Operations Assignment

1.
> A brief background of the industry:

Abstract: In one way, internet of things may be interpreted as the interconnection via the
internet of computing devices embedded in every object, enabling them to send and receive
data. It enables the connectivity of various activities in different disciplines towards a focused
outcome. In India, the scope for the internet
connectivity is increasing. Digitalisation is a tool for transformation in the present era.
Today, online grocery is an area of increasing investment and focus for many traditional
supermarkets and CPG brands. However, despite its relative underdevelopment compared to
other categories sold online, grocery is not new to the internet arena. The sector has a rich and
storied history that holds warnings, lessons and predictions for those embarking on their online
journeys today. HomeGrocer.com was one of the first online supermarket players. It started in
1997 in Washington state and quickly obtained investment to allow it to create the
infrastructure needed to support the business, including a huge warehouse and a fleet of vans.
Early growth was impressive, and by mid-2000, sales had reached over $1 million a day. This
rapid growth fueled more investment for expansion into other markets, including California,
Oregon, Texas, Georgia and Illinois.
The other early mover in online grocery was Webvan, founded in 1996. After a successful launch
in California, the firm embarked on aggressive expansion plans, with a goal to operate in 26
major cities around the United States. Its confidence in the future of online grocery was
underlined by an astonishing $1 billion order with an engineering and construction firm to build
out new warehouses and the infrastructure to support them.
Online grocery market @India:

The online grocery market in India has gained a lot of traction over the past few months with
the emergence of a host of first generation start-ups and already established traditional grocery
chains expanding to the digital platform. India's online grocery market is estimated to grow at a
compounded annual growth rate of 62 per cent between 2016-2022. The online grocery
shopping is still in its nascent stage, the overall grocery market in India is already worth over
US$ 360 billion (Rs 21,60,000 crore) making India is the sixth largest grocery market in the world
and is expected to touch US$ 1 trillion by 2020, and also sales are expected to reach 2 percent of
overall sales creating a potential market size of around US$ 10 billion (Rs 60,000 crore) following
the surge in number of players operating in the industry.
Online grocery stores seem to be the next big opportunity in the e-tailing space. Also there
aremany online grocers coming up every week. Going by the way the global e-grocers are
growing and the growth of e-commerce in the Indian market, and online would capture a small
but significant market share. Therefore, the rapid growth of organized and online players are
going to make their prominence in the next decade.
2.> Key operations related issues and analysis of top competitors.
The nationwide lockdown and the associated tailwinds led the gross merchandise value of the e-
grocery segment to grow to $3.3 billion in 2020, according to research consultancy RedSeer,
which expects the sector to touch $24 billion by 2025.Tata Digital Ltd buying a majority stake in
the country’s largest e-grocer BigBasket allows the conglomerate not just a quicker entry into
the online grocery business, but also opens up newer avenues, including an omnichannel
strategy and allows deeper expansion beyond the metros.“The competition in the space is
heating up as traditional conglomerates enter this extremely sticky segment. This move will
bring in greater synergies from existing supply chains and help their omni-channel strategy
approach. Scale is crucial for companies to succeed. Execution and expansion of their strategies
into these growth areas will indicate where they stand on the foot-ladder," said Ankur Pahwa,
partner and national leader, e-commerce and consumer internet sector, EY India.The e-grocery
sector is large enough to accommodate multiple firms with unique propositions, unlike e-
commerce, food delivery and urban mobility, which have seen the emergence of duopolies, said
analysts.“This is just the start for online grocery. The opportunity is sizable and we expect
multiple large winners here catering to varying customer segments such as convenience vs.
value/ metro, Tier 1 vs. Tier 2+, and use-cases, such as stock-up vs. top-up vs. on-demand," said
Rohan Agarwal, director, RedSeer.“It’s an exciting space to watch out for with the large offline
retailers intensifying the already competitive space of multiple online models such as horizontal
e-e-tailers, grocery verticals, hyperlocal and social commerce," Agarwal said.
Major online grocers in India: 1. Big Basket 2. Grofers 3. Zopnow 4. Nature’s Basket 5. Amazon
Groceries 6. Aaramshop 7. Bazaar cart 8. Naturally yours 9. Reliance fresh
TTeam: Put images of these competitors here
3.> Detailed analysis of a specific company
Big Basket:
4.> Critical evaluation of current situation
The India online grocery market size was valued at USD 2.9 billion in 2020 and is expected
to expand at a compound annual growth rate (CAGR) of 37.1% from 2021 to 2028. The
market has gained immense traction over the past months on account of the changing lifestyle
of the consumers, growing urbanization, and the tech-savvy generation who prefers buying
products online. With the growth in disposable incomes and busier lifestyles, people are
increasingly seeking out customizable and convenient online platforms for grocery shopping
instead of walking down to the neighborhood vendors. The preference for online delivery of
grocery products became more visible following the COVID-19 outbreak. With the social
distancing standards, consumers are turning their focus to online grocery shopping, which is
not only convenient but is a safer option.
India Online Grocery Market Report Scope
Report Attribute Details
Market size value in 2021 USD 4.3 billion
Revenue forecast in 2028 USD 38.9 billion
Growth Rate CAGR of 37.1% from 2021 to 2028
Base year for estimation 2020
Historical data 2017 - 2019
Forecast period 2021 - 2028
Quantitative value Revenue in USD million/billion and CAGR from 2021 to 2028
Report coverage Revenue forecast, company ranking, competitive landscape, growth
factors, and trends
Segments covered Product type, payment method, region
Regional Scope South India; North India; West India; East India
Country Scope India
Amazon India Pvt. Ltd.; Godrej Nature's Basket Ltd.; Grofers India
Pvt. Ltd.; Paytm E-Commerce Pvt. Ltd. (Paytm Mall); Reliance
Key companies profiled
Retail Ltd. (Reliance Fresh); Spencer's Retail; Supermarket Grocery
Supplies Pvt. Ltd. (BigBasket); UrDoorstep eRetail Pvt. Ltd.
Free report customization (equivalent up to 8 analysts working
Customization scope days) with purchase. Addition or alteration to country, regional &
segment scope.
Pricing and purchase options Avail customized purchase options to meet your exact research
needs.
5.> Conclusion and learning:

Online grocery services meet a number of consumer needs including providing
products for niche markets or helping the time starved consumer shop for the
mundane weekly groceries. By delivering products to consumers' homes, the
homebound aged and handicapped can participate in the shopping
experience. Even though there has been a great decline in the number of
pure-play online stores, there appears to be a solid market for shopping
online. The major business model that is working today requires the support
of the established bricks-and-mortar supermarkets. This model is effective as
it creates distribution efficiencies and leverages reputation, which is an
important consideration for consumers in light of the perishable nature of
many grocery products.

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1.

> A brief background of the industry:

Online grocery market @India:

5.> Conclusion and learning:

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