Whenever we have to buy vegetables we prefer the local markets near us but those who are not good at vegetables buying and bargaining or those who do not have enough time to buy vegetables, who knows a big basket very well. Bigbasket is the online grocery store that delivers grocery items to there customers with cash on delivery facility. Bigbasket is providing a service which peoples could not have imagined. The founders of BigBasket started their business in a field where the offline market has very high competition but they still survived their business. Today we are going to talk about Bigbasket's success story.
Also read: Amazon Success story
So the story starts in 1999 when there was a .com boom and this is one of the 1st e-commerce companies that came to buy online. After 2 years they added grocery too in starting a lot of people came online but you know in starting people don't buy online only COD can operate at that time and not online payment. So people came but did not buy it so they analyze and they came to offline and in south India, they got a huge success they opened a fab mart and sell everything in it but still, it did not make much profit and in 2006 Birla group overtook it and in 2011 they again return online under sell the retail network. In 2011, only they got funding do try to understand this if you want to have a grocery business so what are the options for you. 1st is inventory modal, means you will buy the product directly from the company at a discount rate next you will be selling to my target audience and rest is my profit.
2nd is the market place, like Amazon and Flipkart, do here if I will get an order then I will transfer to others and they will deliver it. 3rd is hybrid here, you are doing both 1st and 2nd logically they did marketplace, they captured small-small grocery shop and made a pact with them and now the orders they get via there app and website, they do forward to these small grocery shops and deliver the product via a delivery boy so this was the simple process. Slowly they got the fundings and they started to grow and then they shifted to inventory model because in this there is a lot of margins and you can too control your quality they have 18000 listed products and more than 1000 brands and still it's going under loss but slowly and slowly there revenue is increasing. Last year they did Rs 1176 crore revenue and had a loss of Rs 191 crore. They had a 1500 ticket size and 650 ticket size if one opts for express delivery their target is by the end of 2020. We going to take 2000 crore revenue in my opinion fab mart too was a good business model but in 1999's internet used to be a new technology and people don't trust the internet and online payment, not good speed, and not visual websites so they took a good step by coming to offline market and made money and reinvested afterword. From 2011 they are in loss, but in coming years they will be coming in profit because it's inventory modal will keep on increasing with the advent of revenue their expenses will tend to decrease they do a simple strategy by ranking it's customer basically if you order today then you are not it's the customer so suppose in 3 month you ordered 2-3 times, then you became a silver customer for them silver customer means that this is our potential customer and their platinum customer comes 95% repeatedly so your expenditure gets decreases time to time continuously in 13 funding rounds. They had taken 884 million dollars and recently they had taken 300 million dollar funding from Alibaba in June 2015 they acquired deliver and that inquisition was good according to me because of this they are able to deliver products on time before that in inventory modal. They used to get a delay in delivery time but now they can deliver vegetables in 2 to 3 hours in the vegetable you need to deliver within 1 hour and not in 2 to 3 days so this thing is possible due to delivery acquisition and I will be giving them +1 in grocery they operate in 35% of profit margin and in another item 10-12% margin.
You may be finding it more but if you see there expenditure-website, app, delivery and many more things to run. This makes there expenditure and still, they are under loss there is a 2 trillion dollar economy in this globally out of which 300 billion dollars online is there if we take globally then it will fluctuate 15-30% in online retail. If you want to do this type of business then target the cities because in cities there is a lot more awareness, less acquisition cost and you will be getting at a less rate ultimately will tend to sell in your products and will increase your potential customers. In the village, your accusation cost will tend to rise due to lack of education I hope I gave you a lot more information on this with my research and enlistment.
There were a number of startups that come in competition with BigBasket some of them survived and some of them get closed along with this BigBasket have to compete with local players also which works offline and has a good grip on their customers. The thing which made BigBasket survive in this cut-throat market was BigBasket’s worker's hard work and belief in their dreams. Now Bigbasket is India’s number 1 online supermarket which proves that we can get success in any field we want no matter how much competition in the field is.
I hope you got inspired by this article if yes then please share this with your friends so that they also get inspired by this.
Also read: Amazon Success story
Big basket success story
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2nd is the market place, like Amazon and Flipkart, do here if I will get an order then I will transfer to others and they will deliver it. 3rd is hybrid here, you are doing both 1st and 2nd logically they did marketplace, they captured small-small grocery shop and made a pact with them and now the orders they get via there app and website, they do forward to these small grocery shops and deliver the product via a delivery boy so this was the simple process. Slowly they got the fundings and they started to grow and then they shifted to inventory model because in this there is a lot of margins and you can too control your quality they have 18000 listed products and more than 1000 brands and still it's going under loss but slowly and slowly there revenue is increasing. Last year they did Rs 1176 crore revenue and had a loss of Rs 191 crore. They had a 1500 ticket size and 650 ticket size if one opts for express delivery their target is by the end of 2020. We going to take 2000 crore revenue in my opinion fab mart too was a good business model but in 1999's internet used to be a new technology and people don't trust the internet and online payment, not good speed, and not visual websites so they took a good step by coming to offline market and made money and reinvested afterword. From 2011 they are in loss, but in coming years they will be coming in profit because it's inventory modal will keep on increasing with the advent of revenue their expenses will tend to decrease they do a simple strategy by ranking it's customer basically if you order today then you are not it's the customer so suppose in 3 month you ordered 2-3 times, then you became a silver customer for them silver customer means that this is our potential customer and their platinum customer comes 95% repeatedly so your expenditure gets decreases time to time continuously in 13 funding rounds. They had taken 884 million dollars and recently they had taken 300 million dollar funding from Alibaba in June 2015 they acquired deliver and that inquisition was good according to me because of this they are able to deliver products on time before that in inventory modal. They used to get a delay in delivery time but now they can deliver vegetables in 2 to 3 hours in the vegetable you need to deliver within 1 hour and not in 2 to 3 days so this thing is possible due to delivery acquisition and I will be giving them +1 in grocery they operate in 35% of profit margin and in another item 10-12% margin.
You may be finding it more but if you see there expenditure-website, app, delivery and many more things to run. This makes there expenditure and still, they are under loss there is a 2 trillion dollar economy in this globally out of which 300 billion dollars online is there if we take globally then it will fluctuate 15-30% in online retail. If you want to do this type of business then target the cities because in cities there is a lot more awareness, less acquisition cost and you will be getting at a less rate ultimately will tend to sell in your products and will increase your potential customers. In the village, your accusation cost will tend to rise due to lack of education I hope I gave you a lot more information on this with my research and enlistment.
There were a number of startups that come in competition with BigBasket some of them survived and some of them get closed along with this BigBasket have to compete with local players also which works offline and has a good grip on their customers. The thing which made BigBasket survive in this cut-throat market was BigBasket’s worker's hard work and belief in their dreams. Now Bigbasket is India’s number 1 online supermarket which proves that we can get success in any field we want no matter how much competition in the field is.
I hope you got inspired by this article if yes then please share this with your friends so that they also get inspired by this.
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