BigBag Bangalore

8/13/2019 BigBag Bangalore

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Founded in December 2011 at Bengaluru

Co-founded by VS Sudhakar , K Ganesh, Meena Ganesh, Hari Menon,

Vipul Parekh and V S Ramesh The team of five VS Sudhakar, Hari Menon, Vipul Parekh, VS Ramesh

and Abhinay Choudharihad earlier launched Fabmart.com

K. Ganesh and Meena Ganesh are angel investors.

In March 2012, BigBasket Raises $10 mn From Ascent Capital In Aug 2012, BigBasket had its own warehouse capable of stocking 10000

SKUs

Oct 2012, they entered new markets in Hyderabad and Mumbai

Jan 2013, they had a catalogue of over 10,000 products including freshfruits and vegetables, grocery and staples, meats, personal care and

branded product

By December 2013, they are expected to reach the magic break-even figure

of 1500 orders per day of Rs. 1250/- basket

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Store to Home

Grocers use existing stores tosupply online shoppers

Click-and-Collect

Online shoppers collect goods at

Grocery Stores

Warehouse to Home

Online start-ups (and some bricks-and-mortar ) deliver from

Warehouse

Drive-throughSome Grocers are adopting this

time-saving approach

OnlineGroceryIndustry

Home Delivery Pickup

In-store

picking

Warehouse

picking


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BigBasket chose to follow the Warehouse-To-Homemodel.

DP

DP

DP

DP

Wholesalers

BigBasket follows Hub-and-Spokesupply-chain architecture.


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Bigbasket.com iscurrently hosted on a

server that is located inSingapore by AmazonTechnologies company.

It runs on AWS E-Commerce Architecture

A highly availableecommerce website witha flexible product catalogthat is scalable

Amazon Web Services Architecture (AWS)

Customers is able to find the products they are interested in quickly

The pages load quickly and are highly available and accessible with very low latency

Communication & Collaboration Tools Google Mail,Apps, Analytics and Maps, Android Tabs

Sales & MarketingEmail / SMS campaigns, Social Media

Customer Service Platform - Zoho

Technology usedUbuntu Linux, Apache Webserver

MySQL DatabaseHTML, Phyton, Web2py, Django

Cloud Solutions

Amazon Web Services Cloud


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Grocery buying is mostly a repetitive task. when a shopper logs into the account, a

history of previously bought items is provided making it easier to pick instead of goingthrough the motion all over again. At each step, simple technology helps save time andmoney. With technology, BB manages to keep near-zero inventory and fulfils hundreds oforders everyday.

BB uses Applications that track everything from the time an order is placed to delivery

Use of net-bookswhich displays a map, the vehicle location and the address to which the

basket needs to be delivered

Uses a supply chain technology that allow customers to place orders through multiplechannels. Later predictwhat a customer is likely to order

This is the most important tech application which lets BB reduce inventory and thereby,cut costs and keep a tight leash on expenses

Analytics also involves knowing the customer better which helps retailers to make tailor-made, compelling and convenient offer to the tech-savvy shopper and increase sales

Card on delivery, where a customer can swipe their cards at the time of delivery to payfor the order


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Educate customers: One striking finding from our study is how many

shoppers are not even aware that online grocery service exists. BigBasketrelies on word-of-mouth publicity but, massive marketing and communication isrequired.

Develop a unique selling proposition: A successful business normallystands out by offering something unique to the customers. BigBasket assumesthat the USP is the time saved through home delivery. Our study supports this.

Win their Trust: Customers retention is a major challenge for online retailers

and turning this problem around starts by minimizing mistakes. BigBasket offersrefund with no questions asked and 50% refund on undelivered products.


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Ascent Capital invested US$ 10 Million which is estimated to last for 3 years

BigBasket uses Amazon Web Services (AWS) to host its E-Commerce sitelocated in Singapore.

The annual cost for the E-Commerce site is estimated at US$ 500 per yearwhich is scalable and can increase upto US$ 1000 based on utilization

The company spends Rs. 150 to Rs. 400 to acquire each customer. The

current customer base is more than 35000

For BigBasket, the most important tech application is the ability to predictcustomer behaviour which lets them reduce inventory and thereby, cutcosts and keep a tight leash on expenses

Unlike, traditional retailer might have to stock at least three weeks in

advance, they ends up stocking it for less than two days

They maintain almost zero inventory for perishables and sources from themarket twice a day

By December 2013, they are expected to reach the magic break-evenfigureof 1500 orders per day of Rs. 1250/- per basket


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Documents

BigBag Bangalore