On the back of its latest expansion, Grofers expects to clock Rs 2,500 crore business by FY19.

Grofers forays into FMCG segment launches 7 new brands
Atom Online Grocery Wednesday, July 18, 2018 - 09:49

Confirming news reports about Grofers going the private label way, the online grocer announced its foray into the FMCG segment with the launch of seven new brands under two categories – Budget and Popular G-Brands.

With this, Grofers’ private labels expand to 250 food and non-food products and aims to bring 100 million customers to its platform through his expansion plan. The brand is bullish on growth with a revenue target of Rs 2500 crore and roll out of 500+ SKUs for FY 2019.

“Our foray into the FMCG segment uniquely differentiates and positions us in the e-grocery business. This vertical expansion is key to drive our next phase of growth in India. In the last five years, we have received an overwhelming response from our customers and experienced tremendous growth. Our focus is to service what we call the ‘Real Bharat’ - the two wheeler families of India who are yet to experience the world of e-commerce and our target is to bring the next 100 million new customers to e-commerce industry through our platform,” Albinder Dhindsa, Co-Founder and CEO, Grofers, said.

The G-Brands category offers premium quality products under brands such as ‘G Mother’s Choice’, ‘G Happy Day’ and ‘G Happy Home’. Labelled under the Budget category, the brands include ‘HaveMore’ and ‘SaveMore’ to cater to price sensitive consumers by offering entry level quality products.

The G Happy Day and HaveMore brands include an array of food products like tea, fruit jam, muesli, tomato ketchup, corn flakes, rose shahi sharbat etc., whereas the G Happy Home and SaveMore brands address household needs with products in the categories of detergents, household care, oral care, tissues & disposables, kitchen tools and accessories, furniture and storage and many more.

G Mother’s Choice is the flagship brand of the e-grocer that enlists a wide range of quality staples at what Grofers claims is the lowest price in the market.

According to the company, its range of private label is priced approximately 5% to 50% lower than the market price for popular brands in these categories. 

Talking about the business strategy, Saurabh Kumar, founder, Grofers, said, “Grofers’ market disruption game plan includes providing great quality products at lowest possible prices. Towards this, our private labels under the two new categories allow us to offer high quality products at various price points to serve varied needs of our customers. We are taking our promise of Every Day Low Prices (EDLP), which remains unchallenged, to a whole new level through this move. The expansion marks yet another milestone in our success story as a home-grown brand and will significantly contribute towards shaping the overall e-commerce trajectory in the country.”

As the competition in the online grocery space increases, Grofers has been significantly investing into building capabilities in the domains of product quality control, data sciences, inventory forecasting, consumer behaviour, manpower training and building supply-chain efficiencies apart from building infrastructure to provide necessary support for inventory stock.

As per numbers coming from Grofers, it closed FY18 with Rs 950 crore of sales and expects a 50% contribution from its private brands next year.  

Also read: Can private labels finaly drive profitability for Indian ecommerce?

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