Team: IIFT Punters
Members:
Optimus 19.2
Kumar Aditya
Asmita Padale
Indian Online Grocery Market
Value/Expected
Value (in Bn)
1034
,13
1500
Organized
Retail
Penetration
Expected
Market growth
in India
1000
500
0
62,0
1
2018
2023
*Source:
https://www.businesswire.com/news/ho
me/20190729005605/en/Indian-OnlineGrocery-Market-Outlook-2019-2023Historic
Indian Consumers
Preference for Online
Grocery Shopping
Comparison Matrix of Various
Models of Online Grocery retailing
*Source: Advance Research Journal of Multi-Disciplinary Discoveries I Vol. 14.0 I Issue – I ISSN NO : 2456-1045
Issues Faced by YourCart
Generic
Issues of
Online
Groceries
YourCart
specific
Issues
•Low consumer Loyalty
•Constantly changing consumer needs
•Expensive logistic
•Deal-seeking behavior of Consumers
•Low cart size of Online orders
•Constraints due to MRP legal framework
•Assortment
•Advantageous local presence of Kirana
stores
•New Online player in grocery market
•Hefty discounts and freebies
•False Advertisements and sale of Organic
products at low prices by competitors
•Poaching of YourCart Delivery boys
•Dip in sale of Slicer-Dicer
YourCart USP
Brand Value & Trust
More Local for the
consumers
Quality products and
focused Delivery
Organic Product
Segment
Slicer-Dicer Brand
Competitors
Analysis
HyperLocal Model
Business Model
Options for
YourCart
Hybrid
Model
Inventory
model
Reduction in
Labour cost
Higher
productivity
requirement
with fewer
resource
Knowing the
Inventory
Increasing
Competition
New
Entrants
Low Margins
Challenges &
Threats for
YourCart
Course of Actions
• Stage based approach to reduce the cost of production of Slicer-Dicer
• Market data analysis to know the potenttial increase in customer and the need change
to grab 1st mover advantage
• Incentive based pay to increase productivity among the workers
• Reduction in Advertisement and the same can compensate during competing the price
• Introducing 1 or 2 year clause for delivery guys who will undergo training by YourCart
• Creating more employee friendly environment for the delivery guys to develop sense of
belongingness
• Exploring new market opportunities through Word of Mouth marketing added with
Referral based benefits
• Exploring new and untouched marketspace(like small farmers of remote villages) to get
products at cheaper price
New Opportunities for
YourCart
One of the key drivers for changes in
consumer preferences is the
aspirational aspects which translate
into variety, choices and convenience
in shopping. The organized retail is yet
to address the basic requirements
Online retailers have an edge over
physical retailers as the capex
investments are less, which can be
diverted into improving the range and
quality of products and also their
customer
With the data collected online, the
online groceries can customize
offerings to customers (whether it is
convenience of ordering regular cart or
product recommendations or targeted
Rising disposable incomes; emergence
of double income nuclear families
Online grocery is expected to be the
convenience channel for food &
beverages sector, due to the increased
stress requiring focus on work life
balances and also freeing time for
family or leisure activities
The central government of India has
designed and developed smart cities
with a state-of-the-art infrastructure
for setting up different models of ecommerce and online transactions.
Owing to these reasons, the online
grocery retail market is witnessing a
growth rate of ~25-30% in the Indian
metropolitans, and other emerging
smart cities
Emergence of various payment
gateways and also confidence in Indian
consumer to bank and transact online
is expected to increase the customer
base
Infrastructure development: As an
offshoot of the growth in the food
sector, third party logistics providers,
which transport the produce and food
products from source to destination
have also emerged
Internet penetration is expected to
increase further in future, which will
equip more consumers to transact
online