Users in Gurugram and the surrounding areas of the NCR region can now take advantage of Flipkart Minutes, a new fast commerce service, which was secretly launched by eCommerce giant Flipkart.
According to a report by a media outlet, Flipkart Minutes is reportedly now available at several locations in Gurugram, including Unitech Cyber Park, Sector 39, Sector 40, The Millennium City Centre (Sector 29), and Golf Course Road (Sector 54), but the firm has not officially announced it.
The fact that the service is visible to some customers in Mumbai, according to the source, suggests that Flipkart is testing it before launching it to the public.
In What Way Does Flipkart Minutes Work?
You can get your groceries, electronics, cellphones, and more delivered in as little as 10 to 16 minutes with Flipkart Minutes, a speedy commerce service.
The service went live following reports that Flipkart scrapped its intention to acquire a substantial share in Zepto, the company headed by Aadit Palicha.
According to an April article by a media house, Zepto opted for a financing round instead of a strategic sale, to increase the company’s worth and be ready for an IPO.
The possible initial public offering (IPO) is expected to occur in the second half of 2025, according to multiple media reports. Zepto has reportedly begun conversations with Axis Capital, Morgan Stanley, and Goldman Sachs, three prominent Wall Street banks.
The Impact of Flipkart Minutes on the Market
Last month, Flipkart introduced the service in certain areas of Bengaluru, including HSR Layout, Gunjur, Bellandur, and Kadubeesanahalli. Notably, there has been a dramatic increase in the need for fast commerce services in these areas.
Flipkart is now in a stronger position than before to compete with market leaders like Zepto, Blinkit (owned by Zomato), and Swiggy Instamart, all of which have taken customers away from Amazon and Flipkart.
Users are increasingly drawn to swift commerce on Flipkart because of the convenience and speed of delivery, even though same-day delivery is already available across numerous categories. Nevertheless, not every city may implement rapid commerce.
According to Flipkart’s VP and head of groceries, Hari Kumar G., the two models—quick-commerce and next-day delivery—can coexist, and the business is looking into delivering quick-commerce services in some regions of the country depending on demand.
The View of Zomato on the Blinkit Expansion
The rapid commerce sector is dominated by Blinkit, which is owned by Zomato, as of January 2024. Zepto, on the other hand, has seen a tremendous increase in its market share, going from 15% in 2022 to almost 30% in 2024, thanks to the enormous money it raised last year.
Blinkit CEO Albinder Dhindsa has already announced intentions to keep growing the business, with 2,000 dark shopfronts planned for the end of 2026, up from 639 at present. Also, by March 2025, Zepto hopes to have doubled its dark shop network to 700.
India’s mega unicorn, Bengaluru-based Flipkart, is about to list in the US market. Sachin Bansal and Binny Bansal, the founders of Flipkart, are former IIT Delhi graduates. They quit their lucrative positions at Amazon to pursue their startup dreams. As a result, in October 2007, Flipkart started its journey to sell books online. Essentially, their concept was simple: clients placed book orders on Flipkart, and the company delivermarled them to their doorsteps.
The founders of Flipkart began their journey in a 2 BHK apartment and only shipped 20 packages in their first year. In the initial days, the two former Amazon employees often had to go deliver the packages by themselves to maintain a ‘just in time’ chain. However, soon, their efforts and ideas picked up the pace, and they were able to make their startup one of the best in India today. A more drastic change in fortune came with one of the world’s largest internet deals when the US-based Walmart acquired a 77% stake in Flipkart with $16 billion.
Once rejected by Google, co-founder Binny Bansal’s dream is to challenge Google India in a revenue war. The Walmart-backed Flipkart hit a new revenue milestone of $5.83+ billion amid the pandemic odds in FY2021. Flipkart’s Marketing has always been its strength, and its ability to come up with fresh and exciting campaigns helps it attract customers. Here, we will check how the bookselling website of the Bansals has transformed its strategy to set itself up as the big-billion behemoth that changes India’s shopping culture.
Flipkart’s Unique Marketing Strategies to Ramp-up the Domestic Sales
Risk management or loss management is the key component of every new business at the budding stage. Flipkart, the most popular Indian eCommerce platform now, began with books, a product row with high margins, minimal maintenance, and easily transportable commodities. Books are likewise non-perishable objects with no diminishing worth over time. In the early days, when shipments were low, the company didn’t have to keep inventory because books could be ordered straight from wholesalers based on customers’ number of orders.
As we know, early birds always have a survival advantage. So, it started with a need-gap analysis of the Indian market. Let’s see Flipkart’s marketing strategy from every aspect that contributed to its success:
Flipkart is one of India’s major eCommerce companies. Flipkart recorded revenue of over INR 560 billion in fiscal year 2023, reflecting a 9% rise over the previous year. This expansion is being driven by a variety of factors, including increased eCommerce usage in India, the expansion of Flipkart’s product selection, and the company’s emphasis on personalization and customer service.
Promotional Channels
Flipkart Promotional Channels
The following are the promotional channels that Flipkart uses as a part of its marketing strategy:
Social Media Marketing – Flipkart can’t ignore powerful tools like social media. Apart from sponsored pages, Flipkart has a large following and heavily emphasizes social media. Flipkart has about 10 million Facebook fans, 4.2 million Instagram followers, 2.9 million Twitter followers, and so on as of October 2023. Flipkart offers several different handles for different products or categories, such as fashion, tech, books, furniture, and now groceries. It uses social media, feedback, queries, and reviews as a valued customer system. Problem-solving skills with immediate response through social media enjoys trust. It uses emotional stories in social media. Creating engaging content on its social media handles is one of the major marketing strategies of Flipkart.
Affiliate Marketing Tactics – Affiliate marketing is a type of performance-based advertising in which a person receives a share of profit for promoting a product or service or for recommending Flipkart’s items. Flipkart’s strategy is to delegate the task of advertising its items to associates, who were paid a portion of the profit for selling the items. Affiliate program members market the products directly or indirectly through their blogs, videos, or other means. Flipkart offers 5% to 12% commission as per their cash cow products.
Innovative Marketing Campaign – Marketing campaigns with various taglines also beefed up sales. Flipkart uses campaigns like “Itne May Itnaaaa Milegaa,” “Budget Se Mukt,” “Gen E, Let’s Raise a Generation of Equals,” “India ka Fashion Capital,” and “Munna Bhai and Circuit.” It has always involved emotional, joyful, or vivid messages to cover all the sections of society.
Flipkart Marketing Campaigns
Productive and Eye-Catching Advertisements – Advertisement is a psychological game. But here also, the billion-dollar Flipkart made a balance between celebrity endorsement and using a new face to build up a down-to-earth image. So that the average person or non-user can become used to their system; apart from this, it modifies advertisements according to the culture, festivals, and flavors of diversified India. It also observed special days like Independence Day, Women’s Day, or Children’s Day, with lucrative prices cut off for that segment of customers. Creating innovative advertisements is an important element of Flipkart’s promotion strategy.
Search Engine Optimization Strategy – Flipkart, India’s largest online retailer, has invested much in optimizing its platform for search engine rankings. Every time someone searches for a product, Flipkart shows among the top two results, and this is all because Flipkart has invested much in SEO. Flipkart examines people’s top searches, then selects the top keywords and generates web page URLs for them. Flipkart’s marketing strategy to ensure its website ranks is excellent. They also receive backlinks from over 66 million distinct domains, which is simply astounding. All of these backlinks serve as a foundation for Flipkart to rank first on search engines.
Personal Touch and Commoner’s Brand Image – Since its inception, Flipkart has ensured surprise delivery by founders, making gift packs for particular customers on special days. Indians are insane about the personal touch, gifts, wishes, etc. So, the company focuses on personal approaches. India is obsessed with Bollywood, and Flipkart is taking advantage of this to raise awareness about its image and promote its platform and products. But now the company wants to get into a ‘commoner’ image to lure the OTT-addicted, ‘Game of Thrones’ lovers, the rational next-gen. Bollywood hardly makes sense to them. So, strategists uniquely use unknown faces.
Search Engine Marketing (SEM) – Customers nowadays search for things on Google, and if you’re not among the top results, you’re missing out on a huge opportunity. As a result, Google Ads are beyond question. Flipkart advertises mostly on search and shop promotions, carefully considering and focusing on the proper keyword combination. Google Ads is a way for eCommerce platforms to draw consideration towards their foundation by appearing on a list of products at various phases. SEO copyright strategy helps get top search engine rank.
Content Marketing – Flipkart creates content like buying guides, product reviews, and trend analyses on its blog and other platforms. This helps build trust with customers by offering useful information. The blog also highlights Flipkart’s reliable service, even in tough situations, and promotes popular products. Overall, this strategy improves the customer experience and strengthens Flipkart’s reputation as a dependable, customer-focused online store.
Storytelling Strategy Flipkart uses storytelling in its social media campaigns to create emotionally engaging content that connects with its audience. This approach is a key part of its overall marketing strategy.
