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BigBasket is an Indian web-based basic food item conveyance administration. The
organization basically conveys staple merchandise found in general stores, home
fundamentals and food supplies to its clients. BigBasket was established in December 2011
and has its base camp in Bengaluru, India.
Fabmart.com and Fabmall (1999–2004)
BigBasket was established by V. S. Sudhakar, Hari Menon, Vipul Parekh, Abhinay Choudhari
and V. S. Ramesh in 2011.
Prior to the foundation of BigBasket, four of the five organizers, barring Abhinay, were
important for a gathering of six behind India's first web-based retail location called
Fabmart.com, which sent off in 1999. Fabmart.com sold music CDs and wandered into the
offer of books, toys, PCs, gems, watches, and food. Helpless web entrance rates, uncommon
utilization of online installment techniques and the website bubble burst in 2002 later
prompted the foundation of Fabmall, which was a chain of actual retail locations. After two
years, Fabmall converged with Trinethra Super Retail and the new substance had around
150 stores when it got gained in 2006 by Aditya Birla Group, which rebranded it as the store
chain More.
Establishment (2011–present)
In 2011, they sent off India's first e-basic food item stage BigBasket after Abhinay Choudhari
was roped in to turn into the fifth prime supporter. In March 2019, BigBasket brought
US$150 million up in speculation from Mirae Asset, Alibaba Group and CDC Group providing
the organization with a valuation of over US$1 billion.
In March 2020, they obtained miniature conveyance firm, Daily Ninja. As of June 2020, it
was accounted for that BigBasket had hit the annualized gross deal run pace of US$1 billion
and started selling around 18,000 items from more than 300,000 orders got day by day.
In February 2021, the Tata Group obtained a 64.3% stake in BigBasket for around ₹9,500
crore (US$1.3 billion).
Starting at 2022, BigBasket provides food predominantly to level 3 and level 4 towns with its
local gathering purchasing approach, wherein clients can make bunches through informing
and web-based media stages to purchase items at marked down costs. Reports additionally
arose around the same time that BigBasket plans to carry out an expedited shipment
administration called BB Now to zero in additional on speedy business, wherein products
are conveyed inside 15 to 30 minutes upon the position of requests.
Advantages of Big Basket
1. Product Range: Big Basket has a massive product selection that includes over 18000
2. Discounts: Big Basket provides substantial discounts on a wide range of products. They also
use the product bundling technique to increase sales and provide customers with the best
possible discounts. As a result, they are a profitable option for customers to purchase.
3. Convenience: Big Basket provides an alternative to the hassle of standing in mall lines or
driving all the way to retail stores. They deliver the products right to your door and accept a
variety of payment methods. Customers, particularly in large cities where life moves at a
breakneck pace and it is difficult to reach them, can shop at any time of day.
4. Target Group: They have carefully chosen their target customers and have established a
presence in metropolitan and tier-I cities. They have offices in Bangalore, Hyderabad,
Mumbai, Pune, Chennai, Delhi, Mysore, Vadodara, Patna, Indore, and Vijaywada, among
other places. They are currently available in approximately 25 cities.
5. Low Fixed Cost business model: Because the majority of the items offered by Big Basket
are perishable, they rely on the retail stores with which they collaborate for the products. This
means they have no inventory costs, which increases the profitability of their business model.
Grofers: Grofers is the main competitor of Big Basket. It all started in 2013. Softbank is one
of its backers. It differentiates itself from Bigbasket by providing
more offers and products at lower prices. Unlike Big Baskets, it
only operates in 13 cities. It has a much smaller consumer base
and profitability than Big Basket. In comparison to Big Basket, the
product selection at Grofers is a little more diverse. It is aimed at
price-conscious consumers who are looking for better deals.
Customers of Grofers shop there because of the low prices,
whereas customers of Big Basket shop there because of the
variety. The company's current strategy is to expand its private
brands, open more offline locations, and cut costs.
