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December 15, 2025
By Saumyangi Yadav, Entrepreneur India
Dec 15, 2025
India’s D2C ecosystem has grown rapidly over the past five years, but scale remains elusive. While thousands of brands have launched and many have crossed early revenue milestones, only a small fraction manage to break past INR 100 crore in annual revenue. According to a new report by DSG Consumer Partners, based on a survey of over 100 Indian D2C founders and operators, the problem is not demand or product-market fit, it is how brands attempt to scale.
The report shows that around 60–65 per cent of Indian D2C brands remain stuck in the INR 1–50 crore revenue band, with very few reaching the INR 100 crore mark. This stage marks the point where early traction exists, but growth begins to strain unit economics, teams, and operating systems.
Insights from over 100 D2C founders reveal that India’s fastest-growing brands win on fundamentals rather than speed alone. Clear product-market fit, disciplined data tracking, strong unit economics, creative velocity, and an early focus on retention consistently separate scalable brands from those that plateau. Founders also admit that performance marketing mistakes, pricing missteps, and weak creative systems slow growth far more than budget constraints. In a booming D2C landscape, capability gaps in operations, brand-building, and supply-chain depth are widening the divide between breakout brands and those stuck in the performance plateau.
Industry observers argue that this is where many brands mistake rapid online growth for sustainable scale.
As Devangshu Dutta, Founder & CEO, Third Eyesight, explains, “Scaling up online can be very rapid, but is also capital-hungry in terms of CAC. Given the intense competition, the lack of customer stickiness and the power of platforms, there is a constant churn of marketing spend which is a huge bleed for growing brands.”
CAC Inflation is The Real Constraint
One of the clearest findings from the playbook is that acquisition efficiency, rising CAC and unstable ROAS, is the single biggest blocker to growth, cited by more founders than funding or category expansion. Moreover, over 70 per cent of brands rely on Meta as their primary acquisition channel, increasing vulnerability to auction pressure and platform-driven volatility.
Dutta links this directly to the limits of a digital-only mindset. “Limited offline expansion can trap brands in narrow urban digital markets, blocking broader scale,” he said.
This over-reliance on online performance marketing often leads to growth that looks strong on dashboards but weak on cash flow.
Highlighting their report, Pooja Shirali, Vice President, DSG Consumer Partners, said, “Across over 90 consumer brands we’ve partnered with at DSGCP, one truth is clear: brands that master Meta’s ecosystem don’t just grow, they change their entire trajectory through strategic clarity and disciplined execution. The real drivers of scale have less to do with viral moments, and everything to do with the long-term fundamentals that make milestones like the first INR 100 crore predictable, not accidental.”
Why Omnichannel is Unavoidable
The report suggests that brands that scale sustainably are those that reduce overdependence on paid digital acquisition and expand their distribution footprint. However, offline expansion brings its own complexity.
Dutta stresses that omnichannel is not an optional add-on, but a strategic shift. “D2C brands must adopt an omnichannel approach, blending online with offline retail for sustainable and scalable reach. Clearly the channels work very differently and management teams have to be prepared and capitalised for the long haul to tackle acquiring customers with channel-appropriate strategies,” he adds.
This aligns with the DSGCP report’s broader insight that scale breaks down when brands fail to adapt operating models as they grow.
Even within digital channels, performance weakens over time. The playbook finds that 62 per cent of founders report creative fatigue, where repeated creatives fail to sustain ROAS despite higher spends. At the same time, 55 per cent admit to under-investing in CRM and retention, with most brands reporting repeat purchase rates of just 10–30 per cent.
Both the data and expert opinion point to a common theme: brands that cross the INR 100 crore mark are structurally different. They obsess over unit economics, processes, and capital efficiency rather than topline growth alone.
As Dutta puts it, “Scalable brands that cross the growth hump have leadership obsessed with unit economics and omnichannel execution rather than chasing vanity metrics. Cash always was and is king, especially at early stages of growth.”
