One new darkish retailer in a day and a half. That works out to 18 new darkish shops over the following 30 days. That’s how briskly Dunzo is trying to set up a foothold in new cities. The goal: arrange base in 15 new cities by the year-end. Currently, it operates 120 darkish shops throughout the eight cities. This vast accomplice base can be the spine of its multi-city rollout plan. That aside, over the following two-three years, the platform will scale up its enterprise in these pockets in prime metro and tier-I cities that stay under-penetrated or unaddressed in the meanwhile. Kabeer Biswas, CEO and co-founder, Dunzo, believes these are the cities that may witness the following stage of evolution within the retail procuring expertise within the type of fast commerce or q-commerce.
Dunzo Daily, its on the spot supply service arm launched in September 2021, matches proper into this plan.
“We have been growing the Dunzo Daily category by 40-50% m-o-m, with the newer cities seeing 70-80% m-o-m growth. Along with growth, managing the operational efficiency and order throughput of our dark stores is a key focus area for us,” Biswas provides. Dunzo Daily contributes 60% to Dunzo’s general enterprise and the share is predicted to extend to 80% by the top of this calendar yr. “While other verticals continue to be an integral part of the business, their share is expected to be 20-25% of the overall business by the end of this calendar year, as we focus on growing the Dunzo Daily category,” he says. The firm additionally provides a white label logistics service to retailers.
India’s q-commerce sector is predicted to grow to be a $5 bn (Rs 38,500 crore) market by 2025, in accordance with RedSeer. Run-rate-wise, in Q1 of CY22, the platforms within the sector did round $1.5 bn (Rs 11,550 crore) annualised, says Rohan Agarwal, accomplice, Redseer Strategy Consultants. The greatest problem observing gamers now’s rising the order worth per buyer in addition to convincing these nonetheless sitting on the fence to make the leap.
Over a fourth of Dunzo’s clients come from the satellite tv for pc cities of Delhi NCR and Hyderabad. While he sees an addressable market of about 5 crore customers within the q-commerce class, Biswas says there’s a big market on the market for on-demand supply of merchandise aside from consumables—merchandise comparable to medicines, recent flowers and so forth. “We want to establish ourselves in on-demand grocery deliveries and then gradually expand to fulfilment of other adjacent categories,” he provides. Adjacent classes are convenience-led and require fast turnaround. Alcohol, OTC medicines, fast bites are the everyday merchandise on this class, they usually require very completely different storage, packaging, and operational amenities. Biswas provides their potential relies upon largely on their ease of entry. He says demand pull will come when one is ready to broaden the choice to a large assortment of three,000-4,000 SKUs.
Improving buyer expertise
Rajat Tuli, accomplice, Kearney, provides that the capabilities wanted to serve these adjoining classes embody sharp buyer and knowledge analytics, mechanisation of the darkish shops to allow fast pick-up and supply, decreasing fulfilment prices and bettering buyer expertise. In different phrases, how briskly Dunzo is ready to crack this phase will rely on how shortly it could possibly deploy know-how to make sooner and higher selections and to take away operational bottlenecks.
That mentioned, the important thing to operating environment friendly darkish shops—mini warehouses—is to first scale back the variety of duties and processes that should be carried out inside such warehouses. To allow sustainable operations, it’s important for the mini-warehouses to be positioned in shut proximity to the areas with most demand densities.
Apart from rising warehousing amenities and supply companions who can service the a number of wants, Rutu Mody Kamdar, founder, Jigsaw Brand Consultants, says, what’s going to actually assistance is a gradual shift in client behaviour. This might be performed by giving them a superb cause to decide on its app over the native kirana/medical shops via sharply focused communication.
Source: www.financialexpress.com”