In yet another attempt to diversify its offerings and increase its focus on non-food delivery segments, Swiggy is exploring social commerce through a brand called Swiggy Bazaar, Entrackr reported on October 12.
Swiggy Bazaar, which is expected to first launch in Bengaluru and Gurugram in the coming months, will be focused on grocery, FMCG, and fresh farm produces and will follow a group-buying model, the report stated.
What is a group-buying model?
Group buying is one of the many models that social commerce ventures pursue and it involves consumers being able to avail themselves lower prices by buying collectively. For example, Swiggy will communicate deals to a local influencer or a community entrepreneur who in turn will try to get as many people to avail the deal as possible. This person will then place the order on behalf of everyone and get the goods from Swiggy. Upon distributing these to all the buyers, the influencer will be given a commission by Swiggy.
“These local influencers are well entrenched in their communities and trusted by those in the neighbourhood, which helps garner more customers for the platform. […] Social commerce companies incentivise them through monetary benefits, as these influencers help them tap into tier 2 cities and beyond,” Economic Times explained.
According to a job listing for a Manager for Swiggy Bazaar, the new brand will “operate like a startup within Swiggy” and “will be a community group buying destination.” The business will experiment with “novel community-based marketing strategies” the listing says.
One more grocery-focused business in Swiggy’s portfolio
Swiggy has been doubling down on the online grocery market through multiple offerings, each targeting a different customer segment:
- Instamart: Instamart, which allows grocery ordering from within the main Swiggy app, is focused on quick deliveries. The major competitors in this segment are Tata-owned BigBasket, Zomato-backed Grofers, and new-entrant Jio Mart.
- Supr Daily: While delivering almost the same range of products as Instamart, Supr has its own dedicated app and is focused on subscription-based orders of daily essentials like milk and eggs rather than fast, one-time orders. The major players here are Reliance-owned MilkBasket, Dailyninja, and BigBasket Daily.
- Swiggy Bazaar: And now, Swiggy Bazaar, which will tap into tier 2 and tier 3 cities using its community-focused model. Bazaar will be in direct competition with Meesho’s Farmiso, DealShare, and CityMall, which all engage in group buying-based social commerce focused on grocery.
Over the last year in lockdown, consumers have discovered new ways to access better foods and some of these behaviours have proved to be resilient – creating tailwinds that Bazaar will aim to ride — Swiggy Bazaar job listing
Swiggy’s focus on grocery is because of the potential the market holds. “This business is 10x the size of the food services industry,” Swiggy CEO Sriharsha Majety said last month while announcing that Supr Daily will be made a separate business unit within parent company Bundl to accelerate its growth.
In addition to the grocery brands, Swiggy also runs a hyper-local package delivery service called Genie that competes with Dunzo.
- Here’s Why Swiggy Made Its Subscription-Based Service Supr Daily A Separate Unit Under Parent Company
- Swiggy And Zomato To Absorb Tax Load Carried By Restaurants Under New GST Structure
- Dunzo Enters, Grofers Speeds Up, Swiggy Expands, Zomato Experiments, BigBasket Holds On: Here’s What’s Happening In The Grocery Delivery Market
- Swiggy Completes $1.25 Billion Funding Round, Shifts Focus To Non-Food Businesses
- What’s The Human Cost Of Having Your Meal Delivered To You? Zomato, Swiggy Delivery Workers Take To Twitter To Answer This Question
Have something to add? Post your comment and gift someone a MediaNama subscription.