Harsh Goyal on how Amazon Fresh aims to stand out in India’s evolving grocery landscape

Amazon Fresh’s latest campaign, ‘Nahi Toh Mehenga Padega’, aims at highlighting the overarching concept, which revolves around the idea that not purchasing from Amazon Fresh can be costly in both a literal and figurative sense. In this interview with Adgully, Harsh Goyal, Director and Head - Fresh and Everyday Essentials, Amazon India, talks about the concept and consumer insights behind the ‘Nahi Toh Mehenga Padega’ campaign, understanding India’s changing grocery shopping behaviour, and the crucial role of technology in delivering fresh produce, as well as  future innovations. Excerpts:

What is the overarching concept/ objective behind Amazon Fresh’s “Nahi Toh Mehenga Padega” campaign? Could you share some inputs on the consumer insights used to conceptualise the campaign?

In this campaign, we use “mehenga” in the literal sense – that not purchasing from Fresh can be costly and in the figurative sense; purchasing from Fresh can lead to buyers regretting their decision. The underlying consumer insight is that consumers are not getting wholesome value from their online options – some options deliver fast, but compromise on range, quality and price; some options offer better range, but are very slow. We believe Fresh, which is present in 50+ cities, offers a wide range, superior quality, savings and gives customers convenience of choosing a 2-hour delivery slot.

Could you shed some light on how India is buying groceries online? Are there any changes seen in the buying behaviour post-Covid?

The pandemic has shifted consumers’ purchasing habits, and consumers are getting accustomed to purchasing groceries, including fruits and vegetables, online. We have observed that customers have two different shopping missions: a monthly planned grocery shopping mission covering groceries and FMCG products, and weekly shopping mission for top-ups, for unplanned and impulse needs and for fruits, vegetables, dairy, meats and eggs. Whether it is online or offline, customers seek the same value attributes such as a wide range, quality, savings and convenience.

What role does technology play to get fresh produce to the end consumers? How do you plan to innovate this further?

Technology plays a critical role at every stage of the Fresh supply chain, starting from collection centres, where we buy directly from farmers and pay them quickly, to an end-to-end temperature-controlled supply chain. We have shelf monitoring cameras which feed into ML models and help us spot quality defects. We have innovated the bags that our delivery associates carry so that customers can get the highest quality products. We will keep on inventing to improve produce quality and supply chain efficiency.

What are the priority markets for this campaign and how does that align with your overall plan for growth of Amazon Fresh in India?

Our priority markets for the campaign include top metros such as NCR-Delhi, Mumbai, Bangalore, Hyderabad, Chennai and Kolkata. We have expanded Amazon Fresh into over 50 next tier cities, such as Pune, Ahmedabad, Jaipur, Mysore, Chandigarh, Ludhiana, Ongole, Thiruvananthapuram, Kochi, Hubli, Durgapur, and many more.

We want to penetrate deeper into smaller cities and offer our full basket selection of quality products delivered to our consumers at their preferred delivery slots.

Where do you see the next set of your customers coming from in India?

The online grocery retail market is witnessing the fastest growth rate in the Indian metro cities. Tier 2 cities are expected to drive the next set of customer base.

How does Amazon Fresh ensure the quality and freshness of the products delivered to the customers?

Amazon continues to invest in state-of-art technology and robust temperature-controlled supply chain infrastructure. We use technology to inspect and monitor quality at multiple stages once the produce is sourced from farmers. The fresh produce is sorted, graded, packed and then dispatched to Amazon Fresh fulfilment centres located closer to customers. These fulfilment centres operate with four separate temperature zones (Ambient, Tropical, Chilled and Frozen) to maintain the quality and freshness of produce.

Could you share any data or insights on the growth of online grocery shopping in India, and how Amazon Fresh is tapping into this market?

E-commerce is at a very early evolution stage in India, with about 3-4% of the total retail consumption. But the sector is already transforming lives and livelihoods and becoming a key contributor to the country’s economic growth. As per a recent report by IMARC, the Indian online grocery market size reached US$6.8 billion in 2022 and is expected to reach US$37.0 billion by 2028, exhibiting a growth rate (CAGR) of 31.3% during 2023-2028. Fresh is investing in a world class supply chain and rapidly expanding its coverage.

In a highly competitive market, what strategies is Amazon Fresh adopting to differentiate itself from other online grocery platforms in India?

Honestly, there is no secret sauce. Fresh will keep on raising the bar on a range of products, quality, and convenience.

How does Amazon Fresh plan to engage with its customers and build brand loyalty beyond the “Nahi toh mehenga padega” campaign?

We remain laser-focused on providing our growing customer base across the country with great value, unmatched selection, best quality products at convenient delivery slots and a shopping experience that Amazon customers expect and love. Every month from 1^st to 7^th, we announce Super Value Days for households to stock up on groceries for the month. We ensure that our selection is topical and takes into account regional tastes. We will continue to improve the ‘moment of truth’, when customers receive the order at their doorstep. We think this is one of the most important customer touchpoints and has a significant impact on the experience of receiving the products ordered.