POST COVID

Platform/online grocery: Both for Monthly Shopping and Top-ups

The number of new customers has increased by 84% vs. pre-COVID levels
and the retention rate by 50%. The total number of times a customer visited
the bigbasket website/app is 55% higher than before and the number of
households ordering on the platform has gone up by 44%.
In terms of consumer behaviour, this means a lot more customers are now
shopping for groceries online for the first time, and these customers are
shopping for their monthly grocery basket as well as top-ups. This shift is also
reflected in bbdaily, bigbasket’s milk and daily fresh delivery app, which has
seen a growth of 139% driven by customers choosing it as an option to buy
milk, fruits & vegetables and other fresh items all in one place.

Health and Indulgence: An unlikely combination

With customers wanting to stay healthy, fruits which help with Vitamin C, immunity
and general health saw 2x the household penetration growth when compared to
regular fruits and vegetables like onions, tomatoes and potatoes. At the same time,
given that customers are staying at home much more than before, indulgence
categories such as chocolates, cup noodles, namkeens and savoury snacks
registered 50% to 140% growth compared to Feb.

National Category Head of bigbasket,

”Given the unmatched convenience and safety that home delivery offers, we
have experienced an 84% increase in new customers accompanied by
excellent retention rates and basket sizes.”
“We work on the principles of trust and customer satisfaction and this growth
has reinforced these principles. We will continue to closely understand
customer behaviour and make relevant products available with unmatched
convenience,

Big basket has a wide array of capabilities that gives it a unique competitive advantage and
interesting value propositions to its customers. These are the capabilities that BB developed over
time organically based on the need and some of them were right in their business model to position
itself away from the competitors.

Big basket initially started with market place model, it shifted to mixed model (Inventory model +
Hyper local model) to achieve economies of scale (ii) Procurement Capabilities BB procures
household goods, branded food items, beverages and food grains directly from big firms For fresh
produce, procurement is done from three sources-farmers, vendors and national sourcing •
Farmers- 70% of SKUs-Farmers deliver their produce at a collection centre nearest to their village •
Vendors-20% of SKUs- Exotic fruits and vegetables • National sourcing-10% of SKUs- for products
having more shelf life (onions, potatoes, etc) (iii) Delivery Capabilities Morning & Evening prefixed
slot delivery - Available with our complete range of 20,000 products • 90-minute Express delivery -
Available with our range of daily essentials (about 1,500 products) • Specialty shops delivery - Picked
up from your neighborhood stores & dropped to the delivery address
Network Effect 70% of Big Basket’s sales comes from the portal Big Basket. Which includes both a
mobile app and a website. The app is compatible across all smartphones. By incorporating a referral
marketing promotion, the company was able to increase the user base very rapidly. More and more
people are joining the network, making it more valuable, beside acting as a one stop – from the
home shop to the customers.