He adds that execution strength matters as much as strategy. “They are able to grow and steer teams that build and replicate processes fast rather than spending time, effort and money reinventing all the time, and do so without constant CXO intervention.”
As competition intensifies and capital becomes more selective, the next generation of INR 100 crore D2C brands is likely to be defined not by speed, but by the ability to compound cash flows, institutionalise processes, and scale distribution beyond digital platforms.
Saumyangi is a Senior Correspondent at Entrepreneur India with over three years of experience in journalism. She has reported on education, social, and civic issues, and currently covers the D2C and consumer brand space.
(Published in Entrepreneur India)
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December 10, 2025
Shabori Das, ET Bureau
Dec 10, 2025
India’s social media platforms are powerful marketing tools but not yet retail destinations. Billions scroll and swipe daily, but few buy directly within apps. Unlike China, India faces regulatory hurdles and a lack of integrated payment systems.
A billion Indians scroll, swipe and double tap every day, but barely buy. Despite Instagram and Facebook Marketplace being in India for over a decade, social media here remains a showroom, not a store. Creators and D2C brands are hustling to convert attention into action, but the holy grail of in-app shopping where discovery, live streaming, and purchase happen seamlessly, remains out of reach.
The question is, what’s stopping India from becoming the next China or the US in social commerce?
Influence-to-Commerce Gap
Globally, social commerce is powered by influencers. In China, influencer Li Jiaqi reportedly sold products worth $2 billion on Singles’ Day on Alibaba’s online marketplace Taobao Live in 2021. Another popular influencer Zheng Xiang Xiang, with over 5 million followers on Douyin (the Chinese equivalent of TikTok), reportedly generated $18 million in sales in a week in 2023. These are numbers India’s creator economy can only dream of, for now.
To be clear, influencer marketing in India is booming. EY estimates the sector at over Rs 3,000 crore and yet, due to regulatory restrictions, social media platforms in India can’t host end-to-end transactions. What India has is content commerce, driven by players like Meesho and Myntra, not social commerce. Globally, social commerce is a $1-trillion market. China alone accounts for over $500 billion and the US, $100 billion. India’s share? Around $10 billion — despite being home to the world’s largest Gen Z population and the second-largest base of internet users after China.
What’s Holding India Back
“Just as quick commerce changed how India buys food, social commerce will change how we shop for fashion and lifestyle,” says Anand Ramanathan, partner, consumer industry leader, Deloitte South Asia.
The idea is simple: Social commerce enables an end-to-end purchase journey within a social media app. But in India, the final sale still happens elsewhere — typically on e-commerce platforms.
“In China, live streaming contributes nearly 20% of total e-commerce revenue. In India, it hasn’t taken off,” says Puneet Sehgal, CEO of D2C apparel brand Freakins. He believes in-app checkout could be transformative. “Our Gen Z audience spends over an hour daily on social media. If the purchase could happen right there, it’s one step less for the consumer — and one step closer to a sale.”
The China Contrast
China’s social commerce revolution was built on three forces — speed, scale and seamlessness. Influencer Zheng, for instance, showcases each product for barely three seconds and moves on. That brevity, combined with integrated payments, drives impulse buying at staggering volumes.
India’s influencer-driven commerce, by contrast, is still warming up. Projected to touch $ 55 billion by 2030, it remains largely limited to discovery and advertising.
The barriers aren’t technological, they’re regulatory. India’s payment rules require clear accountability and settlement tracking, making it difficult for global platforms to enable in-app sales. Meta’s 2023 policy shift also directed purchases off-platform, keeping Instagram and Facebook Marketplace confined to discovery and promotion, rather than purchase. For now, social media in India remains a potent marketing engine, not yet a retail destination.
Experiments and Exceptions
Some Indian players are testing new waters. Myntra’s Glamstream, launched this July, lets influencers host live sessions where viewers can “shop the look” in real time — though the final checkout still redirects you to the Myntra app.
