Case Study: Big Basket Dark Stores
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TABLE OF CONTENTS
Your Retail Coach
Introduction
01 02 03
04 Advantages of dark stores Big Basket
Look into Future Conclusion
05
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01
Introduction
Dark Stores Meaning ● The future of grocery retailing, dark stores are traditional retail stores or supermarkets that have been transformed into e commerce warehouses or local fulfillment or distribution centers ● Dark stores are currently in vogue in grocery, apparel, footwear, consumer durables, and home goods retailing globally ● These D2C (Direct-to-Consumer) entities provide a hassle-free shopping experience to the discerning customer through a dark store online ordering process, same-day on-demand deliveries, and instore and location pickups.
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Functionality Details ●
These stores are not open to end consumer
● He can then make a web-based purchase through these digital shopping platforms
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Buyer can browse through these dark stores with the help electronic
● The purchased products promptly
media & mobile friendly application
home delivered or collected by the buyer from a pre-chosen
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They offer a near real-time view of the product shelves.
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location.
Dark Store Setup A dark store set up is generally near demand-centric populated neighborhoods or areas.
For retail segments like apparel, footwear, and durables, they could be even be located on the city outskirts.
The dark stores concept consists of the setting up of mid-size local warehouses for storing, sorting, and managing orders, facilitating quick and cost-effective picking and easier automation.
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02
Advantages Of Dark Stores
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Advantages Of Dark Stores
Closer to customers, easily catering to larger areas
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Higher product stock variety and availability
Reduced operational costs
Efficient customer service
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03
Big Basket
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Big Basket : An Introduction • One of India’s leading online grocery hypermarkets • Big Basket was founded in 2011 by Hari Menon, V S Sudhakar, Vipul Parekh, V S Ramesh, and Abhinay Choudhari and is headquartered in Bangalore • Valued at $1.8 billion as of 2020, the company currently operates in 30 Indian Cities. • It has more than 20,000 products and 1,000 brands in its online catalogue.
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Big Basket Rejigged Business Model For end consumers, Big Basket is essentially a delivery platform, while from the business perspective, the company covers everything: • • • •
Procurement Supply chain Management Logistics Consumer service
Big Basket Dark Stores thus essentially follows a hybrid model combining: • Inventory led wholesale approach • Hyper-local procurement strategy
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Big Basket Dark Stores Concept • The dark store model was initially conceptualized by Big Basket back in 2015. • They use this model by which they provide express delivery option to their customers. • These warehouses would also help them to make a foray into the smaller towns. • 10 such warehouses in each metro city in its network, and one each in 50 smaller towns.
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Big Basket’s Dark Stores India Delivery Framework The online fulfillment centre or dark stores business model has allowed Big Basket to deliver in three formats: • Express’ delivery in 90 minutes • Normal (same day or next day) delivery • Irrespective of number or size is delivered in a maximum time of three hours after placing the order The Express delivery model makes use of smaller dark stores, with the orders catering to items like milk, fresh fruits, and vegetables In the normal order delivery model, all the stock-keeping units (SKUs) are available
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BB Daily, BB Instant & BB Beauty Store Since the middle of 2018 or so, Big Basket has also launched three new businesses: • BB Daily • BB Instant • Beauty Store. In BB Daily, buyers can subscribe for essential groceries like milk, fruits, and vegetables, bread, dairy, eggs, breakfast cereals, etc. BB Instant uses Big Basket’s unmanned vending machines to target corporate offices, tech parks, and apartment buildings in Tier I cities. Both Daily. Beauty Store is available on the Big Basket main app and consists of exclusive personal, skincare, and beauty products.
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04
Look into Future
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The future looks promising ● With more than 10 million customers, Big Basket turned profitable during the nationwide COVID-19 lockdown in 2020, expecting to nearly double its revenues to $1 billion in the financial year ending March 2021. ● Despite cut-throat competition from arch-rivals Amazon, Grofers, and Flipkart, along with countless other local digital supermarkets, Big Basket continues to maintain its leadership position in the dark stores India landscape, being a part of the exclusive unicorn club. ● The company had around 2,000 SKUs for in-house brands in 2020, which it expects to increase to 2,500 by the end of FY21, as it builds robust storage, cleaning, and packaging capacities for its private label products.
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05
Conclusion
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Conclusion
• Dark stores helps you in speedy deliveries, which is the most important factor in this industry to compete. • Dark stores have bright future. • Whole world is pivoting towards dark stores rapidly. • They help startups in assets lite model.
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FOR MORE DETAILS:To know more about " Big Basket Dark Store Strategy ", visit:
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Thanks! Do you have any questions? Your Retail Coach Pune, India-411016 Email: consult@mindamend.net CREDITS: This presentation template was created by Slidesgo, including icons by Flaticon, and infographics & images by Freepik. INDEX