Slikk ensured seed financing $ 3.2 million from LightSpeed to scalance its 60-minute delivery model, while Newme, which in the series and gains $ 18 million, plans to offer 30-60 minute vans in Bengalur and other meters.
“We will be ready to offer between 30 minutes to 60 minutes in many metro cities in a few months and this is a big priority for us,” said Sumit Jasoria, co -founder Newme.
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The reason for these fast delivery models is simple: the purchase of online fashion has usually been controlled by an event, but impulsive purchases are still in turn towards offline retail. The question remains: Can the speed economy stand on the hard competitive and capital market?
Gambling at speed
Both startups-skikak and newme-weigh that they can redefine a fashion electronic shop by offering delivery times that compete with those on food supplies platforms. The 30-minute “M-NOW” myntra and 8-16 minutes of “” minutes “flipkart have already created a tone for immediate fashion satisfaction, with both companies focusing on very quickly delivered deliveries.
Logic is simple: while online fashion purchase was usually driven by an event, impulse purchases continue to dominate offline retail.
Slikk and Newme supply up to 60-90 minutes-strikingly faster than myntra or flipkart, which usually supply in 1-3 days due to their centralized supplies, offer a darkening of dark stores with fast moving clothing for hyperlocal delivery.
“If you can collapse the supply, return and refund cycle from 7-10 days to 60-90 minutes, the whole psyche of the customer will change,” said Akshay Gulati, co-founder of Slikk.
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Specific data for fashion within fast trade is rare, but according to Bain & Company, the Indian fast trade market is expected to grow by 40% per year by 2030, which represents 10% of the total e-marital expenses.
“The Indian e-retail market has risen to approximately $ 60 billion to gross value,” the report added.
Curative
The central point of this model is the idea that not all modes are created equivalent.
“The whole industry has started on the Dropship model, model with assets,” Gulati said. “But in fashion we apply the principle of 20-80: Your 20% Styles controls 80% of your income. You can have 10,000 items, but it’s the best 2,000 that really move the needle.”
The Newme is even more focused and claims that 90% of its sale comes from only 10% of its styles. To maintain freshness, Newme evokes new collections and stages of the old every Friday, treats styles almost as a degrading goods.
“We want to keep the curator near consumers. We think style like milk – has a expiration date that lasts only 60 to 90 days. Therefore, we present new collections every Friday.
Both Slikk and Newme have different strategies to solve unsold stock. Slikk employs the model “try and buy” which allows customers to try items when delivery and return them immediately if it is dissatisfied. The preference of immediate reserves is supplemented and quickly accessible for further sale.
Newme operates an almost zero inventory model and produces items based on real -time data, which further increases the agility of its operations.
According to Rahul Taney, a partner of LightSpeed, the company was drawn by strong repeating behavior of SLIKK, which is evident in their monthly growth.
“As consumer expectations have changed, everything is required before. And so, in fast trade, you now see that verticals appear among them, are the main between them,” Taneja said.
“When young professionals enter the workforce and start earning, one of their main discretional expenses is to look good. It is seen in the beauty, fashion and overall behavior of Instagram. This is great for this category, and behavior is repeatable,” he added.
Curation also becomes decisive for consumers’ decision -making, as shoppers are moving from the Doom shift over thousands of options to find speed and simplicity.
“If you want to provide instant satisfaction to consumers, you also need to help them find options that are more relevant and significant so that they can decide faster,” Taneja said.
Can speed pay?
Despite optimism, there are concerns about the profitability of the model. Operating dark stores and offering fast delivery increases logistics costs. Dependence of rapid fashion on diversity further complicates inventory management.
“I don’t think you can be profitable by being only digital,” said Anand Ramanathan, head of the Deloitte consumer industry. “And so, the faster you accelerate offline and grow offline, more likely to succeed in a fast fashion type of settings. Especially because fast fashion has lower margins than some of the more premium segments,” Ramanathan said.
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“The more you depend on the fast trade, the more there will be a range,” he said, adding that the success on Tier 2 and Tier 3 will depend not only on logistics, but also about changing behavior and price strategy.
The fashion model with a fast trade, which usually works with a high degree of burns due to the cost -demanding nature of logistics and customer acquisition, faces challenges of profitability. However, the founders argue that repeated purchases, scale and private labels will manage profitability over time.
In addition to the immediate consumer appeal, however, there is a deeper question.
“With limited regulation, these platforms are doing on psychological nudges: pop -ups, lightning discounts and interface tricks designed to control impulse purchases,” said Farheen, policy analyst and confidence in the Advanced Study of Institute of Asia at SGT University in Delí.
Farheen noted that with limited regulation, these platforms are doing on psychological boredom, such as pop -up windows, lightning discounts and various dark patterns that push consumers to make rapid decisions without much thinking. According to her, it is the whole ecosystem to prepare consumers to act according to the impulse.
The results, as stressed, are visible in the form of greater confusion, less patience and increased sense of immediacy. In addition to the cash desk, there are negative consequences, including burnout between concert workers, unsustainable waste from fast fashion cycles and growing pressure on small offline retailers. While a quick trade may have a sense of platform to chase the scale, she asked if it really works for those who participate in it.
Meanwhile, fast trade challenges exceed the behavior and logistics of consumer. For example, Newme is banking on high repeated use to justify its cost structure, with physical stores functioning as pseudo dark shops. JASORIA noted that the company operates 14 offline stores and plans to add another 10 to 12 more by the end of the year.
As Ranathan emphasizes, logistics to the last mile, and the Dark Store operations represent most of the delivery costs that remain high. Newme access to the use of physical stores for faster supplies increases operating costs and exposes risks such as volatility of demand.
The fast shop excels in foundations and fashion items, but fights the “thick center” – the variety of less trendy or more niches. Management of a wide range of units for maintaining stocks (SKU) is a challenge for fashion because the unpredictable demand for trend items makes in stock management more complicated, said Ashish Kumar, co -founder of Fundamentum.
Fashion, however, is more complicated because of the unpredictable demand for fashion objects with a short life.
This is partly why Mees remains careful and instead focuses on the affordability and strategy of a long tail offer for Tier 2 and 3 markets, where the price prevails at speed, as seen by Aatrey, co -founder and CEO of Meesho.
Kumar of Fundamentum reflects this concern and says: “Only about 40-60% of the revenue from the narrow set of SKU, unlike foods, where 80% come from essentials. Fashion consumers are looking for diversity, increasing a more complex supplier chain.”
At the same time, platforms such as Wishlink and Loulah earn a growing trend of curatorial fashion and focus on personalized recommendations to control and speed up the way from inspiration.
Fundamentum invested in the Wishlink platform, content platforms while Wishlink’s Peer, Loulah, recently raised £12.5 crore (~ 1.4 million USD), led by investment company Nikhil Kamath, Gruss.
Gulati is less focused on profitability. “The key metric of success for us on this scale is repeated user activity, not operating profit,” he said, refusing to share specific numbers.
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