2. Amazon: Amazon is ranked third in the list of big basket competitors, and it is one of the
top e-commerce stores that operates both nationally and internationally. It has recently made
its way into the Indian grocery market. It has over ten crore
premium members, all of whom have become instant
customers for its new venture. Amazon Fresh, Amazon's fresh
vegetable and fruit marketplace, is now available in
Bengaluru, Maharashtra, and Pune in select regions. This
feature is set to be expanded to other cities as well. Its Amazon Pantry service, which sells
grocery items such as ready meals, snacks, and drinks, is available in 110 Indian cities. It has
a presence in 110 locations, a substantial capital base, a well-established supply chain, a wellknown brand, and a large consumer base.
3. Reliance Smart: Reliance Industries, an Indian conglomerate, has been considering entering
the e-commerce market. Reliance smart/Fresh direct, its supermarket service branch, has
begun in a few cities, including Maharashtra and Bengaluru.
It is a retail company that relies on its customers. Its advantages
include a dominant market position, a sizable capital base, and
a sizable client base from other businesses. Its goal is to work
with Indian Kirana retailers. Reliance will help Kirana retailers
modernize by providing an elastic jio network, developing a
feature that allows them to perform GST, and developing virtual
assistants. Furthermore, reliance will benefit from receiving the
commodities required for its e-commerce operation. Reliance's
entry will be a significant mover in India's e-commerce market,
putting Big Basket to the test.
4. Swiggy stores: The grocery delivery service venture, Swiggy
which has worked with both online and offline businesses, delivers
fruits, vegetables, pharmaceuticals, and other grocery goods. Its
affiliates include Apollo Pharmacy, Zappfresh.com, Vicious, Le
March, and others. Its marketing strategy is to deliver
merchandise quickly from nearby stores. This service has been
introduced in Gurugram, where 3500 stores are available for
5. Walmart’s Flipkart: "Supermart," Flipkart's grocery division, debuted in November 2017.
The company's portfolio includes stables, FMCG items, and
luxury brands. It is now available in five cities (Bengaluru,
Chennai, Hyderabad, New Delhi, and Maharashtra). It has
the potential to expand its operations throughout India. It
has a well-established e-commerce platform, a large amount
of capital, and a large retail client base.
Challenges faced by BigBasket
One of the most difficult obstacles for every business in India is persuading users to try the
service first, given the high level of resistance. Following that, despite all other market criteria
such as competition, local suppliers, and buying patterns, keep these customers.
Also, because it was a one-of-a-kind business dealing with groceries, which had never been
done before, it took time for customers to trust the brand and begin using its services.
BigBasket's most difficult task was to provide service to consumers within the time frame
provided. BigBasket's complications are compounded by the perishable nature of the
product. Because there are so many participants in the e-grocery business, client happiness
is the only way to stand out. Because of the nature of the product, the consumer is extremely
reliant on fresh and timely deliveries, which might completely derail his or her day. An
unhappy consumer will quickly migrate to another provider, affecting business and revenue.
The limited window between the order and the delivery time was another concern for
BigBasket. This means that shipments have a very little planning window, which is extremely
difficult to manage using manual planning techniques.
According to media sources, BigBasket's system crashed due to an influx of orders placed
during the country's lockdown due to a unique coronavirus. Due to the ongoing closure, many
citizens are ordering ration supplies via digital networks.
According to the company, BigBasket has experienced an unusual rush in orders and traffic
over the last few days, putting a strain on its technical systems. As a result, according to media
reports, BigBasket's website and app have been periodically failing to load for some users.
Following the crash, the company opted to restrict service access to just existing clients. "We
are currently witnessing exceptional demand," BigBasket told the reporters. As a result, we've
limited access to our website to just existing clients. Please come back in a few hours and try
again." The company also stated that its employees are trying to resolve the issue so
consumers may continue to place orders as usual.
Despite its rapid growth, BigBasket faces stiff competition from Sequoia-backed Pepper Tap
and SoftBank-backed Grofers in the industry. BigBasket's main competitors include
Freshtohome, Amazon, Reliance Fresh, Swiggy, Zomato.
Despite the fact that these players are gaining a strong market position over time, the
company tends to stay fit and fine and win the market thanks to its vast and growing
consumer base. BigBasket is now twice as strong under Tata's leadership.