The following are some of the customer-friendly initiatives that Flipkart uses as a part of its marketing strategy:
Customer Relationship Management –CRM is one of the major components of marketing strategy. Flipkart’s strategy of applied sales forces automation to help customers guide and decide, cloud software solutions, demographic analysis, purchasing behavior, browsing history monitoring, tracking sales leads, and converting confused customers into loyal ones. It is a 360° effort around the customers to create awareness to end up with sales goals.
COD and EMI facility – Their groundbreaking cash-on-delivery offering helped them gain trust among skeptical Indian clients who had only just discovered the benefits of online shopping. Moreover, Flipkart was among the few eCommerce companies that took COD risk on an experimental basis. As a form of protection against India’s numerous logistical challenges, this allowed customers to obtain their things before paying for them. Easy EMI options push the confused customer to a potential buyer. Flipkart convinces the customer that EMI is to increase affordability without hampering their monthly budget or putting any major cost burden on them.
Out of Cash Options (Buy Today, Pay Later) – In this world, when your best friend can deny credit during an emergency, but not the dear friend Flipkart. After the COD movement, the Flipkart builders decided to allow the ‘Pay Later’ option for more people to shop on the site. It is one of the most effective marketing tactics for attracting new customers. Pay Later allows you to make online purchases quickly and easily. Customers who have been committed or appeared loyal to Flipkart for a long time have been selected to benefit from this opportunity.
Exchange Offer or Bonus Redeem- One of the most effective marketing tactics for expanding the customer base is to offer discounts. Customers who receive a discount are more likely to become long-term customers, as everyone, rich or poor, enjoys receiving discounts. Suppose a company offers a discount in the early years; in that case, it will undoubtedly be the market leader in the future. Flipkart has followed this marketing plan to become the market leader in today’s online industry. It also offers easy exchange options in various segments, making the platform a trusted one by Indian customers.
Easy Refund and Replacement Policy – Flipkart also offers a product replacement service if a consumer receives damaged or incorrect goods, and in case of a refund, it credits the entire amount to the customer’s bank account within 2 to 3 days. This method is particularly vital if an eCommerce platform wants to sustain itself in the market for a long time and create customer confidence. The company also offers very robust customer care support to cater to the grievances of their customers.
Flipkart Assured and Quality Checked Products – In the initial period, it struggled with fake sellers, poor quality products, wrong products, and broken delivery issues. Their strategist came out with powerful initiatives like ‘Flipkart assured.’ Flipkart Assured, India’s first speed and quality assurance program, ensures that customers receive high-quality products in the shortest time possible. Their grocery part ensured 7-step quality check products. The logistics staff have worked hard and focused on minimizing product damage across the supply chain.
Work Culture and Seller Satisfaction Strategy
Flipkart Seller Satisfaction Strategy
The marketing strategy of Flipkart is driven by employees, the prime assets of organizations. A good work culture with healthy competition and less corporate politics is what ensures productivity. Professional social media giant Linkedin hailed Flipkart’s work culture and flagged it as the most preferred place of work in India. Many Flipsters and ex-employees also expressed admiration for their work culture on Quora. The company is also super popular for its employee-friendly paternity policy.
The seller or supplier is the key component of the entire logistic chain as the eCommerce giant is not the producer but creates a marketplace where buyers and sellers can meet. So, it is important to have satisfied sellers to minimize product quality issues. A good seller will guarantee good quality that makes the customers happy, and this is what the main purpose of a great marketing strategy is. Thus, Walmart’s Flipkart gives equal importance to its customers and sellers, which makes it a successful and popular platform.
Flipkart has over 80 warehouses in India where it may hold products after receiving them from retailers and quickly transfer them to customers. Flipkart also has other hubs for packing, branding, sorting, and more. The most important aim of Flipkart’s marketing is to ensure fast delivery to win the trust of customers, and this can be done by selecting a good and efficient distribution system and chain.
Flipkart’s Expansion Strategy
Merger acquisition or business buyout is not only a policy to reduce competition but also a great marketing strategy. Flipkart’s strategy has been to acquire many of its small competitors to kill competition, and sometimes, its acquisition is to boost logistics tech advantages or make a new entry. For example, it acquired ANS Commerce, eBay India, and Myntra (the king of the online fashion industry) to fight with rivals. To diversify itself, Flipkart has also made deals with the med platform SastaSundar and the ticket booking application Cleartrip. All this brings up the platform in the eyes of people and, hence, a great marketing strategy.
So, Flipkart is the big fish that eats little fish for its diversified expansion.
A balanced strategy is chosen for STP (Segmentation, Targeting, and Positioning) analysis of Flipkart segmentation, pricing, and targeting analysis. Flipkart works as a middleman and sells from books to bikinis, so their targeting is not fixed. Similarly, the pricing also rotates as per product quality brand. However, it claims many products under MRP and discount rates.
Flipkart targets anyone who uses the internet but does not have time to shop. Though its target audience is spread across numerous market sectors since consumers of all demographic backgrounds can find products that appeal to their interests, 75% of its audience falls between the ages of 16 and 55.
Flipkart uses behavioral and psychographic segmentation tactics to segment the market and adapt to customers’ shifting requirements and wants. Flipkart’s positioning has helped it to become one of the most successful eCommerce companies in India. It is a popular choice for shoppers of all ages and income groups, and it is known for its wide range of products, affordable prices, and convenient shopping experience.
Flipkart and the Covid-19 Battle
Unprecedented adversity turned into a lucrative opportunity for Flipkart. At first, the company faced problems during work-from-home culture due to the systematic shift of human and tech resources and a struggling delivery system due to the lockdown.
But every dark cloud has a silver lining. It created the Programme management team and ensured cashless delivery without any touch. The Flipkart family took care of employees, vendors, frontline workers, and consumers during the tough time of the pandemic. The company tied up with the Uber drivers for smooth delivery. The Walmart-owned company announced a 46 crore medical supply donation for India to help common people out of the internal ecosystem. Internal vaccination drive, strict COVID norms, or strong insurance for employees bring out their safety concerns.
Flipkart Big Billion Day – Flipkart Marketing Campaigns
Flipkart Big Billion Day is an annual sale event sponsored by Flipkart. It is one of India’s largest shopping festivals, with enormous discounts on a wide range of merchandise. Flipkart Big Billion Day is usually held in October and lasts several days. Flipkart offers discounts on a wide range of products during the sale, including smartphones, laptops, electronics, clothes, and home appliances. During the sale, the company also offers a variety of additional deals and promotions, such as flash sales, coupons, and cashback offers. This is the biggest promotional strategy of Flipkart.
India ka Fashion Capital – Flipkart Marketing Campaigns
India ka Fashion Capital is a prominent marketing campaign that highlights the company’s extensive fashion goods offering. The campaign, which features celebrities such as Ranbir Kapoor and Alia Bhatt, emphasizes Flipkart’s position as a one-stop shop for all the newest fashion trends.
Flipkart’s “Kidults” marketing strategy focuses on the distinct demands and desires of young adults in India. The campaign includes a series of advertisements depicting young adults conducting ordinary activities in a humorous and lively manner. The advertisements frequently use humor and exaggeration to emphasize that, despite their age, young adults are still young at heart.
The “Kidults” campaign has had great success in reaching out to young adults in India. The advertisements are accessible and humorous and speak to the unique issues and opportunities that young adults in India confront. The campaign also helped Flipkart establish itself as a brand that understands and responds to the demands of young adults.
FlipGirl Campaign
FlipGirl Campaign – Flipkart Marketing Campaigns
Flipkart’s FlipGirl campaign is a marketing effort that stars Bollywood actress Alia Bhatt as FlipGirl, a superhero. The ad attempts to promote Flipkart’s diverse product offering, quick delivery, and commitment to making buying accessible to all Indians.
The FlipGirl campaign is a series of advertisements in which FlipGirl comes to the aid of individuals in distress. FlipGirl saves a man from being hit by a car in one commercial by handing him a replacement phone just in time. In another commercial, FlipGirl saves a woman from being late for work by delivering a new pair of shoes just as she is about to leave the house.
Frequently Bought Together Campaign
Frequently Bought Together Campaign – Flipkart Marketing Campaigns
It’s a marketing strategy that recommends products that are frequently purchased together. The promotion is founded on the observation that customers are more willing to buy things that they know go well together.
The campaign includes a series of recommendations that appear on product pages and during the checkout process. For example, if a consumer is looking at a smartphone product page, Flipkart may recommend a case, headphones, or a charger. Alternatively, if a consumer is checking out with a grocery order, Flipkart may propose a dessert or snack to complement the products they have previously chosen.
The #MultiPurposePurchase campaign from Flipkart is a multi-category promotion that encourages people to buy products from multiple categories in a single order. Customers can take advantage of the campaign by receiving discounts and other advantages on their purchases.
The promotion aims to boost Flipkart’s average order value and encourage customers to buy more products from the company. Flipkart can also use the campaign to cross-sell and upsell products to its customers.
Har Need Ke Liye Best Deals
Har Need Ke Liye Best Deals – Flipkart Marketing Campaigns
The campaign includes a series of advertisements depicting people from various walks of life locating the best prices on Flipkart. In one advertisement, a young woman is depicted purchasing a new smartphone at a reduced price. In another commercial, a family is shown saving money by purchasing all of their groceries on Flipkart.
