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Estimated US$1.2bn to be used to strengthen operations in Flipkart.
Online grocer now delivers to 26 cities in India.
Leading Indian online grocer Big Basket recently announced its aim to double turnover by FY20. At the launch of its latest operations centre in Kochi, its CEO Mr. Hari Menon, disclosed that sales revenue in 2019 was about US$460m and it is targeting to earn US$904m by the end of 2020.
To support its ambition, Big Basket has introduced new innovations such as a fresh milk subscription programme, health and beauty products and unmanned vending machines.
At the opening of its latest collection centre, shoppers from the state of Kerala now have a choice of 22,000 products, across 3,000 brands. These items include fresh produce, groceries as well as cosmetic products.
As part of its introductory promotions, Big Basket is offering the first 2,000 shoppers a 10% cashback on all orders for a period of three months. In addition, all orders above INR1,200 (US$17) enjoy free delivery. The company recently shared that it fulfils about 100,000 orders every day and has more than 12 million registered members.
Find out more information about Big Basket here.
Keep up-to-date with the latest retail developments from Asia.
Retailer gains an immediate presence in Mumbai, Bengaluru and Pune.
Spencer’s Retail, owned by RPG Enterprises, announced that it will acquire convenience retailer Nature’s Basket from Godrej Industries. The deal is estimated to be valued at US$43m and is awaiting approval from shareholders of both companies.
The RPG Group currently operates 156 supermarkets that are located mostly in eastern India. The acquisition gives Spencer’s Retail access to the more densely populated areas of west India.
Currently, Nature’s Basket has 36 stores selling fresh vegetables, fruits, cheese, meats as well as a range of organic foods and dairy. These stores are primarily in Mumbai, Bengaluru and Pune. Nature’s Basket also has its own online portal and mobile app which allows shoppers all over India to have groceries delivered to their doorstep.
“Nature’s Basket has a strong portfolio of private label brands which has huge traction with its consumers. We believe there is huge potential to expand this to Spencer’s stores. It also has a strong e-commerce presence, and we believe that fits in well with our omni-channel strategy at Spencer’s," said Shashwat Goenka, sector head, retail and FMCG, RPG Group.
Healthy Alternatives, L’Exclusif and Nature’s are its private label brands, covering many different categories.
Find out more information about Spencer’s Retail here.
Healthier products set to become a significant category for the retailer.
Since 2016, Star Bazaar, the supermarket banner operated by Trent Hypermarket, has seen steady growth in its herbal, organic and natural products. Though initial growth was driven by large corporates such as Hindustan Unilever and Patanjali Ayurved Ltd., more and more players are increasingly introducing its version of natural products.
Healthier products currently make up about 10% to 20% of Star Bazaar’s inventory. “This preference for healthier, ayurvedic and organic products straddle (all) economic strata of the society. In the West and other European countries, these kinds of products are at the premium end but not so in India,” said Uday Varma, Star Bazaar’s director of commercial and marketing.
To support this growth, Star Bazaar launched its “Closer to Nature” programme, a two-month campaign to raise awareness of this category.
The retailer currently operates 41 stores and has announced plans to expand to 200 locations over the next three years. However, instead of expansion into smaller cities, Trent Hypermarket will focus on the cities of Mumbai, Pune and Bengaluru as locations for its expansion plans. The retailer has adopted the strategy of saturating demand in the cities it currently operates in before considering alternate provinces.
Find out more information about Star Bazaar here.
Making use of the funds raised from most recent round of investments.
Backed by Alibaba, India’s BigBasket has announced plans to scale up its supply and distribution chains. From its existing network of 18 large and 80 small distribution centres, the retailer will expand to 20 large and 100 smaller centres by June.
With the increase in distribution capabilities, BigBasket aims to provide shoppers with two hour express delivery. These new warehouses will also allow BigBasket to further penetrate new markets and cities.
BigBasket also shared plans to set up vending machines in office and apartment complexes. Called BB Instant, the retailer wants to have 2000 vending machines across 10 large cities over the next year.
“We see a huge potential of these machines. Customers can use their app to access the machine and buy products. The only human intervention is in re-stocking,” said co-founder Vipul Parekh.
Find out more information about BigBasket here.
This in-depth guide to India explores the key trends in grocery retail and the growth strategies of the leading retailers in the country.
We've developed a single, universal methodology for calculating food and consumer goods retail data, supported by our programme of primary and secondary research. This makes Datacentre the most reliable and robust source available for data of this type.