The Kishore Biyani-promoted Future Group has perhaps foreseen that online retailing would be the most important distribution channel in the future.
Biyani has tried his hands at selling electronics through e-Zone, non-electronic products through its digital direct selling initiative Big Bazaar Direct and, now, plans to sell food and grocery online.
The company, at present, runs two formats in the food and grocery segment — Food Bazaar (value for money) and Foodhall (a premium offering present in only five cities currently). The Foodhall website, Biyani’s brainchild, says, “Foodhall online store coming soon.”
While officials at Future Group were not available for a comment, Biyani, at a recently concluded retail forum, hinted on making a major announcement — on October 1 — that would be related to e-commerce.
Foodhall retails gourmet products from across the world. With more Indians travelling abroad, they are developing a fondness for foreign brands and gourmet food, which is available at a few select stores in metros at a premium price, because of a high import duty. This is giving rise to an opportunity in online space.
Online food retailing is growing in India and industry experts feel that brick and mortar retailers in this segment are realising the power of internet and its impact on consumers. Besides, increasing competition from emerging online players and rising real-estate prices are forcing them to adopt ‘omni-channel’ retailing, where they can integrate both online and offline business.
Saving time and moneyAccording to a recent USDA (US Department of Agriculture) report, India’s online retailing for food and groceries is a function of the rise in total internet users from 120 million last year to 213 million this year along with a rise in smartphone penetration. The number of online food and grocery retailers has increased from 14 in 2013 to 44 as of September 2014.
A few of them include bigbasket.com , ekstop.com , gopeppers.com , easyration.com , zansaar.com , foodesto.com and goodlife.com
Multiple paymentBesides convenience and price benefits, the availability of multiple payment methodologies such as online banking, credit cards, debit cards, and cash-on-delivery and the very recent digital wallet is helping consumers to shop online while saving both time and money.
“Ecommerce is breaking traditional myths and apprehensions around online payment is significantly reduced with 56% online shoppers paying online and only 44% utilising cash-on-delivery,” said Debashish Mukherjee, Partner, AT Kearney.