Jammu-based PureMart is an online purveyor of organically farmed Kashmiri dried fruits, seeds, nuts, saffron, etc. Sahil Verma, its founder, shares how in 2017, a major course correction in strategy not only brought PureMart back from the brink of extinction, but also helped the business grow stronger

◊ By Rutaksha Rawat

WHEN WAS PUREMART ESTABLISHED?

PureMart was founded on August15, 2012. Our first office was aone-bedroom rented apartment in Mumbai, and the first two employees were my wife and me. We later shifted to Jammu, within 6 months of having commenced operations.Today, our team of 10 works out of our office in APMC (Agricultural Produce Market Committee) Jammu—one of the largest walnut exporter markets in India.

“PureMart provides customers direct access to the pure, crisp, crunchy dried fruits and nuts grown in Jammu and Kashmir. We procure orchard-fresh products from Kashmiri farmers and deliver them directly to consumers, thus retaining their true flavour and freshness”

WHAT PROMPTED YOU TO START PUREMART? WHAT IS YOUR CUSTOMER VALUE PROPOSITION?

Hailing from Jammu, I was often asked by friends and colleagues in Bengaluru, where I completed my post graduation in pharmacy, about the saffron, walnuts, rajma, Kashmiri apples, kahwa tea and other delicacies of my state. These products were already widely available throughout India, so I wondered where the fascination came from.

I later discovered, to my shock, a huge difference in the quality of products available in the other states—the lengthy supply chain often renders the dried fruits and nuts soggy, stale and in some cases, downright rancid.

The locally grown produce of Kashmir is far fresher, crunchier and tastier. And this is what we promise to deliver to our consumers—crisp, fresh, pure flavours of Kashmir promptly delivered at affordable prices.

We believe, owing to robust growth, that we have so far been able to deliver on this promise.

HOW MUCH INITIAL CAPITAL DID YOU BEGIN WITH?

We founded PureMart with merely Rs 10,000, with which we purchased 10 gm of Kashmiri saffron. Additionally, a 10-kg bag of organic walnuts was gifted by my father.

WHY DID PUREMART MIGRATE TO JAMMU?

Actually, we first moved to Srinagar, but eventually moved to Jammu, following a 100-day curfew after the killing of militant Burhan Wani. Shifting to Jammu was a strategic decision as it is relatively less disturbed and allows for smoother operations.

Besides, the cost of operations is much higher in Mumbai and products require cold storage, which prevents spoilage but diminishes the taste significantly. Since our mandate is freshness and we shun the use of preservatives, we decided to move to the winter capital, where we don’t need to cold-store our products nor add preservatives.

WHAT DOES YOUR PRODUCT PORTFOLIO COMPRISE?

We offer organic nuts, sun dried fruits and seeds—such as Kashmiri walnuts and almonds, green and black raisins, dates, black currants, dried prunes and figs, blueberries, goji berries, cranberries, cashew nuts, hazelnuts, pine nuts, Brazil nuts, macadamia, pecan, pistachio, flaxseeds, pumpkin seeds, sunflower seeds, chia seeds and quinoa seeds.

We also offer Kashmiri saffron, Himalayan honey, Himalayan shilajit, Kashmiri kahwa, mountain garlic, cold pressed oils (flax seed, almond, apricot, walnut), handmade natural skincare and cosmetic products, green teas, apple cider vinegar, organic vegetable pickles and organic Kashmiri rajma.

Currently, we offer 221 products in all, and are expanding our inventory month-on-month. Our range has increased threefold in the last year due to increased demand.

WHICH ARE YOUR 3 BESTSELLING PRODUCTS?

Saffron, walnuts and shilajit.

“At PureMart the average cart value of a consumer has grown from Rs 300 to Rs 3,000 over the last 6 months alone. Consumers are now increasingly placing high value on nutrition and health over acquisition of aspirational things. Health through food is the new aspiration”

WHICH STATES DO YOU CATER FOR?

We deliver to almost all pin codes of India and do have a cash on delivery option available as well. We also deliver internationally to almost all countries in the world. We have feasible payment options available on our website for international customers.

HOW MANY MONTHLY CUSTOMERS DO YOU SERVE AND WHAT IS THE MONTHLY TRAFFIC TO YOUR PORTAL?

Currently, we serve approximately 5,000 families monthly, as well as, supply our products to 50 retail stores across India.

We receive anywhere from 60,000 to 1,00,000 monthly unique visitors.

WHAT WAS YOUR ANNUAL REVENUE IN THE LAST FISCAL?

It was Rs 2 crore.

YOU STARTED OFF AS A B2C BUSINESS BUT ARE NOW ALSO ENGAGED IN B2B SUPPLY. DO YOU ALSO UNDERTAKE PRIVATE LABELLING?

We have an inhouse retail brand called 5 a day. We also have B2B customers as our vast farmer network allows for large volumes. Pleasantly, a number of our B2B customers are erstwhile consumers, who loved and believed in our products and have now turned into retailers of the same.

We do offer private label for big brands and are also exporting to the Middle East, USA and Europe. The B2B space in natural/organic products is exciting and there’s a lot to explore.

HOW DO YOU ENSURE THE PURITY OF YOUR PRODUCTS?

In order to ensure the highest standards of purity, we screen each batch of our products as per FSSAI and USDA guidelines at NABL-accredited laboratories.

