Grofers, the low price online supermarket, has announced its foray into the FMCG segment with the launch of seven new brands under two categories – Budget and Popular G-Brands. With this, Grofers’ private labels will expand to 250 food and non-food products for its consumers.
Grofers aims to drive the next wave of growth for the e-commerce sector through this expansion by bringing the next 100 million customers to its platform. The brand is bullish on growth with a revenue target of Rs 2,500 crore and rollout of 500+ SKUs for FY 2019.
The brand that closed FY 2018 with Rs 950 crore of sales is targeting for a stronger growth trajectory in 2019, with a 50% contribution from its private brands.
The ‘Popular G-Brands category’ will offer premium quality products under brands, including ‘G Mother’s Choice’, ‘G Happy Day’ and ‘G Happy Home’. Labelled under the Budget category, the brands include ‘HaveMore’ and ‘SaveMore’ to cater to price-sensitive consumers by offering entry-level quality products.
The G Happy Day and HaveMore brands include an array of food products like tea, fruit jam, muesli, tomato ketchup, corn flakes, rose shahi sharbat, etc. The G Happy Home and SaveMore brands address household needs with products in the categories of detergents, household care, oral care, tissues and disposables, kitchen tools and accessories, and furniture and storage among other products.
G Mother’s Choice is the flagship brand of the e-grocer that enlists a wide range of quality staples at the lowest price in the market. Grofers’ range of private label is priced approximately 5% to 50% lower than the market price for popular brands in these categories.
Commenting on the development, Albinder Dhindsa, Co-Founder and CEO, Grofers, said, “Our foray into the FMCG segment uniquely differentiates and positions us in the e-grocery business. This vertical expansion is key to drive our next phase of growth in India. In the last five years, we have received an overwhelming response from our customers and experienced tremendous growth. Through many industry-first initiatives, we have been instrumental in bringing new customers to the e-commerce fold with 15% of this customer base being our monthly unique shoppers. Our focus is to service what we call the ‘Real Bharat’ – the two-wheeler families of India who are yet to experience the world of e-commerce and our target is to bring the next 100 million new customers to e-commerce industry through our platform.”
Reflecting on the business strategy, Saurabh Kumar, Founder, Grofers, said, “Grofers’ market disruption game plan includes providing great quality products at lowest possible prices. Towards this, our private labels under the two new categories allow us to offer high-quality products at various price points to serve varied needs of our customers. We are taking our promise of Every Day Low Prices (EDLP), which remains unchallenged, to a whole new level through this move. The expansion marks yet another milestone in our success story as a home-grown brand and will significantly contribute towards shaping the overall e-commerce trajectory in the country.”
Underlining its commitment to great consumer experience, the brand has significantly channelled its investment into building capabilities in the domains of product quality control, data sciences, inventory forecasting, consumer behaviour, manpower training and building supply-chain efficiencies apart from building infrastructure to provide necessary support for inventory stock.