The commercial also promotes Flipkart’s diverse product offering and its dedication to making buying accessible to all Indians. The advertisements depict people of diverse income levels and backgrounds searching for the greatest discounts on Flipkart.
Flipkart’s Special Occasion Campaign
Flipkart’s Special Occasion Campaign is a year-round series of sales and promotions commemorating major holidays and festivals. Discounts on a wide range of products, including cellphones, electronics, clothes, and home appliances, are often included in the promotion. Flipkart’s Special Occasion Campaign is one of India’s most popular shopping events. It is a fantastic opportunity for customers to receive fantastic prices on what they require and desire.
Conclusion
The above-mentioned Flipkart marketing strategies, like social media marketing, catchy campaigns, advertisements, bonus redemption, out-of-cash options, etc., are responsible for making the company what it is today. It is not only proper planning but great execution that matters, too. This startup, which merely started as a bookselling platform, is now ruling the Indian eCommerce market with its effective marketing strategies. Thus, the platform has come a long way since its inception, and it also makes continuous efforts to stay in the market in its full prime.
FAQs
When was Flipkart founded?
Flipkart was founded in the year 2007 by Binny Bansal and Sachin Bansal.
What are some prominent acquisitions of Flipkart?
Some prominent acquisitions of Flipkart are:
Myntra
eBay
Letsbuy
SastaSundar
ANS Commerce
Yaantra
What is Flipkart Assured?
Flipkart Assured is a badge that can be found on certain products present on Flipkart’s platform. This means that the products are of high quality, have passed six precise quality checks, and are from its best sellers.
What is so famous about Flipkart’s marketing?
Flipkart is well-known for its collaborations. It also spends a lot of money on celebrity marketing and star power. Flipkart keeps collaborating with various famous figures from time to time.
What are the marketing strategies of Flipkart?
Flipkart indulges in both paid and organic marketing. Its main focus remains on marketing through digital channels like social media marketing, Google ads, etc.
A new requirement that requires sellers on Flipkart to authenticate their goods and services tax identification number (GSTIN) via an OTP (one-time password) authentication procedure has left many vendors confused.
According to sellers, Walmart-owned Flipkart may be attempting to obtain their private GST data while posing as a verification procedure to get sellers’ GST credentials. Sellers further claim that no rationale has been given for starting the process.
After vendors provide Flipkart with the OTP, the company can access their data through an API. All data collected before GSTIN registration would be available to the company.
Merchants’ yearly turnover and sales on competing marketplaces like Amazon and Meesho can be found in the data, according to many merchants who spoke with the media. In addition, sellers shared a message they got from the company asking customers to authenticate their GSTINs using an OTP to avoid possible location blocking.
Flipkart’s Clarification
The One-Time Password (OTP) that sellers provide on the platform is a one-time process, according to a statement released by Flipkart. This process is designed to authenticate that the GST registration number belongs to a specific seller who is conducting business through Flipkart.
Additionally, it is designed to prevent any unauthorized individual from manipulating a seller’s GST number. An official spokesperson for the corporation stated that this does not grant them access to the information that they have included in their GST reports.Even though
Sellers’ Counter on the Above Clarification
However, sellers have mentioned that Flipkart already validates their GST paperwork, PAN, and Aadhaar data during the initial setup phase. This is something that vendors have mentioned in a media report. Even though it is still reasonable to request OTP verification from new vendors, there is no justification for requiring existing merchants to go through the system.
There are some vendors who have granted access to OTP to Flipkart because they do not want their sales over the holiday season to be negatively affected. An effort to steal data appears to have been made here. These procedures are not followed by any of the other marketplaces, including Myntra, which is owned by the Flipkart Group.
Those who are knowledgeable in the field of finance believe that if Flipkart claims that the OTP verification is a one-time operation, then they may only do so to validate the registration. However, the submission of an OTP by a seller does provide the company with access to the information that sellers have submitted on the GST portal. When it comes to sellers, their concerns are not completely unwarranted.
The media has reported that Amazon aims to launch its fast commerce service in India in the first quarter of 2025. The US-based eCommerce giant is refocusing its strategy to compete with rival Flipkart, which has just joined the fast-growing category with its ‘Minutes’ service.
Amazon India has designated a senior executive to spearhead the creation of its speedy commerce strategy in keeping with this approach. This move is part of a larger effort to reorganize its leadership to better compete in the rapidly expanding Indian market.
Exploring the Possibility of Acquiring a Stake in Swiggy
Reportedly, Amazon is looking into buying stakes in Swiggy, specifically its Instamart quick service platform.
According to a media report, a precise schedule has been established, but the foundation for the rapid commerce vertical has been ongoing for some time. Amazon has been pushing the project forward internally.
Since Amazon has not yet introduced a global quick commerce service, the launch of this new service will be subject to permission from Amazon’s headquarters. The situation is further complicated because Manish Tiwary, Amazon’s chief of India, is presently serving his notice term and is scheduled to depart the company in October.
30-Minute Delivery Is Amazon’s Goal for Speedy Commerce
After getting a head start in the grocery delivery market with its Pantry service, Amazon has been perfecting its strategy by combining its fresh two-hour service with next-day delivery. The fulfillment of these deliveries is handled by More Retail stores, a joint venture with Samara Capital, and customers also have the option of store pick-ups.
The 30-minute delivery trend is changing, even though Amazon’s next-day customer base for groceries and non-grocery items is still rather large.
Even if the final product is still in the works, a media report hinted that Amazon might keep slotted deliveries as a tactic, targeting certain SKUs.
Over the course of 2024, the rapid commerce sector experienced substantial changes, and even more changes are on the way. The Mumbai-based firm Zepto is quickly growing its dark store networks and SKUs. In less than two months, the company will finish a $1 billion fundraising round.
Indian Ecommerce’s New Battlefield
According to sources within the business, eCommerce platforms will increase their rapid commerce offerings to encompass 20,000+ products this Diwali, leading to fiercer competition.
New Delhi and Mumbai are the latest cities to get Flipkart’s Minutes service, which was first launched in Bengaluru earlier this month. At the same time, BigBasket is ditching its present hybrid model of scheduled and quick deliveries in favor of a quick-delivery-only strategy.
1Lattice and Datum Intelligence predict that the value of India’s eCommerce business increased by 18-20% in the first half of this year, with grocery sales increasing by more than 38% due to a dramatic rise in fast commerce.
The super.money app, which is a credit-first UPI (Unified Payments Interface) payments gateway app developed by India’s eCommerce giant Flipkart, intends to rapidly transition into a secured lending role in the next months.
According to a press release issued by the fintech, the app had about one million downloads during the test phase, which resulted in more than ten million transactions. National Payments Corporation of India reports that monthly credit transactions on UPI exceed INR 10,000 crore.
As a First Offering, Super.money Offers a Rupay Credit Card
The RuPay credit card, which functions similarly to an interest-bearing wallet on the UPI platform, is the initial offering from super.money. Already, Super.money has released an additional product—unsecured personal loans—in partnership with leading banks in India.
“The retail credit industry is booming and offers a lot of potential,” according to Prakash Sikaria, founder and CEO of Super.money, who spoke with a prominent media outlet. “Secured credit products have not been developed further and have not experienced the proper level of adoption,” he opined.
According to Sikaria, the Tier II and III markets in India are where the credit on UPI opportunity lies. From the standpoint of the user, it presents a three- to fourfold potential compared to conventional credit cards. Specifically, he emphasised how the beta phase shaped the super.money experience and how they innovated at the forefront of UPI credit in a press statement.
However, Super.money will have to distinguish itself through its products rather than relying just on UPI-backed transaction volumes if it wants to stand out in the still-growing but highly competitive lending industry, which is dominated by banks and NBFCs.
Secured Vs Unsecured Loans
The fast growth of unsecured loans in India’s retail loans segment over the past two years has been brought to the attention of the Reserve Bank of India in both informal meetings with banks and the formal publishing of the Financial Stability Report, which is done half yearly.
The risks associated with certain categories of unsecured loans were given a higher weightage by the regulatory body in November of 2023. The intended outcome has already been achieved. Following the RBI’s action, the growth rate of credit card portfolios dropped from 30% to 23%. In a same vein, bank lending to NBFCs fell to 18% from 29% previously.
Secured loans (vehicle, home, loan against property) are safer bets than unsecured loans (personal loans, credit card loans, and other types of consumer durables and student education loans), which do not require collateral. Lending system vulnerabilities increase when combined with a regime of still-high interest rates.
Many fintech companies in India compete for customers in the secured lending market by offering digital loans collateralised by precious metals and fixed deposits. Banking institutions and non-bank financial companies (NBFCs) have a greater branch network and street fleet, allowing them to dominate other products like home and vehicle loans.
Sikaria has faith in the possibilities of the cosmos he intends to serve. According to his polls, a mere fifteen to twenty percent of individuals who apply for a credit card actually receive one. Financial product cross-selling is super.money’s goal in the unsecured lending market.
The plan is to attract and keep users with greater average revenue per user (ARPU) by offering them greater incentives. The goal for Super.money, similar to other fintechs, is to increase the percentage of users who purchase additional financial products through cross-selling.
