Going deep versus going wide: Which will trump the other as online grocers BigBasket and Grofers battle to corner market share?
Both have burnt through millions of dollars for a podium finish in online grocery. Both are backed by moneybags, Soft Bank and Alibaba, whose interests are perceived to be aligned. But, Big Basket and Grofers, the two largest homegrown online grocery stores, have adopted divergent strategies to survive and thrive.
Big Basket, the Alibaba-backed market leader with approximately 2,000 crore in sales in FY18, lives by the holy grail of grocery business— spoil consumers with multiple choices under one roof. Grofers, funded by Soft Bank and Tiger Global Management, has instead chosen to champion a select few categories to hold fort against Big Basket and an impending incursion from the likes of Amazon and Flipkart.
Opinions are somewhat skewed in favour of Big Basket’s methods. Says Ankur Bisen, associate vice president of retail and consumer product at Technopak Advisors, a consultancy firm, “One cannot pick and choose categories in grocery retail. One has to complete the offering and that principle does not change. For a consumer, it is a mixed basket, where all categories will have a 10-15 percent share.”
Grofers, however, has defied conventional wisdom. The firm clocked 700 crore in sales in FY18, up from 250 crore the year before and is on track to exit FY19 with 2,500-3,000 crore in sales, says
co-founder and chief executive Albinder Dhindsa. Monthly cash burn, however, remains constant since mid-2016, at approximately 15-18 crore. “If you pierce a stack of papers, you need a very sharp tip. The idea is to have a sharp tip to penetrate the market. We are not in the width game but the depth game,” says Dhindsa.
この記事は Forbes India の November 9, 2018 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Forbes India の November 9, 2018 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
Home-Cooked Meal Is Now Greatly Valued
The pandemic has also brought with it an improved focus on hygiene, use of technology in dining, rise of cloud kitchens and resurgence in popularity of Indian ingredients
Paytm 3.0 - Reaching Near Breakeven In Two Years
As of 2020, Vijay Shekhar Sharma’s super app for financial services had run up losses in thousands of crores. Now, as digital payments gets yet another boost courtesy Covid-19, he’s hopeful of reaching near breakeven in two years
THE PANDEMIC HAS CAUSED WOMEN GREATER LABOUR PAIN
Covid-19 has shown that women are more likely to face the brunt of job losses than men, and find fewer opportunities when they want to resume. That apart, several have to deal with increased hours of unpaid work at home and even domestic abuse
LEADERSHIP WILL BE ABOUT SEEING THE BIGGER PICTURE
Leaders must not only guard their teams first during a crisis, but also deal with stakeholders with respect and dignity. And apart from pursuing business goals, they should remain committed to our planet and the environment
PHILANTHROPY SHOULD BE HUMBLE, BUT NOT MODEST
Apart from building a flexible and resilient framework for the future, philanthropists, civil society and the government must work in tandem so that every rupee is absorbed on the ground
INTEGRATED HEALTH CARE, TECH WILL DISRUPT SECTOR
While clinical research will get a boost, having a skilled workforce and public spending on health care will be challenges in the near term
DIGITALISATION WILL HELP IN VALUE CREATION
As the pandemic brings technology and innovation to the core of business and daily life, the next decade will see about 150 million digital-first families in India
Industry 4.0: Climate Revolution?
Augmenting sustainability alongside digital capabilities is an economic, competitive and global opportunity for India’s businesses, but regulations need to reflect intent
EV Dream Still Miles Away
Electric vehicles have remained a buzzword in India for years. But not much has moved on ground due to high upfront costs, range anxiety and charging infrastructure
Living Waters
A virus has caused us to scramble for oxygen but our chokehold on the environment is slowly strangling the very waters that breathe life into us. The virus is a timely reminder: We are merely consumers, not producers of life’s breath on this planet
