As the food & grocery retail business in India moves towards greater maturity, online grocers are increasingly investing in private labels, in order to expand their portfolio for higher margins and enhance brand loyalty with customers.
E-grocers like BigBasket, LocalBanya, MeraGrocer and ZopNow has been selling their own brands in daily household, personal care and food products, which account for 10-35% of their total revenue.
Bangalore-based BigBasket sells fresh fruits, vegetables, meat and bread under the brand name Fresho and staples such as pulses and spices under the Popular and Royal brands.
“These labels contribute 35% to the company’s revenue,” Seshu Kumar, National Head – Merchandising, BigBasket told Indiaretailing
“We expect private-label contribution to go up to 40-50% by the end of this year,” Kumar added.
Increasingly, e-grocers are adopting a strategy similar to that practised by brick-and-mortar retailers who are pushing private labels to boost bottomlines.
Big Basket is also in process to set up multiple warehouses across India, in order to strengthen its one-hour express delivery promise.The company is planning to establish about 10 small warehouses in each metro city in its network, and one each in 50 towns.
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