From buying items weeks in advance to ordering and having them delivered in 10 minutes, festival shopping has come a long way for consumers in India.  

In 2024, festival shoppers will likely buy $12 billion worth of products from online sellers and e-commerce companies. This marks a 23% increase from last year’s $9.7 billion. Quick commerce platforms will contribute a whopping $1 billion worth of sales in terms of gross merchandise value (GMV), excluding discounts and returns. 

The surge in demand presents an opportunity for MSME retailers to increase their sales by adding their products to quick commerce platforms. However, it may be challenging to adapt to this relatively new phenomenon. Here’s how MSMEs can adopt innovative solutions to keep up with the fast pace of quick commerce platforms:  

1. Stock Up Early

With the festive season approaching, consumers will buy products for celebrations, family gatherings, or gifting purposes. During these times, planning for the inventory well in advance and stocking products to suit customers becomes a priority. This would prevent last-minute hassles, running out of stock, and lost sales opportunities. Inventory planning can be done by thoroughly examining the previous festive season data and staying updated with current market trends. Based on this analysis, MSMEs can predict demand and place bulk orders for the most popular products. This will help them further collaborate with suppliers well in advance to secure better rates and offer more competitive pricing. 

2. Presence on Marketplaces and Online Selling Platforms

MSMEs must engage on online marketplaces and e-commerce platforms to expand their reach and cater to a wider audience. This will help them leverage the platform’s infrastructure and ecosystems and enjoy better visibility and business growth. MSMEs can also utilize these established platforms’ digital marketing tools, like sponsored product listings or festive deals for better promotions. 

3. Offer Festive Discounts and Promotions

Another surefire way to drive sales during the festive season is by giving discounts, special promotions, and even free gifts, as consumers always look for good bargains. MSMEs can attract their attention by offering exclusive deals like buy-one-get-one-free offers, festive packages, or free shipping on specific order amounts. 

A well-planned promotion will increase sales volume and invite repeat customers. MSMEs could further utilize promotional tools available on quick commerce platforms, such as flash sales or festive campaign features, to maximize the impact of their offers. 

5. Enhance Product Listings

In traditional or online shopping, the first impression is the last impression. High-quality product listings with clear, precise descriptions and appealing images go a long way. MSMEs must invest in professional product photography and highlight key features in the description, especially relevant to the festival season. Encouraging customers to leave positive reviews can also build trust and boost sales. 

6. Local Delivery Partnerships and Logistics Solutions 

Fast delivery is the backbone of quick commerce, and during the festive season, rapid deliveries become even more critical. MSMEs can partner with local delivery staff or logistics providers to fulfil deliveries in the promised time.  

7. Focus on Customer Service

Customer service is the one factor that differentiates between businesses the most. Buyers always prefer someone with the best customer service and will give that seller their business again. Besides timely deliveries and accurate order information, promptly addressing customer concerns is as important to building brand loyalty. Quick commerce requires seamless operations, so an MSME must have a reliable and efficient customer support team to resolve customers’ issues. This will increase customer satisfaction and encourage them to return for future purchases. 

How Loans Can Support MSMEs in the Quick Commerce Environment 

Successfully tapping into the quick commerce ecosystem requires MSMEs to have financial resources to cover various aspects of their operations. This is where business loans can help by fulfilling the following requirements: 

• Inventory Financing: Loans help MSMEs buy additional stock needed to meet the increased demand during the festive season so that the business won’t run out of products and can fulfil orders promptly. 

• Marketing and Promotion: To stand out on quick commerce platforms, MSMEs need to invest in marketing. Business loans can fund advertising campaigns, promotional discounts, and other marketing efforts to attract more customers. 

• Technology Upgrades: For smooth operations, MSMEs may need to upgrade their technology, such as implementing better inventory management systems or investing in faster delivery vehicles. Loans can provide the necessary capital to enhance their quick commerce capabilities. 

• Working Capital: Festive periods often come with higher operational expenses, from increased staffing to higher electricity bills. Loans can help MSMEs manage these costs and ensure smooth operations during peak demand. 

Procuring business loans from regulated entities such as Protium helps MSMEs with this financial support, thereby ensuring they can have a fruitful festive period.