E- GROCERY MARKET IN INDIA
DEssence Consulting
chandni@[Link]
022-2834 7425
303, Aar Pee Center , 11th Road,
MIDC , Andheri (E), Mumbai-400093
INTRODUCTION
Market Segmentation
Other; 40%
Food & Grocery; 60%
Distribution
Organized; 8%
Indian Retail Market; 500
Unorganized; 92%
E-COMMERCE
Expected Sales Growth (USD Bn)
10
8
6
4
2
0
8.8
Globally, e-grocery market is growing nearly 7 times
faster than on-ground format
India is the sixth largest grocery market in the world
Indian e-grocery market growing at a rate of 19% YoY
1.6
FY12
FY16
30-40% of the business will be in the online retail
space in the next 5 years
Source: Technopak, Deloitte report, DEssence analysis
WHO IS BUYING?
Male Vs Female
Buyers , April 2012
Buyers, Sep 2011
Male
Female
31%
Male
37%
69%
63%
Source: SOGS , April 2012
Source: SOGS , Sep 2011
Buyer Age Profile
50%
40%
30% 24%
20%
10%
0%
45%
30%
1%
Buyer Age Profile
24 years and above age group
constitute over 75% of actual
online
grocery buyers
Online grocery buying not a
youth
activity
Restricted to working
professionals
Source: SOGS , April 2012
and mature family
WHO IS BUYING?
Value of Shopping bag (INR)
600
580
560
540
520
500
480
580
551
522
Men
Women
Interesting fact, age group 18 to 24
emerge as the largest shoppers
segment
The average spend for them
Men Rs 602
Female Rs 614
Average
Number of products in shopping bag
10
8
6
4
2
0
8.3
5.5
6.8
5.1
7.9
5.5
5
Male
Female
Women have outshone men in terms
of branded products bagged across all
significant age groups
Source: SOGS , April 2012
WHEN DO CUSTOMERS SHOP?
Order timing for shopping
4 PM - 8 PM
22
8 PM - 12 PM
25
12 AM - 6 AM
More than 90 % orders are for
same day delivery
6 AM - 12 PM
30
12 PM - 4 PM
19
10
15
20
25
30
35
Order Density
Sunday
16.57%
Saturday
14.99%
Friday
12.07%
Thursday
12.50%
Wednesday
13.55%
Tuesday
13.55%
Monday
0.00%
Percentage of
Orders over the
week
Interesting aspect the
buying
behavior as well spread
across
the week
16.77%
5.00%
10.00%
15.00%
20.00%
Source: SOGS , April 2012
WHAT IS BEING BOUGHT?
Top 20 Brands by Value
Sr
No
Brand
Sr
No
Brand
Aashirvaad (6.25%)
11
Surf Excel
Saffola (4.36%)
12
Britannia
Pampers (4.29%)
13
Amul (4.29%)
Top 20 Brands by Volume
Sr
No
Brand
Amul (4.24 %)
11
Britannia Cakes
Aashirvaad
(2.79%)
12
Aliva
Frooti
Maggi (2.75%)
13
Fortune
14
Shakti Bhog
Treat (2.47 %)
14
Nescafe
Everyday (3.28%)
15
DIvss
15
ACT 2
Dettol
16
Ariel
Haldiram (2.47
%)
16
Dettol
Sundrop
17
Brook Bond Red Label
Good day (2.42
%)
17
Shakti Bhog
Nescafe
18
Wintex
Big Babol
18
Lays
Fortune
19
Natur Fresh
Nutri Choice
19
Ahaar
10
Haldiram
20
Ahaar
Mother Dairy
Milk
20
Sunfeast
10
Wintex
Top 20 brands make 50.21% of the total
value of the products sold online
Sr
No
Brand
Top 20 brands make 37.56% of the total
volume of the products sold online
Source: SOGS , April 2012
WHAT IS GOING INTO SHOPPERS BAG
Shoppers Bag by value
Shopper's Bag by Volume
Rice, Atta, Lentils & Dal
Biscuits & Cookies
Edible Oils
Coffee , Tea & Cocoa
17%
26%
17%
Milk & Dairy Products
Baby & Child Care
14%
4%
Biscuits & Cookies
10%
49%
Laundry Supplies
4%
10%
5%
5%
5% 5%
6%
Household & Cleaning
7%
9%
8%
Rice, Atta, Lentils &
Dals
Snacks
Milk & Dairy
Products
Cereals & Breakfast
Chocolates &
Sweets
Snacks
Others
Others
The top 5 categories make up 51.53% of the total value of products ordered online by value
The top 5 categories make up 50.64% of the total products ordered online by volume
Source : SOGS,2012
E-grocery Players in Indian Retail Market
Key Players in Indian E-grocery Market
Key Players
Location
Business Model
Delivery Slots
Minimum Order for
Free Delivery
Funded
[Link]
All India
Aggregator
