[Music] after tasting success in food delivery and later in quick Commerce through blinket zato is now planning something more ambitious it is reportedly venturing into the territory of Amazon and Flipkart for this gurugram based blinket is reportedly in talks with brand owners of various categories the aim is to stock up inventories which will be delivered quickly within minutes this fast delivery gives blinket and other quick Commerce firms an edge over Amazon and blinkit but to challenge the duopoly these startups need to have a big stock that's why blinket is diversifying into selling more products than
just Groceries on its platform currently blinket is selling products under categories of groceries Beauty and personal care and household essentials that subsume Electronics but the range of products is set to increase recently Samsung teamed up with blinket to facilitate the delivery of its newly launched Galaxy s24 Series in India this partnership will assure delivery within less than 10 minutes in cities such as Delhi NCR Bengaluru and Mumbai but why is blinket diversifying into Home Essentials and electronics Indian e-commerce segment in itself is growing at around 21 22% electronics and H plans are growing even faster
than that you know about 25% now considering that you know expansion of the segment itself while maintaining their market share adding more players into that ecosystem is not a big deal now when blinket and everyone you know when they started entering into this they have an advantage they into Quick Commerce they deliver in 10 minutes or let's say 15 minutes depending upon you know this you know distance but 7 to 10 15 minutes is their target now that's going to be a disruptive uh 100% dist now this is a very suitable strategy for them basically
because there hardly any large players any ecosystem or let's say any large segment in India can afford to have at least four players because India is that huge right beating analysts estimates zomato reported a net profit of 138 CR rupees in the third quarter of fi 24 its revenues too increased to 3,288 CR rupes in Q3 fi4 which was a sharp jump of 69% year on year and in this Revenue 19% was contributed by blinket its food delivery business zato contributed the maximum 51% while the B2B business hyperpure share was 26% so with a large
foothold in the delivery space what synergies can the new Venture offer for zomato I think uh they're looking at leveraging some synergies they're looking at uh leveraging uh scale issues so I think one level they really want to look at is diversification across categories right given that the core of what zomato and blinket does is do delivery of goods and services uh first food then other services they see this as a logical extension I think the second area where there's a lot of value for them is really in terms of direct sourcing and inventory management
I think what they've done through Cloud kitchen and know talking to large brands on the food front I think they really want to extend this in terms of talking to large b2c Brands and seeing whether they can become therefore the effective last M distribution partner so I think that's the part where I'm told that they to having conversations with brand owners at one level thirdly as I understand they're also working closely with ship rocket uh you know knowing the importance of robust Logistics because now they're not no longer looking only at small food items of
neighorhood groceries now they're looking at consumer durables they're looking at Electronics they're looking at mobile handsets so they will need you know slightly differentiated log logistic support and I'm told that they have a ship Rock ship rocket agreement in place and then of course they'll further build on the warehouses they already have a few warehouses in place for their existing businesses according to a report the country's online retail Market size is expected to reach $325 billion by 2030 up from $70 billion in 2022 this puts the sector's gagger at 27% this is largely due to
the rapid expansion of e-commerce in tier 2 and tier 3 cities Flipkart has a market share of 48% in Ecommerce in India while Amazon's market share is 26% with blinket and other quick Commerce players entering into electronics and Home Appliances the competition is set to increase so can blinket take on flip cart and Amazon you should understand that they are of a larger you know segment they have a larger market share in the space they know how to you place their product so they are successful in everything else except for the disruptor which is the
quickness of the business that you know Z is going to bring in and it's going to be hyperlocal right now if you can you know do that if you can execute that or let's say if you can identify companies you know revolving in that particular space and then either partner with them or acquire them then Flipkart and Amazon will also come into the picture and they can become a you know true competition for zato now as you should always know one more thing that you should always take into fact that zomato is now becoming a
front runner front runner first mover in a quick e-commerce business for electronics and uh you know um home appliances business right or let's say segment right there the advantage is for anyone else to you know compete with them in the same you level they will take at least 6 months or 9 months depending upon how they strategize and then eventually Implement and that takes its own time that 9 months lead can actually make zomato C out their own part of you know the entire segment calling it a logical extension industry insiders feel that the new
4A by zomato will help in its margin growth as consumer durables offer high prices and will not add much cost given its last mild delivery Network they also say that the e-commerce p is big enough for new players and zomato's quick Commerce weapon will certainly make it a serious Contender if you like this video share it and subscribe to business standard for more news views and insights log on to www.standard.com do also follow us on YouTube Twitter Facebook Instagram Telegram and Lon he's making plans for an early [Music] retirement business standard
