1. eGrocery has continued its promising ride in the COVID unlock period
E-Grocery, Monthly GMV, Growth Recovery Curve (Indexed to 100)
Jan 2020 = 100, (1st Jan – 30th June’ 20)
eGrocery GMV has experienced continue increase, even in the unlock phase. While staples category has seen a steady growth since March, fresh category has been on a roller-coaster ride. Post the drop during initial lockdown in April, the category has recovered very strongly in the May-June period.
2. COVID-19 has layered in benefits for all types of eGrocery models
eGrocery models have seen multiple benefits during the COVID period. After doing promising business during the lockdown, verticals are now realizing improvements in profit margins. Horizontals have seen huge uptake in business in recent months, riding on their consumer base in T2+ cities. Moreover, hyperlocals, meat super-verticals and morning delivery players have gained prominence during the COVID period, because of incremental value they’ve respective brought in for their consumers.
3. JioMart is likely to onboard 2 Mn household in 2020, riding on the enormous Jio-enabled internet opportunity in Tier 2+ markets
eGrocery Household Estimates (with JioMart)
Number of Households, Mn
With presence across 200 cities in India, most of which have limited or no eGrocery penetration, JioMart is set to onboard 2 Mn households by the end of this year year. Consumer trust towards Jio in Tier 2+ cities, will hold the key to drive this adoption. Driven by this and the new 5.5 Mn households to be added by other eGrocery models, the eGrocery market will be able to reach a total of ~12 Mn households in 2020.
Internet Usage Funnel – FY 20
Number of users, M
JioMart has a huge edge in terms of Jio internet-enabled userbase in India. Almost 65% of users with internet access use Jio today and a large section of them are present in Tier 2+ cities. Moreover, most of these Tier 2+ users are untapped by the existing e-commerce platforms.
Hence, Jio has the chance to ride on this attractive untapped opportunity and provide online retail services (including eGrocery) via JioMart.