation modelling (PLS-SEM) method. Finding a study easy to use (PEOU), perceived usefulness (PU), PI, EV, DA and PEJ and CON have a symbolic quantitative correlation in India with the acceptance of OGS. In contrast, PEJ did not support PEOU. Therefore, the study will provide direction to all online grocery service providers to design their services according to the customer’s expectation and need.

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Singh, A.K., Pathak, N. (2021). Factors Affecting Online Grocery Shopping in Indian Culture. In: Singh, P.K., Polkowski, Z., Tanwar, S., Pandey, S.K., Matei, G., Pirvu, D. (eds) Innovations in Information and Communication Technologies (IICT-2020). Advances in Science, Technology & Innovation. Springer, Cham. https://doi.org/10.1007/978-3-030-66218-9_1

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Case Study Grofers Dark Stores

Dark Stores Meaning

With retailing witnessing a digital transformation, dark stores have caught the imagination of grocery shoppers worldwide. These stores are generally large eCommerce warehouses that cater to an online order fulfillment platform or distribution center, or a ‘click-and-collect’ service, where the customer picks up items they have ordered online. Currently, prevalent in grocery, apparel, footwear, consumer durables, and home goods retail businesses globally, a dark stores business model is D2C(Direct-to-Consumer) in nature. It provides a quick and efficient shopping experience for consumers through a digital ordering process, same-day on-demand delivery, and an in-store location pickup.

Though open to end consumers, a potential buyer can browse through the dark store online and via mobile-friendly applications, providing a virtual, real-time view of the product shelves. He/she can then make a web-based purchase seamlessly through the digital shopping platform, pre-choosing the home delivery or the buyer pickup option according to his convenience. The dark store setup is normally done in or near high demand densely populated areas, dark stores can also be located on the city outskirts. The dark stores concept thus facilitates large, spacious storage and distribution centers where automation-friendly processes like storing, sorting, and managing orders can be carried out unhindered.

Advantages of the Dark Stores Business Model:

• Customer-centric, servicing densely populated areas and neighbourhoods: Dark stores can cater to high order densities in multiple locations at the same time, unlike traditional retail stores. • Greater product variety and availability: The dark store online order fulfilment system ensures bigger and better inventory visibility and management. • Reduced operational costs: Real-time live visibility, space and time optimization, and efficient supply chain management reduce operational costs and make the dark stores concept more viable financially. • Round-the-clock customer service: Whether it is 24*7 order fulfillment, picking accuracy, or consistently maintaining quality standards, the dark store model has the necessary infrastructure to support these services.

Grofers: One of the Pioneers of Dark Stores India

A popular Indian online grocery delivery business, Grofers was founded in December 2013 and is based out of Gurugram, with estimated revenues of around Rs. 177 crores in FY2020, and more than 5,000 employees overall. The name Grofers is essentially an amalgamation of the phrase ‘Grocery Gophers’. Grofers currently operates in 38 cities in India supported by hyperlocal dark stores, including prominent ones like Delhi, Gurugram, Mumbai, Bangalore, Pune, Jaipur, Chennai, Hyderabad, and Kolkata. The company aims to increase this number to 50 cities by March 2021. Its prominent competitors in the online grocery segment include the current market leader Big Basket, Amazon Pantry, Flipkart Supermart, JioMart, Dunzo, and others. After the onset of the Covid-19 pandemic in 2020, Grofers along with Amazon India and Big Basket were among the select few online grocery platforms that continued to operate and thrive in India.

In November 2020, Grofers was in the final stages of negotiation for raising $55 to $60 million from Softbank – its largest investor with a 46% stake in it – and other existing investors. In 2019, Softbank led the $220 million Series F funding round, while in 2018, it led the $53 million Series E round for Grofers. In FY20, Grocer’s revenues grew by a huge 111% YoY to over Rs.176 Cr, from its earlier Rs. 83.62 Cr in FY2019. However, its total expenses (comprising mainly of advertising and promotional costs) also increased in the same period (see diagram below).

Grofers Business Model Explained

Grofers leverages on an online marketplace model which brings merchants and their inventories online for the prospective buyer, who doesn’t have to visit in-person to physical stores. Product categories sold digitally through the Grofers website or the mobile application include Grocery & Staples, Kitchen & Dining, Household Care, Personal Care, Fruits & Vegetables, Beverages, Breakfast & Dairy, Baby Care, Packaged Food, Fresh & Frozen Food, Pet Care, and Home Furnishings. After the order is placed successfully, delivery is made within 90 minutes for orders within a 4 km radius. The Grofers business model is thus online and hyperlocal in nature, characterized by on-demand logistics and faster delivery times, with tie-ups with local stores and merchants, who are charged a commission for all orders that they receive. The commission range for Grofers starts at 8% on orders below Rs. 700 and 12% to 15% for orders below Rs. 1,000.

Promising future ahead for Grofers and its Dark Store Model

It is expected that Grofers will continue its revenue growth in FY21 as well, given that online grocery stores witnessed an upsurge with new users during the Covid-19 lockdown in India last year, when delivery of essentials through eCommerce start-ups was allowed. Grofers path to profitability speeded up during this lockdown, as new consumer households were added to its buyer mix. In this context, Saurabh Kumar, the Grofers founder claims that his business has acquired 18 lakh new customers and successfully retained more than 70% of buyers who used his platform in the first month of the pandemic.

In 2021 and beyond, Grofers is eyeing overall profitability, fuelled by its dark stores/online order fulfillment centers, as a major chunk of India’s 150 million online buyers nowadays spend on e-groceries. Grofers has also started preparations for its IPO to be launched in the latter half of 2021. Other plans for the company include the strengthening of its private-label offerings through a reported allocation of $15 million on the category.

Your Retail Coach – Dark Store Consultants India

Headquartered in India, YRC (Your Retail Coach) ranks amongst Asia’a top grocery dark store consultants, also offering other varied customized retail solutions for its prestigious clients. The company has proven expertise in online retail grocery consulting , supermarket consulting , online order fulfilment, supply chain management, franchise business models , and SOPs across all key business functions. Spearheaded by retail experts with years of successful industry experience behind them, YRC has successfully incubated and forged winning partnerships with several prominent retail start-ups to date.

If you are an aspiring dark store entrepreneur/ looking for a successful dark store setup , get in touch with YRC retail consultants to understand about setting up a dark store. YRC retail experts have helped many darks store takes shape, scale, and achieve operational excellence to stay ahead of the curve.

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online grocery in india case study

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PROCESS AUTOMATION

The idea of having Ecommerce Consultants on-board from the beginning itself points towards reducing the involvement of the promoters in daily operations. Ecommerce Businesses willing to be a brand reaping profits & sustaining the competition must ensure that most of their processes should be automated. The more the manual intervention, the more would be the errors.

In Ecommerce business, you get only 1 chance to impress the customer & if you mess up there, you lose the customer for long.

Process automation in respect to all the activities pertaining to customers from order receiving to order fulfilment is a must for a seamless experience for the customers.

Task Management is another grey area where most deadlines fail as 90% of the tasks are assigned manually & are forgotten, unheard, misunderstood or mistaken.

YRC Team of Ecommerce Management Consultants helps to make maximum of the processes system-driven to ensure minimalistic manual intervention.

VIDEOGRAPHY & PHOTOGRAPHY

No matter how good your product is, the customer would know only if it looks good.

Photography includes the following steps:

  • Cataloguing your products
  • Cataloguing your images
  • Backup your images (A few cloud storage solutions include Dropbox, Google Drive, Bitcasa, Apple’s Cloud Storage etc.)
  • Choose the right camera & lens (You may also outsource the photography to a third party agency)

DIGITAL MARKETING

Digital Marketing includes SEO & SMM. SEO i.e. Search Engine Optimization includes activities like back-linking, meta tags, blog-writing etc. to ensure your website ranks on the 1st page on Google Search.

Next comes SMM i.e. “Social Media Marketing” which as the name suggests including promoting your products on all the social media sites, email marketing, influencer marketing & several other BTL activities.

