A link developed where people could search for the super urgent products( milk,sanitizers) and this portal would give them the LIVE result if any of these items currently present at shop & if shop still open or closed.
- It helped people to be SURE before coming out of their houses.
- It reduced the queue( infact some people searched for these products while standing in queue, so that they could decide to stay/leave).
- We have also added, doctors availability also, which could show the live doctors available on phone or VC.
LIVE WORKING (SECTOR -70 Noida)
In this COVID-19 Lockdown we launched our LocatR web link in our residential society which has got good response, this mobile link is being used by 762+ people, in which 10 shops + 1 hospital + 1 dentist are supporting us.
In Delhi/NCR we have officially more than 1.5 lacs mom and pop stores stores and all over India it more than 12 million, 80% of the market is captured by these Kirana stores.
Any shop which does more than 250 transaction/day uses POS system anyway.
It is more than $700 billion market to enter and have huge diversity of ideas & potential.
Nowadays total online sales range between 1-1.2 million and by 2025 it will cross 80% mark so it’s better to have O2O solution in the competition too.
Problem or Opportunity
Problem : This problem is well defined in 4 (four) parts,
1. Local Kirana stores are helpless in front of giant online platforms and have negative sales(%) YOY and are in need of online to offline (O2O) platform which will keep their existence in the market.
2. Pure online platforms can’t replace the run-time need of consumer & it is limited to the planned shopping only.
3. Consumers are highly dependent on delivery schedule of online platforms and want comfortable delivery time.
4. Less satisfaction, absence of touch & feel before purchase.
Solution (product or service)
A network where any Kirana stores can join within minutes and show & sell their products/services online as a regular store.
On this network, Consumer can search any LIVE product or services and avail them based on specified circle (1,5,10, etc. kms away).
Consumer knows this shop via our shop network, he can go to this shop right now or get the product delivered.
1. First to implement this kind of solution : Don’t stand in line just go grab your stuff.
2. Live & correct data without manpower : POS/shopkeeper app will be updating the inventory in our cloud for every transaction at shop.
3. Lock before you go : User can lock the purchase online and pay at the shop.
4. Shop of your own choice : Users can select the shops based on their convenience so that they can contact shopkeeper for any issues in future.
5. Ease of installation : Shop is ready to sell online within minutes.
6. No domain limitation : Our system fits any type of business be it grocery, medicines, clothing, shoes, food, electronics, utensils, furniture etc.
7. Scalable search : Location circle for searching the product has 0 (zero) limits.
8. Notification : If a consumer is passing by the shop having a desired product (matching to a product in his shopping cart), an instant notifications will be sent to user with shop details.
9. Ratings : Actual ratings of shops can be shown based on delivery support or advance booking support, this has a potential of changing the mindset of small kirana stores to serve well.
10. Intuitive POS : Unlike typical POS in the market, our POS is extremely easy to use and can be customised to the exact customer’s need (it doesn’t have all 500 feature but only those 25-30 features which shopkeeper uses everyday).
JioMart +Facebook : Recently after a deal between Reliance Jio &Facebook, they want to work on this market.
ShopView : Similar concept but look to have stopped working or no progress as such.
Near.store : This concept just gives platform for online shopping from local stores like Grofers.
SnapBizz : Only a competitor in POS, they have raised till now $9.6 million overall. They have android based tablet which they have deployed in 2000 stores. Nowadays they are hitting 600 kirana store/month.
Shopsity : Could have been a competition but now has been acquired by payTm, but this was more on the fashion Online to Offline business.
REST, ALL THE ONLINE PLATFORMS (AMAZON, FLIPKART, GROFERS, BIG BASKET etc.) ARE DIRECT COMPETITORS BUT WE SHOW ONLINE & CAN SELL OFFLINE TOO.
Advantages or differentiators
The competitors are trying to build their platform for online shopping and then bringing shops to become individual sellers (e.g. Grofers may be perfect for this example), although they are trying to uplift this sector.
But we are different,
1. We are giving a network to search & buy directly at the store, both online or offline platform,
Best example would be OLA, it gives user the platform to see which are available taxis near his location.
Similarly we are giving a platform to end user to sel ect a shop out of all available shops in any radius (kms) around his location, now he has choice to do complete shopping or partial shopping depending upon the availability of stuff.
2. We promote health and want consumers to WALK to the shop (but BE SURE FIRST about their products availability), if they would like to.
3. Users can lock the products in advance so that their products will wait for them at shop.
4. User can pay from our mobile app at home & just pickup fr om shop.
5. Self checkout : At store also, user can scan the barcode using our mobile app (LocatR) and do the billing himself so that he doesn’t have to stand in billing queue.
We have multiple ways of generating the revenue,
1. We will charge ₹0.25 for every ₹100 transaction for POS at no one-time device setup cost, Normally for shopkeepers they have to spend close to 1 lakh for this setup, This is highly appreciated by most of the shopkeepers.
(FYI, credit card machine charges ₹0.95/ ₹100).
For e.g. If a shop keeper does 300 transaction for ₹100, he generate revenue of ₹30000 that day, our charges for that day would be ₹75 only.
2. ADVERTISEMENT, depending upon the pattern of consumer’s shopping habits & taste, related companies can reach out via our consumer app (named LocatR).
3. Kirana stores can also advertise their unique products /instant discount /inventory clearance discounts in their choice of area at very nominal charges.
4. Kirana stores can extend their delivery area on chargeable basis (from end user) and we may charge our % commission on each delivery from our app transaction, if applicable.
5. When consumer orders from LocatR mobile app he will be charged ₹1 and out of which we will give shopkeeper ₹0.50 so that shopkeeper will also promote online 2 offline way.
Money will be spent on
We are expecting to raise around $1million (7.59 Crores) for next 5 years, which will allow us to recruit & work with best talent in the industry.
These funds will purely be used for recruiting, training, office setup and managing the required resources.
To be specific, we want to work very very hard on Marketing so that it should be a cake walk to get the sales (nobody likes sales pitch).