**Summary: Online brands should consider offline retail expansion after reaching ₹100 crore to boost revenue and sales channels.**
### The Importance of Offline Retail for Online Brands
**Who:** Swati Kulkarni, director at Fireside Ventures
**What:** Online-focused brands should explore offline retail
**When:** As soon as they reach the ₹100-crore revenue mark
**Where:** Suggested initial trials in select cities or clusters
**Why:** To prevent revenue stagnation and diversify sales channels
Swati Kulkarni emphasized the need for online brands to strategically enter offline retail once they achieve ₹100 crore in revenue. During a panel discussion at the Mint India Investment Summit 2025, she advised brands to start small, testing their products in specific locations rather than overwhelming the general trade market.
### Challenges of Scaling Offline Retail
– **Stock Management:** Kulkarni highlighted that scaling offline retail differs significantly from online operations, requiring precise management of stock-keeping units (SKUs).
– **Sales Tracking:** Brands must closely monitor which products are performing well, as offline retail incurs costs related to shelf space, unlike online platforms where listing products is less expensive.
Kulkarni noted that early mistakes in offline retail could provide valuable lessons, helping brands avoid pitfalls as they grow towards ₹500 crore in revenue.
### The Rise of Quick Commerce
**Quick Commerce Potential:**
Speakers at the summit discussed the rapid growth of quick commerce as a sales channel for consumer brands. Deep Bajaj, co-founder of Sirona Hygiene, shared insights on how quick commerce has transformed general trade by enabling fast delivery of products, such as period pain patches, within minutes.
– **Consumer Behavior Shift:** Quick commerce is changing consumer expectations and behaviors, making immediate delivery a competitive advantage.
– **Higher Value Products:** Brands with higher order values may find more value in engaging customers through their own websites rather than relying solely on quick commerce.
### Adapting Supply Chains for Quick Commerce
Fireside’s Kulkarni noted that food, beverage, beauty, and personal care brands stand to gain significantly from quick commerce. Companies must adapt their supply chains to meet the demands of this fast-paced sales channel.
### The Thrasio Model and Its Challenges
The Thrasio model, which involves acquiring and scaling online-first consumer brands, faces significant challenges, particularly in managing the supply chains of multiple brands simultaneously. Bajaj pointed out that many roll-up companies in India struggled because they acquired too many brands without adequately supporting the parent brand.
– **M&A Failure Rate:** With a merger and acquisition failure rate exceeding 70%, Bajaj stressed the importance of efficiently integrating the first few brands before pursuing further acquisitions.
### Conclusion
As online brands consider their growth strategies, the transition to offline retail and the adaptation to quick commerce are crucial steps. How will your brand approach these opportunities for expansion?
### FAQ:
**Q: Why should online brands consider offline retail?**
**A:** Online brands should consider offline retail to prevent revenue stagnation and to diversify their sales channels, especially after reaching ₹100 crore in revenue.
