New Delhi: Indian online grocery market is set to hit Rs 2.7 billion mark by FY’2019 following the surge in number of players operating in the industry, says a report.
Future growth of online grocery industry is expected to be led by operations in smart cities and saturation in metropolitan cities, says Ken Research in its report.
'Traditional grocery stores will continue to be a part of the market but the share of online groceries will continue to increase at a high growth rate. The market will also witness the introduction of newer players and better models in the market,' Ken Research said in a statement.
‘There will be a high investment in distribution channels and operations experts to maintain an optimum mode of delivery at a feasible cost’
This growth is estimated to be fuelled with heavy expansions that will be undertaken by the existing firms in the market and spreading out to newer markets by expansion in the user base due to increasing reach of internet and smart-phones.
Majority of the customers who buy groceries online are male and are in the age bracket of 24 years and above. This shows the relevance of the working population to the market of grocery shopping. A large portion of the population prefers to shop for groceries once a month, which means that the basket size ordered would be large and the online grocers can earn better profits from such customers.
The players operating under the industry are expected to maintain focus on expanding operations by venturing to more cities and adding more SKUs, the report said.