New Delhi:
Sudhakar Adappa, founder and CEO of BIA Brands, explained the difference between e-commerce and fast commerce and how fast commerce needs to be “not so fast” to become sustainable. “E-commerce is booming these days, while quick commerce or q commerce is probably the new version of e-commerce. The fundamentals of the business will be the same, it’s just how we deliver, that will change,” Mr Adapa told NDTV Global Summit 2024
He also said the definition of fast would need to change for the model to be sustainable.
“Will fast trade be a sustainable thing? I would say both yes and no. Yes, because it will be another type of trade that will survive, but I think the definition of fast will change. Right now the consumer wants everything delivered in less than 10 minutes and if you say 20 minutes the consumer will say I can’t wait another 10 minutes which is why it’s one of the few countries where fast trade works the definition of fast it will change from 10 minutes to 60 minutes because not everything can be delivered in 10 minutes, if this model is to be sustainable it will become a less fast trade,” he said.
Mr. Adapa said that nowadays social media has become a powerful weapon for brands: “The use of social media is in all sectors. As brands, if we have to survive, then social media has become a powerful weapon and the advantage of private labels is such that it actually gives space to smaller brands to compete with the Unilever and P&G of the world. For example, if I were to launch a cosmetic brand 10 years ago, you have to own a brand, you have to formulate. yourself, you have to have a manufacturing plant, a quality control department, you have to control R&D, the whole ecosystem has huge costs, and it’s not possible for a small entrepreneur to start a company now, if you want to start a beauty brand, everything, what you have to do is maybe go to a contract manufacturer, get some samples, get about 1000 units, put them online and boom you have a brand. It’s become so easy these days.”
However, he emphasized that “everything has its advantages and disadvantages”.
“The advantage is that you can run your company with no capital, if you have a great product, you can build a company with next to nothing. The flip side is the competition that exists in the market. Differentiation has really become difficult for us. But the good thing is that customers are spoiled for choice and customers are having fun at this time enjoying great discounts.
