Food

PUSHING GROCERY OFF THE EDGE TO TAKE THE E-COMMERCE PLUNGE IN SRI LANKA

Online Grocery shopping is the trickiest e-commerce nut to crack and many large supermarket chain have only made a half-hearted attempt to do so. Customers too have been slow to adopt online grocery buying. A study by Morgan Stanley recently showed 84% of shoppers still prefer to choose their grocery items personally and this has remained unchanged since 2016.

One the one side Grocery in Sri Lanka is largely MRP driven and extremely price sensitive hence margins can be deemed too slim for the additional logistics of home delivery. On the other side the grocery customer does not have an incentive to shop online unless the inventory provides choice and thereby a meaningful basket size to take the online plunge. The challenges surrounding the delivery of fresh is another major psychological constraint. In a market where going to the Sunday pola is still the things to do, the idea of relying on the online channel for freshness seems unrealistic.

I absolutely love to crack these hardest nuts and going into the 2nd phase of Kapruka’s engagement with Sri Lanka’s leading supermarket it’s important to look in the eye of these large players and tell them exactly how to make online grocery a winner.

 

Online Must Be About Choice

One obvious advantage is choice. At the store your space is limited to your shelf and the number of brands and SKU’s on shelf is limited by the masterfile. Online grocery should be about offering that choice and more to the customer.

Local Store Feeding a Region Works

Logistics is the other make or break game that can be made the advantage in online channel. Most go for the very traditional fulfillment model which is the inventory model. It simply means you have a certain inventory that is dedicated in your warehouse ready to be shipped on demand. But this requires a lot of holding costs and opportunity costs become huge. The hyperlocal modal on the other hand is the model for scalability and most new entrants in the field opt for this. Going hyperlocal means plugging the last mile logistics to the local store with each of them feeding their region.

No Frills No Fat Channel

So, in this 2nd phase with Cargills Food City, https://www.kapruka.com/shops/specialGifts/spotlights.jsp?t=foodcity Kapruka is navigating with the giant to go hyperlocal- and with that to relook at some of the cost structures that get in the way of seeing the potential of online grocery.

The beauty of E-commerce is that it is a completely different beast to traditional brick and mortar retailing. It carries none of the frills or the fat layers of your store that’s plugged with innumerable front-end costs from shelf space, to sales staff, to electricity that squeeze margins. It is essentially a high margin model that can simply take-off on the already sunk costs of physical stores and warehouses.

Online Grocery is without doubt an economically challenging space. But increasingly with the willingness to innovate coupled with scalability some large players like Whole Foods partnering Amazon and Walmart going it alone are cracking this nut.

So, while the store experience is here to stay for Grocery, agility and willingness to change can make e-commerce a plunge worth taking. Backed by Kapruka and its Grasshoppers infrastructure that is transforming the last-mile delivery in Sri Lanka it really time to decide to take that leap or simply watch from the edge.

Is Halal Important in Sri Lanka?

Is Halal Important in Sri Lanka?

I always wondered what the word “Halal” means, it appears at the back of packaging and especially at restaurants.When i researched on the true meaning of “Halal” i was surprised that it meant ‘permissible’ in Arabic where as per Islamic principles, the term Halal takes a specific, well-defined meaning where individuals who choose to adhere to Islamic law are expected to be concerned with the permissibility, or Halal aspect, of any human activity they wish to indulge in. This was indeed news to me as i always believed that Halal was only related to food and the sourcing of meat and was not very conscious of its important in Sri Lanka.

Coming back to my initial question “Is Halal Important?” YES INDEED! It is very important here in Sri Lanka as well, because we are living in a multi ethnic, multi religious country where we respect each other or else we should respect each other. Owing this reason, it is very important to accommodate information and details regarding Halal Certification and Halal Compliance for our Muslim friends.

Kapruka has a unique service where food items from Halal Certified Sri Lankan restaurants can be ordered and sent to love ones or just enjoyed by yourself.We offer food from;

Eastern Wok

which is the 1st Halal Restaurant in Sri Lanka which was started in 1992. They offer an array of Eastern dishes ranging from noodles to sizzling lobsters with an average cost of around Rs 3000 for 2 people.
Order on Eastern Wok

Mango Tree

A Halal certified Indian restobar famous for its North Indian Cuisine.LKR 3000 for two peopel (approx.)
Order Mango Tree

Indian Summer

Indian Summer has something to appeal to any palate and anyone being Halal certified as well offering a wide range of Authentic North Indian dishes. LKR 3500 for two people (approx.)
Order on Indian Summer

Urban Kitchen

Urban Kitchen offers 233 choices inspired by Italian, Mexican, Japanese, Chinese, Malaysian, Thai, European and Middle Eastern cuisines.LKR 3500 for two people (approx.)
Order on Urban Kitchen

Manhattan Fish Market

At the Manhattan Fish Market, our guests are served with lip-smacking American-style seafood.LKR 4500 for two people(approx.)
Order on Manhattan Fish Market
In conclusion it is important to be inclusive and we at Kapruka understand that perfectly. If you are feeling hungry or you want to surprise someone with a yummy meal, Kapruka got you covered.

Posted by Curious Angel in Review Articles, 0 comments