In grocery, especially in perishable categories like vegetables and fruits, the companies have to

be more focussed. With too many categories in hand, horizontals have not been able to allocate
enough resources in just one category. However, a wide supply chain infrastructure is their
advantage and will have to see how they focus on grocery category.

Tie-ups with farmers and producers and brand trust allow them to be heavy on private label
products, which support profitability.

A few smaller vertical players like Satvacart, SpiceBe and Kada have come up in select cities.
But they are not able to scale up their model due to lack of differentiation and hence have just
one per cent market share.

Tie up with partners for omni channel presence

Grocery is a category that needs focus in terms of user experience and brand trust.
Management of supply chain and delivery cost too are key things to be taken care off. Many of
the new entrants have not been able to differentiate their model yet

Following suit of Amazon who had set up 15 fulfilment centres in India to assist in delivery
of groceries, Flipkart has set up a 150,000 square foot centre in Bengaluru. The e-tailer has also
employed a delivery fleet for groceries.

Grofers transitioned to an inventory-led business model from a hyperlocal one about a year
ago.
Understand inventory vs hyperlocal model
Understand warehouse vs fulfilment center

It began investing in improving its supply chain and technology, cutting costs, reducing
operations in several cities and removing unprofitable products to survive in the intensely
competitive grocery business.

 Cold chain logistics

 Robotics
 Hyperlocal
 Features for UI UX
 Outsource activities in high attrition areas and high cost -
  Increase private labels
 Improve on quality control
 Keep tech in house
 Multi-channel approach – bb certified,
 Develop tech in whole supply chain – farmers etc
 Hub and spoke –

1. Sourcing/procurement – analytics, streamline, quality assessment – vendor management-

grade vendors, move out bad vendors, give incentive –
Private labels – localise more suppliers, extend pan country delivery, expand to mortar and
brick- south ka gun powder, bigger margins- taste of India
2. Operations – warehouse, fulfilment centres, delivery, robotics, drone.

3. Delivery – outsource

4. Technology and quality – dedicated workforce.

5. Customer service – order and pick, subscription, open up API, cooking

Inhouse vs outhouse - hybrid

Challenges and Decision to enter – city data,

Challenges – limited money – hence fulfilment
Difficulty in hiring new people – outsource a few things
Not getting good quality- good farmer vendor development, new team to manage logistics
Improve logistics management – technology
How to respond to competitive threats -