These activities are going to be recurring & would decide the traffic on the website, the conversions, whether the right target market is tapped, the likes, the views, the orders, the reviews & much more. YRCs Ecommerce Consultants create a budget for digital marketing right from pre-launch to launch & for each month thereafter.

Building digital marketing strategies in coordination with the agency, selecting them to signing them off would be the role of YRC.

This ensures seamless coordination, detailed interactions & desired execution as it is always advisable to work with a single agency than multiple of them.

IT INTEGRATION

Selection of the right software for smooth functioning of back-end operations right from production to webstore display would be suggested and integrated by YRC Team.

YRC’s Team defines SOPs of Product Movement, maps it with the locations & people. They then create a blueprint of all the features required in the software & help in shortlisting & selection.

IT Integration involves connecting your offline inventories with real-time online webstore so when a sale occurs, inventories get deducted real time across offline as well as online platforms.

This helps in accurate inventory management, maintaining the MOQs, re-order levels & achieving the optimum inventory levels.

Some popular software include unicommerce, viniculum for your front-end website management & Genisys for your entire back-end Purchase, Production, Accounting, Invoicing etc. management.

WAREHOUSE & LOGISTICS PLANNING

  • How many cities or countries you wish to sell in?
  • Where should your Warehouse be located?
  • Should you have one warehouse in each country or city?
  • Should you be having your own delivery team in your base city?
  • Would the 3rd party vendors be reliable? What happens when they lose or misplace your product during delivery?
  • How should I manage the logistics if my goods are coming from different countries?
  • How should the goods be stored and barcoded?
  • How much space do I require for warehouse?
  • I am sure several such questions must be haunting you while you think of starting your own fashion ecommerce brand.

At YRC, our warehousing and logistics experts can help you devise a strategy for all of the above mentioned queries and much more.

We design the layout of the Warehouse considering the inward, goods processing, software entry, barcoding, outward, goods return, scrap storage, goods stacking & much more.

Logistics route plan is devised considering the manufacturer to your warehouse and from there to last mile delivery locations.

UI & UX DESIGNING

This Step involves 03 distinct parts:

Part 1: Choosing the right Platform:

From several platforms available in the market right from Shopify to magento, woocommerce, prestoshop, wordpress etc. you must choose the one that fits best for your business

Part 2: UX Designing:

“UX” denotes User Experience, which if put in simple language is building the functional requirements of the website.

UX Designing includes designing the features required in the website, customer journey map, website features, the browsing features, navigation features, ecommerce order management process flow, checkout cart features, catalogue management, ecommerce payment system, cross selling features & much more.

“As per statistics, 68% of the customers abandon the carts before payment”

An interesting UX ensures the customer sticks on to the website for a longer time.

Part 3: UI Designing:

UI stands for User Interface, which means designing the look and feel of the website. UI includes using the right colours, elements and the entire aesthetics of the website.

A good User Interface ensures the user completes the task that he has come for. It navigates the user through the journey of the brand in the simplest but most effective way.

The UX designer maps out the bare bones of the user journey; the UI designer then fills it in with visual and interactive elements.

If User experience is the bare bone, user interface wraps it up with an attractive cape.

At YRC, our team if experts can help you develop the entire User Journey to ensure it is engaging!

SAMPLING & PRODUCTION

This step follows the “Designing” Phase, whether you have an in-house design team, freelance designers or an outsourced design company. It is one of the most exciting phases, as here you see your designs turning into products & your ideas turning into reality.

In most start-up cases, production is outsourced i.e. brands tie-up with the established manufacturers/ job-workers to get their products manufactured.

Sampling involves multiple 04 Stages, Fit-Sample, Prototype Sample, Pre-Production Sample & the Production Sample.

Prototype Sample is the first sample provided to the buyer. It can be in any fabric/ colour. This sample is just to understand whether the product design looks equally great in reality.

Fit Sample, as the name suggests is prepared to check the fit of the garment i.e. the various sizes, length, width etc.

Pre-production is made by the actual production line. Here the stitching quality and other aspects related to manufacturing are checked. This is the last stage where rejection can be accepted.

Production Sample is made before the production which is the replica of what is going to be finally produced.

Once you are through with all this, you are good to go ahead & get your goods manufactured.

PRODUCT DESIGNING / SOURCING

Product Designing or Sourcing is the heart of the Ecommerce Fashion Brand.

Product Designing / Sourcing can be done in several ways, as follows:

  • In-house Design Team
  • Freelance Designers
  • Outsourced Design Team
  • Ready Product Sourcing (From Manufacturer or Wholesaler)

At YRC, we evaluate your business strategy & business model to arrive at the decision, which of the above ways would be best-fit for your business. In certain cases, product sourcing may be a combination of the above.

These are the people who are going to build your brand! Whether they are the designers or merchandiser, your brand look is going to be in their hands.

If you are designing each garment from the scratch, the sourcing would play crucial role in developing design identity of your brand.

Sourcing includes fabric, trims, lining & all the raw material required to build the garment.

Branding is the “Look of the Brand”, right from logo to tagline, the colours used, the brand story, the brand communications on social media, the packaging & all the other aspects which speak directly or indirectly to the customers. Branding constitutes the look & feel of the brand & hence must be thoughtfully planned to match with the product that we are selling.

Branding must appeal to our target audience. Example : A golden colour logo depicting finesse, art, richness, premium, however beautiful it may be individually cannot go with a brand selling affordable kids wear products. So, your logo must be in-line with your brand positioning, whether you are an expensive brand or a luxury brand or a value for money brand, it must be depicted from your “Branding”.

It is an integral part to attract the target audience.

ORGANOGRAMS & SOP’s

Organogram is the “HR Blueprint” of the business which is created at the onset, to map out the team required across each function at various stages of the business. At the launch, only key people need to be got on board to ensure the project gets started & at this stage, all of them need to multi-task. Similarly, certain financial as well as operational goals are set for addition of the further team. Example, for the operations team, we hire 1 operations manager during the pre-launch phase & we add 1 more only when the business kicks-off & we reach a volume of selling more than 1000 pcs/ month or a turnover of more than 0.1 million USD.

SOPs are Standard Operating Procedures, a bible to run the entire organization right from Sales, Purchase, HR, Order receiving to Order fulfilment, Inventory Management, Accounts, Warehouse, Logistics, Supply Chain, Production & all the other relevant functions for the business. Business must be organized from its first day of operations; only then the tasks can be delegated.

At YRC, we design the organization structure, the processes, and approximate time taken to execute each process, job profile of every member within the organization, their KRAs, KPIs & the Reporting Structure.

CRITICAL PATHWAY

Critical Pathway Analysis (CPA), is a project management technique which cannot be overlooked while launching an ecommerce fashion brand. Brand launch process is cumbersome with multiple inter-dependent & time-bound tasks involved, which need to be tracked to ensure the project remains on track.

CPA outlines key tasks across the project, their turnaround time (TAT) & the dependencies of tasks upon each other. It identifies the sequence of tasks, their interdependent steps from inception to completion, their criticalities, and their dates of onset, target dates of completion along with the key responsible person for the respective activities. Critical Pathway helps in understanding the unimportant & not urgent tasks which may jeopardize the execution of the project because of an unexpected snag! It also maps out the potential bottlenecks which might be posed because of the dependencies of tasks upon each other & cases where the next task cannot be commenced before the completion of the previous one.

CPA detects the minimum & the maximum time involvement of a particular individual or team to execute the task, thereby arriving at the overall deadlines associated with the project.

At Your Retail Coach, we design the Critical Pathway & review it periodically to ensure the project is on track & the progress is measurable.

BUSINESS STRATEGY & BUSINESS PLAN

Business Strategy includes the vision, mission, goals, business model, business plan & strategy for all the functions within the organization.

Business Strategy is a well-defined plan that outlines who, what, where, why, how & when for the company; for example, who would be the target market, how to attract the target audience, when to launch new products, where to operate from, how to handle competitors, what would be the USP, what would be long term goal of the organization & several other answers to the 5Ws of Strategy.

