Flipkart, one of the largest e-commerce website in India is planning to enter into the Online Grocery Delivery. Currently in India, Online Grocery Business is not up to the mark. This has become the tricky business. Recently, PepperTap has closed down their hyperlocal delivery system in India and Grofers, another online store also closed their operations in 9 cities. Apart from these, amazon has recently entered into the Amazon Pantry service in the country.
As per the reports, Flipkart is having the serious plans to expand their business portfolio by extending into the groceries and re-enter into the furniture business too. Binny Bansal CEO of Flipkart said “There’s definitely room to build a profitable grocery business, but it’s hard. That doesn’t mean it’s not possible, but it’s hard.”
Currently Grofers and BigBasket are the leading in the online grocery services. This business is not a simple thing or a very attractive business. It is with the high operations cost and the delivery issues with the perishable goods which is still unsolved.
Flipkart said that, it wants to experiment this Grocery business in the starting of Q1 2017 and see if it can really get into it. Thinking about the long term the company is feels it will have lot of potential like the other segments in the coming 3-4 years as the product will standardized and it gets easier for the transport materials.
The company has entered into online furniture business for the first time in August 2015. But it did not make the enough jump with the market competitors like PepperFry and Urban Ladder which has become mainstream and more attractive.
Generally it is difficult for the companies to diversify and compete with the particular online services. These will tied-up with the services like the HomeTown and Durian for offering the range of products.