E-commerce supply chain model for hyperlocal integration in small cities

Abstract

The project was done to understand the perception of non-urban areas consumers’ perception to online buying of groceries and to create a e-commerce supply chain with hyperlocal integration in rural (non-urban areas). A literature review was conducted to understand the viability of the hyperlocal model for extension into Tier-II & Tier-III cities. A questionnaire was floated to understand the consumer perception and motivating factors to buy online groceries. The quantitative analysis of survey results showed that better prices and more variety are the motivating factors to use online groceries in non-urban areas. In-depth interviews were conducted with hyperlocal model-based startups to understand their business models and current challenges and critical success factors. Secondary research was similarly used to understand the concerns and critical success factors of inventory-based model. Based on the study, we have recommended the steps that existing online groceries need to undertake for hyperlocal integration in Tier-III cities and non-urban areas. The major advantages and critical success factors of the extension model have been highlighted in the study. We conclude that the integration of hyperlocal model in existing business models of established groceries has a potential to be implemented for their expansion in non-urban areas.