Online Grocery business:
Online grocery business is more challenging than other online consumer goods, because of the very nature of it. Packaged branded items are more amenable for online marketing. Others like perishables, items with expiry date, items with particular shelf life, loose items etc. may be little difficult.
Consumers are habituated to shop at local retail shops and nearby supermarkets, and to change this will be difficult, unless the incentive in online shopping is large enough that one cannot ignore it.
There are a few businesses in this line in select cities who are barely existing. Some have cut down and some have not expanded even after being in this line for a couple of years. Although the online grocery business is growing at a reasonable pace the profit is not enough given the high distribution cost.
Under this scenario Amazon is entering this online business in a big way, initially in Bangalore. Having obtained the approval to invest in this line of business, it is also launching its own brand, see here.
Consumers are habituated to shop at local retail shops and nearby supermarkets, and to change this will be difficult, unless the incentive in online shopping is large enough that one cannot ignore it.
There are a few businesses in this line in select cities who are barely existing. Some have cut down and some have not expanded even after being in this line for a couple of years. Although the online grocery business is growing at a reasonable pace the profit is not enough given the high distribution cost.
Under this scenario Amazon is entering this online business in a big way, initially in Bangalore. Having obtained the approval to invest in this line of business, it is also launching its own brand, see here.
