Magicpin, an online performance retail platform for retailers and consumers, recorded the highest sales growth of 57.56% in the restaurant (takeaways) in the retail category.
By Srinath Srinivasan
Small to medium retailers who adopted the digital route during the pandemic last year have seen sales grow 40% in the last six months, as per recent findings from Magicpin, an online performance retail platform for retailers and consumers, operating in India and Indonesia.
The platform has on-boarded 50,000 retailers across the country, taking its retailer base to 1,50,000 in three months. In addition, the platform has opened stores for top FMCG brands to directly reach out to its over five million users.
“By November last year, sales started to stabilise across retail categories. In the last three months, our revenue grew 15% each month while gross was margin at 30%, indicating good sales for our retail partners,” said Anshoo Sharma, co-founder and CEO, Magicpin.
The company recorded highest sales growth of 57.56% in the restaurant (takeaways) retail category, followed by 54.56% in the healthcare pharmacy category. Sales of quick service restaurants cafes and bakeries/desserts grew by over 42.5% and 41%, respectively, while fashion/ apparel registered a 20% growth. Grocery, FMCG, supermarkets and department stores saw the least growth at 12.2% over the last six months, according to Magicpin. “We are betting big on fashion and retail as the new fiscal begins. It was a segment that fell sharply during the peak of the pandemic but has recovered to pre-Covid levels and is growing at a fast rate,” Sharma said.
One of the main drivers for the sales is integration of payments and doorstep delivery, which saw a huge demand during the pandemic. “Retailers and consumers rapidly adopted digital payments and we integrated it on our platform. We also partnered with delivery partners like Dunzo, Delhivery and Shadowfax to take the orders to consumers,” Sharma said.
With rapid growth in the user base and retail partners, FMCG brands directly set up stores on the platform. “This move is further expected to drive the growth of the FMCG category during recovery. Top FMCG brands directly deliver orders to consumers while we enable their discovery and payments on our platform,” he said.
To tap into the potential of the smaller retailers in tier 2 and tier 3 cities, the Gurugram-based company aims to increase its volume of retailer base at a hyperlocal level. “The pandemic forced us to have end-to-end ecommerce capabilities on the platform, which puts us in competition with a number of players. With new business units focusing on various points on the retail value chain, we want to increase our depth of each unit across the country,” Sharma said.
According to Sharma, offline retail marketing is a $1-trillion market in India, larger than ecommerce. “With travelling gaining momentum and the rollout of vaccines, smaller towns present a big opportunity to get more offline retailers on board,” he said.