Sunday, May 15, 2011

Two major issues in going online with grocery.

All our research and informal interactions with shoppers and FMCG business managers (retailers and owners) point towards two issues why the online grocery /essentials business model has not taken off yet;

1. The inability & unwillingness of shoppers to wait for days for delivery of essentials. The shoppers do not view shopping of essentials in the same light as buying books, etc. online.

2. The reluctance of a majority of shoppers to use their credit cards for essentials shopping. This is not only true for grocery but across most internet based businesses.

Other concerns include the need to experience the purchase, personal selection of goods.

AaramShop, by vertue of it's unique hybrid retail model eliminates the two of the largest concerns expresses by shoppers. The hybrid retail model ensures that the purchased items get delivered in matter of hours and not days and that too without the escalation of the price. And the model eliminates the need of credit card purchase completely.

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