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Estimated $ 3 billion sales for India’s online grocery market in 2020

Analysts and industry executives state that the increase in demand for home delivery of fresh produce and staples witnessed during the nationwide lockdown is expected to remain for the rest of the year. India’s online grocery market is expected to see a 76% increase over last year with sales topping over $ 3 billion.

22nd May 2020 Author: Poshecka Kumar
Estimated $ 3 billion sales for India’s online grocery market in 2020

Image Courtesy : mhbazaar.com


Analysts and industry executives state that the increase in demand for home delivery of fresh produce and staples witnessed during the nationwide lockdown is expected to remain for the rest of the year.  India’s online grocery market is expected to see a 76% increase over last year with sales topping over $ 3 billion.

Forrester Research also reporter that the $ 1.3 billion additional sales could increase the overall e-commerce sales by $ 2 billion in 2020.  Also, India’s e-commerce industry is expected to grow to approximately $ 35.5 billion this year which translates to a 6% growth in the industry.

Satish Meena, senior forecast analyst at Forrester Research stated that while the demand seen over last six weeks may not sustain, online ordering of groceries are now being tried by a lot of households and this trend is likely to remain in the longer term.

Online ecommerce grocery providers like BigBasket and Grofers had reported a five-fold increase in demand during the initial phase of the lockdown but have seen a dip in numbers even though the volume continues to be high.  Hari Menon, CEO of BigBasket conveyed that the company fulfils over 300,000 orders a day in comparison to 150,000 orders they fulfilled before the crisis.  He also added that demand continues to be very strong, and in May they are expecting growth by around 35% over April.

Flipkart and Amazon, the two major horizontal e-commerce companies, have also increased their grocery delivery capabilities over the last six weeks.  Both companies pose a threat to the existent e-commerce grocery delivery services like BigBasket and Grofers in metros owing to the better availability and wider options available on their platforms. It is also to be considered that a lot more work is required to sustain growth as Amazon’s arm delivering fresh fruits and vegetables, Amazon Fresh is available only in a handful of cities and Flipkart is reliant on third parties like Vishal Megamart and Spencer’s Retail.


Story Source : tech.economictimes

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