Online grocery shopping on the rise: survey

One in every four respondents who participated in the survey said she/he used quick commerce grocery apps to buy essentials and indulgence food online

Suneera Tandon
Updated18 Feb 2022, 01:09 AM IST
One in four households use apps to buy grocery.mint
One in four households use apps to buy grocery.mint

Enhanced last-mile delivery capabilities of online grocers have prompted more and more consumers to order last-minute essentials, and indulgence foods online, despite the easing of covid-led restrictions, according to a survey by LocalCircles.

“Since the first phase of the pandemic in March 2020, many households have taken to e-commerce sites and apps for all types of shopping needs, getting what they need delivered at home and minimizing contact with others. Emergence of quick commerce has changed the on-demand delivery landscape by reducing delivery time from 12-24 hours to 10-60 minutes,” it said in a report released on Thursday.

One in every four respondents who participated in the survey said she/he used quick commerce grocery apps to buy essentials and indulgence food online, it added.

The survey received over 30,000 responses from Indian consumers from 272 districts. While 49% respondents were from tier-I cities, 33% were from tier-II cities and 18% were from tier-III and -IV cities and from rural districts.

It said one in 10 households buying groceries online is placing over 10 orders a month using quick commerce apps. Of those, 71% are using them to purchase last-minute essentials and indulgence foods, while 29% are buying regular groceries, it added. Last-minute essentials include milk, bread, egg , and vegetables. Indulgence foods include ice cream, soft drink, and chocolate. Over 85% respondents said a wide array of products, availability and price were the top drivers for shopping on apps, while 8% said fast delivery was the driver.

LocalCircles also conducted a pilot consumer rating study to understand consumer preference for such apps. The survey involved more than 650 residents of Noida who used one or more apps for online orders between 15 September 2021 and 15 February. The study found Blinkit and Swiggy Inst-amart offered fast delivery, but rated poorly on value for money and customer service. It said Blinkit, Instamart and Flipkart led the pack on delivery, Big Basket was highly rated for selection and service, Jio Mart for value and selection and Amazon Fresh was the most preferred for service.

“Pilot study indicates quick commerce platforms will need to work on selection, value, quality and service, while the established platforms need to reduce their delivery times to 30–75 minutes to gain profitable market-share,” it added.

India’s grocery retail market is expected to see 6–7% annual growth by 2025, according to estimates by McKinsey’s.

To cash in on the opportunity, many quick commerce platforms have mushroomed across India and have drawn investor interest. For instance, 10-minute grocery delivery startup Zepto, raised a $100 million Series C round in December at a valuation of $570 million within five months of its launch. Also in December, Swiggy said it will invest $700 million in Instamart to scale up its non-food delivery categories.

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First Published:18 Feb 2022, 01:09 AM IST
HomeIndustryRetailOnline grocery shopping on the rise: survey

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