How To Make The Most Of India's Booming E-Retail Market?

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India’s whopping population of 1.3 billion people has long been accustomed to traditional grocery stores. Still, recently it has become clear that the online grocery economy is soaring into India’s cultural landscape. This evolving trend affects many different parts of India’s economy and culture as more and more consumers are looking for convenience and savings that only an online shopping site can provide.

Every year, more and more Indians are shifting to online shopping for their groceries. As e-retailers like BigBasket, PepperTap, Grofers, and local supermarkets like Munafamart, Urbanmart deliver FMCG products at customers’ doorstep, grocery retailers are adopting strategies to leverage India’s booming online grocery economy.

Currently, no major retailer has mastered the art of online grocery sales in India. One of the main problems is that providing fresh produce to remote Indian towns and villages is expensive. India’s booming economy, however, here are a few suggestions on how both retailers and consumer products firms can develop a successful online grocery strategy:


To provide an online food strategy to their most receptive customers, identify high-population, high-density markets, and identify customer segments within these markets that represent the best opportunities. In addition to focusing on specific shoppers, online segmentation can also target specific audiences, such as new parents (with an integrated baby offering across both food and nonfood) or back-to-school shoppers (including clothing, school supplies, and food needs). By personalizing offerings with dinner suggestions, shopping lists, customized pricing, product options based on recent purchases, and online samples for new products, retailers can draw in more customers. Considering delivery as a unique channel gives retailers the ability to provide a degree of personalization and flexibility they cannot otherwise provide.

Value proposition:

Suppose retailers can offer customers the same values and prices as in stores. In that case, online grocery shopping will turn consumers’ interest into increased sales.

Shoppers engagement:

Engaging today’s omnichannel consumer means offering shoppers a personalized, integrated experience no matter when or where they shop or what device they use, regardless of where or when they shop. This must extend throughout all stages of the purchase journey.
Through personalized offers, pricing, and promotions, retailers can interact with omnichannel shoppers based on their preferences and past purchases. Offering shoppers variety across categories and digital touchpoints can increase customer engagement through individualized promotional offerings and merchandise strategies.

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Shoppers behavior:

Compared to the traditional path to purchase, the online shopping journey has many more touches. Consider the situation of a mom placing an online order and allowing her husband and children to contribute to it over a few days before she does a final review and submits it. Retailers can better influence purchase behavior by understanding online shoppers and unconventional purchase paths and finding relevant content and ads at the right points in the path to purchase. A successful online shopping experience will require integrating social media and other digital assets.

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Online shopping offers retailers the opportunity to bring variety to their customers and embrace innovation. Using traditional approaches, such as coupons and samples, to drive trial purchasing online is possible by developing specific strategies, including understanding the online path to purchase, creating compelling online assortments, and bringing new product introduction strategies to the retailer.

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Start Thinking Digital:

The online sales industry grows so fast that retailers must rethink their sales team structure and capabilities. Even though online customer teams are probably not needed for most traditional retail customers, training and educating existing sales teams can enable them to deploy new digital capabilities, secure online promotional activity, and develop brands online. Involving retailers early will allow them to reach customers in this new channel and capture more than their fair share of sales.

The online grocery opportunity:

To win over tech-savvy consumers in Indian food retail, one has to overcome the logistical challenges of online food sales and understand customer needs and desires. Despite the flexibility and speed of online retailers, a physical presence continues to be crucial for connecting with customers. Traditional food retailers should take advantage of their existing assets to expand their digital capabilities and enhance their online offerings. To capture growth and share online, consumer products manufacturers must develop online-specific strategies and tactics that leverage digital assets and integrate with retailer go-to-market platforms.

To thrive, online grocery retailers must blend traditional and online capabilities, segment and penetrate the most lucrative markets, and deliver a seamless customer experience that actively engages shoppers. Those who emerge as winners will combine the best practices of traditional promotion and shopper marketing with the advantages of digital technology. In the future, it will not be an issue of whether to enter into online food sales, but rather how to build online capabilities that can capture customer loyalty, trust, and wallets.

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