Over the past few years ecommerce in India has been primarily driven by discount, however now consumers are shopping online for convenience and greater options. And convenience part seems to be playing bigger role in food ecommerce space as India’s largest pizza firm had sold Pizza worth Rs 28 crore during the third quarter of FY2013.
In the quarter, the company reported that average contribution from online ordering continued to get a healthy traction with 14.2 percent of delivery based orders coming online ( web plus mobile app).
During the quarter, the company recorded overall sales of Rs 385.1 crore, out of which 50% of revenues come from home deliveries. Of the overall sales based on deliveries, 14.6 percent came from the online channel.
Dominos has grown around 300 percent in terms of app download in the quarter when compared to the previous quarter. At present, it claims to have hit 4 lakh downloads.
Domino’s had released app across mobile platforms such as – Android, Apple, J2ME and Blackberry.
So what does it mean?
Dominos’ core mode is home delivery and used discount promotions to lure the users to use online/app channel (read this interesting discussion on NextBigWhat forum regarding Domino’s business model).
Looking at the company’s revenue generation from online channel and steady increase since launch, it looks like that a significant portion of the company’s future revenues will come from online sales.
The success of Domino’s online arm underscores the big and untapped opportunities that lie in the food-ecommerce space.