At the beginning of the new year, the two most prominent participants in the food delivery industry raised the platform fees by INR 1, which is equivalent to a 33 percent increase from INR 3 to INR 4. According to the predictions made by the media, the prices of consumer services would increase. This prediction was pretty much spot on thanks to Zomato and Swiggy, and it started on New Year’s Eve, which is the busiest day of the year for both of these companies.
Platform fees are not restricted to food delivery apps; Myntra, the top fashion eCommerce platform in India, is presently charging a platform fee of ₹20 for each order that is placed on its app. These fees are a component of the methods that the corporations employ to enhance their profitability and maintain their business models. The implementation of such fees, on the other hand, might vary, and some businesses may experiment with greater prices in the future or alter them based on the demand for specific services.
The most dedicated Zomato and Swiggy customers had to make some choices at the start of the new year. Should they decide to reduce their reliance on these platforms or keep paying ever-increasing platform fees to stay on top of them?
Starting on January 1, Zomato raised the platform fee from INR 3 to INR 4 per order in select areas. Unverified rumors circulated that on New Year’s Eve, Zomato briefly increased their platform fees to as much as INR 9 per order in several countries.
The price increases were justified by Zomato as “business calls” made after considering several variables. Coincidentally, Zomato’s order volume shot up to higher than the volume over the last six years combined, and the platform fees surged the day after New Year’s Eve.
The innovative approach and unwavering commitment to satisfying customers’ demands have contributed to Zepto’s steady rise to prominence, positioning it as the third-largest rival in the fast commerce space. Zepto is challenging industry heavyweights such as Swiggy Instamart and Blinkit, which is owned by Zomato, with a reputation for itself and a market share of over 20%. During its rise to prominence, Zepto has been known for its thoughtful approach to implementing platform fees, as well as its focus on user experience and operational performance.
In an attempt to boost income and operational efficiency, Zepto has decided to implement platform fees for a small number of users, which is different from the fee-free grocery order strategy of competitors Blinkit and Swiggy Instamart. Zepto’s plan, which starts at Rs 2 per order, follows the same model as established industries like eCommerce and restaurant delivery. Zepto emphasizes in its strategy introduction its commitment to sustainable growth and profitability over the long term and its willingness to try new things to stay ahead of the competition.
Size of the Online Food Delivery Market Across India From 2020 to 2023, With Estimates Until 2026
Aiming for Financial Gain
In addition to Zomato and Swiggy, other popular food delivery services like Uber, BigBasket, Myntra, and Dunzo impose extra charges (convenience charges, handling fees, and more) on top of the real delivery prices, which are typically discounted. Ola Prime Plus and Namma Yatri’s subscription plans for driver-partners are examples of new models that have emerged as a result of the revenue drive.
The fashion eCommerce behemoth Myntra, which is owned by Flipkart, started charging a fee for returns, which is one of its main selling points. The goal here is to correct unit economics.
According to Prosus, Swiggy’s principal investor, the company’s loss increased to $545 million in 2022 from $300 million the previous year, while Swiggy has not yet disclosed its financial results for FY23.
Platform fees are opening the way for the company to show a clear path to profitability in the next few months, which is necessary for its 2024 IPO. Platforms like Swiggy and Zomato will compensate to some degree by charging customers directly, even if discounts will still be around.
How much these fees are, how open they are, and how much value they give to everyone involved in the delivery process will determine if they are ethical.
The openness of these fees is also very important. Any fees and their purpose should be made plain to both customers and eateries. In an ethical system, food delivery fees would be reasonable, helping to sustain the industry while not unfairly harming any one participant.
India’s leading digital commerce entity Flipkart is working to venture into the fast-paced world of quick commerce to meet the burgeoning demand for rapid delivery of everyday essentials.
Flipkart has recently unveiled its latest initiative of same-day delivery service now available in 20 major Indian cities.
This strategic move underscores Flipkart’s unwavering dedication to elevating customer satisfaction, and convenience and to revolutionize the eCommerce landscape.
“We are committed to meeting evolving customer expectations and delivering excellence in value, selection, and speed, with more initiatives expected on this front in the coming months,” Walmart-backed Flipkart said in a statement.
This new initiative of same-day delivery will be for customers across cities including Ahmedabad, Bangalore, Bhubaneshwar, Coimbatore, Chennai, Delhi, Guwahati, Hyderabad, Indore, Jaipur, Kolkata, Ludhiana, Lucknow, Mumbai, Nagpur, Pune, Patna, Raipur, Siliguri and Vijayawada.
It would cover products like mobiles, essential items, electronics, home appliances, fashion, books, and lifestyle goods. The customers will get their products delivered before midnight if they place their orders by 1 pm without any extra charge.
Flipkart’s introduction of same-day delivery service represents a significant advancement in the Indian eCommerce market.
“We have invested in cutting-edge technologies, leveraged data analytics, and harnessed insights on demand patterns to ensure that we are well-equipped to anticipate and fulfill demand the very same day. I must acknowledge the hard work and dedication of our teams who have tirelessly contributed to making this vision a reality,” said Hemant Badri, Senior Vice President, Head of Supply Chain, Customer Experience & ReCommerce Business, Flipkart Group.
In the past year, quick commerce has surged into a billion-dollar industry with platforms like Blinkit, Zepto, and Swiggy Instamart poised to exceed USD 1 billion in revenue in the financial year 2023-24.
The surge in quick commerce has captured Flipkart’s interest, prompting the eCommerce giant to enhance its emphasis on the grocery sector.
As quick commerce constitutes approximately 40% of online grocery delivery, it is increasingly fueling growth. Flipkart’s renewed focus on grocery aligns with a broader transition away from conventional eCommerce models centered on sales and discounts.
As of now, these apps are providing quick commerce to consumers in major Indian cities:
Blinkit
Swiggy Instamart
Zepto
Started operations in
January 2022
August 2020
April 2021
Revenue as of FY 2023 (in Rs crore)
724
3221
2024
Revenue as of FY 2022 (in Rs crore)
236
2036
142
Funds raised for quick commerce (in U.S.$ million) US$ 1 mn = Rs 8.2 cr
569
700
361
Current market share (in %)
40%
37-39%
20%
It’s essential to acknowledge how its rivals have also expanded into quick commerce to meet evolving customer demands.
Here’s how some of Flipkart’s competitors have ventured into quick commerce:
Amazon India
Amazon has been a key player in the Indian eCommerce sector, and it has also delved into quick commerce to enhance its delivery capabilities. The company offers Amazon Prime Now, which provides ultra-fast delivery of essentials, groceries, electronics, and more within a few hours.
Reliance Retail
Reliance Retail, through its digital arm JioMart, has been rapidly expanding its presence in the e-commerce space. Leveraging Reliance’s extensive network of physical stores and warehouses, JioMart offers quick delivery of groceries, household essentials, and other daily items.
BigBasket
As a leading online grocery platform in India, BigBasket has capitalized on the growing demand for quick delivery of essential items. The company offers express delivery services for groceries and household essentials, ensuring that customers receive their orders within a few hours. BigBasket has the quick commerce feature BB Now too to get groceries delivered in 15-30 minutes.
Blinkit
Grofers now Blinkit has rebranded itself to reflect its commitment to rapid delivery. With its extensive network of local partners and warehouses, Blinkit ensures that customers receive orders within a few minutes, making grocery shopping seamless.
Blinkit has begun selling home appliances, puja essentials, Eid special offerings like prayer mats, thobe kurte, ‘sehri’ and ‘iftar’ needs, ‘Holi’ needs, sweets, colors, thandai, bakery items, meats, seafood, cosmetics, mobiles and accessories, electronics, baby care products and much more.
Swiggy and Zomato
While primarily known for their food delivery services, Swiggy and Zomato have also entered the quick commerce space by offering delivery of groceries, medicines, and other essential items.
Zepto
Zepto is also the name of a quick commerce platform that enables businesses to offer fast delivery services for groceries, bakery products, kitchen essentials, paan corner (betel leaf), tobacco, health and hygiene, toiletries, clothing, and other essentials. Zepto provides tools and infrastructure to facilitate within minutes delivery of goods to customers’ doorsteps.
Dunzo
Dunzo has become synonymous with hyperlocal delivery, with its Daily service taking it a step further by guaranteeing delivery within 19 minutes. From groceries to medicines to food from nearby localities to letters to clothes from the nearest boutique, Dunzo Daily fulfills all your daily needs with lightning speed.
While Flipkart maintains a strong foothold in the market, achieving revenue growth poses a continual challenge. With the emergence of competitors such as Zepto and Blinkit, there is a critical need for Flipkart to establish itself within the quick commerce sector.
As per media reports, Flipkart is also weighing options to expand into quick commerce with the introduction of dark stores. Dark stores are like mini warehouses designed for online orders.
Flipkart is also planning to buy Dunzo Daily. Despite having raised approximately USD 500 million in funding, Dunzo has struggled to secure additional investment and meet its staff payroll.
The hyperlocal delivery company has lost ground to newer competitors like Zepto, Swiggy, and Zomato’s Blinkit, leading to a drop in its market position.
