In a market where the speed of order fulfillment is the ultimate test of customer fidelity, Amazon Fresh has thrown its weight behind quality. The company, which ships wet and dry grocery, personal and health care products, baby care and pet products in over 60 cities, promises to deliver all that in two to four hours. It offers free delivery to Amazon Prime customers for orders above `249 and counts metros such as Delhi, Mumbai, Bengaluru, Kolkata, Chennai, Hyderabad and Jaipur as its top markets.
“Our research shows consumers are primarily looking for value and quality in grocery items,” says Harsh Goyal, director, grocery, Amazon India. “Our recent ad campaign highlights both these aspects in a comical act where in a hurry to get groceries, the customer misses out on savings and good quality. We give consumers great savings through bank offers and cashbacks, no delivery fee and good quality fruits and vegetables.” Dubbed ‘Nahi Toh Mehenga Padega’, the campaign, featuring actor Manoj Bajpayee, hints at a value proposition beyond efficient delivery.
Grocery delivery is predicted to touch `30.65 billion by the end of this year, and while speed has been hyped up by every competitor including BlinkIt, Swiggy Instamart, and Zepto, Amazon Fresh is focusing on leveraging technology to enhance both sourcing and delivery. It has cultivated an ecosystem supported by a team of agronomists who provide agri-tech expertise to registered farmers to enhance yield and quality. These services are facilitated through an application interface, harnessing machine learning and computer vision algorithms. Farmers can identify defects early and curb wastage. Integral to its quality assurance strategy are shelf-monitoring cameras that feed data into machine learning models adept at identifying quality flaws in fruits and vegetables, stopping their dispatch. Its temperature-controlled supply chain helps maintain quality till the product reaches the customer’s doorstep.
That is not to say Amazon Fresh has decided to de-emphasise speed.
Market expert Somdutta Singh, founder and CEO, Assiduus Global and ex-member, NITI Aayog, says national chains must not dismiss the deep-rooted tradition of kirana stores — they are willing to step up and offer everything locally that big chains do on a larger scale. However, as Amit Relan, co-founder & CEO, mFilterIt, points out, the proliferation of dark stores (micro-warehouses housing high-frequency use products) that quick commerce platforms rely on has expanded coverage across geographies and increased inventory volumes from different brands, providing shoppers with more options for last-minute needs and grocery shopping.
In such a scenario, the key to loyalty, says Yasin Hamidani, director, Media Care Brand Solutions, lies in emphasising convenience, reliability and value. “Highlighting features such as wide product selection and seamless user experience besides offering attractive discounts will incentivise trial and facilitate repeat purchases,” he says.
Adds Akash Gupta, CEO & co-founder, Zypp Electric, “By emphasising reliability, quality, and convenience, Amazon Fresh can attract customers seeking a trusted and comprehensive grocery delivery solution, even in the face of competitors offering faster delivery times.”