Business Strategy aligns the organization towards a common goal. Business SWOT helps company to identify & overcome their weaknesses & focus to sharpen the strengths. Business strategy forecasts future risks and helps business in building skillsets to overcome the potential threats.

YRC’s Business Plan focuses on creating a “Blueprint” of the business, thereby deriving the feasibility of the concept & gauge whether the opportunity is lucrative to invest time, energy & effort. Business Plan creates cash flow understanding i.e. building inflow & outflow cash projections from Week zero to week 60 i.e. 05 year projection. Business Plan calculates the capital investment, operating costs, one-time costs, recurring costs & all the other numbers relevant to obtain the breakeven sales, return on investment, return on capital, internal rate of return & several other ratios. Business Plan is also one of the important requirements if you are targeting the “Investor Route”. Fund raising becomes extremely transparent & channelized. With business plan panned out clearly, the business will know until what point must it be stretched & where to stop, which reduces the probability of unplanned investments.

MARKET RESEARCH

Starting the concept of Ecommerce Fashion brand with Market Research ensures we get detailed understanding of the industry & this research report also acts as a social confirmation for your concept. Market Research helps in understanding the target locations, their population, potential online buyers for your product, competitors for each category, and top selling products of the competitors, competitors’ price range, offers & their responses & much more. Market Research helps in thorough understanding of your brand position as compared to our competitors. It helps in identifying gaps in the market, in your category along with the scope of the said product in the desired market. This will help in validation of your concept & prevents you from making the same mistakes as your fellow brands, eventually saving your time, energy & efforts. This phase is also a make or a break phase, as the market research study may at-times come up with some eye-popping numbers & statistics which might compel you to re-think on your product or category that you are planning to sell or alter your entire concept itself!! Market Research Reports analyse the competitors’ webstore for their traffic, conversion & sales. This is extremely valuable information to derive our inventory budgets & projections, which takes us to our next phase.

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online grocery in india case study

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Online grocery stores in India

This case study Involves three retailers that engaged In alternative approaches to grocer strategy formulation. The primary goals were to assess the relationship between a company’s business model(s) and its performance in the online grocery channel and to determine if there were other company and/or market related factors that could account for company performance. The first company is Basket currently present in Iambi, Hydrated and Bungalow.

The other one is Armholes which Is a website that operates In National Capital Region of India and offers FMC ND CUP goods and the last one Is Salt n Soap, Online Grocery Store In Kola operating out of Kola. First, we seek to achieve Insight into how uptake of Internet- based grocer relates to management orientation and find relationships between the uptake of Internet-based grocer and entrepreneurial orientation, competitive intensity, and IT maturity.

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BASKET Overview: Basket. Com is Indian’s largest online food and grocery store.

It has over 10,000 products ranging from fresh Fruits and Vegetables, Staples, Spices and Seasonings to FMC branded products, Beverages, Personal care products, Meats ND much more. The order is delivered right to the customer’s doorstep, anywhere in Bungalow, Iambi ; Hydrated. Within a year, the company is planning to start services in Delhi and Achaean as well.

Subsequently, it also plans to cater to Pun, Metadata and Kola. The customer can schedule their delivery date and time. Payment options include cash on delivery, credit and debit cards or food coupons.

online grocery in india case study

Since its inception, the company has seen demand grow 25-30 per cent on a month-on-month basis. Business Model: Once a customer registers on Basket. Com he can browse the wide range of products, select the products he wants and place an order online.

Internally the products are then picked, hygienically packed and levered to the customer in the time slot selected by the customer. Basket has tie-ups with manufacturers, wholesalers and importers and the merchandising teamwork on a combination of post order procurement and in house stocking. The service is unique as it lets customers shop for daily essentials from the comfort of their homes, saving them time, effort and money.

The company provides high quality products at competitive prices along with an on time delivery guarantee.

There are two operating models. It is called just-in-time model. This means that not just perishables but everything they bring against an order. So they consolidate orders for the day, go and buy the products and deliver. When they reach a particular volume, they move from the Just-in-time model to what is called the warehouse stocking model.

I Nat Is winner teeny are as Tar as Bungalow Is concerned. I nee Duty products directly from the supplies, like Milliner and Procter & Gamble, they buy from farmers and mills and stock the products in the warehouse.

They stock a certain number of days of sales, depending on the product and sales. They are able to set initial inventory levels and then decide what the re-ordering levels are. So it is all impolitely automated. Analysis: Basket’s business model relies on on-time delivery of goods, and in order to manage the operations smoothly and efficiently, it uses the hub-and-spoke mode of distribution.

Here wholesalers deliver goods to Basket’s warehouses. Branded delivery vans then deliver these goods to the consumers.

Perishables are only warehoused for a matter of hours, and in some cases it’s 24 hours from farm to fridge. It handles 1,500 plus orders a day in Bungalow and 700 plus orders a day in Iambi and Hydrated. The grocery store banks on technology-driven solutions to rack everything from the time an order is placed to delivery.

Basket uses Sidetracks Restart interface to tightly integrate with the ERP system and handle all movement of trucks and delivery vehicles, notification to customers on estimated delivery times, etc. Streetwalker’s real time location data helps achieve optimal vehicle utilization.

ARMHOLES Overview: Armholes is a hybrid retail platform that enables sales and marketing of FMC/CUP brands to “short on time – high on stress” consumers. It enables grocery shopping by leveraging the strengths of the neighborhood retailers and integrates hem with opportunities provided by the internet. Armholes was founded by Visas Sings, who, as an entrepreneur, has a deep focus and passion for brand marketing. Head-quartered in New Delhi, Armholes is a small team of techies and marketers that have been operational since a little less than a year.

Over 1900 retailers across 26 cities in India use Armholes as their preferred commerce platform. Their tie-ups with retailers are based on mutual strengths. The retailer has a time-tested local presence, which includes an ability to deliver goods to the doorstep of the consumers n his catchments area. They intend to add to this strength with the increased accessibility of the shop on web and mobile devices. This is done at no additional cost to the retailer.

Armholes currently lists over ask SKU. Only branded products are listed in Armholes; commodities and private labels are excluded from their platform.

The core idea of Armholes is to enable independent retailers, who have a physical presence, to have a web-store, which allows them to connect better with modern consumers. Business Model: The business model of Armholes is different from most e- amerce sites, as they do not believe that transaction based revenues is the way to go in the grocery category at the moment. Armholes does not make revenues on taking part of the margins made by the grocers; rather, they have created a number of premium services that are offered to brands.

These services are in various genres like, advertising options, on and off the platform, analytical led marketing and marketing at the retail point. The idea behind this unconventional and unique business model is that Armholes does not disrupt the existing business practices Ana tenured ensures no escalation AT costs SE Armaments NAS partnered with retailers so that customers can shop at these local retailers online. Once logged in to the site, users can choose a local retailer and shop for groceries. Armholes then sends the order to the retailer in real time.

The groceries are delivered to the customer’s doorstep and the customers pay for the goods upon delivery. They don’t keep any inventory and their partner retailers maintain their own inventories.

There is no cost for the retailer to Join Armholes, they are basing their ability to get revenues by offering premium opt-in services offered to the brands. Analysis: The model does look scalable and rather interesting as compared to regular commerce shopping. There is no logistics cost that the startup incurs and it brings in the comfort of your local store as well.

The only issue is predictability of order delivery as live inventory is not available online. The current format is more like providing one more interface to your regular grocery store, with the same issues and comforts. A more of Ajax functionality would make the shopping process faster and avoid showing shopping bag page after every item is added.

Unlike other online rockery delivery stores that become a threat to the small local businesses, Armholes puts the ball back into the court of local businesses that had begun to feel underprivileged in this age of Internet.

Armholes has overcome three major hurdles of business. It has convinced Cornwallis about the business model by putting them in touch with customers and being paid directly. Secondly, it has convinced customers by eliminating the need for online payments. Furthermore, since customers can choose their own Kirkland, they can be assured of quality. Thirdly, it has cut its own operational costs by eliminating the need to set up an inventory to stock goods or hire delivery boys.

Armholes is a great example of how you can optimize on the available resources to maximize your gains.

