Quick Commerce: A New Retail mantra

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Quick Commerce: A New Retail mantra

Saturday, 22 January 2022 | Michael Chanda/Uttam Chakraborty

Quick Commerce: A New Retail mantra

Essentially large warehouses, dark stores enable fast delivery of goods in localities

A wise person can create ‘The Advantage of Adversity’. And you can very much learn this from retail marketers at this crucial juncture. Coping with the crucial situations of Covid-19, retail marketing is scaling newer heights. Business climate for retail marketing is getting conducive as there is a win-win situation for both the marketers and the clients. Today, retail industries are resorting to varied strategies to meet up consumers’ demands. Moreover, the modus operandi of delivering the goods and services is becoming digitalized and even fast-paced. Consequently, understanding and innovating the retail has become a new business mantra. So much so Amazon, Flipkart, Ola, Uber, Zepto, Blinkit, Swiggy, Dunzo, Bigbasket and other business units are surprisingly found to be engaged with quick commerce companies. Owing to fasten the business, dark stores have been founded in the local area for treading purposes. Essentially, dark stores are large warehouses that are the central points of retail distribution. They cater exclusively to local needs through online shopping. Quick commerce is indeed the next generation of e-commerce. It is an international business process that caters to the wishes of the consumers to bring instant delivery of goods. It provides instant support to the modern communities which are in dire need. Groceries, stationaries hygiene products etc., are coming under the ambit of quick commerce activities. Quick commerce websites are used to provide an online platform for various trading in the country. However, this business method helps the online shoppers to make safe purchases for their stores. Such a business model wants to be the biggest kirana store in the urban colony. It should be expressed that a dark store hits a frequency of more than 200 orders per day. The unit economics depends on the fact that there is a mixture of perishable and non-perishable in transaction. Tellingly, quick commerce remains a new and evolving business management with the effective inclusion of information technology. Many e-commerce companies are turning to social media channels such as Facebook and Instagram to showcase their vast array of products. Customization is the key of this trade. It will facilitate speed and efficiency. Quick commerce addresses are meaningful. The customers can use their mobile devices for shopping.  However, quick commerce can invite online fraudulent activities. Credit card frauds are persistent in online businesses. It is apparent that quick commerce or electronic commerce is above all a commercial transaction over the Internet. It is a space mainly to watch out for logistics and e-commerce players. The expectations are likely to settle in at a sweet spot of thirty minutes’ delivery or so. According to industry players, ten minutes’ delivery model will see rationalization over time. Subscription-based e-commerce is another new venue that is being explored.It customers to subscribe to a product on a recurring basis depending on their need. However, the local kirana stores in the local area lose business due to the rise of dark stores that modernises the trading process. The local businessmen cannot afford to make big capital for having dark stores. These stores are losing customers due to the higher discount offerings of the companies. The companies have appointed a number of bikers and cyclists to deliver the commodities to the customers from dark stores. The corporate giants should pay minimum heed to the interest and survival of owners of kirana stores.

(Chanda is an author-activist and works as an advocate at High Court, Calcutta. Chakraborty teaches at Jaipuria Institute of Management, Lucknow. The views expressed are personal.)

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