Small Brands Leverage Qcomm Platforms to Make Their Mark
In an exciting development, approximately 300 regional and small brands have recently partnered with quick commerce and food delivery platforms—an initiative poised to capitalize on the Indian Premier League (IPL) buzz. This collaboration is not just a trend; it’s a strategic move that allows these brands to tap into a vast and engaged audience during one of the country’s most popular sporting events.
The IPL Boost: A Game Changer for Regional Brands
Executives familiar with the situation have highlighted that many food and beverage brands, such as Swiggy and Blinkit, are eagerly participating in this surge, seizing the opportunity from March 22 to May 25. These platforms serve as a significant boost for smaller brands, enabling them to reach potential consumers amid the excitement of the IPL.
Who’s Joining the Fray?
Regional brands like Troovy Chips, Samyang Ramen Noodles, Lucknow Kabaab Hub, Captain Sam’s Pizza, Boss Burger, Artinci Cookies, and Feeelings Noodles are among the diverse names looking to gain traction during this high-visibility period. On average, 130-150 new regional brands join these delivery and quick-commerce platforms each month, driven by the need for exposure, although retention varies based on the margin fees they are willing to pay.
Navigating Challenges: The Price of Entry
While the prospect of reaching a larger market is enticing, the financial landscape presents its hurdles. Quick-commerce platforms often demand margins exceeding 30%, even on lower-priced items, creating a challenging atmosphere for emerging brands.
A Call for Balance
Indraneel Chitale, managing partner at Chitale Bandhu, emphasizes, “Quick-commerce platforms often demand margins exceeding 30%, even on lower-priced SKUs, challenging the long-term viability for emerging brands. But we remain optimistic about their potential.” In contrast, established large brands enjoy significantly lower fees of around 10-20%.
The Opportunity Cost: Why Brands are Still Opting In
Despite the steep margins, smaller companies are willing to invest given the consumption spike associated with the IPL—where viewers typically gravitate towards snacks and beverages while cheering for their favorite teams.
Discoverability as a Key Factor
Sagar Daryani, president of the National Restaurants Association of India (NRAI), notes that for many regional dining brands, the IPL serves as a golden opportunity for discoverability on delivery platforms, even if it means paying a high price. “Many cuisine-specific restaurants are also introducing online-only brands and running offers for the same to grow their business,” he adds.
Expanding Horizons: Beyond Core Markets
For brands eager to step outside their regional zones, events like the IPL offer a rare chance to increase visibility and broaden reach in tier 2 and tier 3 cities. Packaged food products, including namkeen, soft drinks, noodles, biscuits, and juices, are just some of the items these brands are showcasing.
A Rising Demand
The growing interest in these platforms is palpable. A senior executive from a leading quick commerce platform shared, “Our teams are getting over a dozen queries a day across quick commerce and delivery. We have to be selective while onboarding brands, prioritizing those that have established consumer pull.”
Conclusion: A New Era for Small Brands
As the IPL unfolds, small brands are not just spectators; they are becoming key players in the food delivery landscape. The increasing integration of regional brands into quick-commerce platforms signifies a bright and promising future. With strategies honed during this high-stakes sporting event, these brands are positioning themselves for long-term recognition and success.
For further insights into the world of quick commerce, check out more about the Indian Premier League and food delivery platforms.