“India’s creator economy influences over $300 billion in annual consumer spending,” says Sunder Balasubramanian, chief marketing officer at Myntra.“That could grow to $1 trillion in the next few years, making India one of the fastest-growing creator economies globally,” adds Lakshminarayan Swaminathan, vice president-product management, Myntra.
The potential is clear. In 2021, Taobao Live hosted a 12-hour live streamed sale with influencer Li Jiaqi in China that clocked $2 billion in presales and attracted 250 million viewers.
Closer home, Sujata Biswas, co-founder of Suta Sarees, recalls Instagram’s shortlived Shop Now feature. “We saw an immediate dip in transactions after it was withdrawn,” she says. “Fashion is about instant gratification. You see it, you want it and buy it right away.”
The D2C Advantage
India’s D2C market, valued at $87 billion as of 2025 by Deloitte, could be the biggest gainer if social commerce does take off. Most D2C brands currently pay 25–35% retailer margins to platforms like Myntra and Nykaa. Social commerce could let them bypass intermediaries and sell directly to their audiences.
“Anything that reduces friction between intent and purchase is gold,” says Sehgal. “If that entire journey — from watching to buying — happens within the same app, conversion rates would shoot up.”
Even so, social platforms come with their own costs. TikTok, for instance, charges promotional, marketplace and fulfilment fees. But for Indian D2C players, the larger hurdle isn’t cost — it’s access.
Open vs Closed Ecosystems
“India’s retail market is far more open than China’s,” explains Devangshu Dutta, CEO of ThirdEyesight, a retail consulting firm. “In China, closed ecosystems like WeChat and Douyin created the perfect environment for social commerce to thrive. In India, where consumers can freely move between Google, Meta and e-commerce giants, those closed loops don’t exist.”
Globally, TikTok Shop, Douyin, WeChat, Pinduoduo, and Taobao Live dominate social commerce. According to Business of Apps, a data provider for the global app industry, TikTok earned $23 billion in 2024, with nearly 23% of it from in-app and commerce purchases.
If similar models are launched in India, e-commerce giants would face direct competition from the very platforms that fuel their traffic.
The Wait Continues
From beauty tutorials to thrift stores, social media spawns thriving micro economies. Yet, true social commerce — where discovery leads directly to purchase — hasn’t yet clicked.
The next big leap for India’s e-commerce may not come from deeper discounts or faster delivery but from social media itself. “The idea of instant gratification is key,” says Biswas. “When the ‘Shop Now’ button comes back, we’ll be the first to use it.”
Till then, India scrolls, likes, shares — and waits.
(Published in Economic Times)
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November 27, 2025
Viveat Susan Pinto, Financial Express
November 27, 2025
Several of the country’s top retailers, malls and brands have kicked off a shopping extravaganza on the occasion of Black Friday, offering steep discounts across product categories.
A Western import, the day which symbolises the beginning of the Christmas shopping season in the US, the UK and Europe, gained popularity in India over the past two years as a crucial sale window after Diwali.
Domestic retailers, say experts, are using this period to exhaust existing inventory at steep discounts as they gear up for the winter season.
This year, discounts are up to 60-80% across fashion, lifestyle, electronics and cosmetics, higher than the 50% seen last year. E-tailers such as Ajio have pushed the pedal even harder, offering as much as 85-90% on denims, jackets and select products during the sale this year.
Bigger Deals, Longer Duration
“Retailers in India are building Black Friday as an important off-season peak. The participation of brands is growing, deals are getting bigger and the sale days are more,” Devangshu Dutta, founder and chief executive of Third Eyesight, a Gurugram-based retail consultancy, said. That is visible from the intense promotional activity this year. What began as a flash sale event a couple of years ago has now extended to a week-long sale period this year, experts said.
