Online Grocery Shopping in Noida
E-commerce business has started showing great response in Indian market. When it comes to internet shopping, big companies see huge potential in retail segments. Majority of retail market is occupied by daily food and grocery market. Although several big players have started online business in grocery in India and some of them have shown good results in
metropolitan cities like Bangaluru and Mumbai. However Noida and Gurgaon are yet untouched. Why? When it comes to online grocery shopping in Noida It has been observed that several small start-ups are cropping up in this business every month in Delhi NCR.Major Challenges in online grocery
Lack of pull factor
In comparison to any other online shopping store (e.g. electronics or clothing etc), grocery shopping is very monotonous. Customer is not excited enough to do the shopping because he is not expecting something new for which he will feel excited. Let us compare grocery shopping with laptop shopping. While shopping for a laptop, my only focus is to buy laptop or may be one or two more relevant items (e.g. pen drive / external hard disk / wifi speakers ). As soon as I complete the shopping, I am curious to get the product asap because I have never seen it. However in case of grocery, buyer has to shop at least 10 to 20 items which makes the experience a bit boring. Also buyer is not getting something new for which he would be thrilled.
Level of technology awareness in customer
Level of comfort with the technology is another key factor which creates a difference. If you do comparison of tech savvy people between Bengaluru and Noida. You will see that Bengaluru crowd is more tech savvy as compared to customers in Noida, which means they easily adopt change due to e-commerce and switch to online shopping however noida people finds it difficult to get online.
Low profit margins
Profit margins are low in FMCG. If you start online grocery business then you save rent of the place on the other hand you spend on logistics part for delivery. Since margins are already low hence there is nothing much to offer to the customer which can create an attraction factor for the buyer to come online for shopping.
Technology
If someone wants to beat the local kirana stores then technology has tow to show something different. An online place where customer comes and fills his cart in just 10 mins. He need not to apply his brain. Experience should be just like driving a car for a person who is driving since last 10 years. Online service provider needs to keep in mind that selling grocery online is pretty different then selling an electronic or gift item online. Hence e-commerce solution has to be designed accordingly.
Logistics
Logistic plays key role in any online business. Customer satisfaction depends on promptness of the delivery. On one hand rising fuel cost is giving tough time to the companies. Another factor is traffic condition which is getting worst day by day in metro cities specially IT cities like Noida. Bad traffic simply means more fuel and more cost.
Competitors of online Grocery business in Noida
Local Kirana Stores
Why local grocery stores in Noida are all time favorite for many of us.
1- Because we are connected with them since long time.
2- We get superfast delivery which online business cant beat.
3- Local grocery owner knows its customer by their names which gives them a personal touch. This is missing in any online business. Imagine someone greeting you with your sir name as soon as you enter to their store. It gives you a different pleasure. which is hard to achieve for online business owner.
Supermarkets
In last few years, supermarket stores in Noida have snatched major chunk of the customers from local grocery owners. Their marketing strategy plays vital role in getting the customers. Other factor is volume purchase. Since supermarkets have the capability of bulk purchase hence they pass on the discount to its customers that is why people get attracted to them because of low price and various offers. This is the reason you will find supermarket in almost every shopping mall in Noida.