Cash & carry wholesalers see big e-comm opportunity

KV Kurmanath Hyderabad | Updated on January 24, 2018 Published on June 23, 2015

Metro’s disruptive method offers online retailers frugal sourcing avenues

Metro Cash & Carry, the German wholesale behemoth with a global turnover of over €31 billion, has found an opportunity in India’s growing e-commerce market.

The firm, which runs 17 stores in 12 Indian cities, has launched special programmes targeted at e-commerce firms, particularly those focusing on fruits, vegetables and groceries.

As they disrupt traditional distribution channels and buying patterns, e-commerce firms are finding frugal methods to source their products to cut down on overheads in maintaining warehouses.

Doing so also helps them save time and effort in procuring things.

“We have launched targeted special programmes for e-commerce companies and local traders. We offer them special pricing and support systems,” Rajeev Bakshi, Managing Director of Metro Cash & Carry India, told BusinessLine,on Tuesday .

He was here in connection with the launch of its third facility in Hyderabad. Bakshi refused to name the e-commerce firms. “A good number, including some top names, use the service,” he said.

“Unlike other customers they come on a daily basis. They are online and they can pick the product off the shelf as they get the order,” he said. He, however, sees a limitation for the model. “They can do this till they achieve a certain scale. They need to have their own infrastructure then,” he observed.

Expansion plans

The firm, which invested ₹70 crore in the Hyderabad facility, is going to open its fourth facility in Bengaluru and 18{+t}{+h} in the country next week.

The firm caters to hotels, restaurants, caterers and small and medium-size traders. Each store, which requires an investment of ₹70 crore, provides 300 jobs. Metro has stores in 12 cities.

“Telangana is an important sourcing centre for us. Besides vegetables, we source chicken for our customers in Punjab,” he said.

Published on June 23, 2015
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