Not all our farmers can afford organic certification but they are all cultivating produce using organic practices. Prior to on boarding, we screen each farmer by visiting their farms and orchards and conduct frequent checks to ensure adherence to organic farming practices.

HOW DO YOU MANAGE LOGISTICS?

We are associated with leading logistics vendors such as FedEx, BlueDart, Safexpress, Ecom Express, Delhivery, etc.

WHICH  ATL/BTL ACTIVITIES HAVE YOU UNDERTAKEN TO PROMOTE PUREMART?

For promotions, we leverage the services of newspapers,print magazines, radio and Google ads.

WHICH EMERGING CONSUMER TRENDS HAVE YOU OBSERVED IN THE HEALTH FOODS SPACE?

We have observed a drastic and promising change in consumer habits. Mindless snacking seems to be on the decline. At PureMart, the average cart value of a consumer has grown from Rs 300 to Rs 3,000 over the last 6 months alone. Consumers are now increasingly placing high value on nutrition and health over acquisition of aspirational objects. Health through food is the new aspiration and this bode swell for organic/natural food purveyors.

“There is a perception that large e-commerce platforms attract huge traction and while this may be true, they also dilute brand identity and customer loyalty. Independent sellers operating on such platforms need to depend on marketing for greater visibility and revenue is always shared. We find that relying on our own platform is far more constructive in terms of creating brand awareness, and increasing sales and customer loyalty”

ANY CRITICAL PIVOT IN YOUR BUSINESS SO FAR?

Yes, in 2017 a pivot in strategy saved PureMart from failure. At the time, we noticed rapid growth in the online sector. Since the online sales trend had been monopolised by e-commerce giants, we also, like many others, drifted towards the former for survival but that was a huge mistake. As a result, we faced severe loss in traction on those platforms—to the extent of a possible shutdown. That is when we decided to focus on building our own brand and on fortifying our own platform for growth instead of depending on large players.

There is a perception that large e-commerce platforms attract huge traction and while this may be true, they also dilute brand identity and customer loyalty. Furthermore, independent sellers operating on such platforms need to rely on marketing for greater visibility and revenue is always shared.

Most e-commerce market incumbents include ‘Grocery’ and ‘Gourmet’ sections on their portals but not all of them understand the requirement of users. This leads to decline in trust-building with consumers.

We have found that relying on your own platform is far more constructive in terms of creating brand awareness, and increasing sales and customer loyalty. We choose to stay calm, focused and visionary towards building our own ecosystem in a sustainable way. This step has not only saved PureMart from potential failure but has also helped it thrive. Focusing on our own platform has led to growth in revenue, repeat sales, customer loyalty and brand identity.

Currently, we work only with Snapdeal and Paytm with a ‘No Rejections Accepted’caveat to preempt losses.

IS PUREMART STILL BOOTSTRAPPED?

Yes, we are bootstrapped and are unable to entertain investors owing to Article 370 of the Indian Constitution, which bars non residents of J&K from establishing business in the state. We are pleased to be profitable, however.

LIST SOME OF THE CHALLENGES THAT YOU FACE REGULARLY AND SHARE HOW YOU COMBAT THEM?

Apart from the fact that we cannot accept funding, there are several challenges that come with being a J&K-based organisation. Obviously, we are precariously placed in a conflict-seared state, and although Jammu is not as given to turbulence, it does intermittently suffer the reverberations of the political upheaval in Kashmir.

Infrastructural impediments put our operations at risk. For instance, electricity. We face prolonged power cuts in Jammu and are forced to rely heavily on generators, which add to production costs. But the glass half-full version is that our location allows for lower cost of operation vis-a-vis metro cities. Also, as the products we sell our grown in J&K, our geographical location allows us to literally provide farm-to-fork products to consumers.

Another challenge we face is that of limited labour. Due to lack of opportunities in Jammu, skilled labour is rarely available here. However, we have overcome this problem by training available labour. We are pleased to offer premium prices to our farmers, as well as, create employment opportunities for locals.

There is also competition from imported products. Currently, the sales of walnuts are subdued due to the introduction of California walnuts and Chile walnuts in India, but we believe the hype will peter out as consumers ultimately turn to indigenous products, and now more so than ever, as the current global zeitgeist advises to‘go local’.

A NUMBER OF KASHMIRI OUTFITS STARTED UP AROUND THE SAME TIME AS PUREMART BUT ARE NOW DEFUNCT. WHAT IS THE SECRET TO YOUR SUSTAINABILITY?

The key to our sustenance is our superior product substance, wide product range, affordable prices and prompt and error-free delivery service. These have allowed us to garner market credibility and increase consumer mind share. Our dedication in the face of challenges at both the macro and micro levels has also paid off.

WHAT WOULD BE YOUR ADVICE TO OTHER E-COMMERCE BUSINESSES IN THE NATURAL/ORGANIC FOOD CATEGORY?

Never ever compromise on quality and always believe in your vision.

WHAT IS PUREMART’S ROADMAP FOR THE FUTURE?

We aim to become the leading Indian brand for organically farmed nuts, dried fruits and seeds. We also aim to become the number one Indian brand for Kashmir-specific produce such as saffron, kahwa, etc. We are gunning for customer satisfaction and the highest product quality. We believe segment leadership will follow if these two targets are met.

We have been receiving a lot of franchise enquiries and are now contemplating this route as a way to spread farm fresh Kashmiri products across India and overseas.