Blinkit’s Genius Strategy that stunned Amazon and Flipkart | Business Case Study

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The Rise of Blinket and its Potential to Surpass Amazon in India

Blinket, an Indian company, is driving Amazon and Flipkart crazy and has the potential to become bigger than Amazon in the next 10 years.
Blinket, currently 4 to 50% the size of Zomato, is expected to drive more value for shareholders in the coming years.
The Indian market is experiencing a tectonic shift that is making Blinket's growth possible.
The quick commerce industry in India has seen significant changes in the past two years, with Blinket growing faster than Zomato.
Blinket's success is attributed to its revolutionary business strategy in the quick commerce industry.
Bombay Shaving Company has witnessed a significant increase in sales through Blinket, surpassing sales on Amazon.
Understanding the revolution of Blinket and Instamart in quick commerce can present a huge opportunity for businesses.
The growth of Blinket and its potential to surpass Amazon in India offer valuable business lessons.

Increasing the average order value from 400 to 550 rupees can turn a dark store into a cash machine.
With an average order value of 550 rupees, a quick commerce company can generate significant gross margins.
Increasing the average order value leads to higher gross margins, even after deducting delivery costs.
Having 100 to 200 profitable dark stores can decrease the cost incurred per store for software services.
The success of quick commerce companies is determined by convenience, cost, and catalog.
Convenience is now defined by 20-minute delivery, which poses a threat to traditional e-commerce players.
India can be categorized into three different markets based on income levels: India 1, India 2, and India 3.

India can be divided into three categories based on consumption levels: India 1, India 2, and India 3.
India 1, which represents a small percentage of the population, consumes a disproportionately high amount of beauty products, dining, and food and beverages compared to the rest of the population.
India 1 also contributes significantly to the revenue generated by premium products like iPhones.
The Indian e-commerce market can be segmented based on these categories, with India 1 focused on convenience and catalog, India 2 focused on cost and catalog, and India 3 focused solely on cost.
The consumer behavior in each segment differs, with India 1 being willing to pay a premium for convenience and India 3 being more price-conscious.
The e-commerce platforms have capitalized on these consumer behaviors by increasing average order values, charging delivery fees, and offering premium-priced products.
This segmentation also presents an opportunity to expand product catalogs and increase margins.

Blinket charges a higher price compared to other platforms for certain products, such as a bottle of Thumbs Up, which costs 45 rupees on Blinket compared to 38 rupees on Amazon.
The convenience of quick delivery, with options like 10 or 20 minutes delivery, justifies the higher prices for customers who prioritize saving time over price.
In the FMCG market, even a one rupee increase in price is significant due to India's price-sensitive market.
Blinket sells a wide range of products, from groceries to electronics, which has resulted in a drastic increase in the average order value.
The average order value for Blinket is 635 rupees, excluding delivery and platform fees.
Dark stores, which have expanded their catalog and offer quick commerce, now receive an average of 1,200 orders per day, compared to 600 orders per day in 2022.
According to a financial report from JM Financial, Blinket's revenue includes warehousing services, marketplace commissions, and customer fees, totaling 644 CR.

Contribution margin is the revenue minus variable costs.
Profit margin is the revenue minus fixed costs plus variable costs.
Fixed costs remain constant regardless of the number of orders, while variable costs change with the number of orders.
Fixed costs per order decrease with scale, resulting in economies of scale.
Variable costs per order stay the same even as the number of orders increases.
Contribution margin represents the amount left after covering variable costs to cover fixed costs.
Profit margin represents the final amount left after covering both fixed and variable costs.
Contribution margin is used to understand the profitability of each order, while profit margin is used to assess the overall profitability of the business.

Contribution margin helps determine if a business can make a profit with scale.
Increasing scale can lead to higher contribution margin and profitability.
Blinket's increased average order value indicates potential for net profitability.
Quick commerce presents opportunities for entrepreneurs in the Indian consumer market.
Premium brands should sell on platforms like Instamart, Blinket, and Zepto to reach time-conscious customers.
Investors should form yearly theses and invest in businesses accordingly.
Data is a valuable asset for businesses, enabling them to make strategic decisions and create barriers to entry for competition.

Amazon and Flipkart are set to compete against Blinkist, Swiggy, and Zepto.
The success of Amazon's experimental business segment showcases the power of data and its usage.
This business war between the companies is expected to be a fascinating case study.

Blinket, an Indian company, has the potential to become bigger than Amazon in the next 10 years.
The Indian market is experiencing a tectonic shift, making Blinket's growth possible.
Blinket's success is attributed to its revolutionary business strategy in the quick commerce industry.
Bombay Shaving Company has witnessed a significant increase in sales through Blinket, surpassing sales on Amazon.
Increasing the average order value can turn a dark store into a cash machine and generate significant gross margins.
Convenience, cost, and catalog are key factors in the success of quick commerce companies.
India can be categorized into three different markets based on income levels: India 1, India 2, and India 3.
The consumer behavior in each segment differs, with India 1 being willing to pay a premium for convenience and India 3 being more price-conscious.
Blinket charges higher prices for certain products, justifying it with quick delivery options.
Blinket's revenue includes warehousing services, marketplace commissions, and customer fees.
Contribution margin and profit margin are important measures of profitability in quick commerce.
Quick commerce presents opportunities for entrepreneurs and premium brands in the Indian consumer market.
Data is a valuable asset for businesses in making strategic decisions and creating barriers to entry.

Amazon and Flipkart are set to compete against Blinkist, Swiggy, and Zepto.
The success of Amazon's experimental business segment highlights the importance of data usage.
This competition between the companies is expected to be a fascinating case study.