India – The hyperlocal space has seen a rise in the number of niche brands across categories like home décor, home services, groceries, essentials, and pharmaceutical sectors. Since India has witnessed growth, traditional brands have shifted their focus towards hyperlocal and direct-to-consumer business models. This transition has been accelerated further due to increased internet usage and evolved consumer behaviour.
The hyperlocal approach enables the brands to reach out to their target customers directly, removing the middlemen and retail stores as part of the traditional business model. This provides customers with a better shopping experience as it offers convenience and quick delivery, especially in the areas of logistics, food, pharmaceutical, and groceries. Some examples of hyperlocal commerce include Dunzo, 1mg, UrbanCompany, BigBasket, to name a few.
New report by WATConsult unveils insights on the demand for hyperlocal delivery, the effects of the pandemic on the hyperlocal usage and captures the benefits, and challenges of the model.
According to the report, this format of e-commerce has seen a huge surge of customers in both metros and beyond. Currently, there are around 141 million hyperlocal commerce shoppers in India, which is 48% of all e-commerce users. This number of hyperlocal commerce shoppers will increase by 52% to reach 214 million by the end of 2022.
The report further reveals that while Zomato tops the list of the most used hyperlocal apps, SwiggyGo, Amazon Fresh and BigBasket are some of the popular choices among consumers. This is followed by 1mg, Grofers and UberConnect.
Moreover, while most females have used services from Zomato, BigBasket and Grofers, some males have used services like Zomato, SwiggyGo, BigBasket and 1mg. On the other hand, the majority of young customers belonging to the age groups of under 18 years, 18 years to 24 years and 25 years to 34 years, have been seen using Zomato, SwiggyGo, and Amazon Fresh.