Quickcommerce Redefining Consumer Expectations, But Sustainability Must Prevail, Says Sudhakar Adapa

As e-commerce continues to thrive, the definition of "quick" is undergoing a radical transformation, believes Sudhakar Adapa, founder and chief executive officer of BIA Brands.

Consumers increasingly expect deliveries within ten minutes, with Adapa noting, "If you say 20 minutes, they'd respond, 'No, I can't wait another 10 minutes.'"

However, he warns that this rush for speed is not sustainable for all categories. "For a majority of products, the definition of quick will shift to around 60 minutes. Not everything can be delivered in ten minutes," he said.

Adapa acknowledges the niche for quick commerce but questioned its viability. "Can companies deliver everything sustainably in ten minutes? I don’t think so," he said, speaking about the balance between speed and sustainability.

Social media has become a critical tool for brands in this competitive landscape. "Every celebrity is an influencer, and every influencer is a celebrity," Adapa pointed out. "For brands to survive, social media has turned into a potent weapon."

This shift provides smaller brands a fighting chance against industry giants like Unilever and P&G, with private labels levelling the playing field.

However, the current e-commerce environment also presents challenges. "While you can build a company with minimal capital if you have a great product, the market is flooded with huge brands, making differentiation increasingly difficult," Adapa observed. Consumers enjoy a wealth of options but are often overwhelmed by the choices available.

Adapa believes in the importance of physical retail, particularly in the food and beverage sector, where margins are slim. "With margins less than 25-30%, the additional costs of platform fees, shipping, and performance marketing make it hard to survive," he said. He emphasised that platform fees remain consistent, regardless of a brand's size, complicating the sustainability of smaller businesses.

On the other hand, sectors like beauty, where gross margins are higher, provide opportunities for brands to thrive on e-commerce platforms like Amazon or Flipkart. "It's crucial for entrepreneurs to choose the right channels," he said.

With India emerging as a promising market, Adapa believes its potential surpasses that of China. "China is a controlled market; global investment flows more freely in India," he stated, highlighting the significant capital influx into the country.

Yet he warned of the dangers of excess capital: "Most startups are dying from indigestion, not starvation. Capital has shifted from being an enabler to a weapon. There needs to be a sense of sanity in raising funds," he said, urging entrepreneurs to navigate the current landscape with caution.