Pushpa Bector, senior executive director and business head, DLF Retail, said that brands this year are ready with strong offers, driven in part by GST cuts and a stable economic outlook. “Early trends show healthy interest across categories by consumers. We expect a strong double-digit uplift over the Black Friday period, setting us up for a strong close to the year,” she said.
Retailer Strategies
While Black Friday typically falls on the last Friday of November, some retailers such as Flipkart, Croma, Vijay Sales, Nykaa and Tata Cliq have kicked off their Black Friday sales last week itself to build on the excitement. For electronic retailers, said Nilesh Gupta, director, Vijay Sales, Black Friday will extend into Cyber Monday next week (falling on December 1), making it even more relevant for them to focus on the occasion.
“We’ve been building Black Friday as a retail property in the last few of years as it fills the post-Diwali void quite well. Black Friday also extends well into Cyber Monday which comes immediately after. While we started with a few categories in the initial years, we now have offers across all our segments. Discounts are up to 45-50% this year in line with last year,” he said.
Rival Croma is also offering up to 50% discount on products this year, executives said.
“Black Friday has become one of India’s most anticipated shopping moments. At Croma, we are focused on delivering value across categories with steal deals, bundled savings, and limited-time offers,” Croma’s CEO & MD Shibashish Roy said.
Croma will also introduce a special late-night shopping window on November 28 at select stores across India. For two hours—from 10 pm to 11:59 pm —these stores will remain open with exclusive additional discounts on some of the season’s most in-demand products.
Nishank Joshi, chief marketing officer, Nexus Select Malls, said it is elevating the Black Friday experience with bigger assured gifts, giveaways and reward points if consumers upload their bills on their Nexus One apps.
Mayank Lalpuria, director, marketing (north, central & west) at Phoenix Mills, which operates Phoenix malls, said that it was expecting double-digit year-on-year growth and strong footfalls during the Black Friday period.
Tanu Prasad, CEO – Malls, Oberoi Realty, said that the firm was seeing far more planned purchases towards premium products and a rise in family-oriented outings. “We are anticipating an encouraging response at the (Black Friday) weekend resulting in a strong kick-off to the (December) shopping season,” Prasad said.
Direct-to-consumer brands such as Inc.5 footwear and NEWME said that they have rolled out big deals for Black Friday. “We’re looking at a 30x surge in orders across both offline and online for Black Friday,” NEWME Co-founder & CEO Sumit Jasoria said.
“Our customers look forward to Black Friday, and this year, we’re excited to bring fresh new launches, curated edits, and our widest range yet,” Rajesh Kadam, CEO, Inc.5 Footwear, said.
(Published in Financial Express)
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November 26, 2025
Aakriti Bansal, Medianama
November 26, 2025
MediaNama’s Take: The Central Consumer Protection Authority’s (CCPA) decision to publish 18 self-declarations confirms only a partial picture of its dark pattern(s) identifying exercise. The authority has stated that 26 platforms have filed their declarations, but it has made only 18 of them public. This gap means the public still cannot see what eight major platforms submitted or whether those filings contain any meaningful detail. Moreover, even among the published declarations, several are one-paragraph statements that offer almost no insight into the scope or accuracy of the companies’ internal audits.
LocalCircles’ new survey adds further complications, reporting that 21 of the 26 platforms that submitted declarations still display at least one dark pattern. This finding suggests that the CCPA’s reliance on voluntary self-assessment may not be enough to shift platform behaviour at scale. It also raises questions about what the unpublished declarations contain and whether the missing submissions are similarly sparse or incomplete.
Notably, the CCPA has not clarified how it plans to verify the accuracy of any of the declarations, whether published or unpublished. If filings remain unverified for months, compliance risks turning into a box-ticking exercise rather than a meaningful regulatory process. Therefore, the next phase matters far more than the publication of select declarations, because the current approach raises more questions than it answers.
