Just last year, Future Group as part of reinventing their business strategy, converged their offline business to online by launching a delivery app and Retail 3.0 Model, Tathaastu. The project aimed to connect Future Group with their online customers and increase customer satisfaction by providing them fast-deliveries.
The app has been under heavy speculations but that hasn’t deterred Kishore Biyani’s future aspirations for Future Group. Future Group has decided to venture into FMCG market of Milk-Egg-Bread. The group has seen lots of potential in dairy product delivery segment, and plans to launch 1000 outlets under Easyday, Nilgiris and Heritage brands.
The model will work with the mobile app that customers will use to order dairy products online from the brick and mortar stores under Future Group like Easyday, Nilgiris, heritage etc. The app will find the stores located under 2-3 km radius and will deliver the products at your doorstep. Around Rs 1,000-1,200 is spent on milk, butter, bread etc every month in an average Indian household. Many startups like Milk Basket and Supr Daily have already started booming in this retail segment. In fact, Swiggy and Big Basket have also planned to enter the segment.
“The online milk delivery players are relying on the frequency of milk purchase to get consumers habituated with their services,” says RedSeer Consulting, a management consulting company. According to RedSeer, the online milk delivery market has a market of $1.2 billion [Rs 8,000 crore] of which eight percent is online.
Future Group plans to gain Rs 60,000 crore as revenue from these small stores, as compared to the current revenue of Rs 5000 crore.
“Fruits and vegetables are a great way to get customers frequently. They are daily products. We want the first-mover advantage. Delivering fresh fruits and vegetables from a central warehouse to customers’ houses (which most e-commerce players do at present) is unimaginable,” said Vinay Bhatia, CEO, group loyalty and analytics, Future Group.
