Summary:
Government data clearly proves that offline grocery and essential retail is still dominant in India.
Online apps are growing, but even in cities, online grocery purchase is less than 10%. They have not replaced local stores — especially for daily needs.
Retailers who:
Protect their strengths (freshness & trust)
Provide simple digital convenience for customers
Strengthen customer relationships
..will not only survive but continue to grow.
The future is not “online vs offline”. The future is smart offline.
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In the last few years, many local grocery and supermarket owners have felt pressure from online delivery apps. Discounts, fast delivery and smartphone ads make it feel like customers are slowly moving away. But the good news is this: latest government data clearly shows that offline stores still dominate essential shopping in India.
Let’s understand what the data says and what you, as a local retailer, can do right now to protect and grow your business.
The Household Consumption Expenditure Survey (HCES 2023-24) by the Government of India looks at how Indian households spend their monthly income (called MPCE – Monthly Per Capita Consumption Expenditure). 🏛️
Here are three important facts from the data:
1. Food and daily essentials are still the biggest expense for households
In rural India, around 47% of monthly spending goes to food items
In urban India, around 40% of monthly spending goes to food items
2. Most grocery and essential shopping is still done offline
Even in cities, only a small single-digit percentage of grocery purchases happen online. Items like:
Vegetables
Milk
Pulses
Snacks
Rice, atta, oil
are still mainly bought from local kirana stores and supermarkets.
3. Consumption is increasing
Household spending is rising every year. This means customers are buying more, not less. The competition is increasing, but the total opportunity is also growing.
👉 This proves one thing clearly:
Local grocery and departmental stores are still the backbone for purchase of essential items in India.
Online apps are growing not because offline is weak, but because they offer:
Convenience - they are visible online, they enable quick search
Easy ordering
Attractive offers
Quick Home delivery
The risk is not that customers will stop visiting stores completely — the risk is that they may slowly reduce visits if stores don’t adapt.
1. Hidden Costs Increase the Final Bill
Online apps often show:
Product discounts on screen
But later add:
Delivery fees
Platform charges
Surge pricing
Minimum order value
Customers realise the final bill is higher than expected
2. No Personal Relationship or Flexibility
Online apps:
Treat every customer the same
No credit option
No special help for elderly or regular buyers
3. Problems Are Hard to Solve Online
If something goes wrong online:
Complaints go to customer care
Refunds take days
No human accountability
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You don’t need big technology or heavy investment. Small changes can make a big difference.
1️⃣ Win Where Offline Is Already Strong: Freshness & Trust
Customers trust local stores for:
Fresh vegetables
Good quality grains
Correct weight
Personal relationship
What you should do:
Keep fresh items - visible and clean
Rotate stock regularly
Mention to customers about quality (“Aaj ki fresh sabzi hai”)
Display cleanliness proudly
Understand their needs and buying patterns well
👉 Online apps cannot easily beat freshness and human trust.
2️⃣ Add Simple Digital Convenience (Without Complexity)
You do not need big technology or complex procedures to offer digital convenience.
Simple ideas that work:
Be visible online. List your high-selling items and essentials
Take orders on digitally WhatsApp or phone, allow Enquiries
Respond to them quickly, sometimes propose alternates, better options
Offer same-day or next-morning delivery in your area
Allow customers to send a list and pick up later
Sites like Vyaparify offer a personalised, easy-to-manage website to showcase your products, receive enquiries and orders on your Whatsapp with complete customer details, so that you don’t miss them. A simple “My Business QR” shared with your customers will allow them to save your store details, access your site, place orders, and pay online through your UPI QR.
Even 20–30 loyal customers using online orders can protect a big part of your business, attract repeat purchases and refer more customers.
👉 Customers want convenience, not technology.
3️⃣ Build Local Loyalty (Your Biggest Advantage)
Online apps treat everyone the same. You don’t.
Easy loyalty ideas:
Monthly credit customers
Small discounts for regular buyers
Special delivery or support for senior citizens
Remember customer preferences
✅ Quietly highlight your strengths
For example:
“Aap khud quality dekh sakte ho”
“Aaj chahiye toh aaj milega”
“Koi problem ho toh seedha bol dijiye”
Build confidence without sounding negative.
A customer who feels valued will not easily shift to an app.
👉Your relationship is something online players cannot copy.
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