What’s the News
The CCPA has made 18 dark pattern self-declarations public, despite stating that 26 platforms have filed their compliance letters. The publication follows an RTI filed by MediaNama that revealed which companies had submitted their declarations, and pointed out that none of the filings had been available to the public at the time.
These declarations stem from the Ministry’s June 5 advisory, which required e-commerce and quick commerce companies to conduct internal audits under the 2023 Guidelines for Prevention and Regulation of Dark Patterns and submit compliance letters within 90 days.
For context, Moneycontrol reported that Amazon has still not filed its declaration and has asked for additional time. A senior government official told the publication that the government “has done what it had to” and does not plan further discussions.
The official also said that any punitive action would depend on consumer complaints routed through channels such as the national consumer helpline. This indicates that the enforcement approach continues to be reactive rather than compliance-driven.
What Did The CCPA Ask Platforms To Do?
The June 5 advisory set out a simple compliance framework for digital platforms. It asked every e-commerce and quick commerce company to complete a self-audit of its website and mobile app within 90 days and check their interfaces for the 13 dark patterns listed in the 2023 guidelines. Platforms were required to file a self-declaration confirming compliance once this internal review was complete.
However, the advisory did not specify how the audit should be conducted. Companies were free to choose any methodology, and the CCPA did not prescribe a standard format, a uniform checklist, or a minimum evidence requirement. Also, the advisory did not require independent audits or third-party validation.
Furthermore, there was no explanation of how the CCPA planned to verify whether the declarations were accurate or complete. In effect, the responsibility for defining the scope, depth, and rigour of the audit rested entirely with each platform.
What the CCPA Has Done With the Declarations
As mentioned before, the CCPA has now published 18 self-declarations on its website. The release confirms that companies submitted their compliance letters, but it does not indicate whether the authority evaluated the accuracy or depth of the filings.
Several platforms submitted very short statements that simply assert compliance without describing any checks or findings. BigBasket, Zomato, Blinkit and Swiggy were among the companies that filed especially minimal disclosures. The CCPA has not explained why these filings were accepted or whether any follow-up questions were asked. Therefore, asking for and disclosing self-declarations shows some administrative progress, but it does not reflect any regulatory scrutiny.
This lack of verification aligns with concerns raised by Devangshu Dutta, Founder of business consulting firm Third Eyesight. He told MediaNama that self-declarations “do not change things much” when regulators do not audit submissions or impose consequences.
Further, Dutta remarked that most companies comply at the minimum level required if their claims are not examined and are not made public in full. According to him, revenue-driving design choices such as forced add-ons, confusing checkout flows or misleading scarcity claims will not be voluntarily removed sans oversight.
What Independent Evidence Shows
LocalCircles’ latest audit presents a sharply different picture from the companies’ filings. The organisation found that 21 of the 26 platforms that submitted “dark pattern free” declarations still use one or more manipulative design practices. The assessment relied on feedback from more than 250,000 consumers across 392 districts along with AI-assisted testing.
The most common violations include forced action, subscription traps, bait and switch, basket sneaking, interface interference and disguised advertisements. In practice, these dark patterns respectively mean that users are pushed into steps they did not choose, face hidden or hard-to-cancel subscriptions, see offers change during checkout, encounter fees added at the last moment, get nudged toward platform-favoured choices, and come across ads that appear as regular listings.
LocalCircles also identified drip pricing (gradually adding mandatory fees during the checkout process) on 11 of the 26 companies, including Flipkart, Myntra, Cleartrip, MakeMyTrip, BigBasket, Zomato and Blinkit, among others. The organisation said that many platforms appear to misunderstand what qualifies as drip pricing, which has led to incomplete corrections.
Trust Can Erode Due To Gap Between Declarations And User Experience
Sachin Taparia, Founder of LocalCircles, said that the problem begins with the absence of any verification. “Our understanding is that CCPA is wanting that companies submit a self-declaration at the earliest. However, there is no cross checking of claims that is being done by the CCPA, and as a result the companies are not being as thorough with their dark-pattern detection and resolution,” he said.
