Sahil Shah, managing partner, WATConsult says hyperlocal e-commerce shoppers will increase by 52% to reach 214million by 2022 end. He says major growth comes from metros and there is huge potential also in small cities and towns in the future. WATConsult report says the number of niche brands in local markets in categories like home décor, groceries, medicals, etc. has seen a rise day by day. Traditional brands shifted focus toward the hyperlocal and to the end consumer. This is happening because of the huge use of the internet and changing consumer behaviour.
By WATConsult report title “digital commerce in India-Hyperlocal commerce” shares that there is a huge demand for hyperlocal delivery and gives insight into how covid pandemic affects hyperlocal usage, also captures the benefit and challenges. As per this report, this model of e-commerce has seen a customer surge not only in metro cities but also in small cities and towns. Of e-commerce users, 48% are hyperlocal commerce shoppers in India which is around 141 million. And this hyperlocal commerce shoppers will increase at the end of 2022 by 52% to reach 214 million.
This led to an increase in the use of hyperlocal apps. After lockdown, everyone thought that it will get normalized but it seems to increase day by day. E-commerce will witness the growth of this hyperlocal market in the coming days.
However, shah says that in terms of sales value hyperlocal markets are less contribution to overall revenue, less because of the nature of products sold through this channel. Apart from that its user base will be on a rise in the future.
This report also gives insight that while Zomato is on top of the most used hyperlocal app other apps are also the popular choice among the consumers these are Amazon Fresh, BigBasket and followed by Grofers, and 1mg. in hyperlocal channels there is a huge potential for products like food, medicines, and groceries. As compared to big modern trade chains, hyperlocal e-commerce channel enjoys the advantage of having lower fixed cost and will rise in future.
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