India Online Grocery Market Outlook to 2019 - High Growth Prospects due to Increasing Internet Coverage and Smart Cities Emergence
The report titled “India Online Grocery Market Outlook to 2019 - High Growth Prospects due to Increasing Internet Coverage and Smart Cities’ Emergence” provides a comprehensive analysis of various aspects such as market size, segmentation and future projections of the online groceries market of Indonesia. This report also offers prevalent trends and developments in industry, government regulations, SWOT analysis, external environment analysis, Porter’s five force analysis, and challenges in the industry. The report also covers the competitive landscape of the industry, in which the information related to the players operating in this industry has been comprehensively presented. This has been complemented with the major investment deals that have been finalized in the industry. It also includes information on the major macroeconomic indicators affecting the market. Moreover, the report also offers information regarding the supply chain models operating in the market and the domestic and international trends in the online groceries market.
The groceries segment holds a share of 60% out of the total market value of Indian retail market as food is the basic requirement of all the people irrespective of their class or society status. Online groceries market refers to the purchase and sale of groceries over the internet. Although, this process was initially implemented in the west, but this industry has been an emerging industry in India. The first firms that were founded in this segment of total retail were formed in 2011. Since then this industry has expanded at a commendable pace and has attracted huge investments by venture capitalists and angel investors alike.
The major players in the market that lead from the front are Big Basket, Aaramshop, Zopnow and Local Banya. These firms have been operational for about three years each and have grabbed a large market share in their respective cities of operations. The rise in the public’s demand for convenience shopping as well as the penetration of internet among the population has led to the growth of this industry at a fast pace. The market also thrives as it has been able to offer steep discounts on the prices of the products offered and lure customers away from the brick and mortar shops to online grocery shopping.
Online groceries offer several advantages for the users of their services, according to the service providers. As per them, the customers can enjoy a sense of ease as this service enables them to purchase their monthly top-up of groceries, fruit and vegetables while in the comfort zone of their homes. This also spares the customers from the hassle of carrying their bags, prevents them to face parking and traffic problems, as well as the queues in their local markets or supermarkets. The online stores also promise a wider variety of products to choose from, about 10,000 stock keeping units whereas an average traditional storehouse offers product range below 1,000 SKUs which puts it at a disadvantage to the online grocers.
The share of Big Basket has been the largest among the businesses running as the top-line is fuelled by growth in the segment as well as its presence in 4 different cities. The total GMV for Big Basket was INR ~ million in 2014 which is expected to rise in the future. This aided the firm to grab a market share of ~% and placed it firmly atop the ladder. Zopnow is the second largest player which has been able to capture a large customer base in Bangalore with the help of its active and attractive website and the smart-phone app. Zopnow has a total GMV of INR ~ million in FY’2014. The company is gaining traction in Mumbai and Hyderabad.
KEY TOPICS COVERED IN THE REPORT:The market size of Indian Online Groceries Market in terms of GMV The market size of Indian Online Groceries Market in terms of Number of Annual Orders Market segmentation of India’s Online Groceries Market on the basis of Product Category Market segmentation of India’s Online Groceries Market on the basis of Origin of Food Products Market segmentation of India’s Online Groceries Market on the basis of Fresh or Processed Goods (Domestic) Market segmentation of India’s Online Groceries Market on the basis of Volume of Brands Purchased Market segmentation of India’s Online Groceries Market on the basis of Demand from Cities of Operation Trends and Developments in India’s Online Groceries Market SWOT analysis of India’s Online Groceries Industry Porter’s 5 Forces Analysis of India’s Online Groceries Industry. Company profiles in India’s Online Groceries Market. Competitive Landscape of India’s Online Groceries Market India’s Online Groceries Market Future Outlook and Projections
The groceries segment holds a share of 60% out of the total market value of Indian retail market as food is the basic requirement of all the people irrespective of their class or society status. Online groceries market refers to the purchase and sale of groceries over the internet. Although, this process was initially implemented in the west, but this industry has been an emerging industry in India. The first firms that were founded in this segment of total retail were formed in 2011. Since then this industry has expanded at a commendable pace and has attracted huge investments by venture capitalists and angel investors alike.
