1. E- GROCERY MARKET IN INDIA
1
D’Essence Consulting
chandni@dessenceconsulting.com
022-2834 7425
303, Aar Pee Center , 11th Road,
MIDC , Andheri (E), Mumbai-

2. Unorgan
ized
92%
Organiz
ed
8%
Distribution
Food &
Grocery
60%
Other
40%
Market Segmentation
1.6
8.8
0
5
10
FY12 FY16
Expected Sales Growth
(USD Bn)
•Globally, e-grocery market is growing nearly 7
times
faster than on-ground format
•India is the sixth largest grocery market in the
world
•Indian e-grocery market growing at a rate of 19%
YoY
•30-40% of the business will be in the online retail
Source: Technopak, Deloitte report, D’Essence a
INTRODUCTION
E-COMMERCE
2
Indian
Retail
Market,
$500 Bn

3. 69%
31%
Buyers , April 2012
Male
Female
Source: SOGS , April 2012
63%
37%
Buyers, Sep 2011
Male
Source: SOGS , Sep 2011
24%
45%
30%
1%0%
10%
20%
30%
40%
50%
18-24 years 25-36 years 36 years &
above
Below 18
years
Buyer Age Profile
Source: SOGS , April 201
•24 years and above age group
constitute over 75% of actual online
grocery buyers
•Online grocery buying not a youth
activity
•Restricted to working professionals
and mature family environments
WHO IS BUYING?
Male Vs Female
Buyer Age Profile
3

4. 580
522
551
480
500
520
540
560
580
600
Men Women Average
Value of Shopping bag (INR)
• Interesting fact, age group 18 to 24
emerge as the largest shoppers
segment
• The average spend for them
Men – Rs 602
Female – Rs 614
5.5 5.1
7.9
5.5
8.3
6.8
9
5
0
2
4
6
8
10
18-24
years
25-35
years
36 years &
above
Below 18
years
Number of products in shopping bag
Male
Female
• Women have outshone men in
terms
of branded products bagged
across all
significant age groups
Source: SOGS , April 2012
WHO IS BUYING?
4

5. 19
30
4
25
22
0 10 20 30 40
12 PM - 4 PM
6 AM - 12 PM
12 AM - 6 AM
8 PM - 12 PM
4 PM - 8 PM
Order timing for shopping
Percentage
of online…
• More than 90 % orders are
for
same day delivery
16.77%
13.55%
13.55%
12.50%
12%
14.99%
16.57%
0.00% 5.00% 10.00% 15.00% 20.00%
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
Sunday
Order Density
Percentage of
Orders over the
week
• Interesting aspect the buying
behavior as well spread across
the week
Source: SOGS , April 2012
WHEN DO CUSTOMERS SHOP?
5

6. Sr
N
o
Brand
1 Aashirvaad (6.25%)
2 Saffola (4.36%)
3 Pampers (4.29%)
4 Amul (4.29%)
5 Everyday (3.28%)
6 Dettol
7 Sundrop
8 Nescafe
9 Fortune
10 Haldiram
Top 20 Brands by Value
Source: SOGS , April 20
• Top 20 brands make 50.21% of
the total
value of the products sold online
WHAT IS BEING BOUGHT?
Sr
N
o
Brand
11 Surf Excel
12 Britannia
13 Frooti
14 Shakti Bhog
15 DIvss
16 Ariel
17 Brook Bond Red
Label
18 Wintex
19 Natur Fresh
20 Ahaar
Sr
No
Brand
1 Amul (4.24 %)
2 Aashirvaad (2.79%)
3 Maggi (2.75%)
4 Treat (2.47 %)
5 Haldiram (2.47 %)
6 Good day (2.42 %)
7 Big Babol
8 Nutri Choice
9 Mother Dairy Milk
10 Wintex
Sr
No
Brand
11 Britannia Cakes
12 Aliva
13 Fortune
14 Nescafe
15 ACT 2
16 Dettol
17 Shakti Bhog
18 Lays
19 Ahaar
20 Sunfeast
Top 20 Brands by Volume
• Top 20 brands make 37.56% of
the total
volume of the products sold
online
6

7. WHAT IS GOING INTO SHOPPER’S BAG
16.81%
13.70%
9.69%
5.89%
5.46%5.19%
4.66%
4.64%
4.43%
4.02%
25.53%
Shopper’s Bag by value
Rice, Atta, Lentils &
Dal
Edible Oils
Coffee , Tea & Cocoa
Milk & Dairy Products
Baby & Child Care
Biscuits & Cookies
Laundry Supplies
Household & Cleaning
Cereals & Breakfast
Snacks
• The top 5 categories make up 51.53% of the total value of products ordered
online by value
• The top 5 categories make up 50.64% of the total products ordered online by
volume
17%
10%
9%
8%
7%
49%
Shopper's Bag by Volume
Biscuits &
Cookies
Rice, Atta,
Lentils & Dals
Snacks
Milk & Dairy
Products
Chocolates &
Sweets
Others
Source : SOGS,2012
7

