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Online Grocery - Hyderabad - Will it Work ?

Vamsi Krishna | Monday 9 July 2012 ( 0 Comment)
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Hi all,
I am looking at investing or setting up an online grocery site in Hyderabad. There are a

lot of startups here but none of them are a success. The main reason is that they are

launched as somebody’s pet ideas and not professional.
I tried working out the numbers but still turning profitable is a very grey area.
The two issues which come up are average ticket size and customer acquisition costs? The

biggest grey area would be how many customers one can acquire in a city like Hyderabad.
The other key issues are logistics which would become a nightmare and burn down companies.

Will the customer accept to pay for delivery?
The only benefit for the consumer will be to save time. In terms of discounts offered it

will be very thin margins.
Please share your views on this topic. If we eliminate fresh produce and only focus on FMCG

which do not require any touch and feel and are routinous purchases, will the idea work?
All advises and inputs are much appreciated.
Thanks
Vamsi

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