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New to the grocery c-commerce? Note this!

From our research we have the following suggestions in terms of strategy for current competitors or new entrants to the e-grocery market.
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  • Understand the acceptance of grocery e-commerce
    Many start ups which failed across geographies, economies and business models, failed due to a lack of 'customer acceptance'. Some said the customers were not ready for their product / service, some said they just did not have traction in that particular market because of a lack of marketing.



     
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  • Reason:
    The successful start ups spent a lot of time researching the market they were entering. They did this via
    • Customer Surveys
    • Prototype runs
    • Consumer Behavior Analysis​
  • Check for sustainability and scalability
    Companies should check for the scalability of their business model so that in the long-run, they do not face any difficulties during expansion.
    Companies should understand if their business model is sustainable within the markets they are going to be present within. This is because business models are critical in long-term profit and revenue generation.

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  • Reason:
    This was seen in the case of Grofers and is an extremely critical point to any business’s survival within competitive markets.

A closer look at food e-commerce

Grocery c-commerce? Welcome to the Jungle!

On one hand we have the wave of disruption that leaves most traditional businesses completely changed in its wake. 
On the other we have the grocery industry - a $600 billion behemoth which is the most resistant to any change.
When an unstoppable force meets and unmovable object, we have the challenge of the century.​
 

Many have entered grocery e-commerce and fallen.
Some have succeeded - barely.
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We have scoured the lands and travelled through time to undertand this crazy and peculiar industry. Here we present forth our findings.`

  • Influence early adopters and then expand.... slowly
    Capturing the potential market for the business vertical or in a specific geographical location is important as it weighs in for the potential failure or success. Using the success of the first potential business vertical and or geographic location new locations and businesses can be introduced.

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  • Reason:
    Amazon Fresh was in beta for a long time before they expanded to new cities
Overall conclusions

From our research we came to this conclusion about the e-grocery market.
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  • Average Income of people to are interested / buy e-groceries is about $70,000
  • Shopping for groceries online is mostly done by customers in the age group 18 - 34 years
  • Customization works
  • Product differnetiation is required 

This is a research study done for the course 'Managing Disruptive Technologies' at Carnegie Mellon University

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