8. E-grocery Players in Indian Retail
Market
8

9. Key Players in Indian E-grocery Market
Key Players Location Business Model Delivery Slots
Minimum Order for
Free Delivery
Funded
Aaramshop.com All India Aggregator 24*7 Rs.500 Yes
Farm2Kitchen.com All India Integrated Supply chain
Processed within 1-3
days
Rs. 500 No
MyGrahak.com Delhi –NCR Integrated Supply Chain
24 Hr Delivery & 24*7
Support
Rs 1000 No
Callandorder.com Mumbai Integrated Supply chain Next Day Rs 500 No
EkStop Mumbai Integrated supply chain 9 am to Midnight Rs 400 Yes
TopTomato Bangalore Integrated supply chain 7am to 11 pm Rs 1000 No
Atmydoorsteps.com Bangalore Integrated supply chain Same & Next Day Rs 500 No
BigBasket.com Bangalore Integrated supply chain Same & Next Day Rs.1000 Yes
ZopNow Bangalore Integrated supply chain 7am to 10 pm Rs 500 Yes
VeggiBazaar.com Chennai Integrated supply chain
3pm-9pm, Next
Business day
Rs. 150 No
LocalBanya Mumbai
Integrated supply chain
7 am to 9 pm Rs. 500 Yes
Freshetarian Jaipur Integrated supply chain Same Day Rs. 500 No
Source: D’Essence analysis
9

10. Product Portfolio Of Key e-Grocery Players In India
Key Players
Grocer
y
Fruit&
Vegetable
Confecti
onary
Dairy
product
s, Eggs
Organic
food
Non-Veg
Beverages
& snacks
Pet food
Home
care
Personal
Care
Toiletries
Aaramshop √ √ √ √ NA NA √ NA √ √ √
Farm2kitchen NA NA NA NA √ NA NA NA NA NA NA
MyGrahak √ √ √ √ √ NA √ √ √ √ √
Callandorder √ √ √ √ NA NA √ √ √ √
Ekstop √ √ √ √ √ √ √ NA √ √ √
TopTomato √ NA √ √ √ NA √ √ √ √ √
Atmydoorsteps √ √ √ √ √ √ √ √ √ NA NA
BigBaskets √ √ √ √ NA √ √ NA √ NA NA
Zopnow √ √ √ √ √ NA √ NA √ √ NA
Veggibazaar √ √ √ √ √ NA √ NA NA NA NA
Freshetarian √ √ √ √ NA NA √ NA √ √ √
Zopnow √ √ √ √ √ √ √ √ √ √ √
LocalBanya √ √ √ √ √ √ √ √ √ √ √
Source: D’Essence analy
10

11. AaramShop - Business Model
Step 1
• Register on AaramShop as
Preferred shop in the locality
• Registration is free for retailers
at Aaramshop
Step 4
• Retailer get an email of the
customer’s order
• Prepare an order and verify
customer credentials
Step 2
• Customers choose grocery
products at Aaramshop
• Add it to shopping basket
Step 3
• Choose a Aaramshop
Kiranas from their
neighborhood
• Indicate preferred time of
delivery
Step 5
• Deliver order to
customer
• Take cash on
delivery
Customers Local Grocery
Store
Source: D’Essence analys
11

12. AaramShop
Revenue
Generation
• Aaramshop neither charges to
consumer nor grocers
• Generate revenue from ads ,
special offers
• Aaramshop generate lots of
data in which FMCG companies
are interested
• Sharing the intelligence with
FMCG companies is a revenue
source for Aaramshop
Advantageofthis
BusinessModel
• Highly Scalable
• Leverage technology
• No worries about inventory,
stock-out
• No need to manage logistics
• Present across 35 cities in India via a network of 3260 Aaramshops
Source: D’Essence analys
12

13. INTEGRATED SUPPLY CHAIN MODEL
Custom
er
Order
gets
processed
at
Warehous
e
Online
Portal
Call
Center
Whole
Seller
Manufactur
er
Procureme
nt
Deliver it
to
Customer
Source: D’Essence analys
13

14. KEY CHALLENGESKEY GROWTH DRIVERS
Building
Customer Base
Key
Challenges
•Increasing number of working population
•Rapid urbanization and growing trends
towards
nuclear families along with growing
population of
working women
•Increasing disposable income
•Rise in internet penetration, growing 3G
subscriber
base and growth of internet enabled
devices
•Increasing use of social media
•Increase in penetration of debit cards ,
credit cards
•Increasing reliability on online payment
Source: D’Essence analys
14

15. 15
INVESTORS PICK
• BigBasket raised $ 3 million from a Singapore based
private investor
and ready to launch its operation in Delhi NCR ,
Chennai and Pune.
BigBasket is looking for next round of investment of
about $40- $50
million
• Greencart.in, Mumbai based fresh fruits and vegetable
shop has
raised $1.5 million in Angel funding from Techno group
• In July 2013, LocalBanya raised funds from BCCL’s
springboard fund
and in January 2014, LocalBanya had secured
undisclosed funding
from Karmvir Avant Group
• Unilazer Ventures bought 25% stake in EkStop in
January 2014 Source: vccircle.com , business-standard.

16. 16
D’Essence Consulting is a Management Consulting, Business Strategy and M&A Advisory firm
Build Grow
Remain
Competitive
M&A
Advisory
303, Aar Pee Center, 11th Road, MIDC, Andheri (E), Mumbai- 400093
www.dessenceconsulting.com
+91 22 28347425
chandni@dessenceconsulting.com
Services
• Market Entry & Growth Strategy
• Business Plans & Financial Projections
• Start-up Acceleration Services
• Market Assessment
• B2B Market/Consumer Insights
• Solutions to transform Food and Retail Sector
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