The last few years weren’t particularly kind on the retail industry. The industry absorbed far more changes that it anticipated. When the majority of the retailers were almost convinced to make move to a web store from a brick n’ mortar store, mobile apps took the industry by storm.
One of the industries that skipped the web store part and found solace in retail mobility solutions was grocery delivery app. Chances are someone at your home is already using one of those apps to order fresh vegetable while you’re reading this.
They are quite popular and you know how hard to grab fresh vegetables and fruits these days.
“Online grocery sales is expected to be £9.8 billion in 2016, up 13% from an projected £8.6 billion in 2015. Sales will grow additional 73% to be £15 billion by 2020”
“One-quarter of global participants order grocery products online, and more than half (55%) are keen to use it in the future. The milkman is making a comeback, but this time around he may come home driving a digital vehicle.”
A typical grocery app may imitate the functioning of a regular brick n’ mortar store—a grocer lists grocery on the app, attracts buyers on the app, waits for an order, and delivers an order to the buyers place. However, a majority of the grocery apps these days work as a marketplace.
That is there are n number of sellers and m numbers of buyers on a platform. The app connects them by means of clever marketing techniques pillared on trust, discounts, and quality.
At first glance, a layman may find a grocery app not very different from other app based retail mobility solutions in the market, typifying eCommerce apps.
While in reality, there goes a lot of underneath coding in building grocery shopping apps that, usually, involves grounds up coding efforts than customizing an existing app engine.
Even professional developers might mistake grocery app development to over-customizing eCommerce apps to business needs.This is seldom a case.
In most cases, Grocery delivery app development needs work from scratch unlike e-commerce app development that has support of various readymade, cross-platform, open source solutions available in the market.
The market of consumable goods is pretty different from consumer electronics or books and gifts. People need a constant supply of grocery and apps often subscribe to their regular grocery needs to abstain the need of continual ordering.
On top of that, nobody likes to wait a week or so to receive a dozen of apples. As a result, grocery apps often supply deliverables in slots to cut cost unlike sellers on eCommerce platforms who resort to personalized delivery services.
The margin on grocery is much lesser than that on non-consumable goods. Thus, for online grocery stores, the competition with local grocery stores is stiff considering factors like low margin and shipping charges.
In grocery, the changes triggered by e-commerce have been adaptive rather than innovative. The evolution of grocery e-commerce has overtaken the brick and mortar retail not only in developed but also in developing countries.
As per Nielsen Global E-Commerce and The New Retail Report APRIL 2015, online grocery shopping is particularly popular in Asia-Pacific.
Inclination towards digital retailing options in the future is utmost in the developing markets in the asia-pacific (60% on average), latin america (60%), and africa & middle east regions (59%), and lags in europe (45%) and north america (52%).
According to morgan stanley research, globally, fresh online grocery acceptance is projected to rise from 21% to 34% in 2016.
New study from mintel discloses that 29% of UK online grocery shoppers are shopping for their groceries more online now than 12 months ago.
Growth of online grocery shopping is compelled to some extent by the maturing digital natives—millennial and Generation Z
E-commerce is suitable for stock-up and specialty needs selling as it can offer abysmal product selections than may be offered in brick-and-mortar stores
Usage of online or mobile coupons and mobile shopping lists are the most quoted forms of in-store digital assignation in use these days
Imagine a grocery store where you get special attention and lucrative offers as soon as you enter, where checkout takes seconds and you can pay even when you no idea where your wallet is. sound far-fetched? It’s nearer than you contemplate.
Lines between the physical and digital worlds are blurring. shoppers are growing comfortable of digital in other retail settings and want the same level of comfort in grocery as well.
Well-informed retailers are winning by leveraging technology to improve the shopping experience and meet grocery buyers’ budding desires.
Recognize that change is industry-wide and grocery app development is the first step towards
The evolution in grocery delivery app industry is not just an alarm for retailers, but the entire CPG industry.
Existing grocery sellers need to adjust their marketing, retailing, supply, and operations models for the new selling landscape.
Success will require collaboration between grocers and grocery delivery app developers with each party leveraging the assets of the other to deliver services and assistances associated with evolving customer prospects.