Tata Group Also Enters Super-Hot Online Grocery Market With My247market.com
Online grocery business is probably the hottest sector in India right now. Everyone, from Amazon to Flipkart is entering this arena. While BigBasket currently leads the online grocery market in India, last couple of months have seen atleast half a dozen entrants in this fast growing space.
Now, Tata Group has got into the mix – Fiora Hypermarket Limited – A TATA Enterprise has launched My247market.com, that offers buyers items in multiple categories including Fruits and Vegetables, Bakery products, Egg and Meats, beverages, baby care, personal care and other home needs. Whats more, My247market.com also has pet care products.
Currently, only the products are available only for few pincodes (400059, 400060, 400069, 400093) in Mumbai, however, they plan to expand to other major cities very soon. The website offers free home delivery for all bills of over Rs. 750 and as a initial introductory offer they are also offering flat 5 percent discount on bills.
After the initial introductory offer the site will charge Rs 50 for delivery of all orders below Rs.1,500. Also, a minimum bill of Rs. 750 will be required to place the order on My247market.com.
Prima Facie, it seems that My247market.com is probably the widest range of products as it caters not only to grocery items but also baby care, personal care, home utilities and pet food products.
According to the website, my247market.com does not have or plan to have any physical stores in the cities that it plans to operate. However, Fiora Hypermarket Limited, to which this website belongs has physical stores in Gujarat. Star Bazaar is website’s supply chain partner and it’s association with them is limited to sourcing the products from Star Bazaar.
Grocery Market in India
Out of $525 billion retail market in India, 60% is spent on groceries which makes it a$350 billion or Rs 20 lakh crore market as of now. India is also 6th largest grocery market in the world, and every major ecommerce portal wants a share of this pie. However, online grocery market is still in a nascent stage, as only 1% of the groceries which Indians purchase as of now are online. It is expected that by 2020, online grocery market would be 2% of the overall groceries market, making it a niche market worth $10 billion (Rs 60,000 crore)
Major Players In Online Grocery Market
BigBasket is currently the biggest portal dedicated exclusively to selling groceries online. They have already launched their services in Bangalore, Mumbai, Hyderabad New Delhi and Pune and are expanding rapidly to other cities as well. With over 12,000 products from 1000 brands, they are churning out revenues worth Rs 250+ crore every year. Currently they are valued at over $100 million after they received fresh funding of Rs 200 crore to expand in 10 more cities last year.
Last month, Amazon announced their foray into online groceries market, with a unique marketplace based model of local kirana stores. A kind of hyper-local delivery model, customers would be able to order online and pick up from their local kirana store which will save them time and ensure that the products are fresh. This is certainly a disruptive business model, which can trigger a new stream of growth.
Earlier this month, Snapdeal announced partnership with Godrej Nature’s Basket to sell online groceries, and ensured that the products are delivered same day. Along with the regular grocery products, they will also introduce fresh bakery products, non-veg offering and instant food as well.
Reliance Fresh already have brick and mortar hyper markets which sell groceries. Last year in November, they announced their foray into online groceries market with the launch of a new website. They have incorporated a unique ‘direct delivery’ model for fast and speedy product delivery.
Some other major players in this niche includes: LocalBanya, Zip.in, AaramShop and more.