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How Flipkart is Tapping into Under-penetrated Segments to Add Value to Customers

Flipkart's Ambitious Plan to Drive Growth in Grocery and Travel Segment

14 March 2023


Jayashri Ghorpade

India produced 3X more unicorns than China in 2022.png
  • Kalyan Krishnamurthy, CEO of Flipkart, stated that groceries are an area with less penetration in ecommerce

  • The CEO of Flipkart says that they can provide value, selection, and speed in the grocery sector while also being operationally efficient.

  • Flipkart expanded its grocery services to 1,800 cities across India last year.

The Walmart-backed ecommerce company, Flipkart, is set to bolster its presence in the groceries segment, with an aim to provide customers with enhanced value. According to sources, Flipkart has identified considerable potential in this under-penetrated sector, and is poised to capitalize on the opportunity.

According to The Hindu BusinessLine, Flipkart CEO Kalyan Krishnamurthy said that groceries are a less penetrated segment for e-commerce, even though they are an everyday staple for the masses. Krishnamurthy added that the e-commerce company is looking to drive growth in this area.

“We are doing well in the grocery. That is the segment we want to work in and add value for the customers, as 99% of India is value-conscious. We think we can deliver value and selection along with speed while being operationally effective,” Krishnamurthy said. He also noted that Flipkart is the second largest player in grocery.

Flipkart announced its grocery services expansion to 1,800 cities across India in 2021, with Smrithi Ravichandran, Flipkart Grocery Vice President, stating that the e-grocery market is witnessing a surge in demand as consumers from tier 2 and 3 markets can access a wide selection of high-quality staples and household items from reputable brands at great value.

In 2022, Flipkart downscaled its quick-commerce service 'Flipkart Quick' and merged it with 'Flipkart Supermart' to focus on the grocery vertical. Meanwhile, Dunzo, Zepto, and Swiggy Instamart are the leading players in the quick-commerce grocery space. Amazon, on the other hand, plans to expand its grocery service and has integrated its grocery stores Fresh and Pantry into a single unified store called Amazon Fresh, available across 300+ Indian cities as of July 2022.

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JioMart, owned by Reliance, has discontinued its JioMart Express quick grocery delivery service to avoid excessive cash burn. As a result, JioMart now delivers groceries only during select hours of the day.

According to a report by Research And Markets, the Indian online grocery market, which was valued at $3.95 Bn in 2021, is projected to expand at a CAGR of approximately 33.00% and reach $26.63 Bn by 2027.

After venturing into grocery, Flipkart is now eyeing the travel segment for its expansion plans, having already acquired a user base of 400 million in the past year. According to the company's CEO, the digital-led nature of travel and ticketing provides a significant market opportunity. Flipkart previously launched Flipkart Hotels, and now plans to introduce EMI options for its users to boost bookings.


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