Small towns power Quick-commerce biz for Flipkart

MUMBAI: Small towns are fueling the growth of Flipkart’s quick commerce business Minutes. Cities such as Siliguri, Ambala, Barabanki, Bhagalpur and Durgapur are seeing huge consumer adoption with the overall customer base growing nearly 25 times year-on-year across such regions, the Walmart-owned company said.The broader Minutes business has expanded four times y-o-y since its launch two years back. Minutes has now widened its footprint to nearly 1,200 dark stores covering more than 150 cities. In a statement, Flipkart said that around 60% of customers return to shop on Minutes. The instant delivery business rivals Amazon’s Now, Eternal’s Blinkit, Swiggy’s Instamart and Zepto.In an interaction, Kunal Gupta, Senior Vice President and Head of Flipkart Minutes said that demand on the platform has grown beyond everyday essentials with consumers also shopping for gourmet and premium products. Gourmet and specialty grocery, launched within the past year, has grown eight times, led by demand for cold-pressed oils, imported cheeses, international avocado varieties and Korean ready-to-eat meals. In fact, consumers are adding products such as Korean noodles, sauces and ready-to-eat meals, alongside premium skincare and personal care categories even in smaller cities.Flipkart is understood to be piloting a standalone app for Minutes with a wider rollout is expected ahead of its annual festive sales in October. “We believe a standalone app would help create a sharper identity for Minutes as a QC platform rather than keeping it embedded within Flipkart’s broader e-commerce proposition. The timing also appears favourable, with the wider rollout planned ahead of BBD (Big Billion Days), a period of significantly higher consumer traffic and engagement for Flipkart – which would provide an opportunity to drive initial discovery and awareness of the Minutes app,” analysts at JM Financial said in a note.Among consumer cohorts, Gen Z has emerged as the fastest-growing customer cohort on Minutes, with the customer base growing nearly five times y-o-y in the past twelve months. Gen Z drives over 45% of orders across categories such as beauty, electronics, gaming, wearables, fragrance, health and nutrition, and grooming, the firm said.“In two years, Flipkart Minutes has evolved from a convenience offering into a broader shopping channel, with customers using it for much more than their daily essentials. What is particularly interesting is how quickly this behaviour is spreading beyond the largest cities, while Gen Z is also bringing new categories and new shopping occasions to the platform. With our growing network, we have an opportunity to make this experience available to more consumers across the country, while creating new opportunities for brands, farmers and local businesses to reach customers,” Gupta said.