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Abstract
The astounding growth of online grocery sector across the world has brought into sharp focus the need to tap this market for extraction of maximum business value. The Covid-19 pandemic not only engendered a massive shift in consumer behaviour but also provided an opportunity for online grocery suppliers to experiment with new delivery formats and business models. Despite the immense scope offered by this business, not all operational models have been able to achieve success. It is worthwhile to investigate the reasons for the same by exploring and uncovering various business models that have emerged in the Indian online grocery space and assess their impact in the long term. This research offers a glimpse of the evolution of the grocery business in India and the customer value propositions delivered by each of these models. Indian grocery business models have been majorly inspired by the West. Yet, it is a fact that consumer behaviour is not homogeneous across geographies. Designing new grocery business models must consider the uniqueness of the Indian grocery market. Grocery sector is a tough business to be in with elusive margins and Fastidious consumers who are price sensitive. An unsatisfactory shopping experience can make consumers defect to competition. A great deal of customer-centricity complemented by superlative inventory management capabilities and delivery excellence will lead to a profitable omni-channel grocery business model. The findings of the study clearly highlight the fact that there is scope for multiple grocery business models to co-exist in the Indian market characterized by different regional preferences and unique choices and preferences of Indian consumers. Sustaining the online grocery business models over a longer time will need appropriate strategies to generate revenues beyond commissions and delivery fees levied.
Keywords: Online Grocery, Retail, Quick Commerce, E-Commerce, Millennials, Customer Loyalty, Business Models, Profitability
INTRODUCTION
In India, e-commerce is growing in popularity. Low-cost data, sophisticated smartphones, and aspirational new-age consumers are driving e-commerce growth. Online grocery services have expanded and developed as a result of shifts in consumer attitudes, a greater emphasis on quality and hygiene, and the ease of access to shopping resources brought about by the widespread use of the Internet. Modern e-commerce sites are making an effort to reach customers in Tier 2 cities and towns. Improved...