What Effects Online grocers app Have on Grocery Retailers in India

Grocery Ordering System
Grocery Ordering System

It is becoming increasingly common in India to order groceries online. Grofers and BigBasket, two online grocery stores, allow customers to buy items without visiting the local store. Bloomberg Businessweek Online reports that online grocery orders account for 30% of all online retail sales in India. Customers can now order groceries online to reduce costs while retailers can increase revenues.

This post explores the impact that online ordering systems for grocery stores have on Indian grocery retailers.

Online grocery stores in India:


By 2024, over $18 billion will be spent on grocery by companies like Reliance and BigBasket. Additionally, grocery stores that operate online don’t need to optimize store locations. As long as their computers or mobile devices are connected to the internet, grocery stores can serve customers across India using an online ordering system.

According to RedSeer, which provides the latest data from a consulting firm, eGrocery sales started growing from 2020 and are expected to continue growing until 2021. Increasingly, customers are shopping online for groceries because of the choice and convenience they provide. In addition to offering a wider range of goods for competitive prices, online ordering allows grocery stores to avoid investing in storage facilities, an advantage over brick-and-mortar stores.


Impact of grocers apps on retail:

The online grocery market is still in its infancy, but online grocers like Amazon have started testing online grocery delivery in select cities like Delhi, Mumbai, and Bangalore. Compared to traditional grocery and department store chains, online groceries can give these retailers a competitive advantage.

Sales of online groceries show no signs of slowing down. More and more Indians are using online shopping for groceries thanks to the recent global pandemic- Covid-19. More and more consumers are searching for ways to avoid going out in public, which will propel this market to grow by 30% yearly.

It is a consolidation that will have major effects on the Indian grocery market that Reliance had just taken over Future Group’s retail business. In the grocery retail space, Reliance Retail generated Rs 346 billion in revenue in FY20, and Future Retail generated R 100 billion in revenue in FY20.

Over the next five years, grocery stores will invest the most in online ordering systems.


People order groceries online for the following reasons:

Convenience of online grocery shopping has contributed to the growing demand for groceries. Online grocery stores often provide same-day or next-day delivery, so finding parking at other shopping malls is not a concern.

Spending less time driving to store after store looking for items which are typically available only in physical stores can save consumers money. Buying groceries online also provides more convenience, as customers can shop from the comfort of their homes or offices.

Online grocery ordering makes it easier for retailers and customers alike to shop for food online while reducing costs and increasing revenue.


The potential of this business in India, as well as its future:

Grocery online stores will grow in India because they provide more convenience and options to customers. Retailers are also able to offer a broader selection of products at competitive prices with online ordering systems, which is an advantage over brick-and-mortar retailers that must invest in storage facilities. Because customers prefer online grocery ordering systems that offer convenience and cost-effectiveness, they may have an impact on offline grocery stores. Unlike traditional supermarkets, online grocery stores can offer a larger selection of items, limiting the amount of stock they can keep on their shelves.

In India, the future of online grocery stores looks promising with a rise in adoption levels.


Steps that retailers can take to combat this trend include:

Grocers app allows retailers to ‘balance’ online and offline grocery shopping, creating a ‘balance’ between them. Due to the preference of customers for online ordering system, which is convenient and efficient, online grocery stores could impact offline grocery stores.

Different strategies are being experimented with by some Indian retailers. Online grocery shops are good because, unlike traditional supermarkets, they have a larger selection of items, and can limit their stock because they have limited shelf space.

It looks like India’s online grocery store market will continue to grow as adoption rates increase. With the Online Ordering System for grocery stores, retailers can compete against one another and with online competitors.



India is seeing a rise in online grocery orders

It is predicted that online grocery will continue to grow. Convenience and savings may be contributing to the popularity of online grocery stores. Online Ordering systems will be needed by retailers to thrive in this trend and take advantage of its potential.

Grocery mobile ordering systems offered by Phygital24 enable customers to place orders anywhere and at any time. Your business runs smoothly because we handle all of the details. We’ve made ordering groceries easier than ever!

Contact us to learn more about how we can help!

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Written by Lisa James

Lisa is a 24-year old, passionate writer, and a keen observer. She loves fashion and is always looking for new trends and styles. Not just that, but she’s also the boss lady who is always hustling and trying to get everything done perfectly!

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