• April 1st was one of the many firsts at Grofers-  

    • It was the first April 1st when we didn’t try to do a joke (I am told the teams were way too busy to be bothered)
    • We crossed ₹7.8 cr in Sales on this day (beating our previous best by a healthy ₹1.75 cr)
    • We sold and shipped 745,472 products from our warehouses on the same day
    • Our small manufacturers’ program clocked almost ₹2 cr in sales (not counting FnV) – our attention on this program has only been 6 months deep 
    • April 1st, 2017 was only a ₹1.42 cr day for us, however, April 1st, 2018 put in comparison showcased a tremendous growth over the last year – the kind of leap Team Grofers has been working hard to achieve
    • Our Smart Bachat Club Program crossed the 150,000 subscriber mark exactly 90 days after launch.

    I think we have kicked off the new financial year on the right note. However, it is also in our best interest to understand what has driven the growth for Grofers over the last 12 months. As much as we can give credit to our strategy and focus (which definitely helped), there is a fundamental shift happening in the market which is fuelling growth. We made our focus shift towards the real India, believing it was ready for what we were offering. Sharing a few data points that will explain why 1st April’18 demanded an explicit write-up!

    Thank the ladies

    Back in April of 2017, 69% of our users used to be male and primarily belonging to the SEC A+ segment. Easier to understand looking at the graph below. Yesterday, of the carts we have been able to identify, 75% of our users are female and accounting for almost 80% of the sales on the platform. This is a dramatic shift on so many levels when it comes to online shopping but makes sense when you consider it from the perspective of grocery shopping. Women of the household switching to grocery shopping via the app is a testament to the comfort that the market has been able to provide middle-income Indian customers to change their behavior to shopping online for grocery. We knew this shift was underway over the last year, however, what we are seeing with women buyers is that they are loyal shoppers who build trust based on quality and consistency. If we are appealing to these customers and bringing them into the fold, the next few months will be very interesting. We indeed take pride in calling ourselves #SuperMrsKaSuperMkt.

    Factoid – 12% of new users on the Grofers platform are first time online buyers.

    The JIO effect

    42.96% of the users on our platform are using Jio as their service provider. The impact of JIO on our TG has been dramatic, particularly with what our customer research team has segmented as “The Second Phone Phenom”. A lot of our customer households have moved to online grocery as a result of affordable data connections – which means more than one person in the household has a data connection (typically the woman of the house is that second person). This accounts for the increased presence of women on the platform and gives substance to the next point.

    Factoid: Our Cash-on-delivery percentage among women is almost 50% higher than among men – likely meaning women are still not as comfortable with digital payments as men.

    Lack of Retail Presence

    I have put down our heat map from periscope of the orders we received on April 1st, 2018 in Delhi NCR. Around 50% of our orders have come from sectors of the city we had demarcated as high population density, low income. The common characteristic in all these areas is the significant lack of organized retail in these neighborhoods. We mapped this data to the records of vehicle registration in Delhi NCR and found that these neighborhoods register 20 motorcycles for every car that is registered there. While a lot of factors influence the presence of organized grocery retailers in these areas, (real estate availability and cost being primary) our takeaway is that customers in these areas are looking for better solutions for their monthly purchases rather than just using the local Kirana.

    Assortment is king

    Enabling small manufacturers to sell their products through Grofers was an initiative we launched in the month of July last year when we started setting up a team across regions to onboard small local manufacturers to sell on Grofers. These products have a hard time finding a presence on store shelves and suffer a lot in the distribution while competing with national brands. Yesterday, these brands contributed >20% of our overall sale. Not only the RE (Regional and Economy) products provide better price points but are also products that are really curated by the local tastes. From Neeraj Tea in Gurgaon to Govardhan Ghee in Mumbai, these are products that a lot of middle-income customers had a hard time accessing, except on their trips to Sadar Markets. The outcome is better assortment for our customers and increased sales for local manufacturing. We continue to work with a lot of these brands to help them with better visibility and distribution – falls in line with one of our goals of being able to make small manufacturers 50% of the Grofers platform within the next 12 months.

    We do a  lot of cool stuff around user behavior and market dynamics. If you are still reading and want to join the journey to transform how groceries are bought in India, we are hiring across all functions. Please shoot me an email at albinder@grofers.com and we can chat. We still have a long way to go and things will only keep getting more interesting.

    Leave a Reply

    Your email address will not be published. Required fields are marked *