This is how food industry has become a major contributor for eCommerce this year

Observing the transformation in the retail industry, reports have shown that food and grocery industry will become a star contributor for eCommerce this year.
Food and grocery industry

Traffic, space crunch and long queues- reasons for giving a miss to the nearest grocery store or a restaurant are aplenty. With buying food online becoming extremely convenient through digital payments and even cash on delivery (CoD), 2018 will be the year for a major shift in the food industry according to reports.  

Several recent studies have stressed that there would be more than a seven to ten fold increase in revenue generated through e-commerce when compared to last year, thanks to all branded apparel, jewellery and footwear becoming cheaper, while getting delivered at the doorstep. The key highlight is, however, studies now suggest that grocery and food industry will own the e-commerce this year! And if the recent trends are to go by, it may not be too far for these predictions to come true. If BigBasket has hit the Rs 100 crore sales mark and is in talks with Alibaba for more investments, Grofers has attracted Amazon’s investment interests and soon maybe clinching the deal. With Flipkart and Amazon also introducing groceries, it is no surprise that stakeholders believe that the food industry will play a big role in the e-commerce marketplace.

 According to a recent KPMG reports, E-commerce has deeply penetrated into many homes because people from various sections of society, age groups and geographical areas have embraced it for its convenience and affordability. Also, growing consumerism, disposable incomes and changing lifestyles have prompted the increased use of e-commerce. There is a large shift in the industry with customers not just buying mobiles or small-ticket items online, but even fashion and food.

Interestingly, homegrown e-commerce marketplace Flipkart has also given indication that more consumers will grow for fashion and grocery in 2018 and the unicorn startup was prepared to handle the surge in consumer demand.

Mobile shopping adds to the rise
Further, another report said that in 2017, 82 per cent of shopping queries were made through mobile devices, compared to 76 per cent in 2016, indicating the increasing mobile transactions. A market analysis shows that one out of three customers currently makes transactions through mobiles in tier-1 and tier-2 cities and this use could have an effect on the grocery shopping too.

 

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