A lot is talked about Online Grocery Store Businesses in India, and I see lots of Full Page Advertisements in newspapers of Mumbai. But I always see those advertisements differently due to my personal experience with the Online Grocery Store business. In the year 2010-11, I started working on Online Grocery Store (OnGoShop.com) business concept and invested a considerable amount of money and time of six months, but then I decided to pull off and wrote off my investments and efforts. Today I feel happy that I didn’t invest further.
In current excited e-commerce environments, Online Grocery Store might sound like a good option, but as per me, pretty soon tiring effect will settle in, and present Online Grocery companies will struggle to keep themselves floating and to get next level of funding.
Logistic, Delivery Time, and Quality Control are the biggest problems in these online grocery ventures. It’s hard to compete with next-door Kirana Shop on these three points. Next door Mom & Pop Stores anyways offer convenience and delivers on a telephone call, and there is no hazel of payments/ credit card or minimum order value. Many Kirana Shops even offer credit facility too. Per the consumer, the transaction cost is too low to yields profits to online grocery stores. So till the time, one can pump in money in terms of marketing efforts (advertising, discounts, and offers), consumers may get attracted and shop online, but they won’t take long to get switch off when offers dry up.
In big towns, monthly grocery shopping in Shopping Mall is a big family outing occasion. Hence this may be one more reason which keeps consumers away from online grocery stores and goes against such companies.
To conclude – it may be in bigger towns, Online Grocery Companies may find sheer numbers of consumers, but I don’t see this segment gaining momentum in the next 3-5 years. In such case companies who have continual funding, they might find some headway, but I am not too sure even of that.