A selection of Hyper Local business include Swiggy, TinyOwl, Grofer
Bottom Line: Hyper localization is helping brick & mortar stores to compete with e-tailer's in a robust manner by expanding the business draw area, & endowing it with many of the advantages listed above. It is also giving momentum to yet another emerging business model - Online to Offline (O2O)- users place order on Online & the order is delivered Offline. Both Hyper localization & O2O business model are attracting interest from investors becasue they are asset light & hence less capital intensive. This is music to investors' ears!
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In this series, Rajesh Srivastava, Business Strategist and Visiting Faculty at IIM Indore gives you a regular dose of strategy case studies to help you think and keep you one step ahead as a professional as compared to your peers. Rajesh is an alumnus of IIM Bangalore and IIT Kanpur and has over 2 decades of experience in the FMCG industry. All previous Strategy with RS posts can be found here
Comments
Dipayan Sinha
I found this article really insightful, Sir! I had read an earlier article of yours on this forum about 'Hyper-localization' which was a model that e-commerce companies were employing. It described it has sourcing products from retailers located close to the customers in order to effect quick delivery and related conveniences. But this article portrays 'hyper-localization' as a means to unify service providers with customers who are geographically far from them. Could you please clear this confusion of mine? Also, it would be great if you could throw some light on the differences between the Hyper-localization model and the Online-to-Offline model. Thank You, Sir!
27 Jul 2015, 12.51 PM
+Read Replies (1)
Rajesh Srivastava
Dipayan Sinha aplogy for delay in responding to your cmments. Hyperlocalization is thriving becasue of 'Online - to - Offline' - a business model which is helping resolve pain points of customers - having the convience of having merchandise being delivered from a retail store in your neighbourhood at your doorstep. Becasue the benefit of O2O is being experenced by customers & retailers hence the business draw area has increased. Now O2O is able to deliver merchandise which may have been ordered at retail stores which may be located at 'far' off places.
5 Aug 2015, 10.27 PM |
Khushal Gupta
That was really a great value addition, sir! the current market scenario has changed drastically. E-tailors , hyper localization both are based on the conventional retailers and distributors. vendor on these platforms ultimately are those which sells through stores. I heard a new model where the all retailers of particular area came together and made their e-commerce website where all of them are registered and their shop name displayed. A customer need to click on the shop name and will be able to access the offerings. after the confirmation of order the local delivery boys will deliver it at Rs. 10/- there is no minimum order limit.
2 Aug 2015, 06.37 PM
Rajesh Srivastava
Khushal Gupta my alopogy for responding so late to your comment. Thanks for sharing your rich experence. Technology has a way of: 1. Empowering people 2. Enable cooperation among competitors. Do sahre more of yoru rich experence
5 Aug 2015, 10.32 PM