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Bengaluru-based online-to-offline grocer Kirana11 rebrands to Avenue11
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Saturday, 10 November, 2018, 08 : 00 AM [IST]
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Our Bureau, Bengaluru
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Kirana11, a Bengaluru-based online-to-offline (O2O) grocery platform, has changed to Avenue11 to reposition itself in the e-grocery segment. As an O2O marketing platform, Kirana11 leveraged the offline presence of local stores in an area to serve customers better, while reducing the delivery cost at the same time. As Avenue11, the start-up aspires to deliver a better O2O experience to consumers by temporarily shifting away from tie-ups with local stores.
“Transition from Kirana11 to Avenue11 is a strategic rebranding move that represents our shift from a hyperlocal model to an inventory-based model that will also allow us to offer premium products to consumers,” stated Nakkyun Chong, chief executive officer, Avenue11.
Avenue11, an e-grocery platform which aims at redefining the grocery space in the Indian market, was founded by Chong, a Korean expat and serial entrepreneur Nakkyun Chong. It is owned by Planet11 E-commerce Solutions India Pvt Ltd.
Currently operational only in select parts of Bengaluru, Avenue 11 claims to have a monthly gross merchandising value (GMV) of Rs 2 crore. As of today, the company is reported to have raised funds amounting to $9 million from various South Asian investors.
Kirana11 to Avenue11
As Kirana11, the company was helping kirana stores connect with the digital community. Over the last year of its operation, the company realised that not all local stores are ready to cater to online consumers today. They aren't willing to invest in technology and in improving customer service quality - keys to an excellent consumer experience.
The company has now decided to first build a strong base of online consumers before approaching select kirana stores. The strategy will help in increasing market share and strengthening Avenue11’s brand recognition among consumers and businesses alike.
Avenue11 provides doorstep delivery of a wide range of products from world-renowned brands. Kirana11’s makeover to Avenue11 will make the grocery shopping experience more exciting and hassle-free for its customers. Avenue11 has a user-friendly interface, offers a variety of payment options and allows customers to choose convenient delivery slots.
The e-grocery market in India
The online market for grocery and food items is becoming one of the fastest-growing segments in India. As per reports, only around two million people in India are currently using e-grocery platforms.
The compound annual growth rate (CAGR) is expected to have a 141 per cent growth by the year 2020, according to a report by Morgan Stanley. Market leaders, like Big Basket and Grofers are tapping the growing potential of the segment with their entry into Tier-II and Tier-III cities.
Future plans
Targeting Bengaluru first, Avenue11 plans to expand its online as well as the offline presence in the food and grocery segment.
Avenue11’s future strategy is to establish a unique O2O model. The online orders will be serviced by offline partner stores which will help cut down the current logistic cost to almost half.
To cater to the continuous customer demand, Avenue11 will associate only with local stores that meet key criteria such as floor space and the number of stock keeping units (SKUs) sold.
Avenue11 is continuously innovating to enhance their customers’ shopping experience. Its app has exciting features and experimental discount methods.
The company is ready to operate through an omnichannel system and is ready to launch about 100 offline stores of Avenue11 in the near future.
Avenue11 also plans to bring the quality and infrastructure of Korean standards to the Indian grocery shoppers.
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