Armholes makes most of its money through ads of the numerous grocery brands it stocks on its portal. With a model like Armholes, everybody is a winner – the suppliers, the consumers and the business itself! SALT N SOAP Overview: Salt n Soap, a Bluebells initiative, intends to provide its consumers a convenient, social, enjoyable and rewarding experience of shopping their daily rockery needs online from the comfort of their homes and offices. Started in November 2012, Salt n Soap is owned and operated by Bluebells Solutions ALP. Though the services of booking daily grocery needs online and receiving timely delivery at the convenience of home or office are the basic foundations of Salt n Soap, Salt n Soap is more than Just another online version of a hyper mart, supermarket or a local Koran store. Salt n Soap intends to provide today’s busy urban consumers online tools for making their shopping experience social, enjoyable and rewarding.

Salt n Soap enables this through the various social features of the website, engaging and interesting games and contests.

Salt n Soap comes up with, and, last but not the least, the goldmine of information and analytics that facilitate a smarter buying decision. Apart from tottering want conventional online grocery sleets nave to offer, they have come up with quite a few innovative and engaging products and services that will catch attention of discerning customers. First, they are positioning online grocery services to “cash reach, time or” segment of population, typically SEC AY and AY class of people, working couple with busy work schedule and very little time to do daily shopping chore.

Hence, Salt n Soap position is more on “value” a customer derives by saving time rather than being just a “discount” shop. Business Model: Salt n Soap is a Kola-based outfit that has apparently pioneered the concept of “open analytics” in this space where customers can instantly summon a variety of data on a product like its market share, purchasing trends, and a comparison with what people in the same socio-economic class are buying.

The site also lets you know when it thinks a particular product has run out, thanks to some nifty code, and pings you so you’re reminded to buy more of it.

Consumers have access to a variety of data like market share of a product, purchase trend of a product, comparison of purchase trend with average pattern of people in the same SEC. Consumers can maintain their budget for purchase and track their consumption compared to the budget. Salt n Soap also seem to have developed an algorithm that predicts the umber of days of provision that a user has and thus prompting him/her when he should buy the same product again.

Salt n Soap has integrated their product with social media to provide a social experience to their consumers. Consumers are also rewarded with redeemable points for sharing their shopping experience with their friends in social media.

The website has been designed to enable users to shop through a “list” where he/she can select multiple products from one screen instead of having to navigate to multiple screens. Analysis: They seem to operate efficiently with very low capital investment.

Plus they provide a lot of innovative value added features to consumers which are typically not available in a brick and mortar store. Some such features are a unique web front that allows customers to shop multiple products without having to navigate to many pages, providing personal shopping assistance, helping customers to plan and monitor their grocery budget and inventory, analytics on market share and sale trend of products, etc.

Salt n Soap mimed to have understood that online shopping and especially grocery shopping is not about Just providing a web front to the consumer allowing them to book an order and then delivering the goods to the consumer’s doorstep.

They have introduced the concept of “Personal Shopping Assistance” where they promise to provide personalized assistance to consumers in buying through qualified professionals. Salt n Soap is constantly innovating on the features to ensure a more enriching and meaningful experience for its users. Grocery is a pretty complex business from the back-end and supply chain perspective.

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Case Study: BigBasket Became Online Grocery Marketplace with Digital Marketing Strategies

Career in digital marketing

About Bigbasket

BigBasket.com with 18000+ products and 1000+ brands listed on their catalogue is known to be India’s largest online food and grocery store. It offers a wide range of options in every category to provide you with the best quality products at the lowest prices which include – fresh Rice and Dal, Fruits and Vegetables, Spices and Seasoning’s, Packaged products, Beverages, Personal care products, Meats, and many more.

As of now, BigBasket is a purely internet based company .

How BigBasket started?

It all began in 1999, when Hari Menon along with five of his friends- VS Sudhakar, Vipul Parekh, Abhinay Choudhari and V S Ramesh launched their online retail website called ‘Fabmart’. Even though they did manage to get some traction but since their idea was way ahead of its time, they could not shake the masses.

They decided to start their online business again and focused all the energies on ‘Fabmall’, their physical retail chain of grocery stores. They also merged this chain with another grocery retail chain called – ‘Trinethra’. Within a period of seven years they expanded their business to 200 stores across Andhra Pradesh, Tamil Nadu, Karnataka and Kerala. At that point of time they decided to sell their business to Aditya Birla Group but Krishnan Ganesh an entrepreneur concluded to go ahead with it. And finally in December 2011, they launched BigBasket.com!

They failed to get some traction as their idea was way ahead of its time, so they could not work for the masses.

That was the time when they all decided to put the online business on the backseat and focus totally on ‘ Fabmall’ with all their energy. Fabmall was their physical retail chain of grocery stores. They too merged this chain with another grocery retail chain known as ‘Trinethra’.

Implementing many strategies and with hard work, in a matter of seven years, they succeeded to expand their business to 200 stores across Andhra Pradesh, Tamil Nadu, Karnataka and Kerala. Around the same time, they also decided to sell-off the business to Aditya Birla Group.

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Funding Received

Soon after their launch, they received their first funding of $10million from ChrysCapital co-founder Raj Kondur and Ascent Capital.

There were 15 funding rounds of more than $100 million in the whole year of 2014. So far this year, BigBasket has raised $150 million in fresh round of funding led by UAE’s Abraaj Group to expand its services into smaller cities. Existing investors Bessemer Venture Partners and Helion Advisors along with International Finance Corp and Sands Capital also participated in the round.

Business Model

When BigBasket started its operations, it adopted the ‘just-in-time model’ means  they were purchased-to-order. In this model, the delivery boy directly picks up the item from the retailer, and directly delivers it to the customer.

Current Scenario

BigBasket has been implementing a Hyper-local strategy, wherein, it has joined hands with more than 1,800 neighbourhood grocery stores across India to deliver goods within an hour.

Looking for the current scenario – BigBasket now processes almost 20,000 orders a day, with the involvement of 2000 team members.

Earlier they had acquired a hyper-local delivery start-up ‘Deliver’, to further strengthen its delivery service. Although, the company still functions as an independent firm, but the co-founders of Deliver have also been included in the management team of BigBasket.

This acquisition has helped BigBasket in their Express Delivery model, to delivery groceries in one hour.

Moving on, around the mid of 2015, BigBasket also roped in Bollywood actor – ‘Shah Rukh Khan’ as their brand ambassador, for an undisclosed sum; following which, they also launched a high volume television, digital and print media campaign as well.

They are now operational in 20 cities which include six metros, and are in plan to expand to 50 more tier two cities soon. They will also be opening 8 large warehouses in metro cities.

Table of Contents

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Hello, Thanks for sharing such a great blog. very helpful article. Online grocery business in India is rapidly growing.I like your article because now a days everyone looks for latest technologies and easy done.

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Academy of Marketing Studies Journal (Print ISSN: 1095-6298; Online ISSN: 1528-2678)

Research Article: 2021 Vol: 25 Issue: 3S

A Study on Consumers attitude towards Online Grocery Shopping In Covid19 Pandemic

Ramkishen Yelamanchili, K J Somaiya Institute of Management, Somaiya Vidyavihar University

Bharati Wukadada, Associate Professor, K J Somaiya Institute of Management, Somaiya Vidyavihar University

Aparna Jain, S K Somaiya College, Somaiya Vidyavihar University

Poorvi Pathak, Student, K J Somaiya Institute of Management, Somaiya Vidyavihar University

Citation Information: Yelamanchili, R., Wukadada, B., Jain, A., & Pathak, P. (2021). A study on consumers attitude towards online grocery shopping in covid19 pandemic. Academy of Marketing Studies Journal, 25 (S3), 1-10.

Online Grocery Shopping (OGS), t Customer Awareness, E-commerce, Consumer Behavior and COVID19.

Introduction

E-commerce has radically altered the business perspective worldwide. In a developing country like India, its impact has been more evident due to the rise in internet users (Chatterjee, 2016). With 225 million online shoppers presently, it is predicted that by 2025, there will be 530 million people shopping online (Chandra, 2021). This underscores the idea that the E-commerce industry would strengthen its hold in the Indian economy. Factors contributing to this phenomenon are increasing consumer spending, rising urbanization and more disposable incomes of the working population of India (Choudhury, 2017).

