Why does iD Fresh Foods' PC Musthafa swear by quick commerce?
Musthafa shared that consumers tend to prefer convenience and predictability over scheduled delivery.
iD Fresh Foods makes about a third of its sales through quick commerce platforms. Mainline e-commerce sales on the other hand, have reduced by 25 percent over the past two years, PC Musthafa, the company’s founder and CEO told Moneycontrol.
Musthafa shared that consumers tend to prefer convenience and predictability over scheduled delivery. Today, they don’t need to worry about whether there is something in the fridge or some products are about to get over, he said.
For iD Fresh Foods, the top four e-commerce platforms are Swiggy Instamart, Zepto, Blinkit and BB Now, in that particular order.
Musthafa further added that quick commerce has delivered better return on marketing spends. Usually, it is extremely hard to measure the return on advertising investment when advertising on streaming platforms, television or newspapers. However, on quick commerce platforms, it becomes a much easier process through the help of performance marketing.
Mustafa revealed that iD’s metric is 1x to 3x return of the spend. Additionally, they are able to receive details on how much sales was generated because of the banner ad on a quick commerce platform. A report is shared everyday. Through this, they are able to communicate with customers directly and convert them. This advertising model generates good revenue for quick commerce platforms, he said.