The major players in the market that lead from the front are Big Basket, Aaramshop, Zopnow and Local Banya. These firms have been operational for about three years each and have grabbed a large market share in their respective cities of operations. The rise in the public’s demand for convenience shopping as well as the penetration of internet among the population has led to the growth of this industry at a fast pace. The market also thrives as it has been able to offer steep discounts on the prices of the products offered and lure customers away from the brick and mortar shops to online grocery shopping.
Online groceries offer several advantages for the users of their services, according to the service providers. As per them, the customers can enjoy a sense of ease as this service enables them to purchase their monthly top-up of groceries, fruit and vegetables while in the comfort zone of their homes. This also spares the customers from the hassle of carrying their bags, prevents them to face parking and traffic problems, as well as the queues in their local markets or supermarkets. The online stores also promise a wider variety of products to choose from, about 10,000 stock keeping units whereas an average traditional storehouse offers product range below 1,000 SKUs which puts it at a disadvantage to the online grocers.
The share of Big Basket has been the largest among the businesses running as the top-line is fuelled by growth in the segment as well as its presence in 4 different cities. The total GMV for Big Basket was INR ~ million in 2014 which is expected to rise in the future. This aided the firm to grab a market share of ~% and placed it firmly atop the ladder. Zopnow is the second largest player which has been able to capture a large customer base in Bangalore with the help of its active and attractive website and the smart-phone app. Zopnow has a total GMV of INR ~ million in FY’2014. The company is gaining traction in Mumbai and Hyderabad.
KEY TOPICS COVERED IN THE REPORT:
1. INDIAN RETAIL MARKET INTRODUCTION
1.1. Indian Retail Market Size by Customer Expenditure, FY’2009-FY’2014
1.2. India Retail Market Segmentation by Type of Category, FY’2014
2. INDIA ONLINE GROCERIES MARKET INTRODUCTION
3. INTERNATIONAL TRENDS AND DEVELOPMENTS IN ONLINE GROCERIES MARKET
Major Online Retailers Enter Online Grocery Segment
Shifts in Operating Models of Online Grocers
Growing Use of Pick-Up Points
Increase in the Proportion of Total Grocery Shopping
Surfacing of Hybrid Models
Private label
4. COMPARATIVE ANALYSIS OF ONLINE GROCERIES AND TRADITIONAL GROCERIES
4.1. Growth Drivers in the Market
5. CUSTOMER PROFILE FOR ONLINE GROCERIES IN INDIA, FY’2014
Gender-wise Split of Online Grocery Shoppers
Age-wise Split of Online Grocery Shoppers
Preference for Online Shopping
Mode of Payment Preferred for Online Groceries
Frequency of Online Grocery Shopping
6. BUSINESS MODELS PREVALENT IN ONLINE GROCERIES
6.1. International Models for Online Groceries Market
6.1.1. Pick-up-Point based model
Overview and Supply Chain
6.1.2. Dark Stores
Overview and Supply Chain
6.2. Indian Models for Online Groceries Market
6.2.1. Hub and Spoke Model
Overview and Supply Chain
6.2.2. Local-Channel Model
Overview
6.2.3. Hybrid Model
Overview and Supply Chain
7. EMERGENCE OF ONLINE GROCERY MARKET IN INDIA
7.1. Reasons for Online Grocery Shopping in India
8. CHALLENGES FOR NEW ENTRANTS IN ONLINE GROCERIES MARKET IN INDIA
Alteration in Business Model For Different Cities
Competition from Local Stores
Difficult for New Players to Attract Investments
