Quick Commerce vs E-Commerce - The Need for Speed in Retail
Apr 3, 2024
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CEO of Zepto, Aadit Palicha, discusses the rise of quick commerce challenging e-commerce giants like Amazon and Flipkart. The podcast explores strategic store adjustments, assortment management, profitability strategies, and revenue models. The episode also delves into the growth and challenges of quick commerce in India, highlighting success stories and market dynamics.
Quick commerce apps are expanding to offer diverse products beyond groceries, challenging traditional e-commerce giants.
Zepto's strategy focuses on operational efficiency, profitability, and expanding product categories to meet customer demand.
Deep dives
Rise of Quick Commerce Apps: Changing Consumer Behavior
Quick commerce apps like Blinkit and Zepto have rapidly expanded not just for groceries but also diverse products like electronics and fashion. Traditional giants like Amazon and Flipkart are re-evaluating their strategies as quick commerce attracts more consumers. Research indicates that over 40% of online grocery sales come from quick commerce, with an expected rise to 50%. The customer base is growing, with males constituting 54% of users, pointing towards a significant shift in consumer shopping habits.
Market Dynamics and Expansion Strategies of Zepto in Quick Commerce
Zepto CEO discusses the product-market fit of quick commerce in metros, highlighting better retention rates and rapid grocery delivery. Quick commerce expansion is not solely limited to metros but extends to tier two and three cities, indicating promising growth potential. As Zepto plans to expand to 40 cities this year, a focus on operational efficiency and profitability guides their strategy, indicating a balanced and data-driven approach to scaling.
Diversification of Product Categories by Zepto and Customer-driven Growth
Zepto's expansion beyond groceries into categories like beauty, jewelry, and apparel is driven by customer demand and search insights. Adding new categories like toys showcases high traction and growth potential. The shift towards offering a wide range of products aligns with customer preferences and strengthens Zepto's position in the quick commerce market.
Strategic Insights on Competitive Landscape and Profitability in Quick Commerce
Zepto's positioning in quick commerce focuses on enhancing customer experience rather than direct competition with e-commerce giants like Amazon and Flipkart. Profitability remains a key focus, with strategies to optimize supply chain efficiency and expand product assortment while ensuring cost-effectiveness. As the quick commerce sector evolves, maintaining profitability and positive user experiences emerge as critical success factors for sustainable growth.
Blinkit, Zepto, and Swiggy’s Instamart seem to have alarmed the e-commerce OGs Amazon and Flipkart as quick commerce is not just about onions and tomatoes now. There’s a lot more added to the cart! While shopping for groceries, you can also add jewellery, cosmetics, clothing, and toys to your basket. And all this in just under 15 minutes. So, can quick commerce take on the e-commerce behemoths? Mugdha Variyar and Shabori Das discuss with Zepto CEO Aadit Palicha. Also listen in for analysis from Devangshu Dutta, Founder, Third Eyesight Retail Consultant. Tune in to The Morning Brief podcast!