Small brands pick qcomm platforms as impact player
About 300 regional and small brands have signed up with
quick commerce
and
food delivery platforms
in the past month to take advantage of the
Indian Premier League
(IPL) boost, said executives aware of the development.
Most of these food and beverage brands have got on to the platforms for the duration of the tournament between March 22 and May 25, said the people who represent companies such as
Swiggy
and
Blinkit
as well as the National Restaurants Association of India (NRAI).
Regional brands
such as Troovy chips, Samyang Ramen noodles, Lucknow Kabaab Hub, Captain Sam's pizza, Boss burger, Artinci cookies and Feeelings noodles are among those looking for an IPL lift. On average, 130-150 new regional brands get on delivery and quick-commerce platforms every month, though some stay for two-three quarters, depending on how much they are willing to pay as margin fees, executives said.
'Quick-commerce platforms often demand margins exceeding 30 per cent , even on lower-priced SKUs (stock keeping units), challenging the long-term viability for emerging brands. But we remain optimistic about their potential,' said Indraneel Chitale, managing partner at Pune-based Chitale Bandhu.
By way of contrast, such platforms charge established large brands an average 10-20 per cent .
The smaller companies are willing to pay the price amid the consumption bump that takes place as people order snacks during the country's biggest sporting tournament. The onboarding trend is similar for packaged foods and beverages and dining brands.
'For a majority of the regional dining brands, the IPL is a large window of opportunity for discoverability by consumers on delivery platforms, despite the steep margins they pay,' said Sagar Daryani, president of the National Restaurants Association of India (NRAI), which represents over 500,000 restaurants across dine-in, delivery-only and cloud kitchen formats. 'Many cuisine-specific restaurants are also introducing online-only brands and running offers for the same to grow the business.'
Packaged food
products sold by these companies include namkeen, soft drinks, noodles, biscuits and juices.
Executives said events such as these prove to be particularly beneficial for brands looking to move beyond their core regional markets, enabling immediate visibility and widening reach in tier 2 and tier 3 locations.
'Our teams are getting over a dozen queries a day across quick commerce and delivery,' said a senior executive at a leading quick commerce platform. 'We have to be selective while onboarding brands, with constraints of dark stores and obviously give preference to established brands since that's where the consumer pull comes from.'
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