Role of Digital Marketing in BigBasket
After BigBasket, grocery shopping will never be the same. It was launched in 2011 as an online
grocery and food distributor from India. Whether or not you employ BigBasket's services, you
have to agree that the work they've done for the fast-moving consumer goods retail sector
has been game-changing.
Yash Arora and Pratik Sasodia, two IIDE students, evaluated BigBasket's brand identity and
business model and proposed a digital marketing approach that they believe would
considerably help the company.
Search engine optimization refers to the use of specific keywords to guarantee that a brand's
website receives the most traffic possible. These are the keywords that their target customers
are searching for the most on Google. If a website can optimize itself based on search engine
terms, it is almost likely that it will be able to reach the most number of people who are
Online grocery shopping, grocery online, online supermarket, grocery shopping online, big
basket Pune, online grocery store, and dry fruit online are some of the most popular BigBasket
keywords. This implies that BigBasket's results will be the first to appear when someone
searches for these terms online.
Best food brands online, organic fruit delivery, online supermarket, and best homecare items
are some of the proposed bid terms for BigBasket. This assures that when someone searches
for the terms online, BigBasket's website will come up as one of the first results. This makes
the website more accessible to consumers trying to shop for the products mentioned online,
which is the demographic BigBasket wants to reach out to the most. BigBasket's digital
marketing would be considerably boosted as a result of this.
Social media is one of the most important components in the success of any business these
days, especially e-commerce enterprises. And BigBasket has already figured it out after only
7 years. They have 170k Facebook likes, 4k Instagram followers, 23k Twitter followers, and
1.5k YouTube subscribers.
Some social media campaigns they can run to grow their following include
#GharLeAoBigBasket on Facebook, where the company posts creatives with captions that
show their fans how BigBasket can help them in specific scenarios. "Can you grab me some
fruits and vegetables?" Mom would ask. "Mom, why don't you order it from BigBasket?" says
the son. You'll also save a lot of money!" This allows BigBasket's social media followers to
comprehend the influence the brand's services can have on their life.
#DetoxWithBB is another social media campaign they can follow. This will primarily be done
on Instagram, where BigBasket can share health suggestions in the form of photos of
detoxifying meals, thereby assisting their followers in achieving a healthier diet. For example,
an apple with the caption "Its fibre pectin aids in getting rid of accumulated up metals and
food additives." This ensures that health-conscious people may follow BigBasket's Instagram
page for beneficial material and eventually shop from the brand due to online discounts and
other perks they learn about through social media.
Trusted Company like Quora, Mouth Shut, Google Play Store, and Yahoo Answers are a few
online venues that could be useful for BigBasket's Online Reputation Management (ORM).
Customers can use these platforms to share their experiences with BigBasket's services and
thereby help spread the word!
'Would you buy your fruits and vegetables online?' and other similar questions are frequently
asked on platforms like Quora and Yahoo Answers. It must be ensured that BigBasket is
mentioned in responses to all of these queries on the aforementioned channels! This
enhances the likelihood that the Quora topic with BigBasket as the solution will be the top
answer when someone searches for something relevant!
Collaboration with social media influencers to promote your company is known as Influencer
marketing. Influencers are a great way to contact your target audience and expand your
brand's reach because they have a significant social media following.
BigBasket could run influencer campaigns in which it approaches influencers and asks them
to promote their brand on social media. For example, Being Momma, a 57k-follower middleaged female influencer, can mention BigBasket when discussing health and baby products. By
cooperating with BigBasket on his YouTube channel, Beer Biceps, a male bodybuilding
influencer with 675k subscribers, could help spread the word about the brand. These will
entice the influencer's followers to look into BigBasket and possibly give it a try!
Over the course of a few years, big basket has grown to become one of India's largest
supermarkets. Having this app on your device allows you to do your grocery shopping from
the comfort of your own couch. The e-grocer relieves clients of the need to physically visit
grocery stores, saving them time and effort. The story behind big basket's success, as
described by Your Tech Story, demonstrates a great level of passion and faith. The internet
business in India was created in 1999 by Mr. V.S. Sudhakar, Mr. Vipul Parekh, Mr. Hari Menon,
Mr. V.S. Naresh, and Mr. Abhinay Choudhari. Fabmart.com was the company's original name.