Flipkart, valued at over USD 32 billion, is considering buying Dunzo, known for its local delivery skills. This move could be smart, but talks might take a while because Dunzo has ties to Reliance Retail, its main investor owning a 26% share.
Flipkart wants to be careful about what it buys, especially considering Dunzo’s connections, according to an article published by Business Insights Now on February 23.
The prospects of quick commerce, including Flipkart’s role, are exceptionally promising, driven by evolving consumer preferences, technological advancements, and market dynamics.
Flipkart, along with other quick commerce platforms, will capitalize on increasing smartphone penetration, internet connectivity, and digital payment systems to broaden its reach across diverse demographics and geographic regions.
By 2028, it is anticipated that the number of users in the quick commerce market in India will reach 56.4 million users. The user penetration rate, which currently stands at 1.8% in 2024, is projected to rise to 3.8% by 2028.
Meanwhile, the quick commerce market in India is anticipated to reach a revenue of USD 3.3 billion in 2024, with a projected compound annual growth rate (CAGR 2024-2028) of 27.42%. This growth trajectory is expected to propel the market volume to USD 8.8 billion by 2028.
Revenue of Quick Commerce Market in India
Conclusion
In summary, Flipkart’s expansion of its same-day delivery service epitomizes its dedication to setting new benchmarks of excellence in the eCommerce arena.
With a focus on speed, convenience, and customer satisfaction, Flipkart reaffirms its position as a trailblazer in India’s digital commerce revolution.
As the quick commerce market continues to evolve and expand, Flipkart’s strategic initiatives and dedication to customer satisfaction will shape its trajectory in the years to come.
The future holds endless possibilities, and Flipkart stands ready to embrace the opportunities that lie ahead, driving forward the evolution of online retail.
“Many believe Amazon and Walmart-owned Flipkart will continue to dominate the future of Indian eCommerce. In my humble opinion, I would not bet against the hometown teams at Zepto and Zomato,” said a LinkedIn post by Paul Hudson, Founder and CIO, of Glade Brook Capital.
Glade Brook Capital, which supported Zepto in Mumbai last year, also invested in Zomato’s parent company, Blinkit, back in 2019.
FAQs
In how many cities will Flipkart provide the same-day delivery service?
Flipkart will provide same-day delivery service in 20 major Indian cities including Ahmedabad, Bangalore, Bhubaneshwar, Coimbatore, Chennai, Delhi, Guwahati, Hyderabad, Indore, Jaipur, Kolkata, Ludhiana, Lucknow, Mumbai, Nagpur, Pune, Patna, Raipur, Siliguri and Vijayawada.
What will be the revenue of the quick commerce market in India in 2024?
The quick commerce market in India is anticipated to reach a revenue of USD 3.3 billion in 2024, with a projected compound annual growth rate (CAGR 2024-2028) of 27.42%. This growth trajectory is expected to propel the market volume to USD 8.8 billion by 2028.
Who are the competitors of Flipkart in the field of quick commerce?
The competitors of Flipkart in quick commerce include Dunzo, Amazon India, Reliance Retail, BigBasket, Blinkit, Zepto, Zomato, and Swiggy.
In Indian metro cities, the retail sector is changing fast with instant apps. Instant grocery delivery apps—Blinkit, Zepto, Swiggy Instamart, BBNow, and Dunzo Daily are leading this shift, making everyday shopping a breeze.
They are not just names; they represent the vanguard of quick commerce. These instant delivery apps are reshaping how consumers shop for everyday necessities.
Here’s a closer look at how these platforms are revolutionizing retail and what the future holds for this burgeoning industry.
In today’s fast-paced world, consumers demand convenience at their fingertips, and instant apps deliver precisely that.
With a few taps on their smartphones, shoppers can browse through an array of products, from groceries to household essentials, and have them delivered to their doorstep within a few minutes.
This consumer-centric approach has propelled instant apps to the forefront of the retail landscape, leaving traditional brick-and-mortar stores scrambling to keep up.
Industry Disruption
The impact of instant apps on the retail industry cannot be overstated. These platforms have disrupted conventional retail models, prompting retailers to rethink their strategies or risk becoming obsolete.
Thanks to fast delivery and a wide range of products, consumers are rushing to instant apps, fueling a major shift towards e-commerce and quick commerce.
Blinkit delivered 10,000 single roses by 10 am on Valentine’s Day this year.
Zepto sold more than 200,000 roses during Valentine’s week.
Blinkit delivered 20K+ chocolates in less than 10 minutes as they peaked at 406 chocolates per minute.
Zepto saw a 4x jump in sales on Chocolate Day.
In 2023, during the India and Australia World Cup finals, Swiggy Instamart experienced a surge, with the app registering a peak of nine jersey orders per minute.
On New Year’s Eve, Zomato achieved a groundbreaking number of orders on its app, nearly matching the total orders from the same day across the previous six years, from 2015 to 2020. “8,422 orders were placed at 8:06 pm – that’s 140 orders every second,” Deepinder Goyal said in a post on X, formerly Twitter.
Over Rs 97 lakh in tips were given to delivery partners on December 31, with more than 3,20,000 delivery partners serving customers across Zomato and its quick commerce business, Blinkit.
On New Year’s Eve, Swiggy processed over 480,000 biryani orders, equivalent to 1,244 dish units ordered every minute.
On New Year’s Eve 2023, Indians placed a record-breaking 6.5 million online food delivery orders, marking an 18% increase compared to the previous year.
Record-High In Orders For Swiggy, Zepto, & Blinkit; Insights From CEO Aadit Palicha & Rohit Kapoor
Key Players
As of now, these apps are providing quick commerce to consumers in major Indian cities:
Blinkit
Swiggy Instamart
Zepto
Started operations in
January 2022
August 2020
April 2021
Revenue as of FY 2023 (in Rs crore)
724
3221
2024
Revenue as of FY 2022 (in Rs crore)
236
2036
142
Funds raised for quick commerce (in U.S.$ million) US$ 1 mn = Rs 8.2 cr
569
700
361
Current market share (in %)
40%
37-39%
20%
Blinkit
Formerly known as Grofers, Blinkit has rebranded itself to reflect its commitment to rapid delivery. With its extensive network of local partners and warehouses, Blinkit ensures that customers receive their orders within a matter of minutes, making grocery shopping a seamless experience. The company has begun selling home appliances, chargers, headphones, smartwatches, lighting solutions, batteries, electronic accessories, and more.
Zepto
Zepto has carved a niche for itself in the instant delivery space, offering a wide range of products, including groceries, electronics, fruits, vegetables, and personal care items. Leveraging advanced logistics technology, Zepto guarantees swift delivery, catering to the on-the-go lifestyle of metro dwellers.
Swiggy Instamart
Building upon the success of its food delivery platform, Swiggy has ventured into quick commerce with Instamart. Partnering with neighborhood stores, Swiggy Instamart promises delivery in under 30 minutes, ensuring that customers never run out of essentials.
BBNow
BigBasket, a household name in online grocery shopping, has launched BBNow to tap into the burgeoning demand for instant delivery. It guarantees delivery within 15-30 minutes, and in the event of a delay, offers a 5% cashback, subject to certain terms and conditions such as extreme traffic, peak hours, and unforeseen circumstances.
Dunzo Daily
Dunzo has become synonymous with hyperlocal delivery, and its Daily service takes this a step further by guaranteeing delivery within 19 minutes. From groceries to medicines to letters to clothes from tailors, Dunzo Daily fulfills all your daily needs with lightning speed.
Amazon Fresh
Amazon’s grocery delivery app, Amazon Fresh is not into 10-minute delivery but it takes grocery orders via the Amazon Fresh website or mobile app. The company aims to deliver goods at home within 2-4 hours of placing order.
Flipkart Plans Foray
In the fast-paced world of eCommerce, eCommerce giant Flipkart is gearing up to compete with established players like Swiggy’s Instamart, Zomato’s Blinkit, and Zepto.
As per industry insights, Flipkart is also building its infrastructure to expand into quick commerce with the introduction of dark stores.
Dark stores are essentially mini warehouses designed for online order fulfillment. They operate discreetly, away from regular consumers, and boast enhanced inventory storage capacity and streamlined operations.
Flipkart’s decision to venture into quick commerce stems from market dynamics. The firm is aiming for rapid deliveries within 10-15 minutes in major cities like Bengaluru, Delhi (NCR), and Hyderabad, as per reports.
“At Flipkart, customer-centricity is at the core of everything we do. We constantly work towards delivering a wide range of products to customers with speed. Over the past few months, we have made several investments to enhance our delivery capabilities, including adding same-day delivery in 20 cities. This covers mobiles, essential items, electronics, home appliances, fashion, books and lifestyle products. We are committed to meeting evolving customer expectations and delivering excellence in value, selection and speed, with more initiatives expected on this front in the coming months,” said Flipkart’s spokesperson on a query whether Flipkart is planning to enter the quick commerce business.
Recent statistics indicate a notable loss in Flipkart’s grocery sales to Blinkit and Instamart, attributed to their lightning-fast delivery services, often within 15 to 20 minutes. This reflects a broader consumer preference for convenience and speedy services, prompting Flipkart to adapt its strategy accordingly.
