Quick commerce fuels niche D2C boom in smaller cities, Infra News, ET Infra

Time of India

18 hours ago

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ET Bureau
Rapid expansion of quick commerce into smaller cities and towns is fuelling demand for niche direct-to-consumer (D2C) brands in categories ranging from intimacy products and sexual wellness to curly hair care and fitness accessories, where convenience and discreet delivery are key drivers.While metros have traditionally been the mainstay for these new-age brands, tier II and III cities now account for a rapidly growing share of their sales amid greater online access and faster delivery, multiple brand founders, quick commerce platforms and analysts told ET.MyMuse, which sells intimacy products, gets almost a third of its revenue from non-metro regions while men's sexual health and wellness brand Bold Care derives over 40 per cent of its total revenue from tier II and III cities, company executives said."When we unpack the data, especially around product adoption in tier-III, it's evident we're tapping into a long-ignored need - one that's only beginning to surface," MyMuse cofounder Anushka Gupta told ET. "Young Indians - regardless of geography - are seeking out ways to explore their pleasure without shame," she added.Aggressive expansion of platforms such as Zepto, Blinkit, and Swiggy Instamart has created a robust infrastructure for these specialized D2C brands to reach a broader, more diverse customer base, bypassing traditional distribution challenges."Quick commerce has largely unlocked new tier II and III markets for us, increasing discovery and ease of access for users in these markets. It has really levelled the playing field for consumers," Gupta said. MyMuse is present in over 800 cities.According to Satish Meena, adviser at ecommerce consultancy Datum Intelligence, a set of customers who previously shopped on ecommerce platforms are shifting to quick commerce for certain categories of products for instant gratification. Many consumers who haven't used ecommerce before are also trying quick commerce because of its ease and accessibility, he added.Underscoring the potential in tier-II cities and beyond, Zepto chief business officer Devendra Meel told ET, "When we launched in Nashik, our stores hit 1,000 orders per day within six weeks, which is faster than in metro cities like Mumbai, Bengaluru, and Delhi-NCR, where it took three to four months to reach this milestone."BigBasket said it is recording about 50,000 orders per day from tier-II cities, with tier-III cities contributing around 7,000 daily orders.Bold Care has seen more than 100 per cent year-on-year growth in smaller cities, its cofounder and chief executive Rajat Jadhav said."Close to 60 per cent of our future investments, including marketing, education, and distribution, are focused on strengthening our presence in tier II and III cities," he said, adding that "the next 100 million health-first consumers will come from" these cities.In the beauty and personal care segment, there is a rising demand for specialised shampoos, conditioners, leave-in products, and serums for consumers with curly hair, according to Anshita Mehrotra, founder of haircare brand Fix My Curls."Although a majority of our sales still come from tier I cities, tier II regions are growing fast. Currently, our consumer base is split 70-30 between tier I and tier II cities but business from tier II cities will increase significantly this year," she said.Healthy snacking is another segment no longer confined to major cities. According to Abhishek Agarwal, cofounder of premium dry fruits and nuts brand Farmley, consumers across markets are now willing to spend a premium on healthier alternatives , reflecting a broader shift in eating habits. The brand recently raised $40 million in a funding round led by investment firm L Catterton.