Paytm Mall Bets On FMCG Brands For O2O Growth

Emerging as one of the stronger players in the Indian ecommerce industry Paytm Mall has been going strong multi-approach wise to make a stand for itself among players like Amazon and Flipkart.

In lieu of this, the company has announced that it is working with 100 FMCG brands including Marico and Hindustan Unilever, among others to drive sales through its online-to-offline (O2O) model.

Paytm Mall claims to have registered 2x growth in items delivered in the first quarter of this year with 70% orders fulfilled within 48 hours.

The company has launched a variety of online and offline campaigns for various products such as Sugar-free, Colgate Plax among others. Brands are also integrating the Paytm Mall QR with their products providing product information, attractive offers and to drive repeat orders. 

Amit Sinha, Chief Operating Officer, Paytm Mall said, “It is really encouraging to see the confidence that leading FMCG brands have entrusted in our O2O commerce. We have been doing various joint campaigns to take these products to the masses. Our Paytm Mall QR has played a pivotal role towards driving the consumer engagement and promoting product sales.”

The company is actively engaged with partnered brands for joint promotions across the country.

Paytm Mall claims to have helped generate more than 1.5 Bn impressions through these promotions thereby building a greater impact. The company has invested over $25 Mn in the first quarter of this year to maximise outreach of these joint campaigns.

Paytm Mall is already aiming for a near-threefold rise in annualised gross sales to $10 Bn by March 2019 and had already achieved $3.5 Bn in annualised gross sales in June.

At the same time, the industry is ripe with reports that Paytm Mall may acquire online grocery delivery startup BigBasket, however, Paytm spokesperson told Inc42 that there is no such deal happening.

The company has not yet confirmed the launch date of its festive season sale, while Flipkart and Amazon are already spending millions on advertisements and campaigns for festive season sales. Its pre-festive sale is on at present.

According to  Livemint report, Paytm Mall’s festival advertising is slated to start from October, promoting the sale which will continue till the end of the year.

Here’s a quick look into all that Paytm Mall is doing:

• Paytm Mall currently works with offline stores in partnership with brands such as Samsung, LG, Lenovo, Intel, Red Tape, Canon, HP, Godrej, and Hitachi
• It already offers same-day delivery and O2O deliveries in the top 15 cities including New Delhi, Mumbai, Bengaluru, Chennai, Hyderabad
• It aims to expand its services to 25 cities including Kota, Jabalpur, Dehradun, Indore, and more by Diwali
• For its new retail model, Paytm Mall has partnered with fashion and lifestyle brand Red Tape and is set to expand its reach to more than 50 Red Tape stores across the country by the end of 2018
• It aims to clock business worth $78 Mn (INR 500 Cr) by year-end with the new retail model
• It has also committed $5 Mn under its Retailer Inclusion Programme in August 2017

The FMCG sector has been booming in India and has become the fourth largest sector in the Indian economy.  The sector is projected to grow at a CAGR of 20.6% to reach $103.7 Bn by 2020.

With Flipkart and Amazon already running for a larger share of the industry, Paytm Mall has joined in as a strong contender and continues to lead the growth in sectors it dives in.