Online grocery shopping (OGS) is the form of shopping where consumers can order their groceries online, while being at home (Adamides et al., 2006). The idea of online shopping gathered traction from various disciplines in the last few years (Pan et al., 2017). It is gaining momentum due to the convenience it provides to customers (Martin et al., 2019). It started with the western and southern parts of India and has now spread across the country. Online grocery stores have low set-up costs since no physical stores are required and vendors reduce their inventory costs by providing fast-moving goods (Sinha et al., 2015). To be successful in this industry, e-retailers must have efficient transport, distribution and inventory management (Turban et al., 2015). The major Indian e-grocery retailers are Big Basket, Amazon Fresh, Grofers, and JioMart.

The organized retail trade includes supermarkets, retail chains and other licensed retailers (Sinha, 2017). Coula & Lapoule, 2012 reported how OGS avoids physically going to the stores, waiting in checkout lanes and carrying heavy shopping bags. Therefore, reducing physical effort by a huge margin. Research suggests that online orders include larger portions of fresh products than offline orders (Munson et al., 2017). Factors influencing the growth of online sale of groceries are

1. No geographical boundaries

2. Time efficiency

3. Free delivery and discounts

4. Current Pandemic

However, the coronavirus has disrupted the global economy as we know it. Its impact can be seen in almost every industry, including the manufacturing and FMCG sectors. When the lockdown was announced in India, it led to the closing of all the offline retail stores. In such a scenario, retailers with omnichannel presence could cope with the situation, albeit facing different challenges. They found themselves temporarily overwhelmed. As the restrictions were lifted, the e-grocers slowly started picking up. Overall, the e-grocers expanded manifold because consumers started to order groceries, packaged food and other essential items online. Likewise, Amazon and Flipkart saw an increment in groceries and daily-need items.

The paper aims to study the main elements affecting the acceptance and the intention to continue purchasing online ,which characteristic of the product or payment method can determine a higher frequency of OGS .Finally other studies examined the influence of the factors in the process of OGS .Existing literature is concentrated on impact on consumer behaviour in developing countries but very little is known about the acceptance ,the purchasing decisions and diffusion in developing countries.

Literature Review

The retail industry has been through a massive transformation over the past few years. Goswami & Mathur, 2011 explained how this tremendous change took place in India's retail industry. With so many choices available to the consumers and their changing lifestyles, there has been a diversification in the consumer demographics. People who prefer speed and convenience usually opt for online shopping (Yu & Wu, 2007). The younger population is at the centre of online shopping and hence, remains the focal point of studying consumer behaviour. One key aspect is how long they have been internet users, as more technically sound people would be more ardent e-shoppers (VA Sumathi et al., 2016). IAMAI, 2019 reported that more than 50% of internet users belong to 20-40 years. This group belongs to the working class, which an essential factor for an e-grocery shopper. Even though the younger population is more likely to go for online shopping, in the current scenario, people from all age groups are indulging in it because of changing customer mindsets (Mitra, 2018). A young and educated female who works long hours and earns a stable income living in a small household would purchase food online (Dominici et al., 2021).

Brand preference of OGS

Different e-retailers are competing in this industry, although Big Basket, Grofers and Amazon Fresh are the most prominent players. The strength of Big Basket lies in offering flexible delivery timings to the customers, but quality and prices should be maintained for its long-term growth (Upadhyay, 2019). It was reported that the number of Big Basket orders grew by three times since March 2020, as opposed to pre-Covid times, while customer retention has increased by 60% (Economic Times, 2021). This proves how this segment is growing exponentially and, in the future, will expand even more. People also prefer Amazon for online shopping due to its quick deliveries and highly convenient application, ultimately leading to a seamless shopping experience (Muralitharan et al., 2018).

Problems faced by Customers During OGS

Despite its advantages, OGS is not an optimal choice for the customers yet. Kaur & Shukla, 2017 outlined how they choose to purchase their groceries via online applications once or twice, but they do not prefer this medium when compared with their local stores and thus, their decision of OGS remains situation based. Goswami & Mathur, 2011 highlighted five main problems that customers face while shopping for groceries online: safety, product quality, no bargaining, and the need to touch and feel the item and delivery time. (Ramus & Nielsen, 2005)

Problems faced by Retailers in the OGS industry

The online grocery segment remains niche as it has many operational difficulties. Overall, the margins earned in the food and grocery segment have been low as retailers provide lower prices via discounts (Jhaveri & Anantharaman, 2016). It has slow sales growth compared to other sectors like electronics, consumer deliverables, cosmetics, etc. Meshram, 2020 analysed the impact of covid-19 on the online grocery retailers as they faced the out-of-stock situation with no labour and transport during the lockdown. This effectively derailed their supply chain management.

Objective and Hypothesis of the study

This study focuses on the consumers in Mumbai region and studies their acceptance and inhibitions towards OGS. Consequently, the broad objective is to study the consumer behaviors during COVID19 towards online grocery shopping. However, the specific objectives are as follows:

1. To understand the demographics of people going for online grocery shopping in the COVID19 situation

2. To examine the association between different demographic factors and preference of grocery shopping through online

3. To investigate the factors that can influence consumer’s intention to purchase grocery online

4. To find the problems faced by the customer during online grocery shopping

5. The study has following research hypothesis based on the above objective.

1Hypothesis : The preference for OGS has been increased after COVID19.

2Hypothesis : There is an association between age group and preference for OGS..

3Hypothesis : Ease of navigation is important aspect for the customer for OGS.

The present study is based on primary data collected through google form in Mumbai. Convenience sampling was used for data collection. The questionnaire contained questions on demographic information of individuals, information on preference of grocery shopping, different aspects for online grocery shopping, different brand preference for online grocery shopping and problems faced by customer during online shopping. Apart from these, questionnaire has questions on why people don’t go for online grocery shopping.

The total response for questionnaire were 380.

Statistical Analysis

Univariate analysis has been done to show percentage distribution of different demographic factor, preference of online shopping before lockdown, preference of online shopping after lockdown, frequency of buying, monthly expenditure on buying online grocery. Paired t- test has been done to show the significant change in preference of online grocery from before lockdown to after lockdown. Crosstabulation with chi-square is done to check association between demographic factors and preference of online grocery shopping. One sample t- test is used to check whether different aspects affect online grocery shopping. Different kinds of graphs are also used to get visual representation of results. The significance level is taken 5% for this study. All kind of analysis done with help of SPSS 25 and excel.

Sample Characteristics

Table 1 shows the sample characteristics according to demographics. Around 36% of respondents are less than age 25. The male respondents are more than female respondents. The proportion of married respondents are higher than single. 79% of respondents are working people. Only around 37% respondents have monthly income more than 50k. From Tables 2-4 , one can say that the number of people preferencing online grocery shopping has been significantly increased after COVID19.

Sample Characteristics According to Demographics
Age < 25 36.6 139
  25-50 63.4 241
Gender Male 56.3 214
  Female 43.7 166
Marital Status Single 29.7 113
  Married 70.3 267
Occupation Student 8.2 31
  Job 78.9 300
  Other 12.9 49
Monthly Income < 50k 63.2 240
  51k and above 36.8 140
   
Preference of People Buying Grocery Before Lockdown
Online 20.3 77
Offline 79.7 303
Preference of People Buying Grocery After Lockdown
Online 67.1 255
Offline 32.9 125
Paired T Test to Showing Changes in Preference Before and After Lockdown
OGS before lockdown-after lockdown -0.468 0.5 0.026 <0.001

Background Characteristics and Preference of Online Grocery Shopping

Tables 5-7 represents association with background characteristics with online grocery shopping preference. Around 85% of people of age group “25 plus year” prefer online grocery shopping Females are more likely to prefer for grocery shopping through online. Unmarried are less likely to go for online shopping than married. 32.3% of students prefer online shopping.

