Mint Primer: Can Blinkit & co take on Amazon in electronics?

Doorstep grocer Blinkit’s been selling Sony PlayStation 5, iPhone 16 and popular video game franchise, FC 25. Quick commerce’s foray into electronics sales has raised eyebrows—and questions—about the implications for local electronics stores and e-commerce.

Pricey gadgets in 10 mins. Is there a point?

Apparently yes. At the core of delivering an item worth lakhs in a few minutes is marketing. Thanks to a rising demand in urban India, quick commerce is a highly competitive industry with slim margins. So for most firms, a heavy marketing budget only cuts into profitability. Selling expensive yet popular gadgets, on this note, makes for an effective marketing campaign that eventually leads to indirect sales. Think of this as akin to when e-commerce giant Amazon partnered with German-owned British carmaker, Mini Cooper, to offer doorstep deliveries of the expensive hatchbacks.

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Why are such campaigns important?

Quick commerce was met with scepticism when it was launched. But it’s become a major revenue driver for firms. Yet, most items sold on the likes of Zomato’s Blinkit, Swiggy’s Instamart, unicorn startup Zepto and more are low-value, low-margin items. With expensive electronics, these ventures are looking to diversify into higher-value items—which would be key to future growth in profitability and sustainability of the overall business model. On the other hand, Flipkart has already begun quick commerce while Amazon is about to—forcing the sector to prepare for how wealthy rivals may affect the industry.

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Have such tactics been used in marketing before?

E-commerce already sells headphones worth ₹1.4 lakh, televisions worth ₹10 lakh, and gold bars. Q-comm is looking at electronics as a viable business—iPhones, for instance, can exponentially grow order sizes. This has prompted quick commerce to sell items such as external drives, kitchen appliances, Lego and Hot Wheels toys. They draw attention, and help margins too.

Can this make a dent on Amazon, Flipkart?

Potentially, yes. Experts say quick commerce can replace traditional e-commerce through a widely distributed network of small warehouses. This will need the likes of Amazon to also embrace quicker deliveries, which they already are doing. The result will be a larger number of online retailers for electronics—where Amazon and Flipkart enjoy a duopoly. This can lead to a new race for customers. While Amazon or Flipkart may not lose out, they’ll most certainly have more competitors to deal with.

Is this sustainable for quick commerce cos?

Most electronics items that have been advertised are short-term marketing bursts. Search for iPhone 16 or PS5 on Blinkit, and you won’t be able to find them. This is because quick commerce’s success hinges on fast-moving items, which cuts warehousing costs. In the near term, quick commerce will continue to sell gadgets only when they make the headlines. This benefits local electronics stores too. In the long run, merging of conventional e-commerce and quick commerce may change the viability of this business.

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