Top notch analysis. Two questions come to mind and how do you think will Swiggy tackle those? -
1. Flight of top brands as they notice the premium being lost. Like the Solimo strategy by Amazon?I remember Zepto cafe was once quite famous but can't see it much. Still consumed by price sensitive segment, hardly premium.
2. Isn't everything e-commerce has turned from asset light to asset heavy (in search of elusive margins) and will start eating into roces, even if they turn profitable?
Loved the article but we should stop exploiting the “dhaniya insight” that Indian marketers think they have profoundly found on every quick commerce article/post
I think Swiggy Instamart is trying to place all it's product (Noice) at a premium category and they are exploiting the customers as they purchase from small vendors at a low price and sell them at premium price!!!
They are cannibalising on purpose. Also, technically, Swiggy Instarmart is a reseller of sorts. It creates a PO to companies, buys and resells. So it has protected itself from the legality.
“Try speaking to someone in the western countries and you’ll learn that the minimum order values are super high compared to India. That’s a sign that Indian quick commerce is still far away from consolidation into monopoly / duopoly.”
Average insight would say, really have not gotten into the actual stuff that made Noise work.
Hey, what do you think makes Noice work?
Top notch analysis. Two questions come to mind and how do you think will Swiggy tackle those? -
1. Flight of top brands as they notice the premium being lost. Like the Solimo strategy by Amazon?I remember Zepto cafe was once quite famous but can't see it much. Still consumed by price sensitive segment, hardly premium.
2. Isn't everything e-commerce has turned from asset light to asset heavy (in search of elusive margins) and will start eating into roces, even if they turn profitable?
Loved the article but we should stop exploiting the “dhaniya insight” that Indian marketers think they have profoundly found on every quick commerce article/post
But first, I really loved the way this piece explained everything. The flow was good and engaging.
I just knew that Dmart and many similar sellers also engage in private labelling to gain maximum profit and filter out unnecessary expenses.
Was surprised to know how less money they make on grocery & sundry.
Seiously !!!
I think Swiggy Instamart is trying to place all it's product (Noice) at a premium category and they are exploiting the customers as they purchase from small vendors at a low price and sell them at premium price!!!
That’s not exploit, it’s business ! People return not for just premium, they do for quality and convenience!
That’s capitalism ✌️
Isn't this cannibalising it's suppliers. Also, can they manipulate the behaviour which is against fair practice?
They are cannibalising on purpose. Also, technically, Swiggy Instarmart is a reseller of sorts. It creates a PO to companies, buys and resells. So it has protected itself from the legality.
LOL. what reductive logic is this.
“Try speaking to someone in the western countries and you’ll learn that the minimum order values are super high compared to India. That’s a sign that Indian quick commerce is still far away from consolidation into monopoly / duopoly.”