The evolved Tier 1 city consumers reflects the fastest growth of increasing spend
RedSeer Consulting & bigbasket, have come out with a first of its kind Online Food & Grocery report.
The report predicts that the retail market will touch 1,385 billion dollars by 2023. Consumers who are loyal adopters of online platforms reflect high levels of engagement. A worthwhile observation is that this high engagement metric is witnessed across city type: metro-centric and Tier 1/2 Indian cities alike and not restricted to the Metro cities.
Commenting on the report, Hari Menon, Co-Founder and CEO, bigbasket said, “The online grocery segment has been one of the fastest-growing e-commerce verticals in India and will continue to flourish in both metro and non-metro cities in the years to come. Given the lack of concrete data around user patterns, growth trends and consumer preferences related to online as well as offline grocery retail, we decided to partner with RedSeer Consulting to launch this report. It is a comprehensive study that delves into various customer segments, online shopping trends, city-wise penetration and price elasticity displayed by the consumers across different retail channels. It will serve as a comprehensive compilation of the Indian online grocery retail market that can act as a reference to FMCG Brands, Research companies, Marketers, Venture capitalists, Industry experts. Existing and upcoming online players in the arena.”
Commenting on the report, Anil Kumar, Founder RedSeer Consulting said, “Share of modern retail segment will jump from 3.5 percent now to 6.7% in 2023 and of the online channel will witness 55% growth lending to a sizable $10.5 billion market by 2023. This retail food & grocery report offers comprehensive coverage across 40 categories marking key consumption sectors of a typical grocery basket. Unique insights garnered cover how online platform facilitate creation of niche sub-categories as well as evolution of challenger brands.”
Pakhi Saxena, Head – Retail & CPG, RedSeer Consulting said, “The food & grocery compendium will enable brands to define potential consumer segments as well as index categories for scale, growth and premiumization.”
The evolved Tier 1 city consumers reflects the fastest growth of increasing spend. Tier 1 cities are marked by low modern retail penetration vis-à-vis Metro and Mini Metro cities and these modern retail stores are mostly located in the central region of these cities. Online channel has marked its presence across multiple catchments owing to wide product assortment and convenience offered by online platform.