Lack of Trust in Online Mode of Shopping
Existing Players in the City
9. CHALLENGES FOR EXISTING FIRMS IN ONLINE GROCERY MARKET IN INDIA
Difficult to Expand Operations to New Areas
High Logistics Costs Due to Perishable Nature of Goods
Low Margins on Sales and High Costs of Operations
Difficult to Replace Existing Mode
Focus Towards Maintenance of Quality
Small Order Size
Complaints Against Online Retailers
10. INDIA ONLINE GROCERIES MARKET SIZE, FY’2012-FY’2014
10.1. By Gross Value Merchandise, FY’2009-FY’2014
10.2. By Number of Annual Orders, FY’2009-FY’2014
11. INDIA ONLINE GROCERIES MARKET SEGMENTATION, FY’2014
11.1. By Product Category, FY’2014
11.2. By Origin of Food Products (Domestic or Imported), FY’2014
11.3. By Fresh or Processed Goods (Domestic), FY’2014
11.4. By Volume of Brands Purchased, FY’2014
11.5. By Demand from Major Cities, FY’2014
12. SWOT ANALYSIS OF ONLINE GROCERY INDUSTRY
13. EXTERNAL ENVIRONMENT FOR INDIA ONLINE GROCERY INDUSTRY
13.1. Political Environment
13.2. Technological Environment
13.3. Social Environment
Steps to Initiate an E-Commerce Company in India
14. PORTER’S FIVE FORCES ANALYSIS OF INDIA ONLINE GROCERY INDUSTRY
Competitive Rivalry within the Industry
Threats of New Entrants
Threats of Substitutes
Bargaining Power of Customers
Bargaining Power of Suppliers
15. MAJOR PLAYERS COMPANY OVERVIEW AND OPERATING PERFORMANCE IN INDIA ONLINE GROCERY MARKET
15.1. Big Basket
15.2. Local Banya
15.3. AaramShop
15.4. Ekstop
15.5. Jiffstore
15.6. ZopNow
15.7. Competitive Landscape in India’s Online Groceries Market
16. TRENDS IN THE INDIA ONLINE GROCERY MARKET
17. CYBER LAWS IN INDIA E-COMMERCE INDUSTRY
18. MARKET SHARE OF MAJOR PLAYERS IN INDIA ONLINE GROCERIES MARKET, FY’2014
18.1. By Gross Value Merchandised, FY’2014
18.2. By Number of Orders, FY’2014
19. RECENT INVESTMENTS IN ONLINE GROCERIES MARKET
20. INDIA ONLINE GROCERIES MARKET FUTURE OUTLOOK AND PROJECTIONS, FY’2015-FY’2019
20.1. Entry of New Players
20.2. Upcoming Smart Cities
20.3. “Make in India” Initiative
20.4. Better Internet Facilities
20.5. Growth of Investors’ Trust in Market
21. MACROECONOMIC INDICATORS AFFECTING INDIA ONLINE GROCERIES MARKET
21.1. Public Disposable Income, FY’2009-FY’2019
21.2. Internet Users in India, FY’2009-FY’2019
21.3. Smart-phone Penetration in India, FY’2009-FY’2014
21.4. Indian Online Retail Market Size, FY’2009-FY’2019
21.5. Population – 15-64 Year Olds, CY’2009-CY’2019
21.6. Urban Population in India, CY’2009-CY’2019
22. APPENDIX
22.1. Market Definition
22.2. Abbreviations
22.3. Research Methodology
Data Collection Methods
Approach
Variables (Dependent and independent)
Multi Factor Based Sensitivity Model
Final Conclusion
22.4. Disclaimer
1.1. Indian Retail Market Size by Customer Expenditure, FY’2009-FY’2014
1.2. India Retail Market Segmentation by Type of Category, FY’2014
2. INDIA ONLINE GROCERIES MARKET INTRODUCTION
3. INTERNATIONAL TRENDS AND DEVELOPMENTS IN ONLINE GROCERIES MARKET
Major Online Retailers Enter Online Grocery Segment
Shifts in Operating Models of Online Grocers
Growing Use of Pick-Up Points
Increase in the Proportion of Total Grocery Shopping
Surfacing of Hybrid Models
Private label
4. COMPARATIVE ANALYSIS OF ONLINE GROCERIES AND TRADITIONAL GROCERIES
4.1. Growth Drivers in the Market
5. CUSTOMER PROFILE FOR ONLINE GROCERIES IN INDIA, FY’2014
Gender-wise Split of Online Grocery Shoppers
Age-wise Split of Online Grocery Shoppers
Preference for Online Shopping
Mode of Payment Preferred for Online Groceries
Frequency of Online Grocery Shopping
