Cross Post From FIR Podcast Network
Is e-commerce creating a lazy society?
A little but is it because of a lack of time or choice of products and services?
Addiction – excessive expense, too easy
And is it only ecommerce or technology as a whole?
A recent study shows more than 50% of Europeans can’t recall their
children’s phone numbers without the help of their mobile phones.
The India Brand Equity Foundation estimates that food and grocery accounted for 69% of India’s $490-
billion (Rs 300-lakh crore) retail sector in 2013, followed by apparel at 8%.
What gets delivered home nowadays?
Groceries, appliances, books, clothes, and myriad other products
Toilet seats, commodes, walking support, arm support for senior citizens
Homemade food (Dabbawallas are doing the delivery from home to workplaces),
watscooking.com – enter location and find food cooked by home chef’s near you. In fact
awatscooking caters not only to some non-metro cities in India (Eluru, TN; Kurnool, AP; but also
UAE, UK, US, Canada, Malaysia, etc.)
Task allocation – hire a PA – http://www.russsh.com/ – book a task for kind of a PA to complete
for you- send any item like bakery to cash or cheques or even a bulk item – from your home to
wherever it needs to go. They have a blog on how Basketball Player Gets A Finger Splint
Delivered When Local Pharmacy Ran Out Of Stock Our cash on delivery (COD) and
express delivery (under 90 minutes) makes it convenient for working adults, single
parents and senior citizens.
Factors behind the rise of online shopping with home shipping:
More internet users
Choice of payment options – Cards, COD, net banking, EMIs, etc.
Geo location targeting of consumers
Recently funded hyperlocal companies:
Hyperlocal services is a platform to enable local offline services from anywhere, anytime.
Facilitating local offline services – serving as partners rather than competition
Hyperlocal is more trusted than ordinary ecommerce – as they connect people to nearby stores
and services that are reachable in case of complaints
Within hyperlocals, services have higher margins of around 20% as opposed to
product based models which earn 2-10% margins or even non-hyperlocal e-
commerce companies, which operate on 3-7% margins, depending on the
While Flipkart was reportedly considering entering the online grocery delivery
Amazon Kirana is already operational as a pilot in Bengaluru – currently being reworked.
Paytm has launched Zip mobile app and is testing in Bengaluru – pulled back.
Ola has launched Ola store, an hyperlocal grocery mobile app.
Food – Restaurants
Food – Chefs
Delyver (Acq by BigBasket)
Concierge (Point to point)
Challenges – from Alagu Balaraman, partner and MD, Indian operations, CGN Global India, a supply
chain management consulting firm.
Service people must know how to handle a customer – he represents your brand
creating a need for services might be difficult as people may already have their
own local set-up in place – but that mindset is changing.
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Editor : Bharani