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Home Uncategorized

Opinion: Impact of COVID-19 on the e-grocery industry and the strategy going forward

StartUp Terminal Bureau by StartUp Terminal Bureau
February 12, 2022
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Opinion: Impact of COVID-19 on the e-grocery industry and the strategy going forward
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Author: Sourjyendu Medda, Founder, CBO & CFO, DealShare

The
factors that drive the growth of any e-commerce market prior the COVID-19
pandemic included a strong and steady growth of internet users and rising
awareness related to online shopping, increasing online launching of products,
low price due to bulk purchase and so on. Without any warning and without
choice, brands and retailers have had to adapt to a pandemic that no one saw
coming. As a direct result of Covid-19, many non-essential physical stores were
forced to close. After the COVID-19 pandemic, the consumers have been
pushed towards buying grocery online as it was mandatory to maintain social distance
and people were afraid of shopping outdoors hence Stores that remained open
suffered from reduced/rationed stock and social distancing requirements. However,
uncertain consumer demand and supply chain issues did affect the e-commerce
industry. Everyone before this pandemic used to wonder what the heck “digital
transformation “actually meant. This crisis has defined it better than anyone
ever could have.

As
this pandemic has adversely affected the lives of the people, the post-pandemic
the e-commerce segment will also have to work on certain strategies as the
behaviour of all the Short-term consumer has seen a significant change during
the pandemic and in many cases, this change seems to be permanent and therefore
all the e-grocery company will need to have a backup to meet the demand in a
situation like there and along with that make sure that there is no delay in
the delivery. Prior to this pandemic, grocery, was still nascent in terms of
its transition to digital as a majority of Indians continue to have more faith
in the neighbourhood brick & mortar stores for shopping as they prefer
touching and feeling the products and negotiating discounts over-the-counter,
before buying. . But after this pandemic, all the researchers say that the most
profound behavioural change in commerce will be the shift to digital or the
e-commerce shopping. 

The COVID-19 pandemic will be one major reason to rapidly
accelerate the shift from tradition trade to digital commerce. And secondly,
the consumers will emerge from this pandemic in a completely new economic
reality, which no doubt will take them some time to adjust but it will hence be
changing the consumer behaviour in profound ways. For example, after this
pandemic gets over the consumers are likely to be more germ cautious than ever
before. Therefore, if they see any organization not following the safety norms
they will straight away not use the platform. No-touch deliveries may become
the new norm therefore the companies will have to work on ways to make sure
that the consumer gets the good and reduce the chances of fraud. 

Sanitization
will be used like how a common man uses a hanky therefore delivery executives will
need to develop no-touch customer experiences with an emphasis on hygiene.
COVID-19 is not only forcing consumers beyond their preferred brands like never
before but, giving a full possibility that the consumers could emerge from the
pandemic with entirely new brand preferences or lower overall brand loyalty and
therefore this is a good opportunity for the e-grocery segment to boom.

Sourjyendu Medda, Founder, CBO & CFO, DealShare
(Sourjyendu Medda, is the Founder, CBO & CFO of  DealShare. Views expressed in the article are of the author.)
Tags: Opinion
StartUp Terminal Bureau

StartUp Terminal Bureau

Startup Terminal is a global news portal reporting news and analysis on technology, start-ups, and business-related news from all over the world. We exclusively feature entrepreneurs, startups, businesses, and technology companies to reach out to a wider audience. Contact us at editorial@startupterminal.com

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