New Delhi: This year’s Raksha Bandhan saw remarkable growth for India’s quick commerce (q-commerce) platforms, with companies like BigBasket and Zepto reporting record sales. The festive season’s momentum is expected to continue with upcoming events like Janmashtami and Independence Day. As competition heats up among these platforms, aggressive discounting and customer acquisition remain critical strategies for success, all while aiming to expand service to customers in both urban and rural areas.
Raksha Bandhan: A Festive Boost for Q-Commerce
Raksha Bandhan, celebrated on August 9 this year, brought not only joy for siblings but significant commercial success for quick commerce platforms in India. BigBasket, owned by Tata Group, reported a staggering 2.1 times increase in sales compared to last year, with the platform’s chief buying and merchandising officer, Seshu Kumar Tirumala, noting that they sold more rakhis by noon than in two full days the previous year. Popular items included smartwatches, Bluetooth earphones, and a new trend in pet rakhis.
Rival platform Zepto also declared a historic achievement, citing that they sold over 820 rakhis every minute during peak hours, which represented more than double last year’s sales. With Swiggy Instamart reporting a 3.5 times surge in overall rakhi sales and a whopping 8 times increase in hamper sales, the competition amongst q-commerce players is as fierce as ever. Flipkart’s entries into record shifts of gift packs and hampers added to the ongoing festive frenzy.
Expanding beyond Grocery: The Transformation of Q-Commerce
Q-commerce platforms originally focused on rapid grocery delivery; however, they are now transforming into comprehensive online supermarkets. This evolution illustrates how consumer shopping patterns are shifting post-pandemic, with consumers increasingly gravitating toward platforms that offer a diverse range of products. Platforms like Blinkit, along with the original “big three”—Zepto and Swiggy Instamart—have now expanded their offerings to include everything from electronics to apparel.
Emerging competition now features additional players like BB Now, Amazon Now, JioMart, and Flipkart Minutes, all vying for a piece of the growing pie. The corporate endgame hinges on aggressive discounting strategies, with companies promising discounts ranging from 50% to 80%. Deloitte’s consumer industry leader Anand Ramanathan explains, “Steep discounting, which can lead to volume growth and bring in newer customers, not just in untapped smaller markets, but also in metros, is the route to profitability.”
Customer Acquisition Strategies
During a recent investor call, Amitesh Jha, CEO of Swiggy Instamart, highlighted the platform’s focus on customer acquisition, stating, “The level of runway of growth we have should allow us to be more measured in our approach.” Similarly, Akshant Goyal, Chief Financial Officer of Eternal, emphasized responding to market demands to maintain leadership positions in their respective segments.
This competition among q-commerce brands sets the stage for larger battles against well-established players in other sectors like jewellery, fashion, and home essentials. New reports from Kearney show that the rapid delivery model is significantly affecting traditional retail, signaling a notable shift in consumer behavior.
Optimizing for the Festive Rush
As the seasonal demand peaks between now and Diwali, companies are ramping up their operations to optimize delivery cycles and reach tier-2 and tier-3 cities. Amazon has announced the creation of over 150,000 seasonal jobs in preparation for the upcoming peak festive season, further emphasizing their commitment to fast and reliable customer service. Abhinav Singh, Vice President of Operations for Amazon India, noted, “This festive season, we continue to be focused on providing fast and reliable deliveries to customers in every serviceable pin code across India.”
Flipkart Minutes is also enthusiastic about the season’s prospects, claiming strong momentum after Raksha Bandhan and looking to double order volumes every 45 days. Their focus on expanding into high-demand cities while cultivating brand partnerships for electronics and lifestyle products is a clever approach to capitalize on the festive momentum.
The Road Ahead: Fast Movers Win
The future looks bright for the q-commerce sector, as evidenced by the performance of platforms like Blinkit, which recently exceeded the gross and net order value of Zomato’s food delivery service. With Blinkit recording a gross order value of ₹11,821 crore, “the future, it would appear, belongs to the fast movers.”
As these platforms continue to evolve, consumer behavior will likely dictate who ultimately thrives in this competitive landscape. The shift toward instant delivery services is not just a trend but a fundamental change in how consumers engage with retail. With upcoming festivals like Janmashtami and Independence Day, consumer interest is expected to remain high, sustaining the rapid growth of India’s q-commerce market.
Bankerpedia’s Insight💡
The surge in Raksha Bandhan sales on q-commerce platforms highlights a pivotal shift in India’s retail landscape. With companies like BigBasket and Swiggy Instamart reporting record sales, this trend underscores the increasing consumer preference for rapid delivery and convenience, placing pressure on traditional retailers and reflecting broader changes in shopping behaviors. For India’s banking and finance sector, this rapid growth signals potential investment opportunities in tech-driven retail and logistics. Readers should keep an eye on emerging players and consider the implications for consumer habits and lending in the evolving market.
What Does This Mean for Me?🤔
- Salaried Person → Increased shopping options and discounts during festivals.
- Business Owner → Increased competition and sales opportunities during festive seasons.
- Student → Increased shopping options and potential savings for students.
- Self-employed → Increased competition may lower prices for self-employed individuals.
- Homemaker → Increased festive shopping convenience and discounts for gifts.
- Retiree / Senior Citizen → Increased discounts on essentials benefit retirees financially.
- Job Seeker → Increased job opportunities during peak festive hiring seasons.
- Farmer / Rural Citizen → Increased competition may lower prices for farm supplies.
Research References📚
- economictimes.indiatimes.com
- RBI
- SEBI
- Ministry of Finance
- NABARD
- Department of Financial Services (DFS)
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