India's largest online marketplace will launch a grocery offer in 2017.
CEO expects online grocery to grow rapidly
Flipkart's CEO, Binny Bansal, has confirmed that the company will test online grocery shopping next year, looking to scale up the operation over the next three years towards 2020. Bansal believes that although grocery is currently a small part of online sales in India, within eight years it has the potential to grow to achieve similar sales to that which the retailer achieves via selling clothing. However, Flipkart knows that stepping into grocery online retailing will be challenging.
India's online market remains highly fragmented
India's online grocery market is highly fragmented with both bricks and mortar retailers, as well as countless pureplay operators already looking to gain a significant foothold in the channel. Flipkart will need to continue to evolve with the times, having come under increasing pressure from Amazon's investment in the market in recent years. Amazon is already selling groceries via its marketplace in India, with its Kirana Now service allowing traditional trade outlets to sell products online to customers in select cities.