Deep Dive: Grocery & Personal Care, Pt. II

According to estimates Indian e-commerce will reach $112 Billion in GMV by FY25, growing at a 29% CAGR over FY20-25E. As per Vumonic, nearly 50% of volume is generated by Grocery and Personal Care category. This is mainly due to the large basket size for Grocery & Personal care vs. other categories. However the overall value contribution of these categories is about 10%. Meaning? Well, that grocery and personal care items cost less per item than other higher ticket categories (like electronics).

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Lower value contribution indicates there is significant headroom to grow these categories further. Apart from the all weather top platforms Amazon, Big Basket, Flipkart and Nykaa, there are many new platforms mushrooming. Zepto, Blinkit, Swiggy Instamart, Ola Dash, DealShare and Jiomart are all addressing the q-commerce needs of the developing ecommerce consumer.

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Analysing platform preference by user’s age is meaningful for platforms to pick up key target groups and sharpen their communication focus. Overall, the young age groups -- Less than 25 yrs & 25 to 35 yrs -- are the largest battlefield, contributing more than 75% of value and volume in the Grocery and Personal care category.  

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Having analysed more than 300K Grocery and Personal Care items sold on these platforms from the period of April to Sept 2021, no one has more data than Vumonic to understand the consumer behavior in these categories. From our view, it is interesting to note that Big Basket captures 3 out of every 4 orders among the mid to older age groups. Even in 25 to 35 years it has nearly two-third market share. This near universal lead is primarily due to first mover advantage, great quality, and value delivery.

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Nykaa is also key to watch here, as it is the only profitable and listed e-commerce platform in India. Nykaa has an enviable lead among the young, urban females – an audience segment which will grow significantly in value and volume contribution to ecommerce.

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Keep watching this space for more interesting trends and insights on Indian ecommerce and online space! And subscribe to the #VumonicPulse newsletter to get even more industry insights for ecommerce.

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Blog written by : Anupam Asthana

Date: 25 Apr 2022

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Vumonic Datalabs is a global consumer intelligence platform. We provide high quality, deterministically linked, large structured data that can be used to derive deep consumer,  business and market insights. Our proprietary data pipelines deliver unbiased actual transaction data collected in a privacy secure manner via large global panels.

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