New Delhi: Zomato might compete with popular e-commerce marketplaces like Amazon as it is planning to add more brands in various categories in Blinkit. This major direct-to-consumer (D2C) space would help Zomato to build its own supply chain to directly pick up products and manage its stocks.
To support this purpose, Blinkit has leased one warehouse in New Delhi and Mumbai. In addition to food delivery, Zomato operates with Hyperpure for grocery supply and event ticketing vertical, Zomaland.
According to an industry specialist, “New-age D2C brands in categories like home needs, small electronics, beauty and personal care are looking at quick commerce as a growing channel for sales. Blinkit has a strong footing there. Now, Zomato wants to set up a backend structure, where it would work directly with brands and help them sell on Blinkit. With this, the company gets greater control over its supply chain.”
For Blinkit, adding more categories would help it to grow average order value (AOV). In the last quarter, Blinkit has an AOV of INR 635 and INR 607 in its September quarter.
Further, adding more categories to the platform would help Blinkit to increase its AOV. On this, a consumer sector analyst said, “Typically, grocery products are less accretive on margins, so it’s likely that profitability is also improving on account of higher (share in the) mix (of) products such as consumer electronics, beauty and personal care, etc.”
In addition to selling groceries, Blinkit also offers occasional based products like earthen lamps and stuffed toys with lower ticket sizes.