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M<br />
FOUNDATION<br />
Exhibit 22:<br />
Companies focusing on online grocery currently: BigBasket vs. Amazon grocery<br />
BigBasket<br />
Amazon India<br />
Cities covered 25<br />
Amazon Pantry - 40<br />
Amazon Now - 4<br />
Orders per month 2mn Amazon Now - 0.2mn<br />
Delivery format<br />
SKUs<br />
Normal + express delivery in 1<br />
hour<br />
NA<br />
Amazon Now - express delivery (2 hours)<br />
+ scheduled deliveries<br />
Amazon Pantry - next day delivery<br />
Amazon Now - 10000, Amazon Pantry -<br />
4000<br />
Private label brands<br />
Extensive portfolio - Fresho,<br />
GoodDiet, Royal and Popular,<br />
Tasties<br />
NA<br />
Fresh/ Non-fresh<br />
Supplies both<br />
Amazon Pantry - mostly non-fresh<br />
Amazon Now - supplies both<br />
Infrastructure<br />
35 warehouses; dark stores;<br />
supply connect with 5000 15 fulfiillment centers; dark stores<br />
farmers<br />
Other services<br />
NA<br />
Prime Video, Prime Music and host of<br />
other benefits through Prime<br />
membership<br />
Financial backing Alibaba Amazon Inc.<br />
Funds raised/ Capital committed US$574mn raised so far US$500mn committed in food e-retail<br />
Source: Economic times, Your Story, Business Standard, Fortune India, Live Mint, Forbes, Morgan Stanley Research; NA: Not available/ Not applicable<br />
Non-grocery eCommerce<br />
Online making quick inroads in electronics and<br />
fashion<br />
Electronics is a category well-suited to eCommerce, but<br />
margins tend to be low. Conversely, apparel margins are<br />
higher, but there is still consumer inertia with regard to<br />
purchasing online in this category.<br />
That said, electronics is a low-margin category for most eCommerce<br />
players. It serves only as a base for customer acquisition for highermargin<br />
segments like fashion, in our view.<br />
Retail customer propositions can be broken down into four components:<br />
price, product range, convenience and service/experience.<br />
ECommerce works well on all parameters for electronics but falls<br />
short on experience as far as apparel is concerned.<br />
Having said that, online penetration in China has surged to ~50% –<br />
and if the same were to happen in India, then it could spur eCommerce<br />
sales in India too.<br />
Based on our estimates, the eCommerce channel has already captured<br />
nearly 20% of the electronics market in India driven by a combination<br />
of deep discounts, acceptable delivery (2-5 days), sale of<br />
brands/products that are exclusive to the online channel, and<br />
detailed brand/product information, reviews etc.<br />
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