Taparia added that discrepancies between declarations and user experience could harm trust. “LocalCircles has found dark patterns on 21 of the 26 platforms submitting self-declarations. If this exercise is not done with high accuracy, both platforms doing so and CCPA could see consumer trust being impacted,” he said.
Importantly, Dutta echoed this concern, saying that the absence of penalties or reputation-related consequences allows companies to self-declare compliance while keeping revenue-generating patterns intact. He described the current process as “more an administrative formality [rather] than a behaviour-changing regulatory tool”.
Why This Matters
The gap between self-declarations and independent audits in the true sense of the word brings the real enforcement question into focus. What should the next phase of regulation look like?
In this context, Dutta said that regulators need to move beyond self-certifications and mandate detailed user experience (UX) audit reports that map every user journey, including pop-ups, onboarding, search, checkout, cancellations and returns.
He explained that regulators should reinforce this by demanding substantive evidence instead of brief compliance letters. This evidence can include screenshots and screen recordings of key flows, version histories that show how an interface changed over time, and product design documents or A/B testing results that reveal why specific nudges were introduced. To explain, A/B testing is essentially a method for comparing two versions of something to see which one performs better.
Furthermore, Dutta noted that platforms already collect extensive data on user complaints and drop-off points, which can help identify harmful or confusing design choices. He also said that independent third-party attestations, similar to security or accessibility audits, can provide a credible external check and increase the cost of non-compliance.
Multiple Annual Audits For Apps that Change Interface Frequently
Notably, Dutta stressed that most dark pattern categories appear across e-commerce, quick commerce and Direct-to-Consumer (D2C) websites, which means regulators can create a baseline audit standard that works across sectors instead of relying on platform-specific interpretations. He also suggested that audits should occur at least once a year, and companies that frequently modify their interfaces may need to report two or three times annually.
The larger concern now is whether the CCPA plans to move toward such a structured framework. Without independent verification and clear audit expectations, companies can continue declaring compliance even when manipulative designs remain embedded in their interfaces.
(Published in Medianama)
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November 18, 2025
Chris Kay, Krishn Kaushik and Andrea Rodrigues in Mumbai
Nov 18 2025
Just before dawn, Kashif Sameer joins dozens of couriers zipping across Mumbai to deliver items stocked in a basement of a shopping mall run by Reliance Industries.
“I make between 20 and 30 deliveries in a day,” said the 25-year-old, who had just driven a mile across the chaotic roads of the Indian megacity to drop off groceries ordered 15 minutes earlier. “It is very popular with customers.”
The buzzing activity at the so-called dark store, a mini-warehouse operated by Reliance’s ecommerce platform JioMart, is part of a renewed push by the conglomerate’s chair and Asia’s richest man, Mukesh Ambani, to reassert his company’s position in India’s retail market.
It has added hundreds of dark stores to operate a total of nearly 20,000 physical outlets this year — almost double its pre-pandemic size — as it battles for dominance against Blinkit, Swiggy and Zepto in the country’s ballooning quick-commerce market.
“It’s a question of who runs out of money first,” said Arvind Singhal, chair of retail consultancy The Knowledge Company. “We will see some kind of a shakeout.”
Despite its large network of physical stores, Reliance has yet to corner the domestic consumer market like it did with telecoms a decade ago. It faces entrenched competition from established domestic and international rivals, as well as millions of kiranas, family-run convenience stores.
The sprawling Tata Group operates a wide range of consumer businesses, while global multinationals such as Unilever and Nestlé are important players in India’s household goods market.
Reliance Retail, the division that contains all of the conglomerate’s consumer-facing units, had shed tens of thousands of employees and closed underperforming stores following a bloated build-out during the Covid-19 pandemic and slowing middle-class spending.
