Hyperlocal is one of the most popular buzzwords in the Indian startup ecosystem. The hyperlocal business refers to enterprises that are centred around a small community or geographical area where they are based.
Backed by technology, these hyperlocal firms have made it easy for the consumers to connect with several local retailers just over a click.
The hyperlocal market in India has witnessed a significant growth in 2015. The surge in growth has majorly been witnessed on accounts of growth in technology, urban population, better logistic services and large-scale public investments.
An industry research and information service company, Ken Research, has published its report on the Indian hyperlocal market, titled “India Hyperlocal Market Outlook to 2020 – Driven by Rising Startups Firms and Fluctuating Investments”. The report provides a comprehensive analysis of hyperlocal segments such as logistics, food, groceries, horizontal and health.
It extensively covers aspects such as market size of the Indian hyperlocal market, segmentation on the basis of regions, orders and revenue, time of delivery, trends and developments, pre-requisites to enter the market and success and failure case studies of various hyperlocal companies in the country.
The hyperlocal market in India has been largely driven by a rising number of startups and consumers (who prefer on-demand delivery). As compared to 2014, the Indian hyperlocal market revenues grew at a rate of 41% in 2015. The research report reveals that the Indian hyperlocal market will grow at a considerable CAGR rate, thus projected to exceed $343.6 Mn (INR 2,306 Cr) by 2020.
With deep war chests and strong funding from VCs, the market has witnessed strong contenders like Grofers, BigBasket, TinyOwl, PepperTap, 1 mg, LocalOye, Roadrunnr, Shadowfax and others in different hyperlocal business verticals.
The report also provides future analysis of overall hyperlocal market of India and its segments. It states that increasing urbanization, personalization of affinities along with ability of curating products that appeal to the aesthetic sensibilities or aspirational desires of consumers will lead to the rise of the hyperlocal market in India.
A research analyst, from Ken Research, said, ”With rising disposable incomes, augmentation in urban population and increased investments through angel investors and venture capitalists, the market is expected to witness a significant increase in the future. Challenges such as lack of financial investments and entrance of ecommerce companies, in long run, are likely to distress the market in future. However, selecting an appropriate business model and a step towards interactive marketing strategies to gain attraction of people would play an important role in deciding the success of existing as well as new entrants in the market.”