January - 2017 - issue > CEO Insights

Connecting People the Hyper local way: Why India Needs the Hyper local Marketplace Model to Work

Neeraj Jain, Co-Founder & CEO, Zopper
Wednesday, January 11, 2017
Neeraj Jain, Co-Founder & CEO, Zopper
Headquartered in Noida, Zopper serves as the largest hyper local market in India which intends to connect the buyers with electronics stores. The entity combines trusts with local stores and benefits of online shopping by providing the customers 'no compromise' shopping experience.

One simple way to describe hyper local commerce is that it both establishes as well as builds on connections between local retailers and consumers in a particular area. The hyper local market has witnessed rapid growth in India over the past few years, as is evidenced by an exponential increase in the number of hyper local startups and the growing interest of investors; over $290 million were raised in 2015 alone by ventures operating in the hyper local grocery delivery segment.

There is immense potential in the hyper local arena, which has ensured easy delivery of everything from groceries to mobile phones, directly from neighbourhood stores to consumers' homes. The model has been responsible for bringing in ease and convenience to the daily lives of Indian consumers by allowing them to order a wide range of goods and services at the touch of a button. Tier-II cities are also slowly embracing this integration of online convenience and offline reassurance; running errands has been simplified, and all purchases are on their way to become on-demand. In such a scenario, India needs the hyper local market to not only work, but work better and quickly.

One advantage for hyper local commerce in India is that most households are already used to depending on neighbourhood stores to fulfil their day-to-day requirements of goods and services. In fact, Indian families have a tendency to develop deep, familial ties with shopkeepers and service providers. The hyper local business model is able to cater to the buying needs of the consumer by providing on-demand delivery from local stores. The process is quick, seamless and efficient; it is even possible for the entire transaction, from placing the order to doorstep delivery, to be completed within an hour. Moreover, the physical presence of stores earns the trust of consumers more easily than e-commerce does and allows for grievances to be swiftly redressed.

It is important for Indian merchants to understand that hyper local firms are not replacing local retailers but are merely giving them an established platform to expand their visibility and reach out to more customers. The model helps them in optimising their sales and tapping into the growing and vibrant digital ecosystem without any additional effort. India's service industry is also bound to benefit from the hyper local format's focus on quality and transparency. When moving into a new city, especially in a country as linguistically diverse as India, hyper local players make it easier for people to receive staple goods and services quickly.

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