How the unassuming category manager came to rule the world of quick commerce
Dec 18, 2024
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Category managers are the new power players in quick commerce, managing coveted shelf space in dark stores. They shape product visibility on major platforms like Instamart and Zepto, leading brands to go to great lengths for their attention. With over 30,000 brand requests each month for just 150 available slots, competition is fierce. This dynamic forces brands to boost their advertising efforts to remain relevant, making these managers critical to success in the fast-evolving e-commerce landscape.
Category managers have evolved into crucial decision-makers in quick commerce, influencing product visibility and brand investments on platforms like Instamart and Zepto.
The pressure on brands to cultivate relationships with category managers has escalated, forcing them to increase marketing investments and creatively engage these key influencers.
Deep dives
The Role of Category Managers in Quick Commerce
Category managers play a critical role in the quick commerce industry, holding significant influence over which products are offered on platforms like Swiggy Instamart and Blinkit. They are responsible for not only pricing and product availability, but also for determining which brands fit specific geographic markets. As their duties have expanded, category managers now manage around 20,000 to 25,000 SKUs, reflecting the dramatic increase in the demand for instant delivery services. This evolving role requires them to analyze data continuously to ensure the product mix meets customer preferences and market needs.
The Pressure on Brands to Engage Category Managers
Brands, particularly new direct-to-consumer startups, feel immense pressure to build relationships with category managers to secure visibility on quick commerce platforms. Many companies resort to aggressive marketing strategies, including increasing their advertising budgets and engaging in informal meetings to curry favor with these influential figures. For example, a chocolate brand was advised to enhance its ad spending significantly to compete with larger brands like Cadbury. Despite these efforts, some category managers assert that their decision-making is based more on data and less on personal relationships, which creates a challenging dynamic for brands seeking shelf space.
The Demands and Challenges of the Category Manager Role
Being a category manager in quick commerce is a demanding job that requires balancing a vast array of responsibilities. Managers handle both the buy side and sell side of the business, which involves maintaining inventory levels while assessing product profitability and pricing. They typically engage in multiple daily calls with various brands and distributors, leaving little room for personal interactions. Despite commanding salaries higher than traditional e-commerce category managers, they face intensified pressure to deliver results in a rapidly changing environment, as projects that once took months now need to be completed in just days.
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The Gatekeepers of Quick Commerce: Understanding the Power of Category Managers
Category managers have shifted from routine e-commerce roles to powerful decision-makers in quick commerce. They now manage the limited shelf space in dark stores and decide which products get visibility on platforms like Instamart, Zepto, and Blinkit.
Naturally, brands are aggressively courting them, with over 30,000 requests every month for just 150 slots. From hosting parties to taking them out for drinks, brands are pulling out all the stops.
Meanwhile, category managers are urging brands to invest more in ads and marketing to stay competitive.
Tune in.
Daybreak is produced from the newsroom of The Ken, India’s first subscriber-only business news platform. Subscribe for more exclusive, deeply-reported, and analytical business stories.Listen to the latest episode of Two by Two here
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