Reliance's Bold Move: Quick Commerce Next Big Battle?
In our Seventy-second D2C Insider edition, explore how Reliance enters India's quick commerce market, Indian D2C jewellery sector secures $103 million in 2024 funding and more!
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Reliance is joining the quick commerce race, driven by Mukesh Ambani’s push to transform his retail business from same-day deliveries to rapid 10-30 minute service, competing with leaders like Swiggy, Zomato, and Zepto.
Sector Growth: The quick commerce industry in India has grown explosively, with Datum Intelligence projecting $6 billion in sales for 2024, up from $100 million in 2020.
Reliance’s Strategy: Leveraging its 3,000 supermarkets in 1,150 cities, Reliance is setting up small teams within stores for dedicated quick commerce operations without adding new warehouses.
Competitive Edge: While focusing on existing stores, Ambani plans to use competitive pricing and free delivery to entice customers, even as rivals charge additional fees for small orders.
Challenges: Experts highlight that quick commerce depends on efficient neighborhood warehouses and fast packaging, areas where Reliance must adapt. Multi-story stores and crowded aisles add logistical complexity.
Operational Changes: In Navi Mumbai, stores have set up "Q-Commerce" areas, and riders await alerts for pickups. JioMart currently handles 200,000 daily orders but aims to reach 500,000 with this expansion.
The Indian D2C jewellery segment, consisting of over 550 startups, has secured $103 million in funding so far this year, according to a recent Tracxn report.
Funding Growth: In 2023, the sector raised $104 million, a 57% increase from $66.3 million in 2022. Q3 2024 set a record as the highest-funded quarter, bringing in $71.5 million.
Top Cities: Bengaluru leads with over 77% of the total funding, followed by Chennai and Mumbai.
Global Standing: India has surpassed the US and Finland in funding share, capturing over 40% of global investment in the D2C jewellery market.
Sector Trends: Growth is driven by consumer demand for personalized, convenient shopping and advances like virtual try-on tools and AI-driven personalization. Sustainability and customization also attract interest from both consumers and investors.
Leading Brands: Companies like BlueStone, with $193 million raised over two years, and Ultrahuman, which secured $39.6 million, showcase significant investment traction.
Key Investors: Saama Capital, Accel, and Kalaari Capital are noted as top backers in the industry.
Neha Singh, Co-Founder of Tracxn, emphasized that brands adapting to new consumer demands and leveraging digital strategies are well-positioned for future growth.
1. Vietnam’s D2C Menswear Brand Raises $6M in Series A
Coolmate, a Vietnamese D2C men’s apparel brand, has secured $6 million in Series A funding, led by GSR Ventures, according to recent reports.
Growth Trajectory: Established in 2019, Coolmate has experienced significant growth, driven by online retail innovations and direct consumer engagement.
Funding Use: The capital will bolster product development, technological enhancements, and brand expansion.
Market Position: Coolmate has gained traction by focusing on sustainability and consumer-centric services, reflecting broader trends in Vietnam’s D2C sector.
Investor Insight: GSR Ventures noted the brand’s potential to lead digital-first retail in Southeast Asia.
2. UK Brands Anticipate Significant D2C Sales Growth Post-Pandemic
A recent survey by ChannelAdvisor reveals that UK brands expect a substantial surge in D2C sales over the next five years, largely fueled by pandemic-driven investments in direct-to-consumer strategies.
Sales Forecast: Approximately 46% of brands predict that D2C sales will account for 21-30% of their total revenue, with some anticipating figures as high as 50%.
Strategic Focus: The survey indicates that 97% of brands have shifted their focus toward D2C channels since the onset of COVID-19, with 47% reporting increased sales through their own websites.
Benefits of D2C: Key advantages cited include better control over brand image and access to first-party data, which can enhance customer insights and marketing strategies.
A) Night to Remember at D2C Insider!
Thanks to the unwavering support of our amazing community, D2C Insider Elevate Cohort 2 was a resounding success! 🎉
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B) Big News from D2C Insider Angels!
Navya Agarwal—founder of IVEI and co-founder of SellGlobal.in—is now a Super Angel at D2C Insider Angels! 🚀
Known for her commitment to nurturing innovative ideas and driving sustainable growth, Navya is ready to help D2C brands.
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C) D2C Insider CXO Meet - North Recap!
We just wrapped up the D2C Insider CXO Meet - North, and it was a great event! 💡
Amit Jain, Co-founder & CEO of CarDekho Group, shared some valuable thoughts with our community.
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Let’s Talk Pricing
In her recent post, Richa Kapila, Co-founder and Creative Director at D'chica, addresses the misconception about being an affordable brand and shares insights on delivering value in pricing.
D2C Brands Want to Do Their Own Quick Deliveries Now
D2C brands are really jumping on the quick commerce train, creating their own delivery systems to get products to customers faster. By cutting out third-party services, they're aiming to deliver a seamless experience, especially in bustling urban areas where speedy service is a must.
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