India: e-commerce with organics is well underway

Picture (screenshot of the website): In big cities like the capital Delhi more and more consumers are buying online and are having their food purchases delivered to their homes.

In 2016 India had about 160 million online shoppers. According to a study by US market research company eMarketer, they generated turnover of the equivalent of more than 23 billion US dollars. Compared with 2015 that was a rise of almost 76 %. Forecasts of double-digit growth by 2020 show the potential that online trade offers in this emerging country. Many online retailers have invested in selling organic products, natural cosmetics and natural textiles and their businesses has proved to be successful. Two examples are OrganicShop and BigBasket.

Although this volume of sales is only a  2.5 % share of the total turnover of retail, the prognosis of the eMarketer researchers is high growth rates in the years ahead: in their view, by 2020 turnover generated by e-commerce will reach nearly 80 billion US dollars. With every new smartphone the target group grows for online traders. In the next four years the number of  digital shoppers is expected to rise to over 350 million -  more than twice as many as in 2016.

PIcture: With every new smart phone the target group for online traders is growing. Photo © Karin Heinze

Organic Shop wants to become a one-stop organic portal

With its product range of more than 11,000 items, Organic Shop is the biggest organic online supplier in India. Details provided by the company tell us that the start-up was founded by Manoj Terapanthi in 2011 and, just three years later, had a million customers. We also learn that in the first half of 2014 turnover increased by 250%. In the same year the online shop was elected the best portal for buying organic food, natural cosmetics, organic textiles and wellness products.

Picture: OrganicShop's achievement in just a few years: one million customers.

Picture (screenshot of the website): Organic Shop has reached a million clients by its webshop in a few years. 

Focus on the Indian and the international market

Two years ago, OrganicShop, after developing so well in India, accepted the challenge and launched a global web shop. The company's own research and studies revealed that increasing numbers of consumers are buying organic products and, as the managing director points out, this applies not only to India but also on a much bigger scale to Europe and North America. Since the demand for typical Indian organic products is growing in the west, the company's stated aim is now to reach customers in 200 countries around the world.

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Picture (screenshot of the website): Around 8,000 products are available on the international  one-stop shopping portal for “everything that is organic”.

The offer is being constantly expanded and around 8,000 products are now on sale on the international portal of OrganicShop. The company expresses its vision on its website Organic Shop.in:  “To develop a global 'eco system' for the organic trade in order to strengthen the organic sector and, at the same time, to create transparency between manufacturing and the consumer.” OrganicShop's ambition is to expand to become the one-stop shopping portal for “everything that is organic”. In the next few years, the offer and partnerships with brand manufacturers will grow so that they can offer customers an online outlet for organics that they can trust. OrganicShop works to convince the public and to advertise on  Organic Insights, a blog about the organic lifestyle with stories, tips and product information.

Big Basket: conventional online retailer cooperates with organic farmers

Picture (screenshot of the website): The company was founded at the end of 2011. Hari Menon, co-founder and CEO, soon had reason to be pleased with the success of his concept, even though the  e-commerce share of total trade is still relatively small. Big Basket's aim is turnover of two billion US dollars by 2020.

India's biggest online food retailer is  Big Basket. The Innovative Retail Concepts Pvt Ltd,  domiciled in Bangalore in the south of India, was launched like Organic Shop  in 2011 but has developed even more rapidly. This online food retailer currently has an offer of over 18,000 products belonging to around 1000 brands. Its organic range consists of about 700 products. Fruit and vegetables play an important role in Big Basket's  food offer and, since there is growing demand in the big cities for organic fresh food, the company is going to expand its cooperation with farmers. But other items as well, international brands, cosmetics, personal care products and household products are supplied with its own logistics across the whole country to many big cities like Bangalore, Hyderabad, Mumbai, Pune, Chennai, Delhi and Calcutta.

Photo from Big Basket website.

Fresh organic fruit and vegetables from Himachal Pradesh

Big Basket observed the rising demand for organic fruit and vegetables in the capital Delhi, and its way of dealing with this situation was cooperation with organic farmers in the Himalayan state of Himachal Pradesh. The state at the foot of the Himalayas has various zones that are suitable for growing fruit and vegetables.

Near the town of Solan, organic farmers work together and have founded a farmer producer company that runs a collection centre for the harvest. Every day a truck from Big Basket makes the 8 – 10 hour journey to the mountainous region to take around three tonnes of produce from the centre in Solan to the capital, where approximately 10,000 households receive the goods they have ordered online. This collaboration brings a double benefit: for the organic farmers in Solan the sale of their harvest is assured, and Big Basket is able to meet the demand of its customers for fresh organic products.

Picture: The farmers taking their harvest to the collection centre, where it is fetched every day by truck. Photo © Karin Heinze

ICCOA provides advice for farmers

The small farmers cultivate, some  in polytunnels, cauliflowers, beans, leeks, radishes, peppers, tomatoes, cucumbers, tumeric, potatoes, apples, apricots, plums and much more. Three projects in Himachal Pradesh are supported by the Indian organic organisation ICCOA (International Competence Center for Organic Agriculture) and are assisted on location by Dr. A.S. Kashyap – a scientist, author and specialist in growing fruit and vegetables and regional varieties in the different climatic conditions found in this mountain region. In 1985 he began working with 30 farmers and over the years they have been joined by 100 others. For a number of years he has been responsible for supervising the ICCOA projects.

Picture: The small farmers cultivate, some in polytunnels, cauliflowers, beans, leeks, radishes, peppers, tomatoes, cucumbers, tumeric, potatoes, apples, apricots, plums and much more with the advice of Dr. Kashyap and ICCOA. Photo © Karin Heinze

Government supports organic farming

As early as 2010 the government of Himachal Pradesh enacted a political concept to support organic farming and, according to an annual report of the ministry,  it has helped 30,000 farmers on a land area of almost 18,000 ha to convert to organic cultivation. The report also explains that in 2015 and 2016 they made plans to convert 200 villages into so-called Bio-Villages. The state is providing the necessary financial and consultancy support that takes the form, for example, of assistance in marketing. ICCOA oversees nearly 400 small farmers with a land area of 435 ha in the vicinity of Solan.

Selection of online retailers and delivery services:

All Things Organic (Lieferdienst)

Joy by Nature (e-commerce, Indien, international)

Live Organic (e-commerce, Indien)

Natural Mantra (e-commerce, indien)