The grocery segment of the country is estimated to be around $28 billion within the online marketplace space that is valued around $65 billion. Being one of the most rewarding segments the e-commerce giants like Flipkart, Amazon, and Reliance e-commerce are all pumping resources to the segment with a view to get maximum returns from it and to stand ahead of its rivals.
Flipkart which will be backed by Walmart Inc. as soon as it gets approval from the Competition Commission of India (CCI) has plans to set aside almost $400 million just for the e-grocery segment in order to have a strong network of hyper local grocers, cold chain and warehousing. It is also expected that the company will get experts from Walmart in order to understand the logistics behind the delivery of grocery.
On the other hand, if sources are to believe Reliance e-commerce owned by Mukesh Ambani is concentrating on making the biggest grocery store omni-channel network in the country. They are backed well by their 3 million merchants and 7,500 store networks. The company would be using its offline merchants, stores and taxation and inventory management solution JioGST with a view to make its grocery service hyperlocal in nature.
The company also has plans to expand to 10,000 stores in the next two years and would use them in order to make its grocery service hyperlocal. It is planning to collaborate with more merchants and thus make its omni-channel model of e-commerce much smoother. It was also added by the source that its merchants spanning more than 3 million would be offered Cloud services at prices which would be the most competitive.
Amazon which sells almost 50 digestives on its platform has plans to introduce some of its US based brand Whole Foods’ range in the country by the year end or early next year as per reliable sources. The company which already has two grocery segments in Amazon Pantry and Prime Now is looking forward to bringing in healthy, organic and niche products to its customers at prices that are affordable.
The e-commerce giant which has been fine-tuning its grocery segment of the past two years has not seen more than 50 per cent of the aggregate sales coming from the grocery segment.
The e-commerce giant is also engaged in talks with supermarkets, hypermarkets and retail companies in order to buy a stake in one among these firms. If sources are believed, Amazon has also had discussions with some regional hypermarket and supermarket players.