This is how BigBasket intends to hit $1 bn GMV mark
Goal one is to reach Rs 300 crore GMV a month in September; goal two is reach Rs 500 crore GMV a month in March 2019 ; and goal three to become a $1 billion-GMV company in March 2020. To get there, BigBasket has identified a few key initiatives — from vending machines and subscription service to becoming the most preferred partner to farmers
While the hullabaloo in the media over the second half of last year was over the possibility of an Alibaba investment in BigBasket, in the company each team member knew exactly what they were working towards. Goal one is to reach Rs 300 crore GMV a month in September; goal two is reach Rs 500 crore GMV a month in March 2019; and goal three to become a $1 billion-GMV company in March 2020. To get there, BigBasket has identified a few key initiatives — from vending machines and subscription service to becoming the most preferred partner to farmers.
Vending machine: The first is installing smart vending machines in apartment blocks. The pilot is already running in Bengaluru, covering around five apartment complexes. BigBasket has partnered with Fireside Ventures backed startup, Kwik24, the maker of the smart vending machine. For the residential complexes part, BigBasket has an exclusive tie up right now with the vending machines having only the e-grocer’s branding and products. Consumers can access the vending machines with the BB Instant app at present. However, this will be integrated into the main BigBasket app eventually. Each vending machine has close to 40-45 SKUs, covering daily essentials like fruits, vegetables, bread, dairy and eggs, along with products like juices, soda and snacks.
Hari Menon, co-founder of BigBasket, reveals that the plan is to have at least 10,000 such machines across the country. Subscription service driven by milk: This is directly linked to the objective of increasing frequency of orders. The consumer will have to order milk for next morning’s delivery, as it is an opt-in service. She will have the option to order for other essentials at that time. This service will also be available for specific apartment complexes.
Menon says the company is preparing to build the operations ground up. While for BigBasket the supply chain is already in place, the company needs to get on board apartment complexes and launch a new delivery time slot of 6.30am to 8.30am. However, he says he is also open to an acquisition and is evaluating both options. Private label scale up: BigBasket continues to rapidly scale up its private label portfolio. It launched a new label, GoodDiet, for the health conscious customer a few months back. In fact, healthy foods will be a focus for BigBasket, especially from the private label perspective.
“Our data shows that people are interested in the ingredients that go into a food product. We know that customers zoom in on labels,” says Menon. Furthering infrastructure: Menon, who went to China mid-March to understand the Alibaba processes better, says, “We need to learn about scaling from them. The scale they have is mind blowing. We will have teams working closely — across warehousing, supply chain and last-mile logistics and technology,” he says.
While the company does not intend to expand the number of warehouses and dark stores, each of these will become bigger. Courtesy: YourStory.com
(By Radhika P Nair, DNA Money)