A new channel of online shopping ‘Rapid Commerce’ is rapidly making its place in the country. This model brings together the fast speed of Quick Commerce and the variety of traditional e-commerce. Consumers are now willing to wait two to four hours even for products they don’t need immediately, but they also don’t want to wait for days. According to DTDC Express CEO Abhishek Chakraborty, this model works at a ‘sweet spot’. Here consumers are willing to wait a little, due to which companies are able to improve logistics. With this, brands are able to reduce costs and maintain speed in delivery by sending multiple orders in a single trip. This change is not just shifting demand, but also expanding the total e-commerce market. Consumers are now also shopping in categories that were previously unavailable to them online. The limitation of Quick Commerce is that there are only 80 to 200 products, which is insufficient to meet the demand for thousands of options in fashion and jewelry. Aniruddha Kudva, chief revenue officer of jewelery brand Giva, says that his company has converted more than 360 retail stores into hyperlocal centers in the network operated from its headquarters in Bengaluru. The advantage is that customers can choose from 1,500 to 2,000 designs within two to four hours. This model offers speed as well as a wide choice, which is essential for categories where consumers prefer browsing before purchasing. According to Pallavi Mohadikar, CEO of jewelery brand Pulmons, rapid commerce is now contributing 25-30% of their online sales. The surge is driven by festivals, gifting and last-minute shopping. Brands have completely changed their inventory planning and demand forecasting strategy for this. “Technology and third-party partnerships are being used to warehouse bestselling products closer to consumers, enabling delivery within hours.” Small dark stores are being built near residential areas where demand is high. From a logistics perspective, Praharsh Chandra, co-founder and chief business officer of ShadowFax, believes that rapid commerce is opening up new consumption opportunities. The company has started a pilot project of dark stores for delivery in 30-45 minutes within a radius of seven km. Faster fulfillment is not only increasing customer confidence, but also reducing returns and order cancellation rates by 5-9%. Due to this, the sales and profits of the brands are increasing.
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Changing trend of quick commerce: Leaving milk and vegetables, now big bet on fashion and beauty; Quick delivery apps become the new destination for high-margin lifestyle products
