'Flipkart Farmermart’ to sell groceries soon
October 16, 2019: E-commerce giant Flipkart is venturing into the retail business of grocery with the newly registered ‘Flipkart Farmermart’.
October 16, 2019: E-commerce giant Flipkart is venturing into the retail business of grocery with the newly registered ‘Flipkart Farmermart’. The Walmart-owned company will be up against Amazon, Big Basket and Grofers who have already set their foot in this business. Once all the government approvals are sanctioned, the company will have an initial investment of Rs 2500 cr.
The government of India allows 100 percent foreign direct investment into food retail for food produced and manufactured in the country. Food is the only commodity that etailers are allowed to sell directly to the customers which is expected to create more jobs and help agri ecosystem but only by maintaining different boards, staff, bank accounts and inventories. Farmers are expected to have direct access to the market with food etailers and food processing industry to get a boost as the investments are directed primarily on supply chain and agriculture.
Flipkart already has tie-ups with many farmers for their B2B business which they will be expanding. Though grocery will the sold in online initially, the company is also expected to open offline stores in the country, which may further consolidate its position in the market. The Indian grocery market is the sixth-largest in the world and is expected to grow exponentially with a rising population.