Online Liquor Delivery System: Disruptive Technology in the Beverage Industry in Bengaluru

Abstract

Internet -based delivery systems which deliver alcohol to consumers‘ homes have thrown open a new pathway for marketing alcohol and dramatically changed the alcohol-sales landscape in Bengaluru. Although traditional retail stores exist in every nook and corner of the city, consum ers and retailers are ready to connect through online applications. This effects the operations and volume of sales at retail outlets. Despite stiff resistance from the Karnataka State Excise Department, there is a growing interest in online delivery syste ms of alcohol by local concierge applications. The research conducted examined liquor delivery systems in Bengaluru and the acceptance of this disruptive technology by consumers and retailers.

A survey conducted revealed that majority of the consumers betw een 21 and 30 years, with an average spending capacity of Rs 1,500/ - prefer online purchasing of alcohol since they have a perception that there is good value for money, a diverse range of products available and easy accessibility. In addition, online purc hasing helps to overcome barriers of women accessing liquor from retail stores and gives them privacy. There is evidence that 75% of retailers in alcohol are interested in tying up with online delivery systems because it would cater to the needs of present generation consumers, would earn higher profit margins and they can market their products more easily.

While this trend could be a boon for the retailers who embrace online delivery systems it could be a cause for concern for retail outlets. It can reduce the incidents of accidents due to drunken driving; however, it would be a challenge to address the problem of alcohol sales and service to underage patrons.