6. BUSINESS MODELS PREVALENT IN ONLINE GROCERIES
6.1. International Models for Online Groceries Market
6.1.1. Pick-up-Point based model
Overview and Supply Chain
6.1.2. Dark Stores
Overview and Supply Chain
6.2. Indian Models for Online Groceries Market
6.2.1. Hub and Spoke Model
Overview and Supply Chain
6.2.2. Local-Channel Model
Overview
6.2.3. Hybrid Model
Overview and Supply Chain
7. EMERGENCE OF ONLINE GROCERY MARKET IN INDIA
7.1. Reasons for Online Grocery Shopping in India
8. CHALLENGES FOR NEW ENTRANTS IN ONLINE GROCERIES MARKET IN INDIA
Alteration in Business Model For Different Cities
Competition from Local Stores
Difficult for New Players to Attract Investments
Lack of Trust in Online Mode of Shopping
Existing Players in the City
9. CHALLENGES FOR EXISTING FIRMS IN ONLINE GROCERY MARKET IN INDIA
Difficult to Expand Operations to New Areas
High Logistics Costs Due to Perishable Nature of Goods
Low Margins on Sales and High Costs of Operations
Difficult to Replace Existing Mode
Focus Towards Maintenance of Quality
Small Order Size
Complaints Against Online Retailers
10. INDIA ONLINE GROCERIES MARKET SIZE, FY’2012-FY’2014
10.1. By Gross Value Merchandise, FY’2009-FY’2014
10.2. By Number of Annual Orders, FY’2009-FY’2014
11. INDIA ONLINE GROCERIES MARKET SEGMENTATION, FY’2014
11.1. By Product Category, FY’2014
11.2. By Origin of Food Products (Domestic or Imported), FY’2014
11.3. By Fresh or Processed Goods (Domestic), FY’2014
11.4. By Volume of Brands Purchased, FY’2014
11.5. By Demand from Major Cities, FY’2014
12. SWOT ANALYSIS OF ONLINE GROCERY INDUSTRY
13. EXTERNAL ENVIRONMENT FOR INDIA ONLINE GROCERY INDUSTRY
13.1. Political Environment
13.2. Technological Environment
13.3. Social Environment
Steps to Initiate an E-Commerce Company in India
14. PORTER’S FIVE FORCES ANALYSIS OF INDIA ONLINE GROCERY INDUSTRY
Competitive Rivalry within the Industry
Threats of New Entrants
Threats of Substitutes
Bargaining Power of Customers
Bargaining Power of Suppliers
15. MAJOR PLAYERS COMPANY OVERVIEW AND OPERATING PERFORMANCE IN INDIA ONLINE GROCERY MARKET
15.1. Big Basket
15.2. Local Banya
15.3. AaramShop
15.4. Ekstop
15.5. Jiffstore
15.6. ZopNow
15.7. Competitive Landscape in India’s Online Groceries Market
16. TRENDS IN THE INDIA ONLINE GROCERY MARKET
17. CYBER LAWS IN INDIA E-COMMERCE INDUSTRY
18. MARKET SHARE OF MAJOR PLAYERS IN INDIA ONLINE GROCERIES MARKET, FY’2014
18.1. By Gross Value Merchandised, FY’2014
18.2. By Number of Orders, FY’2014
19. RECENT INVESTMENTS IN ONLINE GROCERIES MARKET
20. INDIA ONLINE GROCERIES MARKET FUTURE OUTLOOK AND PROJECTIONS, FY’2015-FY’2019
20.1. Entry of New Players
20.2. Upcoming Smart Cities
20.3. “Make in India” Initiative
20.4. Better Internet Facilities
20.5. Growth of Investors’ Trust in Market
21. MACROECONOMIC INDICATORS AFFECTING INDIA ONLINE GROCERIES MARKET
21.1. Public Disposable Income, FY’2009-FY’2019
21.2. Internet Users in India, FY’2009-FY’2019
21.3. Smart-phone Penetration in India, FY’2009-FY’2014
21.4. Indian Online Retail Market Size, FY’2009-FY’2019
21.5. Population – 15-64 Year Olds, CY’2009-CY’2019
21.6. Urban Population in India, CY’2009-CY’2019
22. APPENDIX
22.1. Market Definition
22.2. Abbreviations
22.3. Research Methodology
Data Collection Methods
Approach
Variables (Dependent and independent)
Multi Factor Based Sensitivity Model
Final Conclusion
22.4. Disclaimer
LIST OF FIGURES
Figure 1: Indian Retail Market Size on the Basis of Private Final Consumption Expenditure in INR Billion, FY’2009-FY’2014
Figure 2: India Groceries Market Size on the Basis of Revenues in INR Million, FY’2009-FY’2014
