Hyperlocal market in India resolves the issue related to immediate demand along with the nearest available supply in an optimized manner. Increasing urbanization, personalization of affinities along with ability of selecting products that appeal to the aesthetic sensibilities or aspirations desires of the person has led to the rise in the Hyperlocal market in India. The market is expected to introduce “Deal based model” on its website for the customers to choose and avail lucrative discounts. The market is driven by a flexible, quick, asset-light business model which in turn entails Hyperlocal companies in establishing a cost effective infrastructure solution as compared to E-commerce companies.
The market is likely to enhance at a promising CAGR of 69% during the period 2016-2020. Introduction of giants such as Amazon, Flipkart and others are likely to overtake the market in future. These will post the Hyperlocal market revenues at INR 2,300 crore by 2020 and will enhance the contribution of Logistics segment that is expected to be around 62% by the year 2020. Logistics is the backbone of India Hyperlocal Market and is expected to emerge as the primary driver of India Hyperlocal market. Whereas Horizontal Hyperlocal is likely to emerge as slow yet steady force to drive the market and witness a contribution of 45% in the overall market revenues by 2020.
Rise in the urban population across the country, increasing paucity of time coupled with rise in the smart phone penetration are expected to augment the Hyperlocal market of India in the future. Groceries Hyperlocal market is expected to be the third largest contributor in India Hyperlocal Market. This has been supported through increase in product portfolio by levitation in tie-ups with various local and popular merchants and by providing smaller dispatch units in order to distribute the products. Logistics followed by food are expected to be one of the fastest growing segments in India Hyperlocal Market. Rise of cheap smartphones and tablets coupled with the presence of Paytm, PayU and others as an effective payment solution have been the major contributors to Hyperlocal market in India. The presence of liberal government legislations (Make in India campaign) has also supplemented the establishment and expansion of Hyperlocal market in the country.
According to an industry veteran, “Hyperlocal market is only an urban India phenomenon. In the next one year, the country is most likely to witness an increase in the number of startups although E-commerce firms such as Flipkart, Amazon and Snapdeal are likely to affect the market in future years. Each of these firms would be popular in the market through their product differentiation strategies and their differential charge for delivery”
“Sound business model and introduction of new mobile applications is essential to take Hyperlocal market to a next level of growth in the country. Such kind of solutions will also help to tackle issues such as internet infrastructure, inefficient logistics channel, oscillating investments/funds and unreliable payment gateways. However, in spite of the efforts, requirement of continuous and heavy investments, creating a unique selling proposition, higher attrition of employees are the major challenges faced by the Hyperlocal Market in the country, Y
According to the Research Analyst, Ken Research
The report titled “India Hyperlocal Market to 2020” provides a detailed overview on the Hyperlocal logistics, grocery, food technology, pharma, concierge companies in India. This report helps the readers to identify the business model, failure case studies, ongoing trends in the industry and the anticipated growth in future depending upon changing industry dynamics. The report will aid industry consultants, hyperlocal industry veterans, investors, funding institutions and other stakeholders to align their market centric strategies according to ongoing and expected trends in the future.