After launching a specialty food line, Indian online and app-based grocer BigBasket steps up its game as it enters the business to business (B2B) sphere. The grocer has started supplying goods to hotels, restaurants and kirana shops in addition to individual customers (and Shah Rukh Khan).
BigBasket currently owns two major private labels – Fresho and BB Royal. And according to CEO and co-founder Hari Menon, with this new development, BigBasket aims at bagging greater volumes as the market for the B2B segment sees little margin as compared to the 20%-23% margin in its consumer focused business. Also, owing to their direct connection with farmers, the online grocer has been able to target a bigger B2B segment.
“We plan to get 3500 farmers on our platform by next year from the present 1100.” Economic Times quoted Menon. With about 20 collection centers, BigBasket currently procures almost 60% of the fruits and vegetables directly from the farmers.
Currently BigBasket provides its services across 25 Indian cities. The company does not have expansion on its cards anytime soon. They are instead looking towards increasing the volume in the B2B sector, Menon added.
With BigBasket pulling up it socks all the way to the waist, competitors like Grofers, Ask Me Grocery, Amazon and other players will see some tough competition ahead; while the consumers continue to be spoilt for choice.
Source: Economic Times