Association of Different Background Characteristics with Preference of Online Grocery Shopping
Age 25 and less yr 36 139 <0.001
  25 plus yr 85.1 241  
Gender Male 58.4 214 <0.001
  Female 78.3 166  
Marital Status Single 44.2 113 <0.001
  Married 76.8 267  
Occupation Student 32.3 31 <0.001
  Job 73.3 300  
  Other 51 49  
Monthly Income < 50k 64.6 240 0.171
  51k and above 71.4 140  
Percentage of Frequency of Buying Grocery Online
Daily 3.5 9
Thrice a week 8.2 21
Twice a week 27.5 70
Weekly 60.8 155
Percentage Distribution of Monthly Expenditure on Buying Grocery Through Online
<500 3.1 8
500-1000 27.1 69
1001-1500 20.8 53
1501-2000 18.4 47
2000 and above 30.6 78

Factors affecting Online Grocery Shopping

Table 8 shows descriptive of factors affecting online grocery shopping. Around 44% people believe that prices are most important factors, while 7% believe that it doesn’t matter. 48% people say that Ease of navigation is important factor affecting online shopping and only 6.3% believe it doesn’t matter. 52.2% people found social distancing most important factor affecting online shopping, whereas only 1.6 % feel that it doesn’t matter. From Table 9 , all factors are significantly affecting online shopping.

Descriptive of Factors Affecting Online Grocery Shopping
Better Prices 112(43.9%) 107(42%) 18(7.1%) 18(7.1%)
Ease of Navigation 94(36.9%) 122(47.8%) 23(9%) 16(6.3%)
Product Variety 92(36.1%) 138(54.1%) 8(3.1%) 17(6.7%)
Peer Recommendation 26(10.2%) 82(32.2%) 69(27.1%) 78(30.6%)
Same Day Delivery 92(36.1%) 110(43.1%) 33(12.9%) 20(7.8%)
Social Distancing 133(52.2%) 105(41.2%) 13(5.1%) 4(1.6%)
Delivery Fee 69(27.1%) 107(42%) 51(20%) 28(11%)
Result of T-Test to Show Factors Affecting Significantly to Online Grocery Shopping
Better Prices 39.3 254 <0.001
Ease of Navigation 37.5 254 <0.001
Product Variety 48.3 254 <0.001
Peer Recommendation 13.7 254 <0.001
Same Day Delivery 31.1 254 <0.001
Social Distancing 59.6 254 <0.001
Delivery Fee 23.8 254 <0.001

Brand Preference

Table 10 shows brands preference of customer for online grocery shopping. The Big Basket is most preferred brand for online shopping with 78.43%. Amazon fresh is second most preferred brand having choice of 75.29% of people. Nature’s Basket is least preferred brand for grocery shopping with only 12.55%.

Brand Preferences of Customer for Online Grocery Shopping
Big Basket 78.43 200
Grofers 62.75 160
Dmart Ready 40.78 104
JioMart 40.78 104
Amazon fresh 75.29 192
Nature's Basket 12.55 32
Flipkart Supermarket 15.69 40

Problems during Online Shopping

Table 11 revels percentage of customer having different problems during online shopping. The most reported problem during online shopping is not availability of product. Delivery time is second most problem reported by customer with 43.9%. 3.1% customer faced problem during payment stage. 17.3% customers are not happy with customer services. Only 1.6% customer are not comfort with delivery charges.

Problem’s Customer Face During Online Grocery Shopping
Product not available 48.6 124
Product quality not as expected 40.8 104
Delivery time issues 43.9 112
Unable to return/exchange items once delivered 34.5 88
Payment issues 3.1 8
Poor customer service 17.3 44
App not working 6.3 16
Services not available at our location 3.1 8
High delivery charges 1.6 4

Findings, Discussions, and Implications

Our study suggests that the number of people purchasing their groceries online has increased since the pandemic and social distancing is a significant reason for their online buying decision, as evident in (Kashyap, 2020) and (Jain & Sayyed, 2020). This answers our first hypothesis that preference for online grocery shopping has been significantly increased after COVID19. All the demographic factor of this study is significantly affecting preference of grocery shopping through online except income of person. This answer’s our all hypothesis regarding demographic factors.

In regards with hypothesis of influencing factors, the study found that discounted prices, Ease of navigation, product variety, peer recommendation, delivery fee, social distancing and same-day delivery attract the customers. This result is in line with research conducted by (Sathiyaraj et al., 2015), (Sreeram et al., 2017), and (Kian et al., 2018). Regarding customer apprehensions towards online grocery shopping (OGS) we deduced that product quality and high delivery cost are the common reasons. This supports the work of (Ramus & Nielsen, 2005), (Hanus, 2016) an (Mkansi et al., 2018).

The findings of this research have implications for the Indian retail industry, which includes e-commerce, government, researchers, and other stakeholders for increasing the adoption of OGS in the pandemic times regarding the Indian context. This study will offer insights to the grocery retail service providers in their day-to-day business and improve customer intention behavior using OGS.

Future Scope and Limitations of the Study

This study is conducted to acquire deeper insights into various antecedents of customers behavioral intention to adopt OGS.. There are limitations to this study that needs scholars to investigate the constructs in different geographical and consumer contexts which helps in generalizing the results.

The authors try to conceive a conceptual framework to understand the comprehensive insights on behavioral intentions of OGS users. Further, in this study, the moderating effect of demographic variables such as gender, age, income levels, and education were not tested which could be considered in the future studies concerning OGS adoption.

This study can be extended to other technical services such as mobile wallets, social media usage and more variety of products offered as services for developing markets like India. Future studies can also incorporate variables like social influence, status symbol, service quality and other facilitating conditions to get a broader perspective.

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The analysis of consumers’ attitudes towards online grocery shopping - A case study in Indian context

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Delivered in an instant: India’s quick commerce apps shake up online shopping

  • There’s no minimum spend, prices are low and orders from apps like Blinkit and Swiggy’s Instamart arrive in a matter of minutes

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Halfway through cooking a Kerala mutton stew for a family celebration, Akasha Advani realised she had no coconut milk.

In the past, she would have called her local grocery store in New Delhi and had the item delivered in about 30 minutes to two hours’ time. But instead she used Blinkit, an ‘instant’ delivery app, and the coconut milk was at her door in eight minutes.

It was a similar story last month, when her son invited friends to their house in the Defence Colony neighbourhood only for them to run out of tonic water around midnight. Within 10 minutes they had some more, thanks to an order placed through the Instamart app.

“I know Amazon Fresh delivers in about two hours but Blinkit’s [delivery in] 10 minutes is just amazing,” said Advani, a dentist and mother of two. “I don’t have to plan meals ahead or be super-organised. If I’m missing an ingredient, it will be there in minutes. It reduces my stress.”

online grocery in india case study

While some industry players were initially sceptical about the new delivery model, consumers have welcomed the apps for their ease of use and convenience.

There is no minimum spend – a customer can, for instance, buy a single avocado and have it delivered to the doorstep – and with other advantages such as discounts for big orders and more choice, these apps are poised to upset the apple cart of traditional retail businesses.

One of the pioneers of the so-called quick-commerce industry in India is Swiggy, which began as a food delivery aggregator and later launched Instamart in 2020.

The company said it has seen more older people using the app in the past year or two – with many doing a large part of their grocery shopping through it, not just last-minute purchases.

Instamart, Blinkit and Zepto, another delivery service, have expanded beyond groceries into other categories such as electronic appliances, toys, personal care, stationery, cleaning supplies and kitchenware.

online grocery in india case study

The online shopping revolution has created thousands of delivery workers who zip around major Indian cities in little electric scooters, many produced by manufacturer Yulu, to make deliveries.

Instamart worker Alok* said he would typically spend about 14 to 15 hours on the road and earn around 30,000 rupees (US$360) per month.

“But what I like is the flexibility. If I am OK with working fewer hours and earning less, it’s up to me. There’s no pressure.”

For Blinkit worker Davinder*, however, the constant pressure to deliver to customers on time can become wearing.

“Sometimes, because of the traffic or an incorrect address, I’m a few minutes late and customers get angry. Why can’t they wait? Is popcorn a life and death matter?”

