Wednesday, April 25, 2012

Online grocery buying is not a ‘youth’ activity: AaramShop Report

According to the State of Online Grocery Shopping (SOGS) report in India done by Online grocery store AaramShop, both men and women, 24 years and above age groups constitute over 75 per cent of the actual online grocery buyers. Therefore, the purchase pattern still suggests that the bulk of grocery buying is not really a “youth” activity. There has been a slight increase in the number of female buyers comprising 39 per cent of the total buyers vis-à-vis the figure of 37 per cent in the first version of SOGS.
This report focuses on and highlights specific trends around the Indian shoppers’ behavior when they shop for groceries and daily essentials online. The report is based on the purchase patterns of FMCG/ CPG brands that are freely listed on AaramShop in 30 different product categories.
The report further held that the 18 to 24 years age group has started buying as well, and make for approximately 24 per cent of the total buyers. In terms of value of what is being bought, men have averaged Rs. 580/- while women have averaged Rs. 552/-.
In terms of where are the shoppers are located and when do they shop, the report says that New Delhi (including NCR towns like Gurgaon, Noida, Ghaziabad), Mumbai and Bangalore are among the most active cities. Others such as Chennai, Ahmedabad, Pune, Kolkata and Hyderabad have also gone live in the recent past.
The report has further observed a fairly well spread out ordering schedule across the entire day, except between 12 AM at night and 6 AM in the morning, when ordering is not very significant. “Most orders (30 per cent) have been observed to take place between 6 AM and 12 PM. More than 90 per cent of orders are for same day delivery, particularly planned for late afternoon and early evening. In terms of buying behavior across the days of a typical week, most buying is happening on Monday (16.77 per cent), Sunday (16.57 per cent) and Saturday (14.99 per cent),” the report has pointed out.
In terms of what is being bought online, the top 5 categories make up 51.53 per cent of the total value of products ordered online. Further, the top 5 categories make up 50.64 per cent of total volume of products ordered online. The top 20 brands make up 50.21 per cent of the total value of the products sold, and 37.56 per cent of the total volume of products sold.
AaramShop enables the neighborhood retailers (also referred to as “mom & pop stores” or “kirana stores”) to have a web-based storefront to better connect with their existing and potential consumers within their catchment area. AaramShop does not charge the retailers, consumers, or the brand owners for the basic listing or transactions, and does not disrupt the existing distribution models. AaramShop has now spread across 26 cities in India, with over 1900 AaramShops.
Originally published in India Digital Review 

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