Figure 3: Growth Drivers Influencing Online Groceries Market in India
Figure 4: Gender-wise Split of Online Grocery Shoppers, FY'2014
Figure 5: Comparison of the Basket Sizes Ordered for Online Groceries between Males and Females, FY’2014
Figure 6: Age-wise Split of Online Grocery Shoppers
Figure 7: Preference for Online Shopping on the Basis of the Days when Orders are Placed, FY'2014
Figure 8: Preferred Mode of Payment for Online Grocery Shoppers, FY'2014
Figure 9: Frequency of Online Grocery Shopping by Shoppers in India, FY'2014
Figure 10: Pick-Up Point Based Model for Online Grocery Shopping
Figure 11: Dark Store Model for Online Grocery Shopping
Figure 12: Hub and Spoke Model for Online Grocery Shopping
Figure 13: Local Channel Model for Online Grocery Shopping
Figure 14: Hybrid Model for Online Grocery Shopping
Figure 15: Factors Impacting Grocery Shopping In India in Terms of Population Percentage Considered in the Survey, FY’2014
Figure 16: India's Online Groceries Market Size on the Basis of Revenues by GMV in INR Million, FY’2012-FY’2014
Figure 17: India's Online Grocery Market Size on the Basis of Number of Annual Orders in Thousands, FY’2012-FY’2014
Figure 18: India's Online Grocery Segmentation on the Basis of Product Volume in Percentage, FY’2014
Figure 19: India's Online Grocery Market Segmentation by Origin of Food Products (Domestic or Imported) Volume in Percentage (%), FY’2014
Figure 20: India's Online Grocery Market Segmentation by Fresh or Processed Goods (Domestic) in Percentage (%), FY’2014
Figure 21: India Online Groceries Market Segmentation by Share of Major brands in Terms of Volume Percentage (%), FY’2012
Figure 22: India Online Groceries Market Segmentation by Share of Major brands in Terms of Volume Percentage (%), FY’2014
Figure 23: India Online Groceries Market Segmentation by Revenue Contribution through Major Cities in Percentage (%), FY’2014
Figure 24: Share of Major Players in India's Online Groceries Market by Percentage of GMV, FY’2014
Figure 25: Share of Major Players in India's Online Groceries Market by Percentage of Number of Orders, 2014
Figure 26: India's Online Groceries Market Future Projections on the Basis of Revenues in GMV in INR Million, FY’2015-FY’2019
Figure 27: India Personal Disposable Income in INR Billion, FY’2009-FY’2019
Figure 28: Number of Internet Users in India in Million, CY'2009-2019
Figure 29: Smart-Phone Penetration Rate in India in Percentage, FY’2009-FY’2019
Figure 30: India Online Retail Market Size in INR Million, FY’2009-FY’2019
Figure 31: 14-65 Year Olds in India in Million, CY 2009-CY’2019
Figure 32: Urban Population of India in Million, CY’2008-2018
Figure 1: Indian Retail Market Size on the Basis of Private Final Consumption Expenditure in INR Billion, FY’2009-FY’2014
Figure 2: India Groceries Market Size on the Basis of Revenues in INR Million, FY’2009-FY’2014
Figure 3: Growth Drivers Influencing Online Groceries Market in India
Figure 4: Gender-wise Split of Online Grocery Shoppers, FY'2014
Figure 5: Comparison of the Basket Sizes Ordered for Online Groceries between Males and Females, FY’2014
Figure 6: Age-wise Split of Online Grocery Shoppers
Figure 7: Preference for Online Shopping on the Basis of the Days when Orders are Placed, FY'2014
Figure 8: Preferred Mode of Payment for Online Grocery Shoppers, FY'2014
Figure 9: Frequency of Online Grocery Shopping by Shoppers in India, FY'2014
Figure 10: Pick-Up Point Based Model for Online Grocery Shopping
Figure 11: Dark Store Model for Online Grocery Shopping
