Can the large retail chains in India win in the grocery home delivery segment?
The traditional retailers [ mom and pop stores,similar to sari sari stores in the Philippines] will dominate the grocery home delivery segment of the Indian retail market. In India, the traditional retailers are ubiquitous. They already offer a very convenient home delivery service. For example, they will deliver a packet of milk, and a bottle of water, a bill value of Rs 20 [ about US$ 0.50 or € 0.36] at 10pm in about 20 minutes. A somewhat similar service was offered by Kozmo in the US. Large retailers, like Reliance Fresh, Trinetra, Spencer Daily, Big Bazaar will not be able to match this home delivery service. In the US and Europe the results on home delivery has been mixed.Webvan, Home Grocer, Streamline all folded up. However, Sainsburys, Safeway and Tesco are continuing with the home delivery service. In India Unilever’s Sangam Direct and Fabmart’s home delivery grocery business [ of which I was a big customer] have closed. Comparing home delivery in US and Europe with India is
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