Zepto launches 'Select' to take on Blinkit Gourmet, FirstClub
What's the story
Zepto, a leading player in the quick-commerce space, is set to launch a new premium grocery service called 'Select,' as per a Moneycontrol report. The move comes as part of the company's strategy to tap into India's rapidly growing market for premium consumption. The new service will be available on the Zepto app and will take on established players like FirstClub and Blinkit Gourmet.
Service details
'Select' to offer imported food items and gourmet groceries
The 'Select' service will provide a carefully curated selection of imported food items, gourmet groceries, and other high-end products.
It will be accessible through a dedicated tab on the Zepto app, much like Blinkit Gourmet.
The company has already started meeting with premium consumer brands to onboard their products ahead of the launch.
Strategic pivot
Strategic pivot toward premium consumption
The launch of 'Select' marks a major shift for Zepto, which has long been associated with low-value, high-frequency purchases.
The company is now focusing on India's top 40-60 cities, unlike competitors such as Blinkit and Swiggy Instamart who are expanding their reach to over 300 cities and towns.
This strategic pivot shows Zepto's commitment to the premium consumption market in India.
Pricing strategy
Competitive pricing for 'Select' service
Zepto plans to set 'Select' apart by offering many imported and premium products at more competitive prices than its rivals.
The company recently conducted a pilot in select areas, which received positive customer feedback.
This response has paved the way for a wider rollout of the service in the coming weeks.
Market trends
Investor interest in premium consumer categories
The premium consumption market in India is gaining traction, drawing investor interest across various categories from fashion to cookware.
Investors such as A91 Partners, Fireside Ventures, and Verlinvest are reportedly in talks to back premium consumer start-ups like cookware brand Bergner India and sneaker label Comet.
The fundraising activity indicates a growing confidence that Indian consumers are willing to spend more on high-end products.
Economic advantages
Premium groceries drive better business economics for quick-commerce players
Premium grocery items also offer better business economics than daily essentials for quick-commerce companies.
Imported foods, artisanal products, and health-focused brands usually lead to bigger basket sizes while driving repeat purchases and improving customer retention.
"These products push up basket sizes and average order values. They also improve customer retention because once consumers find the premium brands they regularly buy on a platform, it increases stickiness," said Satish Meena, founder of eCommerce consultancy Datum Intelligence.