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Nykaa, Licious pilot fast delivery services to meet growing consumer demand

As quick commerce reshapes retail, Nykaa, Licious, and Myntra are testing ultra-fast delivery models to cater to growing consumer demand across various product categories

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Nykaa plans to offer quick commerce for around 5 per cent of its total SKUs

Rimjhim Singh New Delhi

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Nykaa has launched a pilot for 10-minute deliveries in Borivali, Mumbai. This move reflects the increasing influence of the quick commerce sector across various product categories, pushing specialised retailers to expedite their delivery services, according to a report by The Economic Times.

Licious, a direct-to-consumer meat brand, is testing 15-minute deliveries for ready-to-eat meals in select locations in Gurgaon, although its standard delivery promise is 30 minutes. Similarly, fashion platform Myntra is experimenting with a four-hour delivery service in cities such as New Delhi and Bengaluru.

Nykaa’s entry into quick commerce comes as beauty products are gaining traction on platforms like Blinkit, Zepto, Swiggy Instamart, and BigBasket’s BB Now. Nykaa plans to expand its 10-minute delivery service to more areas in Mumbai and may introduce a new brand name for this initiative, the report said.
 
The report quoted a quick commerce executive as saying that low-cost beauty items, such as kajal and skincare products, are popular in rapid delivery formats, with similar trends emerging in fashion and home decor categories.

Quick delivery initiatives

Licious, based in Bengaluru, has been delivering orders within one to two hours in major markets, often ahead of schedule. In Gurgaon, the company is now testing even faster deliveries based on order density.

Meanwhile, large horizontal e-commerce players are also expanding their quick commerce offerings. Flipkart has launched its 10-minute delivery service, Minutes, in Bengaluru, Delhi-NCR, and Mumbai, while Amazon is working on its own Q-commerce service, the report said. Swiggy recently introduced its 10-minute food delivery service, Bolt, and Zomato is expected to reintroduce a similar option for select items in collaboration with cafes and quick-service restaurants.

Even logistics companies like Delhivery, Shadowfax, Ecom Express, and Xpressbees are entering the quick commerce market, according to the report.

Nykaa amping up quick ecommerce game

Nykaa plans to offer quick commerce for around 5 per cent of its total SKUs, focusing on products frequently requested for fast delivery. The report quoted industry sources as saying that several brands, depending on their category, are moving toward same-day delivery in major metro areas, reflecting consumers’ growing expectations for faster service.

Nykaa has already been providing same-day delivery for orders placed before noon, with next-day delivery available for orders placed later, in four major cities. Around 10-15 per cent of its orders in these metros are delivered on the same day, with the remainder arriving the next day.

According to a JP Morgan report, Nykaa’s premium product portfolio is experiencing the fastest growth. Despite the rise of quick commerce, Nykaa does not foresee a significant impact due to its focus on beauty products and a strong presence in Tier-II cities. The company aims to increase same-day or next-day delivery for 65 per cent of orders in the top 12 cities and 60 per cent in the top 110 cities through supply chain improvements.

In August, Mamaearth CEO Varun Alagh noted that quick commerce was the fastest-growing segment in the company’s online sales channel, contributing over 10 per cent of its online revenue, with most orders coming from the top 10 cities.

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First Published: Oct 09 2024 | 9:41 AM IST

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