Recently Aadit Palicha, the founder of Zepto said that they will become bigger than DMart in sales in the next 18 to 24 months.
Of course, the statement raised a great hue and cry and there were many posts mocking the young founder 😅
I think, he might be right.
Don’t know about Zepto, but very likely that one of three Quick Commerce players (Zepto, Blinkit, instamart) will overtake Dmart in sales in next 3 years.
QuickCommerce is by far the fastest growing category today. Take the case of Zepto, the firm has gone from zero to Rs 10,000 crore in sales in less than three years.
It is still in the early stages of evolution and there is plenty of room to grow 📈
The convenience, Quick Commerce players offer is unparalleled and delightful. Try shopping in large format store over a weekend. Not exactly a delightful experience 🙄
Contrary to the popular narrative, I believe that Quick Commerce is stealing the share from these large format retail stores and supermarkets than your neighbourhood Kirana stores.
Many of these large format retailers are growing due to new outlet expansion than same store sales growth.
The reason why people flock to large format retail stores is due to discounts and assortment.
Quick commerce players are quickly ramping up their assortment. So that’s not going to be a differentiator.
Now on the price. Given that soaring popularity of Quick Commerce- brands big and small have realised the crucial role it will play in their growth. So, brands- both legacy and especially the new age ones will do anything to thrive on these platforms.
Hence, they will offer favourable, even exclusive deals to these Quick Commerce players who in turn can pass on some of those benefits to end consumers.
Most importantly, Quick Commerce players like any retailer with a scale, have an opportunity of PrivateLabel play. That gives a massive leverage.
For example : Licious did a revenue of 748 Cr in 2022-23. Licious is around 8 years old.
While, Relish- Zepto’s private label brand for meat and seafood is nearing a revenue run rate of 500 Cr. Relish is 8 months old 😊
So, I am actually reasonably confident that at one of the Quick Commerce players will overtake Dmart in sales in next 3 years.
Unless, there is any regulatory hurdle that’s thrown to halt the Quick Commerce’s march 😐
There I said it 😉
