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  4. > Online grocery sales: Successful revival of a failed strategy

Introduction

Despite the spectacular failure of Webvan, the US based pioneer of e-groceries, in 2001, entering the online market seems inevitable for grocers who do not want to lose the race for market leadership in the omnichannel world. Innovative, more cost-efficient logistics models are successfully reviving strategies that failed before, changing the traditional grocery sales scene.

Features and benefits

* Save time carrying out entry-level research by identifying the size, growth and leading players in the online grocery market
* Use market analysis to determine the competitive intensity and therefore the attractiveness of the online grocery market
* Find out who are the leading companies in the online grocery market

Highlights

The global market for online groceries is expected to increase at double digit rates towards 2018, as consumers continue to embrace internet shopping. Low online penetration and significant pent-up demand create business opportunities for grocers.
While grocery is the biggest category in retailing, it is also the most resistant to the advance of online shopping, as grocers remain reluctant.
High delivery costs, low margins and slow profit generation, coupled with the spectacular failure of early business pioneers, discourage many potential players.

Your key questions answered

* What is the size of the global online grocery market?
* Who are the main players in global online grocery market?
* What are the pitfalls of the online grocery business and the main reasons behind its reluctant growth?
* How can retailers satisfy online grocery shoppers?
* Why did Webvan fail?

Table Of Contents

Online grocery sales: Successful revival of a failed strategy
OVERVIEW
Catalyst
Summary
REASONS BEHIND RELUCTANT GROWTH OF ONLINE GROCERY SALES
Great growth potential as online sales are only a fraction of grocery business
Online grocery market expected to reach $100bn in 2018
Customers switching to online grocers spend 30% more
Grocery retailers are reluctant to move online
High delivery costs and need for excellent service provide challenges
Online grocery shoppers harder to satisfy
Big failure of a pioneer intimidates potential followers
SUCCESSFUL FOLLOWERS LEARN FROM FAILED COMPANIES, DEVISE STRATEGIES ACCORDINGLY
Learning a lesson from companies that failed
Omnichanel competition forces big retailers to join online grocery race
Gradual expansion in dense areas safer than rapid growth
Innovative delivery models change online groceries game
Distribution centers in cheap areas are lower-cost growth option
Technology advancements slash costs of online grocery business
Influencing customer behavior through use of clever pricing
Finding right tradeoff between attractive range of products and fast delivery
Early bird catches the worm
CONCLUSIONS
Grocery business is up next for disruption
APPENDIX
Definitions
Sources
Further Reading
Ask the analyst
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