Direct-to-customer (D2C) brands are witnessing up to 250% higher demand on quick commerce platforms this festive season as compared to last year, industry executives told FE.
This is mainly due to the rapid expansion of dark stores and the higher importance given by younger people to convenience.
Beauty and cosmetics brand Swiss Beauty said it has witnessed 250% higher demand than last year on Blinkit alone. Another beauty brand VLCC also said it is witnessing a similar growth in demand this year.
“Demand on quick commerce platforms has been robust, reflecting the preferences of our younger customers who prioritise convenience and flexibility,” said Rajat Tuli, vice president of Marketing at VLCC.
“Our research shows that this demographic prefers to shop on their own terms, often from the comfort of their homes. This trend has led to a significant uptick in sales on quick commerce and e-commerce platforms, where instant gratification is key,” he added.
Varun Gupta, co-founder of smartwatch and earbuds company Boult said they have witnessed their sales on quick commerce platforms jump by 100% month-on-month ‘multiple times during this year’.
“This growth is primarily driven by the improved category visibility, and increased consumer reach due to expansion of dark stores by the platforms,” he said.
All the quick commerce companies have been focussing on opening more dark stores across various localities to reduce delivery time and improve reach.
Blinkit recently said it added 152 stores and 7 warehouses during the September quarter, taking the total to 791. Zepto is aiming to touch this number this year.
As of June, Swiggy Instamart had around 600 active dark stores. Its parent company plans to get listed on the bourses soon to raise funds for rapid expansion.
Shankar Prasad, founder and chief executive officer at Plum said that their revenues are up 60% this year.
The Body Shop is seeing a ‘strong double digit growth in demand compared to last year’.
“With convenience being a priority for many consumers, especially during the festive season, quick commerce has played a crucial role in reaching our customers efficiently,” said Vishal Chaturvedi, group chief revenue officer at the brand’s parent Quest Retail and House of Beauty (HoB).
The executives remain bullish as quick commerce expands to tier-2 cities.
“We’re excited to see this trend continue as we enhance our presence in the quick commerce space,” said Tuli.
“With more diverse products being introduced on quick commerce platforms, the best of this year may be yet to come,” a consultant, asking not to be named, said.