“The market is already moving this direction, with Zomato and Zepto expanding their product assortments, Amazon offering same day delivery in select Indian cities and Walmart-owned Flipkart recently announcing a similar move,” said Glade Brook Capital Founder and CIO Paul Hudson on March 6, 2024 in his LinkedIn post.
Glade Brook Capital is a US-based venture capital firm, which has invested in Zepto and Zomato.
By leveraging the efficiency of dark stores, Flipkart aims to regain market share and cater to evolving consumer preferences. The move signifies a strategic pivot aimed at aligning with market demands and providing swift, seamless delivery experiences to customers.
Future Market Estimations
The future for instant apps in Indian metro cities shines brightly.
According to Inc42 data, the quick commerce sector in India experienced a rapid surge in popularity between 2021 and 2023, raising USD 4.2 billion in funding.
According to industry projections, the quick commerce segment in India is expected to witness exponential growth, with estimates suggesting a market size of USD 5 billion by 2025.
This growth trajectory is fueled by the increasing penetration of smartphones, rising internet connectivity, and changing consumer preferences.
As technology progresses, these platforms will evolve into even more efficient and user-friendly solutions, providing personalized recommendations and seamless shopping experiences.
“Together with Swiggy Instamart (where Glade Brook is not an investor), Zepto and Zomato-owned Blinkit have led the growth of this sector, from start-up to millions of users and tens of thousands of crores (billions of US dollars) in revenue in less than 3 years,” Hudson said in his insightful article on professional networking site LinkedIn.
Advancements in logistics, Artificial Intelligence, and machine learning will play pivotal roles in streamlining operations, leading to quicker delivery times and heightened customer satisfaction.
“India’s quick commerce market is experiencing rapid growth due to increasing smartphone penetration and a young tech-savvy population. By 2028, it is anticipated that the number of users in the Quick Commerce market in India will reach 56.4 million users. The user penetration rate, which currently stands at 1.8% in 2024, is projected to rise to 3.8% by 2028,” as per the findings of data gathering online platform Statista.
Furthermore, the proliferation of smart devices, more and more innovation in the retail sector, refinement in apps, and the impending rollout of 5G technology will catalyze the expansion of instant apps’ reach.
With faster and more reliable internet connectivity, these platforms will extend their services to even the country’s most remote corners, democratizing access to essential goods.
As urbanization continues unabated and the demand for convenience escalates, the potential for instant apps to capture a significant market share is immense.
More Power to Consumers
The availability of goods through instant apps can be a game-changer for the retail sector. It not only changes how one shops but also gives power to consumers.
With instant apps, people can easily find what they need, no matter where they are.
This means big changes in how customers buy things. In Indian metro cities, the future of instant apps looks promising. They’ll keep getting better and reaching more people.
As they improve with new technology, nationwide shopping will become quicker, simpler, and more tailored to each person’s needs and thoughts.
Despite their rapid growth, instant apps face several challenges and stiff competition in the market.
One of the primary hurdles is ensuring seamless logistics and efficient last-mile delivery.
The reliance on a network of delivery partners and the management of inventory in real-time pose significant operational challenges.
Additionally, competition among instant apps is intense, with players vying for market share through aggressive marketing strategies and innovative offerings.
Solutions and Innovation
To overcome these hurdles, instant apps are leveraging technology and innovation to streamline operations and enhance the user experience.
Advanced logistics algorithms optimize delivery routes, minimizing delivery times and maximizing efficiency.
Real-time inventory management systems ensure that products are readily available, reducing the likelihood of stockouts. Moreover, partnerships with local vendors and neighborhood stores expand the product assortment, catering to diverse consumer preferences.
Making Life Easy for Users
Instant apps have transformed the lives of users in myriad ways, offering unparalleled convenience and flexibility.
Busy professionals can now skip the hassle of visiting retail shops, grocery shopping, and household errands, they can just rely on instant apps to fulfill their daily needs within minutes.
Based on the region, the Southern part of India captured the major market share in the India Quick Commerce market. The Q-commerce companies are expanding their presence in metro & Tier 1 cities such as Hyderabad, Bangalore, Pune, Mumbai, Chennai, etc., in the Southern region.
Moreover, the major factors attributing its demand in these prime cities are the presence of the working population, large internet penetration as well as high awareness regarding the usage of technology.
“The individuals living in these cities are more tech-oriented & are more likely to refer to an online platform to purchase their day-to-day groceries due to their busy lifestyles, aging populations, and the prevalence of work from home. Hence, this leads to a lower preference to visit stores,” said a report ‘India Quick Commerce Market Research Report: Forecast (2023-2028)’ by MarkNTel Advisors.
Parents juggling work and family responsibilities find solace in the ability to order essentials at the touch of a button, saving precious time and energy.
Moreover, the seamless integration of payment gateways and user-friendly interfaces ensures a hassle-free shopping experience, further enhancing user satisfaction. These instant delivery apps are attractive as they provide coupon codes, discount offers, and cashback for using varied payment gateway options.
Transforming Shopping for Seniors and Mobility-Challenge
Instant apps are incredibly useful for senior citizens and people with disabilities who face challenges in visiting stores and standing in long queues. They can browse through a wide range of products and make purchases with just a few taps on their smartphones or tablets.
These apps are designed with accessibility features that cater to individuals with different disabilities. This includes features such as voice commands, screen readers, and adjustable font sizes, making it easier for them to navigate the app and complete transactions independently.
For individuals with mobility issues or chronic pain, visiting stores and standing in queues can be physically exhausting and uncomfortable. Instant apps alleviate this strain by allowing them to shop from home, avoiding the need to navigate crowded aisles or wait in long lines.
Instant apps often offer personalized recommendations based on past purchases and preferences. This tailored shopping experience can be beneficial for senior citizens and people with disabilities, ensuring that they find items that meet their specific needs and preferences without the hassle of browsing through crowded shelves.
Conclusion
The rise of instant apps in Indian metro cities marks a paradigm shift in the retail industry.
Blinkit, Zepto, Swiggy Instamart, BBNow, and Dunzo Daily are at the forefront of this revolution, offering consumers unparalleled convenience and efficiency. As these platforms continue to innovate and evolve, they will redefine the way we shop, setting new standards for convenience, speed, and customer satisfaction.
The future of retail is here and now.
FAQs
What is Quick Commerce?
Quick Commerce, also referred to as Q-commerce, is a type of eCommerce where the emphasis is on quick deliveries, typically in less than an hour.
What are the best Quick Commerce companies in India?
Swiggy, Dunzo Now, Blinkit, Big Basket, and Zepto are the major companies operating in the Indian Q-Commerce Market.
What is the projected user expansion in the Quick Commerce sector within the Indian market in the future?
By 2028, it is anticipated that the number of users in the Quick Commerce market in India will reach 56.4 million users.
In today’s digital era, eCommerce marketplaces like Amazon and Flipkart are making use of valuable data to launch their own brands, products, and services to capture the continually evolving retail landscape in India.
The marketplaces own big data from across regions, customers, and platforms and utilize these informative details to introduce their own brands, which are more user-friendly, budget-friendly, and rightfully address the demands of customers. These successful brands like Solimo, Amazon Essentials, and Flipkart Smartbuy are becoming pioneers in fulfilling the customer’s needs and desires in the revolutionizing retail landscape.
Amazon, the largest eCommerce platform globally, announced in February that it is preparing to launch a new online marketplace in India called ‘Bazaar’, featuring cost-effective, unbranded fashion and lifestyle items.
This article delves into the opportunities and challenges inherent in this transformation and explores how eCommerce marketplaces as well as offline retailers are reshaping the dynamics of power within the retail sector.
Before going to the pros and cons of news brands, let’s first understand what is leveraging data and why marketplaces are doing it.
Data leveraging is like having a superpower for running a business. It means using the information one possesses, whether it’s about customers, products, or market trends, to make smarter decisions and unlock new opportunities.
With data leveraging, businesses can personalize experiences, optimize operations, and stay ahead of the curve in today’s fast-paced world. It’s the secret sauce that turns numbers into insights and helps businesses thrive in the digital age.
Why Marketplaces Are Leveraging Data?
By leveraging data, marketplaces, and retailers can create seamless omnichannel shopping experiences that cater to the demands of modern consumers, millennials, and Gen Z.
By analyzing data points and collecting user information, big businesses can make solid business strategies that will help in reaching new users, continuing with old customers, addressing product gaps, meeting the growing demands, and presenting the best product with minimum cost and big savings.
These marketplaces can also make data-driven decisions based on real-time information, act on the insights, and derive new ways to measure performance, set strategic goals, and guide improvement in their product experience and marketing strategy.
How Marketplaces Leverage Data to Develop New Brands
Marketplaces like Amazon India, Flipkart, Myntra, and Pepperfry leverage data in several ways to enhance their operations, improve customer experiences, and drive their business intelligence and growth.
In April 2023, Amazon emerged as the predominant online marketplace globally, with an average of approximately 4.8 billion visits that month.
Following closely behind was eBay, the second most-visited shopping site, which recorded around 1.2 billion visits.
