Low, Middle-Income Households Present Next Big Opportunity For E-Grocers
The New Indian Express Chennai|March 03, 2021
India's low and middle-income households are now at the centre-stage of the e-grocery battlefield amongst heavyweights including the likes of Tata Group, Reliance Industries as well as e-commerce majors —Amazon and Flipkart. In fact, these low and mid-income households form a chunk of the tier-2 market (nearly 58 per cent) as compared to metro cities (42 per cent). according to a Redseer analysis, value-driven households in India who prioritise discounts, exchange policies and cash backs are driving the shift in buying behavior from offline to online contributing 61 per cent of the $293 billion market opportunity.
Bismah Malik
Low, Middle-Income Households Present Next Big Opportunity For E-Grocers

However, the key challenge comes from the traditional kirana shops (or, the unorganised market), that account for 95 per cent of the overall grocery market and have a strong presence in the hinterlands.

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