Hyperlocal E-Commerce Bridging the Gap Between Online and Offline Shopping

Rising aspirations, income levels, as well as favorable demographics, and other factors, have encouraged the retail industry to stand on the spot of the fastest and most unique industries. On one hand, e-commerce has high growth potential and on the other, hyperlocal is the next frontier that is merging with offline and online platforms to revamp the shopping experiences. Also, the pandemic accelerated the growth of e-commerce as more and more people uses it due to cashless and contactless facilities. Hyperlocal strategy is changing the face of retail while bridging the gap between online and offline shopping.

Simply put, hyperlocals are those that have a local ecosystem, allowing shoppers to buy anything from their neighborhood stores. A growing number of payment options, growing demand for instant delivery, and growth in geo-location-aware devices have combined to pave the way for hyperlocal businesses in India. For consumers, it is an extension of technology-driven convenience. They enjoy doorstep delivery of groceries, laundry, medicines, food, etc. Moreover, hectic lifestyles and better living standards are also driving the growth of hyperlocal e-commerce companies as they provide everything at the doorstep.

Indian e-commerce market likely to reach US$ 200 billion by 2026 from US$ 38.5 billion in 2017 – IBEF (Indian Brand Equity Foundation)

But what is the reason behind the rise of hyperlocal e-commerce? Going hyperlocal is seen as a boost step by the e-commerce sector. The hyperlocal strategy ensures lower inventory costs as warehouses become less of a necessity. In addition, consumers can visit the nearest retail store to experience the product before purchasing. The proximity to the store also ensures quick grievance redressal for the consumers. Reducing geographical barriers also reduces marketing expenditure as well as provides control over the quantity, quality, variety, and distribution of products.

The following points explain how hyperlocal e-commerce is bridging the gap between online and offline shopping:

The Digital India initiative has propelled e-commerce companies to enter rural and tier 2,3 cities with economic growth, allowing people from all sections of society. Hyperlocal e-commerce companies have revamped the supply chain aspect to deliver products and services to customers in the shortest possible time.For being at the forefront of the race, hyperlocal e-commerce has a system in which customers can search online for the required product or services within their range. Customers type their location on the platform and in return the system shows them nearby products or services.There exist issues like the language barrier hindering the quick entry of hyperlocal e-commerce brands. To overcome such a hurdle, companies are now catering to rural areas in various language options that customers can choose to make purchases from such companies.They deal with most of the issues that an e-commerce platform usually faces – transactions, logistics, distribution, inventory management, and lack of communication. Hyperlocal e-commerce believes in a consumer-centric approach, bringing together the best of both online and offline shopping.

Brands such as Grofers (now Blinkit) and Amazon were initially the major players, setting up their warehouses rather than partnering with retailers. Popular food-delivery app Swiggy initially launched Swiggy stores in partnership with the retailer. Currently, Blinkit follows a model where it sets up large and mini warehouses within cities. For offline retailers and physical retail chains, this is another opportunity to refine their physical presence.

E-commerce is a new and unique element replacing traditional models. However, online shopping has affected the personal interactions between the store owner, customers, and physical shopping. Hyperlocal is the way forward for online retail providing a home for the new entrants apart from providing more opportunities to the existing players in the industry. Further, hyperlocal will attract more attention and attention from both investors and entrepreneurs.

Due to a bunch of benefits, hyperlocal e-commerce has emerged as an opportunity to help provide a better shopping experience to every customer. Hence, hyperlocal markets have become a popular solution that has perfectly combined the comfort and reliability of physical stores with the convenience of online shopping, thereby providing consumers with the best of both worlds.