Notably, both Amazon and eBay also held the top positions as the world’s leading online retailers in terms of mobile web traffic.
Personalized Recommendation: They use data to give personalized product recommendations thereby enhancing the online shopping experience and increasing the likelihood of conversions and repeat purchases. For example, Flipkart’s private label, ‘Flipkart SmartBuy,’ offers a range of products designed specifically for the Indian consumer, including electronics, home appliances, and personal care items.
Dynamic Pricing: They utilize data analytics to come up with products that are priced dynamically based on factors such as demand, competitor pricing, and customer behavior, optimizing revenue while remaining competitive. For example, Amazon India’s private label, ‘AmazonBasics,’ offers a wide range of affordable and reliable electronic accessories, catering to the needs of budget-conscious Indian consumers.
Inventory Management: The data helps in understanding the appetite of the market. Marketplaces predict demand, manage inventory efficiently, and minimize costs while ensuring sufficient stock levels to meet customer’s demands.
Seller Performance Management: Market platforms evaluate seller performances using data on product quality, fulfillment speed, and customer feedback. This data helps in providing them incentives for their self-made product and maintaining quality.
Fraud Detection and Prevention: Big marketplaces like Amazon and Flipkart employ data analytics to identify and prevent fraudulent activities on the platform, thereby safeguarding themselves and ensuring trust and security for users.
Supply Chain Optimization: Data analytics enable marketplaces to optimize supply chain operations, including demand forecasting, transportation route optimization, and inventory management, resulting in improved efficiency and reduced costs for their items.
Customer Service Improvement: By analyzing customer feedback forms and service interactions, marketplaces identify areas that need improvement and enhance their overall customer service experience for their own items, thereby increasing customer satisfaction and loyalty.
Market Insights and Trends: Leveraging data insights into market trends, competitor activities, and consumer preferences, marketplaces make strategic decisions regarding product offerings, marketing campaigns, and market expansion in the Indian retail segment.
Here is a list of marketplaces that are active in India right now:
These are some of the top online marketplaces in India, where you can sell your items and services and reach millions of customers by a click of a few buttons or by going personally to their big stores.
Here Are a Few Examples of Marketplaces Launching Their Brands
Reliance Retail and Trent Ltd: They are actively targeting the emerging Gen Z consumer group through brands like Yousta, Foundry, and Zudio, catering to their preferences and lifestyles.
Nykaa: Known for its clean beauty and athleisure brands, Nykaa taps into popular market segments with offerings that resonate with its audience. Kay Beauty by Katrina Kaif is a notable example, focusing on inclusive makeup suitable for various skin tones.
Myntra and Amazon India: Collaborating with celebrities like Hrithik Roshan and Katrina Kaif, Myntra’s House of Pataudi and HRX, and Nykaa’s Kay Beauty co-launched with Katrina Kaif, contribute to branding and appeal to a wider audience.
Amazon India: With over 100 own-brands worldwide, Amazon has introduced India-specific brands like Tavasya and Anarva in addition to global offerings. While only 1 percent of Amazon.com’s sales come from private label brands, products like Amazon Essentials enjoy high conversion rates among browsing customers.
What Opportunities Does Data Leveraging Offers to a New Product Launch
Enhanced Customer Insights: Marketplaces have access to vast pools of customer data, enabling them to gain deep insights into consumer preferences, behaviors, and trends.
Tailored Product Development: Armed with comprehensive data analytics, marketplaces can develop own-brand products tailored to meet specific customer demands and preferences.
Competitive Advantage: By leveraging data-driven insights, marketplaces can create unique, high-quality products that stand out in the market, gaining a competitive edge over traditional retailers.
In India, with over 600 million internet users and 185 million online shoppers, it ranks third globally in digital shopping, after the United States and China. This has led to a surge in Direct-to-Consumer (D2C) brands, which sell directly to consumers online, bypassing traditional distribution networks. The country currently hosts over 600 D2C brands, with the market projected to exceed USD 66 billion in 2023, as per Statista.
Streamlined Operations: Data analytics facilitate efficient inventory management, pricing strategies, and supply chain optimization, leading to improved operational efficiency.
Revenue Growth: Successful own-brand launches can drive incremental revenue streams for marketplaces, diversifying their revenue sources and bolstering profitability.
Market Size of E-commerce Industry Across India From 2014 to 2018, With Forecasts Until 2030
What Are the Challenges Faced by Marketplaces for Owning/Launching a Brand
Data Privacy Concerns: The collection and utilization of customer data raise significant privacy concerns, necessitating robust data protection measures and compliance with regulations.
Brand Reputation Risks: Poorly executed own-brand products can damage the reputation of marketplaces, leading to loss of customer trust and loyalty.
Competition from Traditional Brands: Established brands may view marketplace-owned brands as direct competitors, leading to potential conflicts and market saturation.
In India, the direct-to-consumer (D2C) market is poised for remarkable growth, projected to expand over 15 times from 2015 to 2025. In 2020, the D2C market was valued at USD 33.1 billion. By 2025, it is expected to nearly triple in size, reaching USD 100 billion, with fashion and accessories emerging as one of the leading segments in India’s D2C landscape.
Quality Assurance: Maintaining consistent quality standards across a diverse range of own-brand products poses a challenge for marketplaces, requiring stringent quality control measures.
Balancing Transparency and Customization: Marketplaces must strike a balance between leveraging customer data for personalized experiences while ensuring transparency and ethical data practices.
Reshaping Retail’s Power Dynamics
Marketplace-owned brands are exerting a profound influence on retail’s power dynamics:
Disintermediation: Marketplaces are increasingly bypassing traditional manufacturers and retailers, and exerting greater control over the value chain.
Shift in Market Share: Own-brand products are capturing a larger share of the market, challenging the dominance of traditional products, brands, and retailers.
Data Monetization: Marketplaces are leveraging customer data not only to optimize own-brand offerings but also to generate additional revenue streams through targeted advertising and partnerships.
Democratization of Retail: The proliferation of own-brand products democratizes access to retail, allowing smaller sellers and entrepreneurs to compete on a level playing field.
Consumer Empowerment: With a plethora of choices and personalized experiences, consumers are empowered to make more informed purchasing decisions, driving market dynamics.
Conclusion
Data leveraging offers valuable opportunities to inform and optimize every stage of the new product launch process, from market research and development to marketing, sales, and ongoing performance monitoring.
The data-driven evolution of Indian marketplaces represents a revolution in the retail sector, offering unprecedented opportunities for innovation, research, and growth. By harnessing the power of data analytics, Indian marketplaces can differentiate themselves, reshape retail dynamics, and deliver unparalleled value to Indian consumers.
As the Indian eCommerce market continues to evolve, the role of data-driven own-brands will only become more prominent, driving India’s retail sector into a new era of prosperity and innovation.
By harnessing the power of data, businesses can increase the chances of a successful product launch and drive sustainable growth in the market, ultimately driving value for customers and stakeholders in a broader aspect.
FAQs
What is data leveraging, and why are e-commerce marketplaces utilizing it?
Data leveraging involves using available information, such as customer data, product insights, and market trends, to make informed business decisions and unlock new opportunities. E-commerce marketplaces utilize data to personalize experiences, optimize operations, and stay ahead of competitors in the digital age.
How do e-commerce marketplaces like Amazon and Flipkart leverage data to introduce their own brands?
Marketplaces analyze customer data to create personalized recommendations, dynamically price products, optimize inventory management, and develop their own-brand products tailored to meet specific customer demands and preferences.
What are the benefits of data leveraging for launching new product brands?
Data leveraging enables marketplaces to gain deep insights into consumer preferences, behaviors, and trends, facilitating tailored product development, streamlined operations, and revenue growth through successful own-brand launches.
What are some challenges faced by marketplaces in owning and launching their own brands?
Challenges include privacy concerns related to data collection and utilization, risks to brand reputation from poorly executed own-brand products, competition from traditional brands, and maintaining consistent quality standards across a diverse range of products.
How are marketplaces reshaping retail’s power dynamics through own-brand products?
Marketplaces are bypassing traditional manufacturers and retailers, exerting greater control over the value chain, and capturing a larger share of the market. This democratization of retail empowers consumers with choices and personalized experiences, driving market dynamics and innovation.
What opportunities does data leveraging offer for new product launches in the Indian market?
Data leveraging offers opportunities for enhanced customer insights, tailored product development, competitive advantage, streamlined operations, and revenue growth in the rapidly evolving Indian eCommerce market.
Which eCommerce marketplaces in India are actively launching their own brands?
Marketplaces like Amazon India, Flipkart, Myntra, and Nykaa are actively launching their own brands, tapping into consumer preferences and market segments with offerings that resonate with their audiences.
What role does data analytics play in ensuring the success of marketplace-owned brands?
Data analytics enable marketplaces to optimize operations, enhance customer experiences, maintain quality standards, and make data-driven decisions throughout the product lifecycle, from development and marketing to sales and performance monitoring.
How do marketplace-owned brands contribute to the overall growth and innovation in the Indian retail sector?
Marketplace-owned brands drive growth and innovation by offering unique, high-quality products that stand out in the market, democratizing access to retail, and empowering consumers with choices and personalized experiences.
