Grocery Bills are Set to Shrink in India’s Top Metros

source: Google

Grocery bills are set to shrink in India’s top metros

Flipkart prepares to take on wellentrenched rivals in the high-stakes category including Amazon India, BigBasket and Grofers within days of its $16-billion acquisition by Walmart.

The online retailer aims to launch grocery services in five cities by July, according to two people familiar with its plans, beginning with Hyderabad and followed by Chennai, Mumbai, Delhi-NCR and Pune.

In Bengaluru, where Flipkart launched grocery serviices in November, the company is looking to venture into the so-called ‘fresh’ category comprising fruits and vegetables.

“Flipkart wants to capture the customers that shop for groceries in the first 10 days (of a month), who make up 60% of the customer base,” one of them said.

“It wants to expand its customer base through these low-ticket yet high-frequency purchases.”
Flipkart is expected to offer steep price cuts on groceries at the beginning and end of each month, taking on similar offerings by Amazon India and BigBasket with discounts of 25-50% on groceries.

Flipkart quietly rolled out its grocery category, under a tab called Supermart, in Bengaluru in November.

As per industry estimates, it handles 200-300 orders daily in Bengaluru on normal days, and up to 2,000 a day when it ran special offers.

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