Showing posts from November, 2015

Hype ? - about Hyperlocal Grocery

At around $350 billion, India is in the top grocery markets of the world.  This is approximately 70% of the Indian retail business which is around $500 billion. Modern retail accounts for 10 - 20% of this pie.  E-commerce or hyperlocals are obviously a tiny part of the pie just yet. Most companies, therefore, are still at a stage where they have to prove their business models and change consumer behaviour. These type of businesses are expected to reach around 2% of the grocery market by 2020, creating a potential market size of around $10 billion (Rs 60,000 crore).

The hyperlocal on demand grocery has mainly two models -
a) A large player like Big Basket offering localised services. Inventory is carried by the company.
b) An aggregator using the local retailers to source products and handling the delivery
c) An aggregator using local retailers to stock and deliver

It is a no-brainer that an aggregation model, as it is asset-light, is less capital-intensive than the inventory-led one. Bu…