While grocers still account for 85 per cent of the share in the retail market, the shift towards online is rapidly on the rise
Emerging grocery brands are cost-efficiently finding their way to the dark stores rather than standalone retail outlets, according to experts on consumption trends. While grocers still account for 85 per cent of the share in the retail market, the shift towards online is rapidly on the rise.
The investment cost for reaching out to a standalone grocery outlet is relatively high and since a buying decision is now done by more than one person sitting in the comfort of one’s home, it becomes more sense for emerging brands to opt for quick commerce, according to experts at the 17th edition of India Food Forum.
“Affordability and price are the key pillars, but purchase decisions are also swayed by other manifestations of value,” said Yoann Painbeni, Managing Director – APAC, Retail Vertical at NielsenIQ speaking at the 17th edition of India Food Forum
Around 50 per cent of consumers shop online to get better deals while 47 per cent see digital technologies to find better deals, Painbeni said. Traditional trade remains steady by online channels are the biggest source of growth. Affordable brands dominate the growth story, as increases in food prices are a concern among consumers, Painbeni stated.
In an economy, which is growing by over 6 per cent, large fast-moving consumer goods (FMCG) companies are growing by merely 3 per cent, which indicates that emerging brands are now capturing market shares at the cost of established brands in the food space, said RS Sodhi, President, Indian Dairy Association.
Sodhi added that gol-gappa or Pani-puri has a market of Rs 70,000 crore and increasingly around 10 per cent of it is becoming organised with a lot of further potential. Think about other Indian conventional snacks like Kachori and Samosa and the market potential that it can unlock.
