The growth of both modern grocery retail and online grocery retail is sensational now
Posted on: 29/Oct/2019 9:43:33 AM
To grab the increased share of the overall market in the next 4 years, online as well as modern grocery retail is growing faster now. It is revealed that modern retail is expected to grow to a size of 60 billion USD and online grocery retail would be 10.5 billion USD. By the year 2023, 525 billion USD food and grocery market are expected to grow by a CAGR of 9 % to 880 billion USD.
A study was conducted by Bigbasket.com and Red Seer Consulting and it has shown that modern retail would grow by 25% and almost double its market share to 6.7%. It must be noted that online retail would grow by 55% for a 1.2% share. It has been revealed by the study that increased comfort and trust of customers in e-tailing in electronics and fashion coupled with the strong value proposition of e-grocery players, widely varied assortment and expresses delivery options would drive this growth.
As per Mr. Hari Menon, co-founder, and CEO of BigBasket.com, in India, the online grocery segment is one of the fastest-growing e-commerce verticals. He added that it would flourish in both metro cities as well as in the non-metro cities in the future. The point is each channel would serve a different need of the customer and would keep growing.
Immediate need-based items like fresh vegetables and dairies etc would be served by the local Kirana stores and immediate need-based items that are not available in Kirana stores would be purchased from modern retail stores. Information is online grocery sites that would meet the needs of generic categories like staples, snacks, biscuits, and other body care items, etc.
In the last few years, the online grocery space has gone through significant evolution from explosive growth and funding in CY 15 to growth challenges and funding winter in CY 16. Later, it kick-started and the accelerated growth phase from 2018 onwards happened. Many new business models have evolved in this start-stop journey of the online grocery space. It must be noted that many themes have been proved and disproved in this journey.
