A Damp Squib At Debunking An Online Super Market
“Hey man, I am busy counting my grocery items which I bought
from an online super market”. My friend Neveen said with a chuckle. I jumped
from my seat and shouted on my cell phone “Whaaaaaaaat?...an online Super
market? Have you gone crazy?” Naveen was laughing loudly on the other side and
singing Def Leppard song from the album
Hysteria “Pour some sugar on me………... Oh man!!! For a moment I was blank and
thinking what the hell’s going on here? Having my third cup of coffee I came to
my senses and later had a discussion with Naveen bout his great shopping.
Well this happened a few months back when my friend told me
that he was buying his grocery items from Rice
and Sugar(R&S) an online Super Market in the Hubli-Dharwad, a two tier
city. He is getting the quality items with cheaper price at right time. The
e-commerce has come a long way and penetrated into everything you can think of.
Be it electronic gizmos, computers, clothes, toys you name it. Swiping a few
screens, clicking a few buttons one can order anything and get it at his choice
of place and time. Isn’t it cool? But an online super market is something I
couldn’t have thought of. Well I was just thinking how these guys sell the
quality items at cheaper prices? I wanted to give a try and dive deep into this
mysterious business; of course it’s no more a mysterious one.
So…I downloaded the app from the Play store and it was cool,
within no time, I was able to surf through the app and see what’s cooking
there? Ordering was quite easy. I just wrote it down on a piece of paper the
items that I wanted and uploaded as per the instructions. “Tring..tring…tring…”..hummm within 10
minutes my cell phone was ringing and the call was from Rice and Sugar asking a few clarifications from my order. Ooohhhh!!! What on earth…..so
fast…so quick response. The guy from the other side asked a few questions like
the brand, quantity etc…that he had doubts and informed me that you will get
these items the next day at @ 10 AM. I ordered at around 9.30 PM…well that’s
terrific buddy I said. The next day, @ 10.15 AM the truck came to my home with
two guys. They smiled and placed all the items on the floor. Once done, one of
the guys took out the bill and verified everything with me including the free
items. I paid the money and the transaction is done….cool isn’t it?. Well I
thought maybe it’s first time and they are extra careful for a new customer but
the kind gesture repeated every time I purchased. Wow!!!! Simply great. I
verified the prices with our regular grocery store and it was a cool savings of
Rs.350 for a purchase of grocery Rs. 3500. Great!!!.
Well at this point of time all the fundamental principles of
Online Super Market, like area of operation, delivery module, strong supplier
network, a unique USP, marketing and advertising, payment systems etc surfed
before my vision …I was just wondering how
these guys take care of these stuff that every online super market should consider. I was squeamish thinking deeply
about the various points related to this business. My doubt was, even if they follow these things
religiously, do they get the profit that they expect? Are they insane of
selling the stuff at cheaper rates? How these folks are managing? Definitely
it’s not that somebody is supplying these materials free of cost and saying
“Hey buddy, I have lot of free stuff, just sell it whatever price you want”.
This is going to be crazy. Take for example of Planning the delivery module. A strong delivery module is necessary to keep delivery expenses in check.
Optimize the number of people you employ, their travel reimbursements, and the
delivery routes and timings, so as to avoid repeated excursions to the same
locations. Take another example, creating a Supplier network. Prior to
advertising and selling products on your website, it is necessary to get in touch with the local vendors and
create an affiliate grocer network. Together, these wholesale shops will constitute of your supply
channel, providing groceries as necessary. Take one more. Marketing and
advertisement is the backbone of any online store and plenty of money has to be
put in this area. Are they justifying the kind of prices they are offering
considering the huge cost involved in this area? Another area is the mobile
optimization. A huge chunk of 57% of the millennial population opts for the
orders on the go through the smartphone. Many features have to be included in
the app like rearranging the sidebars, display of the products, cart sharing,
multiple payment options, reviews and ratings, quick reorder and repeat order,
monthly shopping reminders etc. The point is, the application should be user
friendly with all the facilities that a customer expects. Now imagine the kind
of IT expenditure involved in this. Just these examples are enough to
understand the gigantic work and investment involved in this business. So how
come the company Rice and Sugar
managing its business is of great challenge for me to understand.
The next thing I did was to compare
the prices with the super market. I bought a few thousand rupees of grocery in
a nearby super market and compared the prices to the prices of Rice and Sugar and wow!, I was going
bonkers man…they are still cheaper. The goods were not adulterated and the
quality too was good. Hummm!!! well, I was pondering deeply over this and
trying to figure it out, how come this is happening? Tired of deep thinking, I
was sitting in my veranda sipping lemon tea; I heard my daughter’s voice,
saying her friend’s moms were able to download the R&S app on their mobile,
which they were trying since morning and are ready to order the stuff. One more
nail on the coffin..phew..Just then, I heard my wife shouting at me and asking
me to put an order to purchase a few items through R&S app. I was going
berserk and shouted at her” I’ll get these from the local store”. She shouted
again at me telling, if I do this through Rice
and Sugar we will have an an extra savings
of Rs.80 and our daughter can use it as a pocket money. I frowned without
saying any words, lest I would have a final nail to fix the casket in its
place. After a while I thought ….well it makes sense. I put my tea cup (third
one) and thought as long as I am getting cheaper quality grocery items at the
right time, why should I worry about what the heck Rice and Sugar does?..
- Prakash Dhabadi