We'll deliver to 3000 pincodes, 125 cities: Mohit Khattar
We'll deliver to 3000 pincodes, 125 cities: Mohit Khattar

Godrej Nature’s Basket is capitalising on strengthening its eCommerce platform and widening delivery destinations to double the online sales. On the occasion of announcement of the same, Mohit Khattar, MD, Godrej Nature’s Basket spoke to the Retailer media. Here are some excerpts from the brief interaction.

What’s the catch behind the move of widening your eCommerce operations?

We are widening our eCommerce operations with which we are starting all India delivery service which will help us to reach 125 cities, including all state capitals, tier I cities and some tier II cities, compared to the five cities Nature’s Basket stores are present in currently. This will lead us to become a Pan India entity.

We will be able to fast deliver our offerings to around 3000 (plus) pincodes spread over these 125 cities in 24 states in the country. On an average the delivery to these cities could take two to three days compared to the three-hour delivery in the five cities we are present in. This will help customers across the country to choose from a wide range of exclusive and hard-to-find non-perishable products to be delivered at their doorstep. 

We had been trying to build our eCommerce business for the last three years. There is a lot of effort and movement happening on our website and in overall back-end operations because of which the business has multiplied. Henceforth, we are aiming to grow our online business about ten times during the course of this year.

Which are the channel partners you have tied up with and what is the investment?

There are various logistic partners we have tied up with but none of them are on an exclusive basis.

The investment is not as significant compared to the amount of efforts and manpower which is completely in-house. We are working with more agencies on the marketing side and not on the development side. The development side it is mostly done in-house.

What are you doing in regard to payment gateways for smoother transactions?

We have tied up with all the payment solution providers like PayU, Paytm and Mobikwik while offering the convenience to the consumers to pay through services like cash-on-delivery, card-on-delivery, internet banking, various mobile wallets, Sodexo vouchers or even with loyalty points. There are all kinds of mechanisms available so we are not forcing the customers to make a choice of one versus the other.

Even our app is also in sync with the website; so one can do part of the shopping on website and complete it on the app or the other way around.

What will be the product offerings and the price strategy?

Currently, we offer 10,000 SKUs. And for these 125 cities, we will be offering slightly lower range which does not include some of the products commonly available. Our focus will be on the products that are hard to find like more gourmet and fine food products. Prices would exactly be the same what it is in the stores and there could be delivery charge depending on the quantum of the order and the weight of the product.

We already have our presence on Amazon and Snapdeal and it’s a limited assortment, and that is because they have their own limitations and constraints in terms of what they keep and what they can dispatch whereas there is no such limitation when we deal with those products ourselves. So there is much larger assortment which we are showcasing and ready to sell across the country as opposed to what we showcase on Amazon and Snapdeal.

How compelling is the move that will entice the consumers to buy from your eCommerce platform?

With this expansion of operations customers can access new service features like real-time tracking of order, one-click ordering of range of recipes, easy ordering through list-based ordering and extensive product range. The entire focus of a gourmet business is to bring in products which are not commonly available. We are trying to make these products accessible to a very large segment of consumers across the country.

What are your plans of online expansion in the coming year?

Why we should be limited to only five cities? We want to take it to cities like Jabalpur, Chandigarh and Madurai among others and that really is the plan. We want to extend our footprint from 125 cities to may be another 75 cities by the end of current fiscal. Within online, we want to increase penetration. It is important for us to establish our business where we are getting in rather than just increasing the number of cities.

The idea is to first penetrate into those 125 cities and then go forward and the potential is huge. Physical presence will always take time to grow whereas internet presence grows very rapidly, as India is one of the fastest growing internet penetrations in the world.  

A word on offline expansion.

We open around 6 to 8 stores every year. We identify new geographies, new locations within existing cities. We are not aggressive in terms of offline store expansion but we are very steady. Once we open the store we ensure that it does well, it is profitable and it lasts for long and that’s how our approach from day one has been and we will stick to that. This year, hopefully, we are planning to touch the count of 40 stores in total.

Currently, we have 33 stores in five cities and all are company owned. For each of the store the amount of investment goes from Rs 1cr to Rs 1.5cr depending upon the size of the store. And as of now we are not really firmed up which other city we want to get into, but these could be largely tier I cities.

E-commerce is a great way to taste the market before we decide to go pan India with our brick-and-mortar stores.

What is your ratio of revenue from online and offline?

The online ratio is very small at this point of time. As of now, online sale constitutes five per cent of the total sale. The good thing is that it’s been growing very rapidly. Since the last couple of years it’s been growing by 100 per cent and now we are saying that 100 per cent is not enough. We want to grow 10 times a year. And we believe online can easily contribute 8 to 10 per cent of the total sales.

What is your target consumer group?

We are tapping tech savvy youngsters, but today if you look at internet and mobile penetration, which is so huge, everybody is tech savvy not only youngsters. Today, even women are as comfortable with their smart mobile phones while accessing Facebook and WhatsApp. The age group could be from years 14 to 50.

Stay on top – Get the daily news from Indian Retailer in your inbox
Also Worth Reading