FORBES: DMart: The juggernaut continues to roll for India’s value shop
FORBES: During the IPO roadshow, while investors were excited with how DMart had kept costs low, they were concerned about the potential threat from online retail. An aggressive move towards groceries by Amazon or BigBasket could have DMart on the backfoot. RedSeer Consulting estimates that there are 45 million online grocery transactions across India, which have far less widespread adoption as compared to, say, books, mobiles or clothes. Each customer shops about 10 times a year, making the online grocery shopping population 4.5 million strong. “Even in areas where there is direct competition, the online grocers haven’t been able to challenge the offline guys effectively as people want instant fulfilment, pricing and a wider range of products. As of now, online grocers are still struggling to get the unit economics right,” says Mrigank Gutgutia, ecommerce analyst at RedSeer Consulting.
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