Valentine’s Week is going to begin on 7th Feb and will continue till the day of love,14 February. Valentine’s week is the week for people to celebrate love, and lovers come together to celebrate this occasion.
Valentine’s Week is also a week for producers and companies to launch their best products in the market, which allows couples and lovers to celebrate their love. Valentine’s week market is a great way for companies to come up with their most creative and loved-up products.
So, here are the best selling products during Valentine’s Week for your loved one:-
The most obvious gift for Valentine’s week is chocolate, the most sold item on Valentine’s Day. With a day of the week dedicated to chocolate, the Valentine’s market is the best time for selling chocolates that celebrate love and are cute and pretty in nature. Regular chocolate sales also increase during this time, so chocolates with very unique creative ideas are more of an eye-catcher in the market. Chocolates with heart-shaped wrappers in heart-shape, letters attached to them, flavoured chocolates, and dark chocolates are some great ideas for Valentine’s week for the producers as these attract customers and are huge sellers during the week.
Watches & Perfumes
A more universal and diverse gift for gifting during Valentine’s week is watches and perfumes. Both the products are available for both parties and have a lot of choices and options to be picked from. This is the time period when companies come up with their best product and have limited editions for Valentine’s week. These special edition products are more price-oriented but can be customized for the people. Watches and perfumes are good products to sell, and the more customizable they are, the more popular they will be in the market.
Salon Cards
A great way to treat your loved ones is by providing them love in the form of Salon vouchers. The parlours and spa stations have a great scope in the market to come up with great ideas of salon spree and spa collections for couples. The couple packages for the couple are the best products to sell during Valentine’s week. Valentine’s week is the time for people to relax with their beau, which makes it a great product to sell during Valentine’s.
Flowers
Flowers – Best Selling Items for Valentine’s Day
There is no Valentine’s without flowers, so flowers are one of the best selling items for Valentine’s Day. The first day itself is the day of Rose, so the florists and the gift shops get a huge market to sell flowers to loved-up people. There can be a single flower or a bouquet; the options should be wide and varied for the people to choose. The most popular flowers to sell during Valentine’s week are roses, lilies, Orchids, carnations, and daisies. The flowers can be decorated in a more beautiful manner using red ribbons and bow packaging material to make it more selling during Valentine’s week.
Apparels & Shoes
Apparel and shoes are appealing to every individual, and Valentine’s Week is a great way to sell apparel and shoes. The couple-matching t-shirts, Couple-coordinate clothes, shoes with matching messages, gift hampers, clothing, and shoe vouchers are great gifts to sell. Apparel and shoe companies can also launch limited-edition Valentine’s specials for more effective sales of their products. The accessories are also a good item to sell during Valentine’s week and for the week, launch a wide variety to allow the couples to choose from a wide variety.
A girl loves Jewelry. So this is for the boys: if you want to make your girl or the girl you would like to make happy, buy jewelry for her. Valentine’s week is a great time to sell jewelry including bracelets, rings, earrings, hair accessories, anklets, necklaces and neck pendants. From simple gold and silver jewelry to heavy jewelry, jewelry has a great market during Valentine’s week. The most popular type of jewelry is customizable and name-based because of the potential to show love to loved ones. Not only girls’ jewelry for guys is also very popular to sell during Valentine’s week. The best things to sell for guys are bracelets, lockets, bandanas, earrings, etc.
Lingerie and Make-up
Lingerie and makeup, considered the girls’ best friends, are among the most popular Valentine’s Day gifts. The best way to appeal to girls during Valentine’s week is by offering these coveted items. The demand for lingerie and makeup surges during this romantic period, with makeup companies launching special Valentine’s makeup collections tailored for the occasion. These collections become highly sought-after products during Valentine’s week. Similarly, lingerie designed specifically for Valentine’s week becomes a top-selling item during this time.
Gym Memberships
The couple who trains together stays together can be the motto during Valentine’s week to sell gym memberships during Valentine’s week. The couple memberships are a special gift for those couples who are into the gym and health and fitness. The gyms and fitness centres can come up with interesting packages for couples to get into the gym and health during this loved-up week. Nutrition companies can also sell health and nutrient packages for couples and singles who are dedicated to health instead of finding love.
Romantic Dinners and Movie/Concert Tickets
Romantic Dinners – Best Selling Items for Valentine’s Day
The 14th of February is V-day, the day to celebrate the ultimate love, and for most people who are either couples or singles, it is romantic dinners and movie/concert tickets.
The restaurants and food outlets get a chance to come up with various themes of romantic dinner tables for people to celebrate their best days. Movies and concerts are also some good things to sell during the V-week as the favourite bands are in town or the movie is released during the V-Week. The V-Week is a week to celebrate love and also a great week for selling the above-mentioned products.
Gift Cards/Vouchers
Gift cards and vouchers, a Valentine’s Day card suit for Valentine’s Day gifts are perfect for those who tend to shop at the last minute. Buying gift cards requires no shipping time, and vouchers can be activated instantly. To ensure effectiveness, it’s crucial to offer gift cards with appropriate values. Utilizing social media to promote these gift cards can be highly beneficial, and consider using boosted advertisements to remind busy shoppers about them. Additionally, emphasizing the convenience and versatility of gift cards can further attract last-minute buyers.
Valentine’s Day Cards
Valentine’s Day Cards – Best Selling Items for Valentine’s Day
Valentine’s Day cards are a timeless and sentimental choice for expressing love and affection, making them one of the best products to sell during Valentine’s Week. With their charming designs and heartfelt messages, these cards offer a personal touch that resonates with customers looking to convey their emotions to loved ones. From traditional romantic themes to quirky and humorous options, a Valentine’s Day card suits every relationship and taste. Moreover, the growing trend of personalized and customizable cards allows sellers to offer unique and tailored experiences to their customers.
Valentine’s Week is a great time for beauty and skincare products sales, as they offer a perfect balance of pampering and self-care. These products make thoughtful gifts for personal care enthusiasts and those seeking relaxation, ranging from luxurious facial serums and moisturizers to indulgent bath bombs and scented candles. Retailers can capitalize on this market by highlighting romantic packaging or limited edition Valentine’s-themed collections to attract shoppers. With the rising trend of self-love and wellness, beauty and skincare products present an ideal opportunity to treat loved ones or oneself.
Personalized Gifts
Personalized gifts are one of the best products to sell during Valentine’s Week. They capture the essence of the holiday by offering a unique touch. From customized jewelry to bespoke photo albums and engraved keepsakes, personalized gifts allow customers to express their love in a deeply meaningful way. These items hold sentimental value, making them cherished keepsakes for years to come. Personalization adds a special touch that resonates with both the giver and the recipient, whether it’s a name, date, or heartfelt message. Thus, it is an ideal choice for Valentine’s Day shoppers who want to create lasting memories with their loved ones.
Free DIY Gifts for Loves Ones
Candles
Candles are a timeless and romantic product that holds significant appeal during Valentine’s Week. Their soft, flickering light creates an intimate ambience that is perfect for romantic dinners or cosy evenings. With a wide range of scents available, from classic floral notes to exotic blends, candles offer something for every taste. They make for versatile gifts that can be enjoyed by both individuals and couples alike. Whether marketed as standalone items or as part of curated gift sets, candles are sure to be a popular choice among shoppers looking to create a warm and romantic atmosphere for their loved ones during Valentine’s Week.
Tech Accessories – Best Selling Items for Valentine’s Day
In recent years, the market for personalized print-on-demand technology accessories has expanded remarkably, and phone cases have emerged as the most popular products. Phone cases are practical and affordable, making them an ideal choice for Valentine’s Day gifts. They not only protect phones from scratches and dents but also add a touch of fun, style, and novelty. Successful print-on-demand phone case vendors often incorporate personalized features such as photo uploads, text customization, and clipart options. Additionally, creating complementary designs for pairs of phones, such as matching halves of hearts or adorable characters, can further enhance their appeal.
Where To Sell
There are many online shopping websites where you can sell your products and services. Some of these are as follows :
Amazon
It takes a few minutes to set up your Amazon selling account. To get started with selling on Amazon, you will need to have a selling plan and strategy. With the Amazon Seller app, you will be able to track sales, fulfil orders and much more. With all these facilities, Amazon stands as the best place to sell products.
To start selling on Flipkart, you need 1 product and two documents. The lowest cost of doing so on this portal is another good reason to start your online selling journey.
Valentine’s week is a great opportunity to start an online business if you don’t have one yet. If you already have one, then make the most of it by selling the right products at the right time.
FAQs
What are the top 3 jewelry items purchased for Valentine’s Day?
The top three jewelry items purchased for Valentine’s Day are diamond earrings, heart-shaped pendants, and personalized bracelets.
What are the top 7 best selling products or services for Valentine’s Day?
The top 7 best-selling products or services for Valentine’s Day include chocolates, flowers, jewelry, greeting cards, romantic dinners, spa treatments, and personalized gifts.
What is the most sold item on Valentine’s Day?
The most sold item on Valentine’s Day is chocolate. It is a classic and beloved gift that symbolizes love and affection.
Tripti Agarwal
