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DMart And JioMart Can’t Keep Up With Dunzo, Swiggy Instamart, Ola Dash

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  • Fast trading platforms like Dunzo, Zepto and Blinkit are ahead of the shops when it comes to fast delivery at your convenience.
  • Messaging in India’s major cities is set to undergo an unprecedented tech(h)tonic shift, led by high-speed trading platforms, a report said.
  • Meanwhile, DMart is still aggressively opening stores in parts of the country to return to pre-covid levels.

The stores come to the consumer – figuratively. The local kirana store or the largest retail chain in India, they are all eager to get a slice of the online delivery market.

For example, DMart set up its home delivery app and pick-up centers after processing its bulk orders during the pandemic. Reliance Retail has also entered this delivery business with little success with its JioMart app, although it has also invested in Dunzo.

time matters
When it comes to the delivery market, it’s not about what you deliver, how you deliver, but ‘when’ you deliver. The majority of online grocery delivery depends on timing, which is why fast merchants walk away with a lion’s share of the pie.

“Messages in India’s major cities will experience an unprecedented tech(h)tonic shift, led by high-speed trading platforms,” according to a report from JM Financial.

The online supermarket market has two segments: fast commerce and scheduled e-grocery. Only Jiomart, Bigbasket and DMart are planned e-grocery stores, all other platforms are in a race of fast delivery.

And the segment seems to be ruled by the “10-30 minute delivery” offered by platforms like Swiggy, Blinkit, Zepto, and Dunzo. However, most chain stores that want to deliver groceries have a one day delay between order and delivery.

In addition, fast trading platforms address multiple consumer pain points, such as convenience, speed, curated assortment, value and round-the-clock standardized services.

Online food ordering is also contributing to the growth in the e-grocery market. Customers who order food online for convenience, a wider selection, discounts and standardized customer support are also likely to be more likely to order groceries online for the same reasons. This opens up cross-sell opportunities for food techs such as Swiggy and Blinkit, which are merging with Zomato.

Paan to curds – fast trading delivers it all
A February 2022 survey by LocalCircles shows that 71% of households used q-commerce platforms to order products for daily use, such as milk, bread, eggs, curd, fruits and vegetables, etc.

They also ordered indulgence products such as soft drinks, ice creams, chocolates and paan. But only 29% of surveyed households used q-commerce for ‘all their shopping’.

However, for the bulk purchases, the large format stores are still in the running because people go to the stores. DMart is still aggressively opening stores in parts of the country to return to pre-covid levels.

“We believe it will accelerate store expansion and the benefit of the recent expansion has yet to fully kick in – revenue intensity is below pre-Covid levels,” analysts at ICICI Securities said after the March quarterly results.

Redseer estimates that the size of the supermarket market in India was worth $620 billion in 2021, which is expected to grow at a CAGR of 8% over the next four years to more than $850 billion by 2025.

Quick commerce is all set for the long term
Quick commerce players are also competing for a bigger slice of the whole pie. The quick ordering can start with fresher foods such as fruits and vegetables, meat, dairy, and other ready-to-eat products; and also indulgence categories such as chocolates, cookies, snacks, cold drinks and tobacco. But it can also extend to others.

“We also expect grocery staples, cooking supplies, pharmaceuticals, baby and personal care, home care and pet care to grow as consumers become more accustomed to ordering through the platforms,” according to the JM Financial Report.

Recently, Swiggy raised $700 million for the fast grocery shopping service Instamart. Zomato donated $150 million to fast-paced commerce startup Blinkit. Zepto raised $200 million and finally, Reliance Industries also caught the fast trade train by investing $200 million in Dunzo.

This also means that competition intensity is likely to be severe in the near term, both between them and with the major retailers.

“Only those platforms with very strong customer recall, a robust back-end supply chain and/or strong balance sheet are likely to survive this war of attrition,” the report said.

JM Financial believes fast delivery platforms have what it takes to disrupt the disorganized grocery market, including the neighborhood kirana stores or even chain stores like DMart in major cities.

Platform Earliest delivery option
jiomart No timeline recorded
big basket Next day morning
DMart Next day morning
instamart 25 minutes
blinkit 50 minutes
zepto 23 minutes
Dunzo 41 minutes
Big basket Now 30 minutes
Ola Dash 10 minutes
Amazon Fresh 3-4 hours
Flipkart Fast 90 minutes
Fraazo 90 minutes
FreshToHome Next day morning
Licious 3-4 hours


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