Nowhere else in the world can you order something for say US$5 and get it for just slightly over US$5 at your doorstep in minutes

Arvind Singhal, chairman and managing director of Technopak consultancy, called the quick commerce model “revolutionary”.

It combines available cheap labour, advanced analytics and the high population density of major Indian cities to let consumers shop for goods stored in warehouses within a 3km radius.

“They use advanced analytics to predict buying patterns to keep inventories lean. They know if more orders are likely to come at a certain time of day and what a consumer’s buying habits are,” Singhal said.

AI is used to plan the best routes for delivery riders and optimise their deployment, with apps such as Instamart and Blinkit able to tap manpower from specialised labour supply companies, he added.

online grocery in india case study

“Nowhere else in the world can you order something for say US$5 and get it for just slightly over US$5 at your doorstep in minutes.”

It is India’s unique market conditions that have enabled the business model to take off, Singhal said, and demand for instant delivery services is only expected to increase.

India’s e-commerce market is set to grow from US$70 billion in 2022 to US$300 billion by 2030, according to professional services firm Deloitte India.

The number of online shoppers in the country is also projected to grow, from 250 million in 2023 to about 500 million to 600 million by 2030, according to Invest India, the country’s investment promotion agency.

online grocery in india case study

Singhal forecast that India’s estimated 11 million small shopkeepers would see sales decline with the advent of instant delivery services.

Ashish Verma, owner of grocer Verma Stores in South Delhi’s New Friends Colony, said his business had already been hit by the apps.

“We survived Amazon only to face another challenge,” he said.

“I can’t compete with the instant delivery apps on price. While I buy just enough goods to supply my neighbourhood, they buy vast volumes for the entire city so suppliers offer them lower prices.”

*Names changed at interviewees’ request

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online grocery in india case study

'Thought it was a big nut': Mumbai doctor on finding human finger in ice cream

The man registered a formal complaint with malad police, who sent the piece of human finger for forensic investigation..

Listen to Story

Finger in ice cream

  • Piece of human finger found inside ice cream cone
  • Malad doctor files complaint against vendor with police
  • Ice cream company offers full co-operation in police probe

A Mumabi doctor ordered an ice cream online and got a topping on it that he hadn't asked for — a "human finger." While enjoying the ice cream, he felt something in his mouth that he thought might be a "big nut," but it turned out to be a finger with a nail on it.

The incident took place on Wednesday. Dr. Brendan Ferrao, a resident of Orlem in Malad, had ordered three ice cream cones through an online app. One of them was a butterscotch cone of Yummo brand. Recounting the horror of what followed, Ferrao said, "As I got to the middle of the ice cream, suddenly I felt a big piece in there. Initially, I thought that it might be a big nut. Luckily, I didn't consume it. However, after looking at it up close, I saw a nail over it."

Sharing his experience, he said, "Since yesterday, I have been feeling numbness over my tongue. I was in conflict with myself about how I could have a human being's body part in my mouth just like that. When I saw the package, it had been manufactured a month ago. This is the height of medical negligence. I need to get a full blood checkup, as the human finger might have contaminated the ice cream, and in turn me."

After the shocking discovery, the doctor approached the police in Malad. A case was filed against Yummo Ice Cream company and the ice cream sample was sent for forensic investigation.

"The complainant in the case, a 26-year-old doctor with MBBS degree who stays in Malad west, had ordered a butterscotch ice-cream cone of Yummo company. While consuming the ice-cream after lunch, he came across a half-an-inch long piece of flesh with a nail in the ice cream," a senior police officer was quoted as saying by news agency PTI .

"The piece of flesh, suspected to be a piece of human finger, has been sent for forensic examination to ascertain whether it is a part of the human body," police said.

YUMMO ICE CREAMS STATEMENT

Reacting to the incident, Yummo Ice Creams issued an official statement and said that following the complaint, it has halted production at the third-party manufacturing facility responsible for the product. Additionally, they have isolated the affected product at the facility and in their warehouses, and they are currently working to do the same at the market level.

"We received a customer complaint yesterday stating that a foreign object was found in one of our products ordered via a delivery partner. Product quality and safety are our highest priorities. We were in the process of addressing the situation, but in the meantime, the matter was escalated, and an official police complaint was filed by the customer," the statement read.

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America’s Top Doctor on Why He Wants Warning Labels on Social Media

The surgeon general says parents should be aware that using the platforms might harm adolescents’ mental health..

online grocery in india case study

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Virginia Gazette News | Village Initiative celebrates Juneteenth in…

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Virginia gazette news | village initiative celebrates juneteenth in williamsburg with music, parade, food and dance.

online grocery in india case study

The federal holiday celebrates the news of emancipation reaching Galveston, Texas, on June 19, 1865. There, the last officially enslaved people in the country found out they were free, two years after the signing of the Emancipation Proclamation.

“It’s a very important holiday, especially in the African diaspora,” Lawrence Gholson II, president of the York-James City-Williamsburg branch of the NAACP, said in an interview with The Virginia Gazette in the weeks leading up to the holiday.

“The reason we celebrate it is because the last enslaved folks in Texas in Galveston were not aware, because there was no cellphone, there was no internet.”

The Village Initiative’s Juneteenth Freedom Celebration Wednesday kicked off with a parade around 1 p.m. People held signs celebrating the day and Black culture, and others blew horns as they marched.

People march to celebrate Juneteenth at the Williamsburg Community Building on June 19, 2024. Sam Schaffer/Staff

There were also classic cars roaring in the parade.

A classic muscle car roars past a Juneteenth flag at the Williamsburg Community Building as part of the parade celebrating Juneteenth. Sam Schaffer/Staff

The lawn was lined with tents selling food and promoting local organizations. The Village Initiative, which works with the local school system to address achievement gaps and disproportionate expulsions and suspensions of minority students, had a tent as well.

There was a ceremony dedicated to honoring the Class of 1969, the first to graduate from integrated schools in the area, and there was line dancing and other joyous expressions of culture and community.

People line dance in celebration of Juneteenth at the Village Initiative's Freedom Celebration in Williamsburg. Sam Schaffer/Staff

“I’m having fun. This is my first Juneteenth, and it’s beautifully done — I love it,” Janice Williams said. The 73-year-old said she had just learned about Juneteenth in the last few years.

“I was not taught that in public Black schools,” Williams said, clarifying that she went to a segregated school. “I was shocked to learn about this.”

The community event clearly sparked joy in the hundreds of people attending.

“You can just feel the love that’s out here, man,” said Henry Ranger, who owns a pharmacy in the area. “Everybody’s out here — it’s all shades: You got white, you got Black, you got, like I said, people of all colors.”

With the holiday gaining prominence in recent years, more and more attention is paid to the history of the day.

“It’s great to see everybody out here enjoying all the food and the festival activities and the music,” Williamsburg Mayor Doug Pons said.

“With the onset of the Black Lives Matter movement and the things that happened a few years ago, understanding and recognizing the culture that had been oppressed for so many years, seeing people come out and celebrate as one community is absolutely important for the city of Williamsburg,” Pons said.

Sam Schaffer, [email protected] 

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COMMENTS

  1. Blinkit Case Study: Success Story from Grofers to Blinkit

    Blinkit Case Study: Success Story from Grofers to Blinkit. Case Study. 12.02.2024. 16194. One of the most popular platforms for grocery delivery in India is Blinkit, formerly known as Grofers. To date, it has received nearly $1 billion in capital from a variety of investors. Albinder Dhindsa and Saurabh Kumar founded the business in 2013.

  2. Case Study: GrocerX

    This case study is the result of a 48-hour hackathon, a glimpse of the journey embarked upon, the lessons learned, and the thrill. ... India's online grocery market size is valued at USD 2.9Bn (2020) expected growth rate (CAGR) — 37.1% from 2021 to 2028 (Grand View Research). Source. Source. Source. Source. Source.

  3. BigBasket Success Story: India's Largest Online Grocer

    In the case of perishable goods, BigBasket further has tie-ups with local farmers and suppliers from whom it procures the goods as per orders and supplies the same to the customers. Under the 'hyper-local model', BigBasket has a tie-up with 2000+ grocery stores across India to deliver products within one hour from the neighborhood.

