Daybreak Quick commerce is helping brands thrive but can brands afford the success?
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Jan 16, 2025 Nuha Bubere, a reporter from The Ken, delves into the quick commerce boom and its pitfalls for emerging brands. She discusses how these platforms initially offered vital visibility but now impose hefty fees and relentless inventory pressures. The podcast highlights the financial strain on smaller brands and the logistical nightmares of maintaining stock during surges in demand. Nuha emphasizes the struggle for a balance between brand visibility and financial health in this rapidly evolving marketplace.
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Double-Edged Sword of Quick Commerce
- Quick commerce platforms initially benefited smaller brands, giving them unprecedented reach and enabling competition with FMCG giants.
- However, this success has become a double-edged sword, with high commissions, marketing fees, and inventory pressures.
Quick Commerce: When to Engage
- New brands with limited funding should avoid quick commerce initially due to high barriers to entry and performance pressures.
- Consider quick commerce if you have VC funding and can handle initial cash burn, viewing it as a marketing platform.
Pressure Cooker of Quick Commerce
- Regional, non-VC-backed brands face immense pressure on quick commerce platforms, including constant performance reviews and high fees.
- These fees, including marketing and platform margins, can make quick commerce a margin-neutral business for them.