BigBasket eyes larger share of private label sales with new frozen foods brand

msid 108242268,imgsize 381420

MUMBAI: Tata-owned BigBasket is broadening its play in the frozen foods space, a category co-founder and CEO Hari Menon said is “untapped” as it looks to gain market share and increase its pie of sales from private labels. To be sure, the company had already forayed into the frozen foods segment with its in-house brand Fresho but the footprint was limited to a few items like peas, corn, select choice of meat and seafood.With its new frozen foods brand Precia that has been created in collaboration with chef Sanjeev Kapoor, BigBasket will sell a range of products starting from frozen vegetables and momos to mithai. “Right now, 36% of our total sales come from private labels and we want to grow this to about 45%. Private label is core to our growth strategy. What is core aboutit is that my brand reaches every home,” Menon told TOI.
The company will take a wider approach to private labels—it wants to offer brands catering to every customer segment, pricing tier and that will separate them from the pack, said Menon. “We differentiate a lot in private labels. I don’t want to do run of the mill products. We will also do things like say for instance, there’s only one player in a category, wewill become a good second. In frozen foods, nobody has figured out how to do it well,” said Menon.
The new frozen foods range which will be available for both slotted (in two hours) and instant deliveries is also an attempt to increase the selection of products it offers under quick commerce, an idea that consumers are increasingly taking to. Unlike rivals Blinkit, Zepto and Swiggy Instamart, BigBasket had initially played down the potential of quick commerce and has been late in its foray into the space. “Consumers have lapped up quick commerce and it is here to stay. We are hoping it (frozen foods) will be delivered in 10 minutes and cooked in 10 minutes,” said Menon, adding that the aim will be to do better than players like Zepto and Blinkit. At present, quick commerce makes up about 30% of BigBasket’s total orders. Growing competition in the grocery space coupled with consumer demand for fresh choices are nudging brands to explore new territories.
The company is aiming for a public listing in 2025.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button