But India’s most valuable company, which has a market value of more than $225bn and operates across oil refining, telecoms and entertainment, is expanding its retail reach again.
Reliance Retail’s latest results point to a rebound. In the quarter ending September, the unit reported revenue of about $10bn and profit of $390mn, up 18 and 22 per cent respectively from the previous year.
“Reliance’s scale in retail now is unmatched in India,” said Devangshu Dutta, chief executive of consumer advisory company Third Eyesight, in reference to the breadth of the conglomerate’s business. “This scale is unique in India and rare in global retail.”
Ambani’s retail ambitions are being led by his 34-year-old daughter, Isha. In August, she detailed plans for Reliance’s consumer brands subsidiary, which has a portfolio including Lotus Chocolate and the recently revived nostalgic Indian soft drink Campa Cola, to reach $11.7bn in revenue within five years.
Ultimately, the goal was to “become India’s largest FMCG company with a global presence”, said Isha Ambani during Reliance’s annual meeting.
The company told the Financial Times that it continued to “reinforce its position as India’s largest retailer, expanding its nationwide network”.
While Ambani originally indicated that he wanted to list Reliance Jio Infocomm, the telecoms unit, and Reliance Retail by 2024, people familiar with the company said the retail unit was not ready to go public. The billionaire said the Jio listing could happen in the first half of next year.
“Competitive intensity in every category in the discretionary retail side has picked up very sharply,” said Karan Taurani, executive vice-president at Elara Capital, who does not expect Reliance Retail to float for at least two years. “New competitors, new brands have come in and they are challenging the larger incumbents.”
The Ambanis, who operate as gatekeepers for foreign companies seeking access to India’s massive but challenging business landscape, have sought to cement their position through a spate of partnerships with western retail brands.
Foreign brands including West Elm, Pottery Barn and Superdry have stores in Reliance’s shopping malls in upmarket Mumbai. However, those joint ventures have largely struggled to gain traction with shoppers in India, where the per capita income remains less than $3,000.
The conglomerate’s foreign brands business housing these joint ventures lost Rs2.7bn ($30mn) in the financial year through March 2025, according to the latest available accounts. The Knowledge Company’s Singhal called Reliance’s push to bring international names to India “a vanity project”.
Reliance’s high-profile partnership with fast-fashion retailer Shein has also been underwhelming. The company returned to India this year under Reliance’s wing after being booted out in 2020 when relations between New Delhi and Beijing soured following military clashes along their disputed border.
Shein’s app has been downloaded just 11mn times, according to market intelligence firm Sensor Tower. Its discount prices are largely matched, if not undercut, by many Indian ecommerce and fashion retailers, say analysts.
Reliance is investing heavily in quick commerce, where deliveries are promised in 30 minutes or less. Bank of America estimates the market could reach $128bn by 2030.
The field is at present dominated by Blinkit, Swiggy and Zepto, which together control more than 90 per cent of the quick commerce delivery market and compete with Amazon and Walmart-owned Flipkart. None of the companies are profitable.
The Ambanis are eager to catch up. Over the past six months, Reliance has built about 600 dark stores across cities to plug gaps in its vast store network. By contrast, market leader Blinkit operates about 1,800 dark stores.
In quick commerce, “we have to be there because everybody is”, said a person close to the conglomerate. “It is a long-term strategy.”
On a call with analysts last month, Reliance Retail’s finance chief Dinesh Taluja admitted to delays in entering quick commerce. But he insisted that Reliance offered better prices, more variety and wider reach across smaller Indian cities where it is often the only formal retailer.
“The competition today is mainly in the top 10, 20 cities,” Taluja said. “We are present in almost a thousand cities. Competition will take many years to reach where we already have a head start there.”
Still, Reliance was facing an uphill battle, warned Elara’s Taurani. “JioMart is making a late entry,” he said, “it will be very tough to disrupt players here.”
(Published in Financial Times, all copyrights owned by FT)
