He adds that Grofers has figured out the exact value proposition for their target customers and new players are not likely to impact their strategy.
He also added that given the different customer base that each of the grocery players are targeting as well as the huge size of the retail consumer base in the country, Grofers hasn't seen any impact on their numbers due to ecommerce players.
Brick and mortar players like Future Group , with EasyDay stores, and Dmart with its new delivery model are also closing in the online-offline gap.
Grofers has currently increased focus on their private label products in a bid to reach their target "mass market” consumer who is seeking value for money with almost 75 per cent being women and 12 per cent first time internet shoppers. Currently Grofers has over 600 private label products and the company is investing heavily in further product development.
“Over the next few months you’ll seen more private labels in food categories like muesli, ketchup, jams and beverages. This is an extension of our program to take small manufacturers in certain regions and give them national distribution channel,” said Dhindsa.
He added that at present private labels constitutes 20 per cent of the revenue share for Grofers. The small manufacturer program adds 20 per cent revenue as well. The inhouse product development program is clearly focused on creating value for money rather than upscale gourmet products.
Dhindsa adds that Grofers is in no hurry to expand beyond their existing 13 cities. Grofers is currently in the process of adding additional warehouse space across Mumbai and Delhi. The company is focused more on reaching scale and also operational break even by improving their reach in existing cities. Currently Grofers has reached such scale only in Delhi.