Figure 12: Hub and Spoke Model for Online Grocery Shopping
Figure 13: Local Channel Model for Online Grocery Shopping
Figure 14: Hybrid Model for Online Grocery Shopping
Figure 15: Factors Impacting Grocery Shopping In India in Terms of Population Percentage Considered in the Survey, FY’2014
Figure 16: India's Online Groceries Market Size on the Basis of Revenues by GMV in INR Million, FY’2012-FY’2014
Figure 17: India's Online Grocery Market Size on the Basis of Number of Annual Orders in Thousands, FY’2012-FY’2014
Figure 18: India's Online Grocery Segmentation on the Basis of Product Volume in Percentage, FY’2014
Figure 19: India's Online Grocery Market Segmentation by Origin of Food Products (Domestic or Imported) Volume in Percentage (%), FY’2014
Figure 20: India's Online Grocery Market Segmentation by Fresh or Processed Goods (Domestic) in Percentage (%), FY’2014
Figure 21: India Online Groceries Market Segmentation by Share of Major brands in Terms of Volume Percentage (%), FY’2012
Figure 22: India Online Groceries Market Segmentation by Share of Major brands in Terms of Volume Percentage (%), FY’2014
Figure 23: India Online Groceries Market Segmentation by Revenue Contribution through Major Cities in Percentage (%), FY’2014
Figure 24: Share of Major Players in India's Online Groceries Market by Percentage of GMV, FY’2014
Figure 25: Share of Major Players in India's Online Groceries Market by Percentage of Number of Orders, 2014
Figure 26: India's Online Groceries Market Future Projections on the Basis of Revenues in GMV in INR Million, FY’2015-FY’2019
Figure 27: India Personal Disposable Income in INR Billion, FY’2009-FY’2019
Figure 28: Number of Internet Users in India in Million, CY'2009-2019
Figure 29: Smart-Phone Penetration Rate in India in Percentage, FY’2009-FY’2019
Figure 30: India Online Retail Market Size in INR Million, FY’2009-FY’2019
Figure 31: 14-65 Year Olds in India in Million, CY 2009-CY’2019
Figure 32: Urban Population of India in Million, CY’2008-2018
LIST OF TABLES
Table 1: India Retail Consumption Expenditure by Type of Categories and Modern Retail Contribution in INR Billion, FY'2014
Table 2: List of Top 20 Brands by Share in Total Volume of Goods Sold From Online Grocery Stores
Table 3: Comparative Analysis of Major Cities for Online Grocery Market, FY’2014
Table 4: Porter’s Five Forces Analysis for the Online Groceries Market in India
Table 5: Competitive Landscape of Major Players in Online Groceries Industry of India
Table 6: List of Online Grocery Firms in India with Area of Operations and Year of Establishment
Table 7: Recent Major Investment Deals in Online Grocery Market of India
Table 8: Correlation Matrix of Indian Online Groceries Market
Table 9: Regression Coefficients Output for Indian Online Groceries Market
Table 1: India Retail Consumption Expenditure by Type of Categories and Modern Retail Contribution in INR Billion, FY'2014
Table 2: List of Top 20 Brands by Share in Total Volume of Goods Sold From Online Grocery Stores
Table 3: Comparative Analysis of Major Cities for Online Grocery Market, FY’2014
Table 4: Porter’s Five Forces Analysis for the Online Groceries Market in India
Table 5: Competitive Landscape of Major Players in Online Groceries Industry of India
Table 6: List of Online Grocery Firms in India with Area of Operations and Year of Establishment
Table 7: Recent Major Investment Deals in Online Grocery Market of India
Table 8: Correlation Matrix of Indian Online Groceries Market
Table 9: Regression Coefficients Output for Indian Online Groceries Market
