| |JULY 20229· The retailers in such a setup· Seek to aggregate the right amount of inventory, balancing it to reduce wastage · Optimize with technology powered storage and cold chain solutions· Optimize on first mile logistics across grids of farming centers based on shelf life of the produceThe organized food retail sector in India is still at a nascent stage compared to the developed economies, with a small number of players trying to create a new paradigm. For these players to thrive there is a continued need to manage everything in-house from supply chain, logistics, selling, sourcing, stocking, merchandizing, trend analyzing etc. While having to keep prices low enough to be able to compete with the traditional sector, it is no wonder profitability is a mirage.CERTAIN CONDITIONS HAVE CREATED THE PRIMORDIAL SOUP FOR ORGANIZED RETAIL IN INDIA:1. India opened up food retail for foreign direct investment in 2016. A shot in the arm for the players/entrepreneurs in the organized retail sector.2. The average consumer is now willing and able to pay a premium for quality and speed of delivery. With two-thirds of the country below the age of 35, with disposable incomes and an ever-increasing spending habit, adoption of apps like BigBasket, Amazon, Flipkart and more is at an all-time high.3. In the recent past there has been a tremendous rise and growth of logistic/delivery companies whose claim to fame is their technology platform. The delivery fleet in colorful Tshirts that adorn company logos swerve on their bikes in every by-lane and alley delivering just about anything. IOT enabled trucks and its drivers tapping on their apps is not uncommon anymore.4. 4G networks have proliferated across the country making it the second largest internet user base in the world. Access is easier than it has ever been and is getting democratized. It is not surprising that more and more companies are now targeting the rural consumer base.5. Cold chain solutions, which were previously unheard of and cost prohibitive, are now more accessible. The market for extremely perishable commodities stands to benefit the most from this.6. Corporations are adopting technology solutions like never before with an aim to reduce costs. 7. Data led decision making is the future. Demand forecasting, once an art, is now a science.FARM IN A FORK?Imagine this. Farmer gets a notification on his phone at 7pm. It is a demand for 10kg spinach to be delivered the next morning. Farmer harvests it at 5am, hands it over at the nearest processing center where farmer is paid at par/above market value. The processing center collects the spinach, logs it into the Warehouse Managing System using an app and dispatches it using a cold chain solution to the nearest warehouse 50 kms away at 11am. By 1pm, the spinach is ready to be transported to a temperature controlled vending machine, a further 10 kms away where it finally finds a resting shelf space. A savvy mother passes by the machine at 4pm, buys the spinach via a mobile app and picks it up from the vending machine. Palak paneer served at the family table at 8:30pm. Fresh from the farm. The organized food retail sector in India is still at a nascent stage compared to the developed economies, with a small number of players trying to create a new paradigm
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