24*7
Rs.500
Yes
[Link]
All India
Integrated Supply chain
Rs. 500
No
Delhi NCR
Integrated Supply Chain
24 Hr Delivery & 24*7
Support
Rs 1000
No
[Link]
Mumbai
Integrated Supply chain
Next Day
Rs 500
No
EkStop
Mumbai
Integrated supply chain
9 am to Midnight
Rs 400
Yes
TopTomato
Bangalore
Integrated supply chain
7am to 11 pm
Rs 1000
No
[Link]
Bangalore
Integrated supply chain
Same & Next Day
Rs 500
No
[Link]
Bangalore
Integrated supply chain
Same & Next Day
Rs.1000
Yes
ZopNow
Bangalore
Integrated supply chain
7am to 10 pm
Rs 500
Yes
[Link]
Chennai
Integrated supply chain
3pm-9pm, Next Business
day
Rs. 150
No
LocalBanya
Mumbai
7 am to 9 pm
Rs. 500
Yes
Same Day
Rs. 500
No
[Link]
Freshetarian
Jaipur
Integrated supply chain
Integrated supply chain
Processed within 1-3 days
Source: DEssence analysis
Product Portfolio Of Key e-Grocery Players In India
Key Players
Aaramshop
Groce
ry
Non-Veg
Beverage
s&
snacks
Pet food Home Persona Toiletrie
l Care
care
s
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
MyGrahak
NA
Callandorder
NA
NA
Ekstop
NA
TopTomato
NA
NA
Atmydoorstep
s
NA
NA
BigBaskets
NA
NA
NA
NA
Zopnow
NA
NA
NA
Veggibazaar
NA
NA
NA
NA
NA
Freshetarian
NA
NA
NA
Zopnow
LocalBanya
Farm2kitchen
Dairy
Organi
Fruit&
Confec
produc
c
Vegetab tionary
ts,
le
food
Eggs
Source: DEssence analysis
10
AaramShop - Business Model
Step 2
Step 1
Step 5
Customers
Local Grocery Store
Source: DEssence analysis
11
AaramShop
Present across 35 cities in India via a network of 3260 Aaramshops
Source: DEssence analysis
12
INTEGRATED SUPPLY CHAIN MODEL
Whole Seller
Manufacturer
Procurement
are
c
r
me
sto
u
C
Customer
Call Center
On
line
Online Portal
Order gets
processed at
Warehouse
Deliver it to
Customer
Source: DEssence analysis
13
KEY GROWTH DRIVERS
KEY CHALLENGES
Increasing number of working population
Rapid urbanization and growing trends towards
nuclear families along with growing population of
working women
Increasing disposable income
Rise in internet penetration, growing 3G subscriber
base and growth of internet enabled devices
Increasing use of social media
Increase in penetration of debit cards , credit cards
in s
g
r
a
M
in
Th
Achie
v
Scala ing
bility
Stiff
Com
petit
ion
Key
Challenges
ain
h
C
ly t
p
up en
S
lid agem
o
S an
M
Building Customer
Base
Increasing reliability on online payment services
Source: DEssence analysis
14
INVESTORS PICK
BigBasket raised $ 3 million from a Singapore based private investor
and ready to launch its operation in Delhi NCR , Chennai and Pune.
BigBasket is looking for next round of investment of about $40- $50
million
[Link], Mumbai based fresh fruits and vegetable shop has
raised $1.5 million in Angel funding from Techno group
In July 2013, LocalBanya raised funds from BCCLs springboard fund
and in January 2014, LocalBanya had secured undisclosed funding
from Karmvir Avant Group
Unilazer Ventures bought 25% stake in EkStop in January 2014
ZopNow has investors like Times Internet , Accel Partners and
QualComm Ventures
Source: [Link] , [Link]
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DEssence Consulting Services
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M&A Advisory firm
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Remain
Competitiv
e
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Advisory
Services
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+91 22
28347425
Solutions to transform Food and Retail
Sector
Access to Capital through our Investor
Network
chandni@dessenceconsulting
.com
[Link]
303, Aar Pee Center, 11th Road, MIDC, Andheri (E), Mumbai400093
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