We appreciate the effort to create more consumer transparency, and believe that technology can help people lead better and healthier lives.
In a market where an average household has to travel over an hour to reach a supermarket, Grofers is utilising the entrepreneurial spirit of Indians to create an online experience that makes consumers feel like they are shopping in a neighbourhood convenience store (accessibility), while giving them the advantage of prices (affordability) and choice (assortment) that a large supermarket would provide.
We have looked through your report, and are highlighting some facts that may be useful for consumers:
Some of the prices that were picked up for Grofers have the wrong grammages:
We work closely with manufacturers to create custom items which won’t have a direct comparison in the market
For instance, the 50g*4 pack of coffee should be compared to our 100g*2 pack and not the price of a 50g pack multiplied by 4. You will find that equivalence in value to end consumers is what Grofers is always optimising for
2. Our merchant partners also pointed out that Grofers usually sells higher grammage items (since delivery and cost of stocking small sizes works better for offline, but doesn’t work when the store is an online kirana)
We did a quick check on this and came up with some of these numbers (table below). You will find that based on location, this would put Grofers in the second or third position, competing closely with DMart (more on that in point 4 below)
Conservatively, we have taken the analysis in which we put in higher sized products and ran a comparison on % savings generated. That puts Grofers in the second position behind DMart on the basket you summarised
3. Also, the basket chosen for typical products skews to western markets.
India is proudly diverse and Grofers, like a lot of other players, customises assortment every few kilometres. That is how our offline system has evolved to solve for consumer needs and what online needs to replicate
For instance, Society Tea as a benchmark does not exist in the northern markets and typically coffee would not be a core basket item
4. The Smart Bachat Club membership offered by Grofers’ merchant partners further reduces prices significantly for consumers over and above the comparison done so far.
It also takes care of delivery charges, which some players like DMart always charge consumers at 3% of the basket value
Hope this is helpful for you. Excited to further engage and see if we can do this as a regular feature - will keep us on our toes :)
3 months ago, the team at grofers set out on a journey to transform how we buy everyday things into a delightful experience that helps everyone live a stress free life without planning and become the best version of themselves outside the chore of looking for t
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