Amazon Sees Excellent Potential For India Grocery Service: Executive

Key Takeaways: 

  1. Recently Amazon confirmed that their grocery business would spread deep into India as they shut down some smaller units. 
  2. E-grocery acceptance in India's smaller cities and towns resulted in growing grocery demand. 
  3. Amazon stated that it had partnered with farmers to supply fruits and vegetables to customers, aiming to source products locally.
  4. Amazon will be providing various employment opportunities to carry grocery business.
  5.  According to the statement made by Amazon Fresh Director, Amazon wants to go deep into India and will continue to provide a full basket selection to consumers. 

Dive Brief:

  • "We are planning to continue expanding grocery service in India," noted Srikant Sree Ram, director of Amazon Fresh, in an interview. 
  • Almost 65 percent of orders and 85 percent of new customers for Amazon India come from small towns and cities.
  • Srikant Sree Ram stated that their priority is to invest in delivering high-quality groceries, which is a big decision point for consumers. 
  • Amazon will reveal the total number of people it is planning to hire for the grocery business.  
  • "In 2022, we have gone to more than 30 Tier-2 and Tier-3 cities. We are excited about a more expansive India or Bharat," said Ram. 


Dive Insight:

  • Walmart-owned Flipkart, Reliance's JioMart, and the Tata group are the retail giants with whom Amazon competes for a share in India's grocery and food market. Its analysts expected it to be worth $790 billion by 2024 from $603 billion in 2019. "The opportunity is huge," said Ram.
  • As per the reports, more than half of Amazon's 1.1 million seller partners are based in small towns and cities. 
  • "Technology is integral in serving consumers with grocery services," said Ram. Amazon has made investments in technology and temperature-controlled supply chain infrastructure in order to supply high-quality fresh fruits and vegetables.'
  • Orders placed on Amazon Fresh, available in 40 cities, are delivered the next day or the same day, subject to the availability of a delivery slot. Depending on the postal code, customers are eligible for a 2-hour delivery window for products. 

During Amazon's month-long sale, 'Great Indian Festival (AGIF),’ in October, the grocery was one of the most shopped categories in India. 

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