India’s food delivery platform enters the CPG

When a food delivery behemoth decides to dabble in the e-commerce space, the result can only be positive. In one such development, Swiggy, which has delivered food to millions of Indians, has decided to launch Swiggy Bazaar, an online platform that will sell household requirements, consumer packaged goods, and fresh produce. Successful implementation would bring a group buying element to the way Indians shop. The unique concept will be peppered by the charm of influencers and supported by the tried and tested reseller models, use of social interactions, and user contributions.

Evolving the brand’s strategy

For Swiggy, the Social Bazaar concept will be a game-changer. The pandemic has enabled the masses to go online and satiate their shopping needs. According to Mintel research, more than 3 out of 4 Indians say that most of their leisure activities involve using digital technology. This statistic coupled with a strong preference for convenience and demand for proven claims will be the driving force for Swiggy to become a brand to reckon with. 

In the long term, Swiggy should evolve the strategy to align with consumers’ desire to experiment with community-driven plans that yield maximum user engagement, then the transformation from a logistics player to a seasoned e-commerce player would be complete. Mintel Trend “Extend My Brand” supports this reasoning as a range of companies are branching into categories and demographics very contrary to their core business. The audiences perceive the brand extension with intrigue and guarded optimism. A brand entering a new market is bound to get many eyeballs. It propels the one-stop-shop model that brands are fast adopting and also appeals to a convenience-driven consumer. This eventual adoption makes it a win-win situation for both brands and consumers. 

One unexplored opportunity that holds a lot of promise is the concept of a social bazaar through which a large group of sellers participate and encourage discounted pricing. A line extension of this kind of behaviour is exemplified through the Mintel Trend “Click and Connect” which leverages technology to develop an atmosphere where people interact on an emotional level even when they are miles apart. Usage of phones and other devices offer ease of connection and encourage companies to explore ideas where people can shop, watch and socialise even when they aren’t a part of the same household.

Masters or their domain

Some of the early adopters who use technology for the benefit of their brand and consumers include the South Korean streaming platform Watcha which uses a social networking feature to encourage its users to chat while watching the same films. The scope of such an endeavour is tremendous. The Four Seasons Hotel Riyadh is taking consumer experience and convenience a step further by offering its suite guests a unique Farfetch online shopping experience including a virtual styling session and Fashion Concierge service, along with several perks, thus giving their customers a truly memorable experience. C-store chain Lawson in partnership with Panasonic are opening an IoT convenience store in China – a move laden with great promise to provide ease of shopping.

What’s next

Following the outbreak of the COVID-19 pandemic, consumers’ emphasis on getting tangible and measurable benefits from what they invest in has increased considerably. With the far-reaching effects of social media gaining prominence, consumers need to engage directly with brands with latent concepts like community buying and social commerce being the big game-changer of the future. Companies need to design their strategies accordingly. Mintel’s 2030 Global Consumer Trend “Value” emphasises consumers’ preference for affordability, convenience and protection. Consumers are looking for those simple pleasures that elevate their daily existence but brands can provide a little nudge to make mini indulgences more acceptable and commonplace. To help propagate their business, brands can look for commission-based models and tie-ups with influencers and industry leaders to leverage their position and make them top of mind for their target audience. The benefits will be far-reaching for both parties and help brands expand their print even further, leading to an overall win-win situation.