  4. Zepto: Redefining the Indian Online Grocery Market

    Introduction. In May 2022, India-based quick online grocery delivery company Zepto raised a funding of US$200 million. After this round of funding, the valuation of the company went up to US$900 million and it moved toward the unicorn club. In April 2021, Zepto had revolutionized the Indian online grocery space by introducing a 10-minute ...

  5. Case Study: Zopnow

    Published Apr 14, 2024. This case study examines Zopnow, a trailblazer in India's online grocery delivery space. Despite its early entry, Zopnow's story highlights the challenges faced by startups ...

  6. (PDF) Online Grocery Industry in India: Identifying Key Themes and

    Indian online grocery retail industry has emerged as one of the most dynamic and fast-paced industries due to changing consumer preferences. This study focuses review of literature on factors that ...

  7. Factors Affecting Online Grocery Shopping in Indian Culture

    A study showed orientation of stores, use of information, convenience and seeking of variety as influential factors to motivate online grocery shopping in the USA (Rohm & Swaminathan, 2004 ). Situation-based factors can influence continuation or discontinuation of usage of OGS, which was confirmed in a study "Effect of contextual variables on ...

  8. Zepto: Redefining the Indian Online Grocery Market

    Abstract Case Intro 1 Case Intro 2 Excerpts Excerpts Indian Online Grocery Market. Experts stated that Indians spent a major part of their monthly income on groceries. In the earlier days, the grocery market of India was operated by hypermarkets, supermarkets, discount stores, and malls.

  9. Online grocery shopping in India

    Sales value of online grocery retail in India from 2016 to 2021, with forecast until 2030 (in trillion Indian rupees) Premium Statistic Online grocery startup funding in India 2024, by company

  10. Grofers` Growing Ambition in Online Grocery Market in India

    This case study "Grofers' Growing Ambition in Online Grocery Business in India" discusses the journey of online grocery delivery service company, Grofers India Private Ltd (Grofers), and its growing ambition since its inception in 2013. ... On June 13, 2019, Grofers, an online grocery delivery service in India, raised US$ 220 million from ...

  11. Case Study: Grofers Dark Stores India

    Grofers: One of the Pioneers of Dark Stores India. A popular Indian online grocery delivery business, Grofers was founded in December 2013 and is based out of Gurugram, with estimated revenues of around Rs. 177 crores in FY2020, and more than 5,000 employees overall. The name Grofers is essentially an amalgamation of the phrase 'Grocery ...

  12. UX CASE STUDY

    Article 02 — Online Grocery Shopping in India: Anticipating Trends Post-Pandemic 2020 By Nikita Kashyap, MBA(HR) Symbiosis Institute of Management Studies, Pune. • 93% of grocery sales happened in the unorganized sector but shifts took place due to the pandemic. • Pandemic created a sense of fear among consumers to visit shops.

  13. Online grocery stores in India

    We Will Write a Custom Case Study Specifically. For You For Only $13.90/page! order now. BASKET Overview: Basket. Com is Indian's largest online food and grocery store. It has over 10,000 products ranging from fresh Fruits and Vegetables, Staples, Spices and Seasonings to FMC branded products, Beverages, Personal care products, Meats ND much ...

  14. PDF Online Grocery Industry in India: Identifying Key Themes and Future

    Online Grocery Industry in India: Identifying Key Themes and Future Directions through a Literature Review Pratiksha ... V., & Kaushal, L. A. (2015). The analysis of consumers ' attitudes towards online grocery shopping - A case study in Indian context. Research Journal of Social Science & Management. 2. Bauerova, R. (2019). Online grocery ...

  15. PDF Case Study: JioMart

    The case explored the strengths and challenges of JioMart in the current online grocery store market. It was to study how the JioMart Market ecosystem would work for Customers and Retailers. Moreover, it was to be seen how privacy and data handling issues would be dealt. Case Study "Reliance launches JioMart service across cities"

  16. (PDF) The analysis of consumers' attitudes towards online grocery

    This study focuses review of literature on factors that influence on online-grocery industry in India. The factors that motivate buyers to shop-online and their attitudes towards online-grocery ...

  17. Case Study: BigBasket Became Online Grocery Marketplace With Digital

    BigBasket has been implementing a Hyper-local strategy, wherein, it has joined hands with more than 1,800 neighbourhood grocery stores across India to deliver goods within an hour. Looking for the current scenario - BigBasket now processes almost 20,000 orders a day, with the involvement of 2000 team members.

  18. A Study on Consumers attitude towards Online Grocery Shopping In

    Table 10 shows brands preference of customer for online grocery shopping. The Big Basket is most preferred brand for online shopping with 78.43%. Amazon fresh is second most preferred brand having choice of 75.29% of people. Nature's Basket is least preferred brand for grocery shopping with only 12.55%.

  19. Analysing changes in grocery shopping trips after COVID-19: Nagpur case

    1. Introduction. The adoption of online shopping has seen a significant increase in India and worldwide. By 2034, it is expected that the Indian e-commerce market, which has been expanding rapidly, will surpass America to overtake it as the second-big e-commerce market in the world (Aranca, 2019).In India, the online grocery market was relatively small compared to the online non-grocery market ...

  20. Online Grocery Delivery Strategy in India: Amazon Prime Now`s

    Abstract. The case "Online Grocery Delivery Strategy in India: Amazon Prime Now's Transition to Amazon Fresh" outlines the attempts of multinational technology company Amazon.com, Inc. (Amazon)'s Indian subsidiary Amazon India to establish itself in the fast-growing online grocery delivery space. The case starts out by providing details ...

  21. (PDF) The analysis of consumers' attitudes towards online grocery

    The analysis of consumers' attitudes towards online grocery shopping A case study in Indian context Vidhi BAHETI Ex-MSc student, GD Goenka World Institute, Lancaster University, United Kingdom Leena Ajit KAUSHAL Associate Professor of Economics, Amity School of Economics, Amity University, India Abstract The concept of online grocery shopping ...

  22. Case study on Online grocery stores in India

    2952. This case study involves three retailers that engaged in alternative approaches to eGrocer strategy formulation. The primary goals were to assess the relationship between a company's business model (s) and its performance in the online grocery channel and to determine if there were other company and/or market related factors that could ...

  23. Delivered in an instant: India's quick commerce apps shake up online

    India's e-commerce market is set to grow from US$70 billion in 2022 to US$300 billion by 2030, according to professional services firm Deloitte India. The number of online shoppers in the ...

  24. Noida woman discovers centipede inside ice cream tub she ordered online

    A woman in Uttar Pradesh's Noida claimed she found an unwelcome guest, a centipede, inside an Amul vanilla ice cream tub that she ordered online. The shocking incident came days after a doctor from Mumbai discovered a human finger while enjoying his ice cream that he ordered online.

  25. 'Thought it was a big nut': Mumbai doctor on finding ...

    After the shocking discovery, the doctor approached the police in Malad. A case was filed against Yummo Ice Cream company and the ice cream sample was sent for forensic investigation. "The complainant in the case, a 26-year-old doctor with MBBS degree who stays in Malad west, had ordered a butterscotch ice-cream cone of Yummo company.

  26. Grofers` Growing Ambition in Online Grocery Market in India

    This case study "Grofers' Growing Ambition in Online Grocery Business in India" discusses the journey of online grocery delivery service company, Grofers India Private Ltd (Grofers), and its growing ambition since its inception in 2013. ... and its expansion into 26 Indian cities by 2014-2015. The case study also describes the problems ...

  27. America's Top Doctor on Why He Wants Warning Labels on Social Media

    Warning: This episode contains mentions of bullying and suicide. A rising tide of mental health problems among teenagers has sent parents, teachers and doctors searching for answers.

  28. Village Initiative celebrates Juneteenth in Williamsburg with music

    The Village Initiative's Juneteenth Freedom Celebration Wednesday kicked off with a parade around 1 p.m. People held signs celebrating the day and Black culture, and others blew horns as they ...