BUILDING A SUSTAINABLE E-COMMERCE GROCERY BUSINESS MODEL IN INDIA: CHALLENGES AND OPPORTUNITIES

The astounding growth of online grocery sector across the world has brought into sharp focus the need to tap this market for extraction of maximum business value. The Covid-19 pandemic not only engendered a massive shift in consumer behaviour but also provided an opportunity for online grocery suppl...

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Bibliographic Details
Published inJournal of services research Vol. 23; no. 2; pp. 125 - 151
Main Authors Ganapathy, Venkatesh, Gupta, Chithambar, Chavadi, Chandan
Format Journal Article
LanguageEnglish
Published Gurgaon Vedatya Institute 01.10.2023
Subjects
Attitudes
Brand loyalty
Business models
Competition
Consumer behavior
Consumers
COVID-19
Electronic commerce
Grocery stores
Home delivery services
Internet
Millennials
Pandemics
Profitability
Shopping
Smartphones
Social norms
India
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Summary:The astounding growth of online grocery sector across the world has brought into sharp focus the need to tap this market for extraction of maximum business value. The Covid-19 pandemic not only engendered a massive shift in consumer behaviour but also provided an opportunity for online grocery suppliers to experiment with new delivery formats and business models. Despite the immense scope offered by this business, not all operational models have been able to achieve success. It is worthwhile to investigate the reasons for the same by exploring and uncovering various business models that have emerged in the Indian online grocery space and assess their impact in the long term. This research offers a glimpse of the evolution of the grocery business in India and the customer value propositions delivered by each of these models. Indian grocery business models have been majorly inspired by the West. Yet, it is a fact that consumer behaviour is not homogeneous across geographies. Designing new grocery business models must consider the uniqueness of the Indian grocery market. Grocery sector is a tough business to be in with elusive margins and Fastidious consumers who are price sensitive. An unsatisfactory shopping experience can make consumers defect to competition. A great deal of customer-centricity complemented by superlative inventory management capabilities and delivery excellence will lead to a profitable omni-channel grocery business model. The findings of the study clearly highlight the fact that there is scope for multiple grocery business models to co-exist in the Indian market characterized by different regional preferences and unique choices and preferences of Indian consumers. Sustaining the online grocery business models over a longer time will need appropriate strategies to generate revenues beyond commissions and delivery fees levied.
ISSN:0972-4702
2581-3412