Due to worldwide COVID-19 lockdowns, the online grocery sales has surged about 40%. Some reports anticipate that the online grocery market would gain momentum in the next five years. As per the reports of Statista, the grocery sales in USA are estimated to reach $59.5 billion by 2023 from $23.9 billion in 2018. The average daily users of the on-demand grocery app have increased beyond 40k during this pandemic.
Talking about current market scenario, the pandemic is transforming consumer’s needs and behaviors, putting high degree of focus on online grocery business. This unprecedented situation has made people experience many challenges. The biggest challenge is getting a food supply that is inclining people towards online grocery apps. Today, while purchasing fresh vegetables, fruits, and all our daily required items, we follow social distancing due to instilled fears related to infection. For this reason, the use of Grocery App is the best and wise option.
Based on some surveys, it is found that consumers of different age groups are responding differently to current crisis. The results of surveys show that shopping behaviors are changing based on generational differences where the young generations prefer on-demand service-related apps for buying clothes or groceries. To fulfill the demand of users, Grocery App Development Industry is acting fast and implementing new business patterns for consumers who are gravitating towards online delivery apps.
Grocery Industry – What’s Happening Now?
The global economy is facing unprecedented impact due to the spread of the COVID-19 for the past few months, due to which several industries are forced to lockdown their business operations. Businesses are now looking for an alternative source for generating revenues.
Many might have thought of creating a grocery app that seems to be a promising revenue source if they out-looked gently. Creating an app like Walmart or Shipt might be a dream for many; however, one should analyze the revenue stream of the grocery industry in depth before transforming their dream into reality.
Online purchase of groceries has become a mainstream part of people during the COVID-19 outbreak. Users of online grocery apps are now mainly focused on purchasing essential goods such as health care, foods, and other beverages which raises the sales of these goods to the peak. On the other hand, other on-demand services such as transportation, food delivery, etc. have fallen witheringly into deep.
Apart from that, few issues need to have strict considerations before stepping into the development of a grocery app. The issues mentioned below are commonly faced by both online and as well as the offline Grocery App Businesses during this hard time.
Key Challenges Of Grocery App Businesses In Coronavirus Crisis
- Supply Chain Management: Because of the COVID-19 quarantine practice, having healthy supply chain management becomes harder for the online Grocery industry.
- Insufficient Workforce: It is a huge matter of concern for grocery business owners because workers have the fear of getting infected due to direct contact with customers. They are quitting their jobs; making it difficult for store owners to manage their work with limited human resources.
- Consumers’ Demand & Behavior: Since people are keen on stocking the essential grocery items their orders narrowed and it becomes a challenge for grocery business people to focus only on essential groceries.
The Future Of Grocery Apps
The food and essential supplies are going out of stock as panic buying continues. This is creating pressure on store owners to swiftly reform their existing business model to meet the challenges and provide safe environment. The popularity of click-and-collect will bolster after the pandemic fades. It is because consumers will have different expectations & grocers will find themselves in a changed market. Many experts are saying “The future of grocery shopping is not in these big supermarket stores but instead through your phone.”On-demand grocery app development can be beneficial for both buyers/users and as well as the retailers/business owners.
Benefits Of On-Demand Grocery App Development For Consumers
- Saves Time: On-demand grocery apps save you a lot of time and give you the convenience of purchasing items from the stores with ease.
- Ensures Safety with Contactless Purchase: On-demand grocery app provides the benefit of contactless purchase, making consumers risk-free from getting infected.
- Customized Shopping: It allows buyers to purchase products from different brands & stores of their choice.
- Convenient Payment Options: Users can easily select the payment option as per their convenience.
- Cost-Effective: Buyers can make use of coupons and promo codes to avail discounts.
Benefits Of On-Demand Grocery App Development for Retailers
- Contactless Grocery Business: On-demand grocery app allows retailers to do business by making less contact with buyers.
- Order Tracking and Status: Retailers can track orders and provide real-time details to buyers quickly.
- Promoting Business: Creating a multi-niche app will allow retailers to promote their other business through on-demand grocery apps.
- Increases Business Sales: Through on-demand grocery apps, retailers can easily reach a wide number of audiences and increase business sales.
- No Physical Presence Required: Retailers need not maintain a shop; rather they can maintain a warehouse and get listed on the best grocery app.
It is the best time to develop a grocery app and offer a hassle-free grocery shopping experience to your customers. With the rising and persistent demand for online grocery shopping, it is the right time to launch your app and venture into this industry. Please reach out to us to know more on the same.