Hyperlocal marketplaces refer to a very localised form of business model wherein businesses cater to the needs of customers in a particular geographical area. Since the focus of the enterprise is centered on the creation of a ‘micro-marketplace’, hyperlocal models are able to meet specific demands of consumers through a local network of suppliers and delivery systems.
The basic principle on which the concept of hyperlocal works on are geography and time. Advanced technology and social media occupy a central role in the success of the hyperlocal marketplace. The term was coined in 1991 and in due course of time, it has been through many phases, out of which the most recent is GPS-based services and mobile apps.
The hyperlocal market works exactly like e-commerce purchases. Buyers place their orders on a digital platform which are then processed by the system. However, instead of the brand dispatching the order, the product requests are sent to local vendors, who accept the order and deliver them in the given timeframe.
With rapid developments to make buying a memorable experience for the customers, the marketplace is being automated in a whirlwind. Contactless purchases and delivery have become the norm. In such an atmosphere, the hyperlocal strategy acts as a necessary booster for businesses to survive.
With an upsurge in technology, the current of hyper localism has covered almost all the possible streams such as foods, medicines, grocery etc.
India is the land of villages. Even the population of the country is high. So here there are more challenges for the extension of hyperlocal market. Though hyperlocals in India have enrooted themselves firmly, they had to face several marketplace challenges. As said before, India is the land of villages and even some cities are not used to buying things onlin. This is the major problem for the hyperlocal startups.
Though there are problems with willingness of some entrepreneurs, it is clear that India can also be the future for hyperlocal business. Before covitd this app-based delivery and supply system was limited to only cities. But Corona made it to reach out to people of villages too. Today there are many startups which are hoping a better future in this market place.
This business model has opened new opportunities to the local vendors in the country. By connecting small vendors through online platform even startups have given many choices to customers. With the quality and replacement this market place has gained trust of the people.
Now to support this model Government has released ONDC (Open Network for Digital Commerce) platform recently which will help millions of retailers in the country. This will pave more opportunities to new players as well as the existing players.
Under this platform leading fintech Phonepe has launched new shopping app called “Pincode”. This app will focus on hyper local e commerce.
“Pincode is built on the ONDC network, which allows us to generate demand for merchants digitised by various seller platforms in an inclusive manner. While creating new opportunities for growth and driving innovation at scale,” said Sameer Nigam, CEO and Founder PhonePe.
Undoubtedly, the hyperlocal e-commerce model is the next evolution in the e-tail sector and rural commerce will be the big bet for its success in coming time.