BENGALURU: A Covid-induced shift in consumer behaviour gave the e-grocery segment wings in 2020, with the channel now accounting for 6 per cent of India’s overall online retail sales, according to Forrester research.
E-grocery sales have more than doubled over the past year and the momentum is likely to continue. Not only has the segment seen large players like Amazon, Flipkart expanding beyond tier-II and III towns , niche platforms have also surpassed pre-Covid revenues.
According to Bigbasket, its new customers grew 84% in 2020. With health and hygiene on the top of many minds, there has also been a gradual shift in eating more home-cooked food than before, which has in turn contributed to increased sales of fresh produce (fruits, vegetables) on these platforms.
“There has been a significant change in consumer behaviour since March 2020,” noted Seshu Kumar Tirumala, National Category Head of Bigbasket, adding that the convenience and safety that home delivery offers has helped it record the 84 per ecnt increase in new customers. This has also been accompanied by “excellent retention rates and basket sizes”, Tirumala pointed out.
With basic essentials such as groceries currently constituting nearly half of the wallet size of the online shopper, and the likelihood that work-from-home policies are not set to go away in a hurry, analysts expect the positive momentum for segment to continue—at least for the first half of 2021.
According to experts, the market is also likely to see major consolidation with the entry of large companies such as Reliance Industries and Tata. RIL is reportedly likely to acquire start-up Milkbasket whereas the Tatas are said to be in last stage talks to acquire more than 30 per cent in Bigbasket.