What makes the online grocery attractive for e-commerce giants like Flipkart, Amazon, and Reliance?


The e-commerce giants like Amazon, Flipkart, and reliance have reached the most prominent sectors of the market. At present, they are focusing on the online grocery segment. During this pandemic, customers are more looking for foods and groceries rather than luxurious commodities. The market potential of the grocery segment runs into billions of dollars because customer loyalty is generally high. But the online groceries and food industries can be able to contribute a few. So the leading commerce players such as Flipkart, Amazon, and retail giant reliance industries are looking for converting this issue to opportunity.

Online business penetration in the retail industry remains below five percent, even with the arrival of e-commerce. When considering the organized segment, 10-12 percent in the retail industry and is expected to reach 22-25 percent by 2021. As per the report of Redseer consulting mentioned that online food and grocery retail currently account for just 0.2 percent of the overall retail market and which is expected to touch 10.5 billion or 1.2 percent of the overall retail market by 2023.

Flipkart and Amazon have commenced grocery delivery on their respective market places and recently, reliance is also introduced to Jio mart, which is limited to Mumbai currently but will scale across the country soon and reliance already has a strong retail play with large format stores across the country. When it comes to Flipkart, their parent company Walmart has invested in fruits and vegetables supply chain agri startup. Amazon has a strategic partnership with offline retail player future groups.

The online grocery market players like BigBasket and grofers are doing well, but the market will be opening up the coming of e-commerce giants like Flipkart amazon and reliance which come with significant financial strength, distribution reach, and deep technology expertise.

Generally, Flipkart and Amazon have adopted warehousing approach, where they hold inventory and provide supplies. While reliance has undertaken a distribution approach, where its networks with a large number of small retail shops.hybrid approach are always good for the companies in the online segment as that would mean both an online and offline presence.

The grocery market in India has expected a stiff competition with a complex interplay with offline and online players to capture the mind share and wallets of consumers. Anyway, it will create huge benefits for consumers.


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