Zomato’s venture into the direct-to-consumer (D2C) market through Blinkit is evolving into a comprehensive strategy aimed at challenging established ecommerce giants like Amazon and Flipkart. The company, led by Deepinder Goyal, is considering expanding Blinkit’s offerings by onboarding additional brands across diverse product categories.
Key Developments:
- Diversification Across Categories: Blinkit may soon feature a broader spectrum of brands covering various product categories. This move signifies Zomato’s intention to position itself as a formidable player in the competitive ecommerce space.
- Direct Sourcing and Inventory Management: Zomato is contemplating building its own supply chain to directly source branded products and efficiently manage stock. While it does not plan to own inventory, Zomato aims to oversee the flow of products for D2C brands, potentially streamlining the supply chain for enhanced efficiency.
- Strategic Conversations with Brand Owners: The company has reportedly engaged in discussions with individual brand owners across different categories to explore collaborations and stock inventory. This proactive approach is viewed as a long-term growth driver for Zomato’s ecommerce ambitions.
- Shiprocket’s Role in the Plan: Zomato, having recognized the importance of a robust logistics and enablement partner, has reportedly attempted to acquire Shiprocket. The ecommerce enablement firm, which works with various D2C brands, could play a pivotal role in Zomato’s overarching strategy.
- Warehousing Investments: Zomato has leased warehouses in New Delhi and Mumbai to support Blinkit’s foray into ecommerce. This infrastructure investment underscores the company’s commitment to fortifying its backend structure for a seamless ecommerce experience.
Expert Insights:
Industry experts suggest that Zomato’s strategic move aligns with the changing landscape of quick commerce. With a focus on home needs, small electronics, beauty, and personal care, Blinkit aims to capitalize on the growing trend of quick commerce as a significant sales channel for new-age D2C brands.
in Shorts:
As Zomato explores a more hands-on approach in managing its supply chain and collaborating directly with brands, the company positions itself for a substantial impact on the D2C market. The evolving dynamics within Blinkit suggest a strategic pivot that could potentially disrupt traditional ecommerce models.
