How Digital Firms Are Thriving in E-Commerce

Success stories from direct-to-consumer businesses are shared on Q-comm, a quickly expanding industry expected to reach a market size of $5.5 billion in India by 2025.

With rapid delivery services expanding their networks beyond metros into Tier-2 cities, new-age direct-to-consumer (D2C) firms are growing more on quick commerce (Q-comm) platforms than traditional e-commerce platforms.

According to Chirag Gupta, founder and CEO of the gourmet snacking company 4700BC, quick commerce is responsible for the company’s “monumental growth” and substantial expansion of its reach, especially in Tier-1 and Tier-2 cities where traditional supply chains have restricted access.

“Among online sales from traditional e-commerce platforms like Amazon and Flipkart, and direct website sales, it’s in quick commerce that we see the highest consumer engagement. It’s now integral to our overall digital strategy,” says Gupta. Sales through quick commerce platforms are increasing by 45 per cent year on year, contributing a remarkable 87 per cent to overall sales. 4700BC is listed on key platforms such as Blinkit, Zepto, Swiggy Instamart, BigBasket and Amazon Fresh.

According to Zomato-backed Blinkit CEO Albinder Dhindsa, Tier-2 cities like Ludhiana and Patiala have three times the sales of modern D2C brands compared to metro areas. He blames this on time-pressed nuclear families in smaller cities, who frequently don’t have support networks. In these places, traditional supply chains are also less accessible, which leads to less choice even as customer demand for new brands and products keeps rising.

According to Harini Sivakumar, founder and CEO of clean beauty brand Earth Rhythm, consumer habits have shifted due to quick commerce, with more people expecting instant delivery and less willing to wait for multiple days. “For essential products such as, say, makeup remover cleansing balm, sunscreen, kohl pencil and lip balm, we’ve seen a drop in sales on platforms like Nykaa and Amazon, which has shifted to quick commerce. Consumers are more open to experimenting with new brands for these basic products,” says Sivakumar.

From selling goods worth Rs 5 lakh monthly, Earth Rhythm’s sales have surged to over Rs 1.5 crore in the last 18 months of being on Blinkit. “This level of growth took us three years on Amazon,” she adds. Sivakumar notes that they are now reworking their product assortment for platforms like Amazon and Nykaa, focusing on premium, experience-driven products.

India’s quick commerce market is expected to grow significantly, with projections from strategy consultancy RedSeer indicating that it could expand 10-15 times by 2025, reaching a market size of approximately $5.5 billion (around Rs 46,280 crore). This rapid growth is prompting brands from various sectors to explore the potential of quick commerce platforms.

Nasher Miles, a luggage brand, began selling its products on quick commerce platforms in April this year. While it might seem unusual to offer cabin bags and backpacks through fast-delivery services, Lokesh Daga, founder and CEO of Nasher Miles, shared that the brand is growing at a remarkable 100% year on year, largely due to a small initial base. “Quick commerce has surprised us and become a growth engine for us,” Daga says, highlighting how the platform has provided unexpected benefits.

At present, Nasher Miles offers only cabin bags, backpacks, and travel accessories on quick commerce platforms. Aadit Palicha, co-founder and CEO of Zepto, notes that Nasher Miles is one of the fastest-growing brands on their platform, further demonstrating the sector’s potential.

Daga also points out that customers on quick commerce platforms are highly intentional buyers, which has contributed to zero return requests for his products. Similarly, Sivakumar, another industry player, mentions that the return rates for Earth Rhythm’s products on quick commerce platforms have dropped from the usual 3% to a much lower 1.75-2%. This indicates a shift in consumer behavior, where buyers are more committed to their purchases, making quick commerce an increasingly attractive channel for brands.

The high growth on these platforms also presents unique challenges for D2C brands. Gupta from 4700BC explains that a primary issue is ensuring timely replenishment of products at dark stores to avoid out-of-stock situations. “As a brand, we are learning to keep up with the fast-paced nature of quick commerce, which requires efficient coordination in production planning and swift stock delivery,” he says.

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