The pandemic has confined us to our homes and crashed businesses but there are few industries that continue to thrive. One of these is the online Grocery industry.
First things first, here are some quick facts:
1.Online food and retail account for 1.2% of the overall retail market.
2. The industry is expected to grow at a CAGR of 71% to become $5 Bn.
3. The grocery market accounts for 40% of the total e-commerce funding.
4. Lockdown has helped the big grocery players increase the order volumes by almost 2 times with a 35% increase from April to May.
But what is driving these figures?
1. Changes in customer's purchasing patterns:
Corona has scared the customers from going out to the mom-and-pop stores and customers are more comfortable in making an online purchase.
With a lot of players like Big Basket creating virtual stores on its app, customers can now make a purchase like that made in a Kirana store.
3. Bigger product basket:
With a lot of products available for purchase, customers have a wide range of options to choose from.
Looking at the opportunity at hand, many players like Swiggy and Jio have also entered the grocery space.
Will more competition help the industry?