Covid restrictions have long been removed but the ease of online grocery shopping is a lifestyle now. It has become a habit for many to have their groceries delivered at the doorstep with new players entering the market, many of which promise deliveries at the blink of an eye.
There are, however, numerous other reasons why people have moved to shopping for their groceries online. Convenience, quality and value for money are top factors why this habit is here to stay, as per a study.
The study, conducted by community social media platform LocalCircles, showed that close to 52 percent of online buyers make their purchases on a monthly or weekly basis, while 61 percent preferred a delivery slot as per their convenience without having to pay charges. Quality or value for money are top criteria for 67 percent online buyers, it showed.
There is also a group willing to get its groceries online “at any cost” as 3 percent household consumers are even willing to pay delivery charges if they want their items to be delivered within 30 minutes, while 11 percent pay a smaller fee for a delivery time of up to three hours.
Pilot ratings indicate that online grocery platforms like BigBasket and Amazon Fresh are leading on quality. Amazon Fresh is preferred for its service, Flipkart Grocery and JioMart on value, and BigBasket on a wide selection of items.
Owing to the pandemic, the online grocery sector in India has witnessed an unprecedented boost. Habits were formed and many still want their essentials to be delivered at their doorstep. Traditional online grocery suppliers currently offering services include BigBasket, Amazon Fresh, Flipkart Grocery and JioMart. And the past year has seen the emergence of several quick-grocery platforms like Swiggy Instamart, Blinkit, Dunzo, BigBasket Now and Zepto, which are known for delivering groceries within an average 30-minute time frame.
The survey conducted by LocalCircles was based on consumer experience with regard to how people are using online grocery and quick grocery platforms. It conducted a pan-India study on ‘Consumer behaviour and preferences for online grocery shopping in India’. The study focused on factors such as frequency of online purchase of grocery items; quick commerce for grocery needs; paying delivery fees; and key parameters of quality, convenience, time and value for money, for online grocery shopping.
In addition to the pan-India study, LocalCircles also conducted a city-level pilot in Noida to get consumer ratings across key parameters such as quality, value, service, selection as well as delivery experiences for all major grocery delivery platforms in India.
In the last five years, consumers have opted for e-commerce for value, customer service, quality and selection. Hence, the study first sought to understand what matters most to a consumer when ordering groceries online – arguably the most important of all parameters.
On an aggregate basis, 67 percent or two out of three household consumers sought value for money or high-quality produce and products as one of the primary parameters or reasons why they bought groceries online. This is in addition to convenience.
Quality as a parameter is also of high importance, especially when it comes to buying fresh produce online, as they cannot touch and feel the items. Value for money is extremely important as well because a typical household cannot afford to pay a premium to market prices and, hence, prices offered via online grocery platforms must be competitive. Selection or variety ranked third, but is still important as many consumers expect online grocery platforms to offer them a broader variety.
The study also focused on understanding the frequency of households when it came to ordering groceries online. It was found that among household consumers, who purchase groceries online, 52 percent do so on a monthly or a weekly basis, urgency being a key driver for only 17 percent.
Out of household consumers who purchase groceries online, 61 percent prefer either a delivery slot as per their convenience or delivery between three and 24 hours with no charges.
Another topic the study covered was understanding the kind of groceries purchased during the festive season. It was found that 47 percent consumers bought daily grocery items (atta, ghee, oil sugar, maida, etc) during festive season, while 31 percent splurged on items such as dry fruits, cookies, chocolates, mithais among others.
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