HiGrocer empowers unorganized retailers in India

According to reports, the Indian retail market is primarily dominated by traditional unorganized retailers who reach out to the country’s 1.3 billion population. Unorganized retail thus has a humongous opportunity, which is largely untapped. Mumbai-based, HiGrocer recognized this opportunity and forayed into the food retail sector with comfort food. Today the company offers ten products, has three brands across two categories, and trades across 1000 odd stores in India. 

Organize the unorganized

HiGrocer endeavors to help unorganized sellers by providing them with an opportunity to grow their business. Speaking about the company, Dharit Parikh, chief executive officer of HiGrocer, said, “Despite retailers’ access to a wide range of products available in the market as well as a formal credit system, they are still devoid of a lot of benefits from distributors. These, in turn, eventually results in them settling for lower margins. HiGrocer has the vision to empower unorganized retailers in the country, which comprises 12 million Kirana stores.”

According to him, by on-boarding them on the HiGrocer platform, the company ensures accessibility and affordability. It assists them in a better margin by accepting the footfall challenge created by the market dynamics, which, in return, enables them to strive for the fittest. 

Caters to last-minute consumer thirst

Speaking about the business model, Parikh said, “At HiGrocer, we are catering to the last-minute consumer thirst for packaged foods at these unorganized retailers.”

 “We do the retail tie-ups and ensure product placement. Our tie-ups with retailers are made with dedicated shelf space or gondola space named ‘HiGrocer’, and we have a dedicated planogram for the shelf with the help of our technology interface, which localizes information about each retailer level.”

Delivery centers

“HiGrocer works on a delivery center model that includes a local warehouse. These warehouses are equipped with the requisite storage facilities, for example, we have a refrigerated cold room at our facility to stock our Ayyappa – Idli Dosa batter and strong freezing room to store our frozen products. These facilities ensure that the products are kept at an ideal temperature until they can be moved to the retailer point.”

Technology-enabled direct to market model

The USP of HiGrocer is its efficient supply chain and technology Parikh says, “Our products come directly from manufacturer storage to our delivery centers (within 10 kilometers of radius) and then reach retailers. We reduce the dependency on intermediaries, thereby ensuring better margin, daily service, and ready stock delivery to these unorganized retailers.”

Ensures food safety

To ensure quality and safety, the company conducts random checks on every batch they receive by third party food technologists and lab experts.”

“Food as an industry is ever innovating and evolving. Food for HiGrocer is the medium to build an ecosystem; System that enhances Customer Needs, Retailers Greed and Manufacturers Yield,” he continues. 

Parikh concluded, “Our vision is to fulfill the needs of urban India looking for quality comfort food. Therefore every unrecognized retailer who joins HiGrocer gets an opportunity to reach out to 1.3 billion people of India, compete with organized retail giants, and emerge as the trusted champions in their neighborhood.”