With tech giants Alibaba, Amazon and Flipkart foraying into selling groceries online, it makes sense that this sector is the next battleground for e-commerce players. Although reports suggest that online grocery sales have taken off slowly and grown sluggishly, this year has been robust for the e-FMCG market with 60% yoy growth. Now, with Tata entering the e-grocery segment, the competition is only fierce, and in a quick chat with Indian Retailer, Big Basket co-founder Hari Menon tells why competition is good.
How is the market for online grocery retail?
In the last couple of years, grocery sector has become one of the most interesting categories in e-commerce, accounting to nearly 70% of retail, with massive market opportunities. The TAM (Total Addressable Market) criteria for even hedge funds were easily met. The sector has seen a rapid growth and many new players are entering the market. It’s an exciting phase.
How do you see the competition from Tata, Amazon and Flipkart?
Honestly, I think any competition in this sector is good and it’s welcome. In fact, I am waiting for more players to enter this sector. There are such high volume of orders and repeat purchases that it is practically impossible for one player to meet huge demands. Moreover, big brands will bring attention to this sector and the growth opportunities will only increase.
There are talks about Alibaba backed Paytm buying stakes in Big Basket. Your comments?
There are many fund raising talks going on, but it’s too soon to comment on it.
What are your expansion plans?
For now, we are present in 25 cities including tier I and tier II cities and we do not plan to enter more cities for the time being.