In 2001, the company created Fabmart, which included an online grocery business.
The founders chose to establish a physical retail chain called Fabmall, which was a component
of a food chain supermarket in South India, when it became a success. Despite the fact that
the company was sold to the Aditya Birla Group in 2006 and rebranded as "More," the
founders' love for online groceries maintained, as a consequence of which they were able to
continue operating.
With smartphone usage at an all-time high, the timing of this launch was extremely
opportune. People were increasingly willing to purchase products online, which Big basket
took advantage of well. The company received its first round of funding from Ascent Capital,
for a total of $10 million, after which they sought to expand their scope. The firm's most
pressing concern was maintaining its business model in the face of adversity, for which they
spent five years conducting research and finding that the most successful strategy for
safeguarding their position was to provide individualized services to their consumers.
E-grocers have been going all out to engage modern shoppers, being aided in this mission by
new-age technologies. Big basket is making use of Artificial Intelligence, Machine Learning,
and analytics to simplify logistics and boost customer experience.
"We're in the e-commerce sector, and data is the new gasoline." We use data-driven
capabilities from a variety of sources. To construct a range of algorithms, data is collected
from transactions, consumer preferences, shopping habits, and so on (statistical algorithm,
Deep Learning algorithm, and ML algorithm). "All of these algorithms are utilised for a variety
of purposes." - Big Basket's Head of Analytics, Subramanian M S
Below are a couple of crucial technologies being leveraged by the E-grocer:
How Big Basket uses Analytics
A couple of the analytics tools that Big basket leverages are tableau which is leveraged for
converting complex data to simplified versions and Power BI which is leveraged for
interpreting data as well as for sharing insights on it.
Data analytics is playing a very pivotal role in boosting Big basket’s market. Let’s check out
how Big basket is taking advantage of these tools.
1. Extracting essential information from the unstructured data
The Big basket team has to deal with a huge section of data that is largely unstructured. This
data is obtained from studying the customer’s online behaviours and interpreting their
transaction records. Hence customer analytics helps the company to comprehend the
correlation between delivery matrix and customer loyalty.
2. Enabling personalization through analytics
The analytics team aims at enhancing and personalizing customer experience by facilitating
them with all kinds of solutions. It also helps in detecting customers as well as boosting
engagements such as communications as well as offers. The analytics aids in
studying customer behaviour so that the company can design its personalization according
to it.
3. Reducing inventory from the flux through predictive analytics
Predictive analytics helps to make sure that the firm is neither out of stock nor overstocked.
This approach implies forecasting the demand, that will aid the supply chain team in their
planning abilities such as the drivers, vans, CEEs, and equipment that are employed for
various facilities. It also aids in examining the array of orders and volumes so that the team
of the supply chain can strategize accordingly.
Big basket also employs applications that are powered by IoT ensuring the quality as well as
the freshness of products like fruits, vegetables, or other grocery items.
While delivering fresh items from the warehouse to the doorsteps of the customer various
issues need to be conquered which include managing the right temperature of the product
or dividing hot, frozen, or cold items.
The IoT application aids in interpreting the information about the item to ensure that it is
packed in the correct container and to help in balancing the varying temperatures of each
individual item throughout the journey, from the warehouse to the final delivery place.
Artificial Intelligence and Machine Learning are yet another technology that Big basket has
The firm has invested in Artificial Intelligence and Deep Learning for coming up with smart
kiosks which are also termed as “BB instant” as clarified by Subramanium in an interview.
These kiosks are basically smart machines connected via an app. The customer visits the
machine and places their order via the app. The customer can then walk away immediately
with the cart items, while the billing is automated from a cashless domain, in which the
customer receives the bill through the app with multiple options for payment available.
The AI system is powered with in-built techniques for recognition, that detect the purchased
products by employing image scanning principles through advanced deep learning
solutions. The system interprets and gives the right product to the customer and also
handles the procedure of availability as well as billing.
