E-Commerce Retailers Face Critical Test This Festive Season Amid Quick-Commerce Boom

The current festival season will be unlike any that was seen before as the viability of e-commerce giants will face its true test in the face of the rapid rise of quick commerce. Companies like Amazon and Flipkart, which have historically dominated this peak consumption period, are closely monitoring the activities of emerging contenders like Blinkit, Instamart and Zepto, which have altered the rules of the game, according to industry executives.Flipkart, Amazon, Myntra, Meesho and other firms will launch their annual festival season sales, starting on Sept. 26. Even as they mount their big sales drives, the e-commerce majors are toying with the idea of getting into quick commerce on their own. Flipkart has taken decisive steps in that direction with 'Minutes', a 10-minute delivery service that went live in August. Ahead of its flagship sale, the Big Billion Days, the Walmart-owned company has also enhanced its supply chain network by setting up 11 new fulfilment centres across India, covering over 1.3 million square feet, to meet increased demand.Earlier, in July, Akshay Sahi, head of Amazon Prime delivery and returns experiences in India, told NDTV Profit that the company doubled same-day delivery over the last year as members value speed. Amazon is working to bring down delivery time further as shoppers seek convenience.Beauty retailer Nykaa has also been ramping up its express delivery service in major cities. "We have taken our delivery speed a step ahead by introducing and ramping up same-day and next-day delivery," Nykaa Chairperson Falguni Nayar said.It now services 60% of orders in top 110 cities, that account for two-thirds of its volumes, within the same or next day. "We will continue to expand proposition through the year.".FSSAI Asks Food Safety Commisioners To Inspect Sweets And Dairy Foods During Festive Season."There are always late-minute gifting and celebratory purchases, and this offers a big opportunity for quick commerce to compete with full-service e-commerce models, particularly in the fast-moving categories," Anand Ramanathan, retail industry leader at Deloitte India, told NDTV Profit.Besides drastically reducing delivery times, the e-tailers are forced to revise their relationships with sellers regarding commission structures to maintain their competitive edge. Most importantly, the quick commerce companies are changing the way returns are handled, which has been a major pain point for e-commerce. The costs incurred for collecting the returns and transporting them back to warehouses results in a net loss. Blinkit is trialing a 10-minute returns and exchanges process for clothing, footwear, and select lifestyle items like handbags, according to details available on the company's app. Similarly, Zepto is providing 72-hour exchanges for apparel items that are damaged or defective. More brands, too, are increasingly seeking partnerships with quick-commerce providers who are no longer confined to delivering only groceries. The platforms are expanding to test the waters in other segments, such as electronics and apparel — the domain of e-commerce companies. The quick commerce firms are also fast expanding beyond metros to reach smaller yet aspirational towns, further complicating the e-commerce landscape. To service more cities, these companies are also investing heavily to set up dark stores."The quick-commerce channel could be a game-changer this year, particularly as even mainstream e-commerce platforms are now attempting quick delivery to boost sales during the festive season," said Shyam Prasad, CEO, Brand Studio Lifestyle Pvt., which houses brands like Highlander and Tokyo Talkies. The fast fashion retailer anticipates a 15–20% growth in online sales..Car Dealers Hope For Festive Filip To Sales Even As Rainfall Remains Concern.The festive season, which includes celebrations from Onam to Deepavali, along with Navaratri, Durga Puja, and Dussehra, typically accounts for 30–40% of the annual sales across various sectors ranging from fashion to food.E-commerce players will also be on their toes as they compete in the discounting game, an area where they have a distinct advantage over quick commerce operators. Bargain hunters will appreciate Myntra's value-driven 'Buy 1 Get 4' deal this year. Other players will also be offering up to 80% discounts across categories to woo customers. As brands focus on clearing out unsold stocks, they are likely to provide additional offers during this festive period as well.The e-tailers, however, must remain vigilant as their practices are under government scrutiny. Recently, Commerce and Industry Minister Piyush Goyal expressed concerns regarding the e-commerce sector's practices. He accused the large e-commerce players of indulging in predatory pricing to grab a bigger share and violating foreign-direct-investment rules, while calling for a review of their policies to ensure that small shops were not put out of business.The Confederation of All India Traders, the country's biggest retailer association representing 8 crore members, has called for urgent action against the online companies for allegedly indulging in anti-competitive practices. Last week, Praveen Khandelwal, secretary general of the CAIT, wrote to the Reserve Bank of India Governor Shaktikanta Das, alleging an unhealthy nexus between banks, e-commerce majors like Amazon and Flipkart, and brand owners, and urged him to issue immediate directions to banks to cease offering discounts and cashback benefits that are not extended to traditional retailers..Seasonal Hiring Expected To Rise 20% This Festival Season, E-Commerce Leads Surge.In recent years, Flipkart and Amazon have consistently topped in terms of online purchase volumes. A Datum survey of 2,000 online shoppers revealed that 65% plan to shop from Flipkart, 61% from Amazon, and 51% from Meesho. Surprisingly, quick commerce platforms are also gaining traction, with 29% opting for Blinkit, 24% for Instamart, and 23% for Zepto.Further, the speed of deliveries appears to outweigh the appeal of discounts offered for value conscious shoppers as 36% of the survey respondents cited faster delivery as their primary reason for choosing quick commerce platforms, while only 32% opted for discounts.The upcoming festive season is expected to see e-commerce sales rise 23% year-on-year to reach about Rs 1 lakh crore, the market research firm said, with quick commerce projected to contribute 8% of the total sales..The Future Of eCommerce: AI And Data Analytics At The Forefront

E-Commerce Retailers Face Critical Test This Festive Season Amid Quick-Commerce Boom

Even as they mount their big sales drives next week, the e-commerce majors are toying with the idea of getting into quick commerce.

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E-Commerce Retailers Face Critical Test This Festive Season Amid Quick-Commerce Boom

Even as they mount their big sales drives next week, the e-commerce majors are toying with the idea of getting into quick commerce.

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