In India, the rate of urbanisation has increased to a considerable level since the 2009 census, as per the United Nations (UN) World Urbanization Prospects 2018 report.
The fast-changing urban lifestyle and the new trend of living, for multiple purposes, employment being one have eventually resulted to the growing demand of Branded Packaged or Comfort Foods in India which is also estimated to grow 12-14 per cent CAGR.
The young urban Indians aged 16 to 40 years constitute the major segment of this market. They spend over 40 per cent of their income on food, are ready to experiment, and are willing to pay a premium for better quality, variety, and taste and India being the young Nation with a median age of 28.4 years will always enable an increase in the desired demand and brand share of voice.
On the other hand USD 300 billion Indian retail market, the ubiquitous Kirana stores (approximately 91 per cent) are in great demand as many companies vie for their loyalty and customers.
Approximately 12 million fragmented retailers are attempting to meet customer needs in every nook and cranny of the country, while facing stiff competition especially with these organised hyper retailers, which makes their survival limited to last-minute consumers' shopping.
Amidst this lens of conclusion, Mumbai-based HiGrocer India, a consumer product company, which currently markets ten products under three Brands spread over two Categories in a short span of operation, looks to capitalize on the innovative disruptions the company is implementing, tethered by technology as their backbone and interface, helping the unorganised retailers with accessibility, affordability and assistance in more earning power.
"Our Go-to-Market strategy is our USP, as it brings scalability, flexibility, empowers retailers and enables building brands, we work on a hybrid model encompassing key pillars of a consumer company, i.e; products, retailers, consumers, and supply chain with technology, which keeps our operation cost at marginal and enhance off-takes," said Dharit Parikh, CEO HiGrocer India.
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Currently, markets across 1000 Retailers in Mumbai and nearby areas and are showing healthy growth with 'Ayyappa' - Idli Dosa Batter, 'Rodel' - range of Frozen foods, both under Ready To Cook category and Toor Dal, Chana Dal, Yellow Moong Dal, Rice and Brown Rice as 'Nutrifields' under Staples, providing high quality, high margin and higher ticket size products to retailers.
"Our product categorization is an outcome of this focused customer segmentation; unorganised retailers which are catering last-minute consumer thirst for packaged foods and mobile SKU of other edibles are low hanging fruit for us to make our GTM penetration strategy easy and widely accepted," further stated Dharit Parikh.
HiGrocer, does exclusive Brand co-owned agreement with manufacturers who have been wanting to make a mark in the retail foray and creates brand, assisting in; the concept of shared resource in FMCG to create the most advanced sales and distribution model which gives maximum retail coverage which is marketed by HiGrocer.
They do the retail tie-ups and ensure product placement, our tie-ups with retailers are made with a committed shelf space or gondola space named "HiGrocer", and we have a dedicated planogram for the shelf.
Their partnered products are warehoused in vicinity directly from the manufacturer's factory and delivered to the retailer shop.
Tethered by their technology enables market access concept whereby a product can be directly delivered to the retailer's shop from the manufacturer's factory through our SalesMax and Delhi mechanisms without having to go through the multiple layers of marketing, thereby providing an efficient and effective supply chain system.
"HiGrocer tries to bust this myth of unorganised retailers, The biggies, however, need to do a lot more before they can actually convince a consumer for a last-minute purchase beyond Kirana store," said Aniket Sharma, COO HiGrocer India.
This story is provided by NewsVoir. ANI will not be responsible in any way for the content of this article.
Disclaimer: No Business Standard Journalist was involved in creation of this content
