Exploring online grocery retailers globally….Localbanya.com

Here’s the first of a series of articles on best practice online grocers from around the world.


Today we’ll check out LocalBanya.com (https://www.localbanya.com/). LocalBanya.com is Mumbai’s first online supermarket. Their aim is to give access to high quality products without wasting any time or energy. LocalBanya.com went live in May 2012. Shoppers can expect the best prices in Mumbai on their favourite grocery items. They promise that shoppers can save on each purchase, with up to 40% savings on some items and with free home delivery – anywhere in Mumbai. They have a great visual of the benefits of online grocery shopping – Shoppers don’t need to worry about the drive, traffic, pollution or missing their favourite TV show!




LocalBanya has built a lean business model relying on a mix of warehousing and buying from cash-and-carrys, helping it create an efficient supply chain. The site sells about 12,000 SKUs across 17 categories, expanding the range when possible and following shopper feedback. The retailer stocks a wide range of exotic and premium lines to enable it to target upmarket shoppers. Orders are ready for delivery within six hours and LocalBanya offers six delivery slots, of two hours each, from 07:00 until midnight. To drive loyalty shoppers receive Banya Points, which can be redeemed for cash discounts on every purchase.

Mumbai is overcrowded and people living in the city would love to avoid traffic jams and the pollution. Any convenience service, that also offers value, will definitely be a winner. Great site with detailed content, well-organized, a decent assortment, attractive promotions and a loyalty program.While LocalBanya has to face the challenge of weak infrastructure in the market, it will benefit from India’s growing urban and increasingly wealthy population. I would advice expansion to other metro cities in India as soon as possible for this innovative organization.


Canada’s first click & collect show

Things are happening on the digital front in Canada – The “Click & Collect Show Canada” is the first ever event for grocers and retailers exploring new strategies and technologies to allow customers to order goods online and collect their goods either in store or by driving to a collection point.

It is the one-stop shop for grocers and retailers adopting this key value add service for customers of today and tomorrow.

If you offer a solution for this industry then you need to get involved today.
– See more at: http://www.terrapinn.com/conference/click-and-collect-show-canada/index.stm#sthash.iTkKX8ne.dpuf


China & Alibaba – The E-Commerce Superpowers

I just became aware of the size of the online shopping market in China. Wow! I am amazed. I don’t think we can call China a developing nation in the 3rd world sense any more.

The online shopping market in China in 2013 was worth an astounding $297 billion. Compared with this, the market in the US was worth $263 billion. All these figures dwarf the Canadian market which was worth $20 billion. The Chinese online market is growing at 40% while the rate of growth in the US and Canada is at half that rate.

Beyond all the above facts, here’s another amazing fact – Sale through Alibaba.com in China were at 84% of the total volume or $248 billion. I thought Amazon was big at $75 billion – I was wrong.

Watching the evolution of E-Commerce in the Canadian grocery industry

E-commerce in the Canadian grocery market is going to take-off this year. While online shopping volume in the Canadian retail industry was at a relatively small figure of $20 billion in 2013, development in the grocery industry has been almost non-existent.
Canada lags behind every first world market in the proportionate size of its online shopping business. While Canada is a global powerhouse when it comes to internet penetration, at 87% of households, and of smart phone usage, the investments behind developing online channels is miniscule. One hears about various issues such as long distances for shipping and high costs, small relative population, lack in economies of scale, etc., all of which have hampered the development of e-commerce in Canada. All these are excuses to my mind!
The Canadian population is sizeable (when compared with most European countries), the population is concentrated in a few urban centers (Toronto, Vancouver, Montreal and Calgary account for a big part of the country population). The truth is that Canadian retailers have until now offered shoppers a subpar shopping experience, limited product selection, and weak shipping infrastructure. All these factors are driving consumers to shop online internationally. 45% of online shopping in Canada is done on international websites.
There is tremendous potential in Canada and the current state of this channel leaves a lot to be desired. I plan to study the evoution of online shopping in the Canadian grocery business as things heat up in this sector.
– because I am in the CPG food industry, which suffers the lowest development on this front,
– because my customer, the world’s largest retailer and the world’s largest company is totally focussed on developing this channel and wants us to be as well,
– because the Canadian grocery market is flat and any channel that is growing deserves time and attention.