India to have 214 million hyperlocal e-commerce shopper by end 2022, says report

NEW DELHI: India will have a 214 million hyperlocal e-commerce shoppers by the end of calendar 2022, up from the estimated 141 million as of now, according to WATConsult, Dentsu India’s digital agency.

On Tuesday, the agency launched the ‘Digital Commerce in India-Hyperlocal Commerce’ report as part of a series mapping digital commerce trends.

Hyperlocal commerce shoppers in India account for 48% of all e-commerce users in the country as of now, with a huge surge in consumers in metros and beyond, it said.

Some examples of hyperlocal e-commerce are: Dunzo, 1mg, UrbanCompany, BigBasket.

Zomato tops the list of the most used hyperlocal apps while SwiggyGo, Amazon Fresh and BigBasket are some of the other popular choices among consumers. This is followed by 1mg, Grofers, and UberConnect.

Hyperlocal utility services are expected to gain more traction and this can be primarily attributed to growing disposable income, working population and a greater need for convenience, as per the report.

Hyperlocal services adoption and accelerated growth in e-commerce industry has led to a paradigm shift in India's shopping behaviour, with first-time e-commerce users rising during the lockdown and contactless delivery and digital payments becoming the norm, the report added.

Local food delivery stood out as the top-most used hyperlocal service, followed by local logistics and groceries and vegetables. Meanwhile, 33% of those surveyed said they use such services for their speed, while 27% attributed unique product and service offerings as a key reason to use such service.

“Hyperlocal businesses have been rapidly growing with the potential of expanding exponentially. There has been an increase in the number of brands emerging in this space and it will consolidate even further, over the next few years. Hyperlocal’s collaboration with local stores and the connect they build with their customers digitally is benefitting all the stakeholders as now they are all connected to the supply chain model,” said Heeru Dingra, CEO, Isobar India group.

Meanwhile, the pandemic led consumers towards more digital touch points when it comes to shopping.

“Amidst this shift, hyperlocal has been one of the top priorities for all D2C brands as well as marketplace-heavy businesses. This new model of hyperlocal has enabled local retailers to increase their market share,” said Sahil Shah, Managing Partner, WATConsult.

Findings of the report also revealed that a majority of young customers belonging to the age groups of under 18, 18 to 24 years and 25 to 34 years have been seen using Zomato, SwiggyGo, and Amazon Fresh.