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UNCHECKED GIANTS?
BW Businessworld
|September 07, 2024
Ecommerce has transformed India’s retail landscape, giving wings to countless brands and entrepreneurs to thrive and benefiting millions of consumers if not billions). Yet, as giants like Amazon, Flipkart and quickcommerce platforms grow larger, the question looms: Are they operating unchecked? What are therreal risks and what's just noise? As we navigate this evolving market, the line between necessary regulation and rhetoric becomes ever more crucial to define. By Rohit Chintapali
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INMID-AUGUST, a D2C spices brand, Zoff, based out of Raipur, Chhattisgarh, announced it had secured Rs 40 crore from JM Financial Private Equity through the.JM Financial India Growth Fund III. The investment will support the launch of new products and the expansion into new categories, including ready-to-cook items, condiments, cooking pastes and seasoning kits.
Established in 2018, the companynowplans to improve its offline distribution network by leveraging general trade, modern trade channels and other retail outlets, having done well so far in Tier-1 cities, supported by ecommerce and later quick commerce led sales since 2020. "Whatever we are today, it is because of e-commerce and quick commerce," Akash Agrawal, Co-founder at Zoff, tells BW Businessworld.
According to a recent report by the Pahle India Foundation, over two-thirds of online vendors saw an increase in both their sales value and profits over the past year, with 58 per cent seeing growth in both areas. Excluding costs, vendors have seen positive improvements in nearly all aspects of their business since they began selling online. Around 60 per cent of vendors feel they now have better market access and have observed higher purchase values per customer. Also, 56 per cent of vendors have improved their sourcing and distribution methods, while 59 per cent have improved their product design, pointing to the positive impact of e-commerce on their operational efficiency.
It is now a well-established fact that if you are a D2C brand, you cannot ignore the power of e-commerce if you want to grow.
Brands like boat, Bold Care, Happilo, iD Fresh Food, Plum and Noise, among many others, have grown to prominence through the power of e-commerce.
Not A Messiah?
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