When it comes to Machine Learning, Big basket relies on it as well as on analytics for
guaranteeing prompt delivery. The delivery process is now initiated by detecting the
common routes and status of vehicles in order to pack multiple order sets.
In order to initiate a flawless, prompt delivery, the team gains insights regarding the best
route, the number of vehicles required on a particular route, and the present traffic
situations from a variety of data sources. Through informative data channels, the Machine
Learning driven model interprets real-time scenarios as well as the requirements of
customers. The model aids in handling multi-level track of pickers, reverse pickers,
scheduled deliveries, etc.
Hyper-personalization is another approach that aids in tracing the purchasing pattern. It
offers the capacity to facilitate management right at the individual level. The company’s
well-known Smart basket feature employs Artificial Intelligence and algorithms to
comprehend the customer’s preference towards buying certain items, which in turn
enhances the overall purchasing experience of the customer.
The biggest challenge faced by the startup was to get the users to adopt the service initially
with the resistance level being largely higher. This challenge was followed by the challenge
of retaining these customers while battling contradicting factors in the market such as
competitors, local vendors, and purchasing habits.
Prevailing as a startup for grocery items at a time when traditional stores were not that
outdated was definitely not an easy task and it took Big basket quite some time to gain the
trust of its target market and get its potential consumers to start adopting its services. The
start up’s market has witnessed cut-throat competition in spite of the rising rate. Although
these professionals are gaining a strong market position over time. The company proceeds
to be successful in the market with a good customer base.
"Tech is a vital facilitator, but the supply chain plays a huge role," says CEO Hari Menon to
Tech in Asia.
Although Technology is being used for tracking orders, updating delivery details, managing
inventory batches, and maintaining the website and its apps, yet as of now it does not find
much paramount adoption when it comes to its distribution centres.
In terms of its future plans, Big basket has emphasized on a higher degree of investment in
the field of IoT as well as Artificial Intelligence-driven innovations in the company.
Conclusion and strategies Bigbasket can adopt
Strategies to adopt Bigbasket can adopt the following strategies to compete in the market:
Subscription service
Under this, the company can start a subscription service (like Amazon Prime), that will help
in creating a large and permanent customer base. Once users subscribe to the service, it is
highly likely that they buy from Bigbasket itself as these customers would get special
services for subscribing. It can be free and quick delivery, early access to promotional deals
etc. Subscription service has been very successful with e-commerce companies and there is
high chance that it will work for Bigbasket as well.
Happy Days
Happy days, is a marketing technique used currently by Grofers. Under this, the company
declares a few days of month, say Oct 25 to Oct 29 as Happy days. In these days, customers
would get special discounts and offers on products. This is like Amazon’s ‘Great Indian
festival’ and Flipkart ‘Big billion days. There is high probability that this technique would for
Bigbasket, the same way it worked with e-commerce companies. This also helps in
repurchase of customers.
Expanding the Product catalogue
Bigbasket can focus on expanding the range of products offered. Grocery is a good business
for Bigbasket, but to stand in this hypercompetitive market, it should bring in new products
to be offered in its catalogue. New product offerings mean catering to broader range of
customer needs.
Expand to New cities
Bigbasket, no doubt is trying hard to serve the best in most metros and Tier 2 cities. It can
also work on expanding to newer cities. With Amazon Pantry, backed by its cash rich parent
Amazon, now entering the market of Grocery, it is now important for Bigbasket to fine tune
its logistics and improve efficiency.
Continuously improving from buyers’ feedback
Bigbasket should be active enough it taking buyers feedback, it can be from Bigbasket App
or website and should seriously work on improving where its lagging. This is a great source
of information where Bigbasket can understand where its good at and where it must
improve. Ex: If majority of customers are complaining on delivery, then Bigbasket got a
queue that it has work on logistics.
Working on its IT, CRM strategies
At present, majority of businesses have a strategic IT team to take care of Information
Management. IT has become a key enabler in today’s business. Bigbasket should work on
integrating all of IT, be it lifecycle management, change management etc. An integrated
platform provides a much better holistic view of business. It can also focus on enhancing
customer relations through much effective usage of Customer Relationship Management
(CRM) tools.