In the year 2006, we reported that Azadpur Mandi, one of the largest fruit and vegetable wholesale market planning to take a plunge into online transaction.When Akrosh Sharma, an IIM-Ahmedabad graduate of the class of 2004 launched his online vegetable store“mandionwheels.com” in 2009, many questioned the sustainability of the idea. But what actually started from a meager investment of Rs. 1 lakh recently crossed Rs 1 crore in sales turnover.
The venture not only grew at the rate of over 30% but also led others to believe in the concept. The result: within a short span of 2 years, a number of websites like FandV.in, sabzi.in, vegoncall.com,belivefresh.com, and freshsubzi.com have cropped up, each creating a distinct place for itself and fulfilling to the modern needs of the people. All these websites, at present, cater to a sub-section of society; those who dwell in metros and who find it difficult to visit the crowded mandis or malls.
Internet penetration is still on the lower side in our country. Moreover, the percentage of population who actually opt to shop online still constitutes a very small percentage out of the total chunk. As a result, the online vegetable shops do not pose any considerable competition to the vegetable vendors and the wholesale vendors. This has given the online vendors an opportunity to expand their services and create a loyal consumer base for themselves. Some of these sites have actually started to offer value added services in the form of free home delivery, money-back guarantee, call-for-delivery, gift certificates and gift packaging to lure the customers.
The vegetable market is very big in India and there lies plenty of room for these online players to grow and co-exist with the traditional vendors. From offering luxury items to electronic goods, Internet has come up a long way by changing the traditional mindset of the people.
Can day-to-day necessities like vegetables and groceries find same level of acceptance from the people, what do you think?