Here’s an overview of the Hyperlocal Markets in India. The hyperlocal market has become a buzzword. The advent of technology has caused a significant change from the classical marketing approach.
Hyperlocal marketing uses professionally tailored marketing techniques to accurately target audience within a specific geographical area. It goes a long way in conducting the ‘near me’ real-time basis search.
Why has the hyperlocal market gained huge traction lately in India?
• Location awareness and geo-targeting through advanced technology
• Steep rise in the usage of smartphones, start-ups & on-demand delivery preferences
• Dramatic change in the purchasing pattern of consumers
• Increase in the personal disposable income
• Custom-made products and services
With the upsurge in technology and know-how, hyperlocal markets have encompassed almost all streams of the retail industry. The hyperlocal segment is the need of the hour to conduct business by offering a coherent platform to local retailers. Goods and services can be curated keeping in mind the aesthetic sensibilities and desires of the target audience.
Zomato, Swiggy, and Foodpanda have entered as food delivery providers in 2014. The pace of growth and expansion of Swiggy has been commendable. Commencing as a start-up in Bangalore, it has its branches spread all across the country. According to a Livemint Report, Swiggy has been described as ‘India’s fastest unicorn’. Zomato combined with Uber Eats is reported to have a market share of nearly 50-55%.
Bigbasket, Grofers & Nature’s Basket are sundry online grocery stores that have bloomed out well. Market share of Bigbasket: 35%; highest among online groceries in India. UrbanClap has become a favorite among commoners. The seepage in urban cities at a primary stage has provided a boost to UrbanClap.
Flipkart had recently announced the upcoming launch of Flipkart Quick. It promises to deliver within 90-minute. Walmart owned Flipkart prepped up itself against its competitor, Amazon, by including mobile phones and stationery items.
Ola Cafe & Ola Store, hyperlocal online food delivery was initiated by the ride-hailing company – Ola in Gurgaon, Bangalore, and Hyderabad. Its shutters went down within 10 months of its inception. Disproportionate management charges, stiff competition from Swiggy, and inefficient planning led to its sudden downfall.
Similarly, Flipkart ‘Nearby’ was an open and shut project. It thrived hardly for 5 months. The e-commerce giant had to pull the plug due to the absence of promotions, poor consumer demand & nominal margins.
The Tier 2 cities are slowly and gradually warming up to the perfect blend of online comfort and physical reassurance through hyperlocal markets. However, there are certain underlying gaps which make this model of a hyperlocal market difficult to exist in India:
• Consumers are hesitant to shift from the familiar unorganized sector
• Cutthroat competition from e-commerce giants who set up their own hyperlocal branches
• Resistant on part of the local Kirana stores
• Irregularity of operations
• Additional marketing costs
According to Ken Research, the hyperlocal market in India will exceed Rs 2,306 crore by 2020. Do you think the hyperlocal market in India will receive sufficient traction to thrive and grow?