"The grocery store is, by far, the largest consumer segment; Indians spend more than 50% of their monthly income on food. It is a mandatory space for all retailers, either offline or online, "says Harminder Sahni, founder and managing director of the consultancy Wazir Advisors. "The supermarket is a very hyperlocal business. It is the next logical step for e-tailers once they have established a strong delivery system and have a strong customer base, "says Sreedhar Prasad, partner, business consultant at KPMG India.
The retail trade of groceries in India is estimated at more than 60% of the total retail market in the country. Analysts place it anywhere between $ 400 billion and $ 600 billion today, with the potential to cross $ 700 billion by 2022. Online buying is still small, but analysts believe it has great potential . It is estimated to be around $ 500 million to just over $ 1 billion today and is expected to cross $ 3 billion to $ 5 billion or even much more in the next three to four years.
It is not just the size of the grocery store cake that is attractive to e-tailers, it is the adherence. Groceries (and vegetables and fruits) are an essential purchase for all households. They are purchased frequently and with a high repetition rate. Customers usually buy them without thinking too much. The player who can capture most of the participation of a customer's mind and wallet participation in groceries can have a great advantage over others; It can also become the default e-tailer for other purchases.