The quick commerce bug seems to have bitten everyone. The latest to join the bandwagon are direct-to-consumer (D2C) brands such as NEWME, Snitch, DaMENSCH, Epigamia, Lenskart, Clinikally, Supertails, Ultrahuman, Sepoy & Co, Mondelez, Allter and Mymu.
In addition to selling via q-commerce platforms such as Zepto, Blinkit, Swiggy Instamart and BBNow, these brands are piloting direct rapid deliveries through their own websites. Helping them achieve these 90 minute-same day deliveries are logistics startups such as Zippie and Blitz.
Fast fashion brand NEWME started 90-minute deliveries in September across 8-10 PIN codes in Gurugram. Today, it covers more than 18 PIN codes across Delhi-NCR with plans to extend this service to more locations in Delhi and Noida. For other areas, it currently delivers within 12-24 hours. The startup claims that within 30 minutes of piloting 90-minute deliveries, the platform clocked over 100 orders, with several being delivered in under 25 minutes.
Fashion startup Snitch also initiated 24-hour quick delivery services six months ago and has seen a 12% uptick in users. The startup plans to introduce two-hour deliveries by Q1FY26.
D2C created a wave in India after the pandemic, when brands started delivering directly from their websites along with deliveries via online marketplaces like Amazon and Flipkart. This is because direct deliveries from apps or company websites enable brands to have larger control and get direct feedback. It also allows them to offer an expanded catalogue, exclusive offers, and personalised experiences with consumers, which isn’t possible through third-party platforms.
A similar shift is now being seen in the quick deliveries space. “Additionally, D2C brands are often required to pay 30-45% commission on sales to list on q-commerce platforms and also on marketing and deep discounting to boost visibility, while established FMCGs enjoy more favourable terms and conditions as they have brand leverage,” Madhav Kasturia, founder and CEO of Zippee, told FE.
Zippee is a logistics startup that enables two-hour to same-day deliveries for over 140 D2C brands and marketplaces, including Epigamia, Lenskart, Rage Coffee, NOTO, NEEMAN’S, among others.
Kasturia added that some of the brands have been experiencing triple-digit growth. RTOs (return to origin) have seen a cut by up to 90%, proving the demand for quick, reliable deliveries, he said.
There are more than 600 D2C startups in India. Experts say that given the pace at which the q-commerce industry is growing, at least 20% of these brands will be forced to start direct 10-20 minute deliveries by next year. According to delivery services startup Blitz, its client DaMENSCH, a Bengaluru-based D2C menswear brand, faced significant obstacles due to it earlier average delivery turnaround time (TAT) of over 2 days. It led to an increased RTO for the company. But after it started delivering within 4 hours, the consumer net promoter score (NPS) shot up by 10 points.
For Snitch, direct quick deliveries help save approximately 20-30% in potential commissions and fees paid to third-party platforms. These savings are then invested back into enhancing the customer experience and expanding its delivery capabilities. “Handling deliveries directly not only improves margins but also gives us complete control over logistics, ensuring that we can uphold our service standards and adapt quickly to any logistical challenges or customer needs,” Chetan Siyal, chief marketing officer, Snitch, said.
Some D2C brands are even exploring the possibility of establishing their own delivery fleet for quick deliveries. “We currently work with third-party vendors to enable our 90-minute delivery initiative. However, as demand grows, we’re exploring the possibility of establishing our own delivery fleet in key cities,” Sumit Jasoria, co-founder and CEO, NEWME, said. This, the team believes, would allow them to ensure that the service is met consistently across all high-demand areas.
Experts say that quick deliveries have become a necessity and everybody needs to embrace it. “Today, if it takes four days for a parcel to reach to me in a metro city, I will probably cancel it,” Arjun Vaidya, co-founder, V3 Ventures, and a D2C expert said. According to a study by McKinsey, when online customers discover during checkout that they may need to wait longer for delivery, about 46% abandon their shopping carts.
However, the challenge for D2C startups would be setting up additional warehouses. Till a year ago, D2C startups had to open only 3-4 warehouses and they could cover the entire country in 2-3 days. But, with q-commerce type fulfilment, the challenge is that in each city, one needs to have 5-15 dark stores depending on scale.
“This means you have to distribute your inventory and efficiently plan demand across those cities. So, it is better to look at data and pick only those pin codes where there is depth for direct fulfilment,” Vaidya said.
From: financialexpress
Financial News