Online Grocery Store Businesses in India

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.

Online Grocery Future in IndiaNo wonder when I see these advertisements, I know the desperation to recruit consumers and build revenue in all the discounts and seasonal offers, etc.

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.


Comments

  1. Vishal Chauhan

    Hello Sir,

    You wrote this article 5 years back. What do you think Now for the same? Actually I’m a digital marketing professional and looking to start this business Door to door supply of vegetables.

    Can you share your view on the same as per the current scenario.

    1. Sanjeev Singhai

      Dear Vishal,

      My opinions have not changed much about the challenges which online grocery faces in India particularly. I acknowledge that COVID-19 crisis proved to be an opportunity for online sellers and today more number consumers have adapted online shopping no wonder we witnessed jump of almost 40% in online shopping.

      This is worth watching space for changing consumer behaviours pre, during and post COVID-19 lockdowns. Grocery Market will be driven with quality, price and convenience.

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