CityMall's Playbook for Solving E-commerce in India's Small Towns and Villages

E-commerce has dramatically changed India’s retail landscape. So far, e-commerce has primarily catered to the country’s top metropolitan cities, where consumers have access to platforms that offer swift delivery and convenience.

The story of Bharat, however, is different. The middle-income households spread across Tier 2, Tier 3, and rural India, collectively known as Bharat, have not reaped the same benefits from the e-commerce boom. The Bharat market is also different from its metro counterpart, it is notably value-conscious and prioritizes price over choice and convenience. Moreover, consumers in this segment typically engage in transactions with smaller ticket sizes.

As e-commerce expands into this segment, CityMall is leading the way by transforming e-commerce for Bharat.

CityMall is building a network of virtual kirana stores across India, an innovative model inspired by traditional kirana stores. Much like kirana stores, which operate on a low-cost model while fostering trust, CityMall places a strong emphasis on building trust. The company utilizes its ‘community leaders’ as an efficient channel to serve the Bharat consumers. These leaders act as both social connectors and local representatives, bridging the gap between customers and CityMall. They play key roles in acquiring customers, executing localized sales and marketing strategies, and managing last-mile logistics in their respective communities. This community-driven model is well-suited for small towns, cities, and villages, ensuring personalized service and efficient market engagement.

What Makes CityMall Stand Out

• Low-Cost Supply Chain: CityMall reduced its total supply chain cost to less than ₹60, which is at least 40% lower than its competitors.
  
• Bharat-focussed Offerings: CityMall tailored its offering and consumer mix to specifically address the needs of users residing in small towns and villages. The company’s portfolio of SKUs is dominated by private labels, which currently constitute more than 20% of the product range.

The Bharat Scale

India’s retail market, valued at around a trillion dollars, presents a significant opportunity, with 60% comprising the food and grocery segment. This $600 billion food and grocery segment is overwhelmingly dominated by offline players like Kirana stores. Currently, less than 2% of this market is penetrated by e-commerce, with modern trade capturing an additional 5-6%. By targeting even a 5% share of this large grocery market, there is potential to build a $25 billion market focusing on the Bharat consumer segment.

CityMall recognizes this immense opportunity. With its innovative model, it is poised to disrupt the status quo and bring the benefits of e-commerce to value-conscious households in India's small towns and villages. By prioritizing price, fostering trust, and leveraging a low-cost supply chain, CityMall is set to transform the retail landscape for Bharat, making e-commerce accessible and economically viable for millions of underserved consumers.

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