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They tend to approve loans with smaller amounts because there is no risk to the lender. It is possible to borrow loans that range between $100 and $250 with the tiniest of terms. Smaller loans such as these typically don’t need any credit tests, credit history, and credit scores. However, poor credit scores affect loan approval and can lead to the possibility of a higher interest rate. GreendayOnline online loans
An average Indian is fairly acquainted with online shopping by now. E-commerce platforms have gained the trust of consumers and gain their acceptance through the time
The home appliances and electronics segments have been making rapid progress on the internet over the past few decades in India. However, when it comes to grocery and food items the local kirana stores always were the first choice for consumers.
Since its beginning, e-grocery has had to contend with fierce competition from retailers that operate standalone stores as well as offline brands. They managed to expand 30x to reach $ 3 billion over the last 7-8 years. However their market share was low in the single digits.
But their popularity among consumers has increased since the outbreak. In those 15.4 million people in India who conduct transactions online, a total of 13 million have already accessed online food platforms, as per the Motilal Oswal research report. The market is predicted to grow by more than 59% CAGR, reaching around 18 billion by 2024.
The next step
The number of online grocery stores doubled in 2020 as a result of the clampdown. To maintain this growth will be the next major challenge but the curbs have been lifted in a number of states.
In addition, the presence of online stores is increasing rapidly outside of the Tier II cities, but online retailers may confront challenges from kirana shops. They also must establish the necessary supply networks in these cities to ensure their business is running.
Profitability Challenge
The market for e-food was also affected by lower profit margins as the majority of consumers are price-sensitive. In addition, they prefer lower prices over premium brands. The high cost of logistics and the complex nature of management of inventory makes it more difficult to make sustainable earnings.
They focus on bulk purchasing targeted in addition to efficient stock management to increase their profits. They will also need to sell high margin products to reduce the cost per order, while ensuring profitability.
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Written on June 17 2021, 8:35 p.m. It is IST.
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