Fashion qcom players expand inventory, store networks ahead of festive rush

Zilo, Knot and NewMe are adding thousands of styles, expanding fulfilment capacity and tapping physical stores as weddings, festivals, travel and gifting drive demand

Fashion quick commerce (qcom) platforms are expanding their assortments, adding fulfilment capacity, and tapping physical brand stores as they gear up for the upcoming surge in festive season-driven shopping.

 

With demand expected to spike, thanks to weddings, parties, festivals, family gatherings, travel, and gifting, platforms such as Zilo, Knot and NewMe are adding thousands of new styles and strengthening their delivery networks to capture a larger share of festive spending.

 

Zilo is expanding its network through an omnichannel model that connects brand and mall stores with its dark stores. The platform, which currently operates across Mumbai, Thane and Vashi, had integrated more than 150 brand stores across Mumbai by early August and plans to take that number to around 250 by mid-September. It currently has around 120,000 stock keeping units (SKUs).

 

“Earlier, we had brand selections in our dark stores, but at a very limited number, around 50-70 styles per brand and now with the brand stores this will become 500 styles per brand," Padmakumar Pal, chief executive officer (CEO) and co-founder of Zilo told Business Standard. "Pantaloons and Fabindia are new brands, which we will now go live through brand stores. You will see around 7000-8000 styles going live across categories with one store getting linked to each other.”

 

Ahead of the festive season, Zilo’s assortment has expanded four-five times over the past two-three months. The company also plans to add categories such as fragrances, watches, home and eyewear. It is also working on thematic selections to help consumers put together outfits for specific occasions.

 

Bhavik Jhaveri, chief innovation officer and also a co-founder of Zilo, said that customers tend to undertake a full wardrobe revamp during festive season. The company expects ethnic wear to remain the biggest category, while gifting and other fashion and lifestyle categories will also gain traction. The fashion qcom platforms generally deliver products within 1-3 hours and also generally provide a trial-at-home convenience.

 

Similarly, Knot is focusing on increasing inventory depth while expanding the network through exclusive brand outlets (EBOs). The platform has added dark stores in Parel (Mumbai) and Navi Mumbai alongside its existing Andheri network in the Mumbai suburb, and is using brand EBO inventory to expand assortment.

 

Archit Nanda, co-founder and CEO of Knot said: “The platform currently works with more than 250 brands and plans to add over 50 brands and more than 20,000 new styles for the festive period, taking its assortment to more than 50,000 styles. The additions will be concentrated in ethnic and fusion wear, women's westernwear, footwear, sneakers, perfumes and accessories.”

 

The company is also increasing inventory depth for high velocity styles in its dark stores, while using its wider network to access the long tail of products.

 

The push towards a broader assortment is also visible at NewMe, which is planning 8-10 new collection drops over the next three-four months. The platform is also using supply chain technology and artificial intelligence-based forecasting models to plan inventory based on demand patterns and previous sales.

 

“We expect to add 2,500-3,500 new styles during the festive period, because our customers are constantly looking for something fresh," said Sumit Jasoria, co-founder and CEO of NewMe.

 

The company currently launches around 500 new styles every week, making newness a central part of its strategy rather than a festive-season-only initiative. “Launching new collections every week is part of our BAU (business as usual), so the festive season is an extension of that approach,” Jasoria added. The fashion firm is also planning to increase warehouse capacity and humanpower in anticipation of higher demand.

 

NewMe expects demand to grow across both Tier-I and Tier-II cities and plans to open 20-25 new stores across India over the next three-four months. It also plans to increase influencer collaborations during the festive season.

 

Even as fashion qcom platforms are preparing for higher volumes, they are not necessarily relying on aggressive discounting. Zilo, for instance, said it does not intend to compete through deep discounts, instead focusing on convenience, selection and home trials. Knot is similarly looking at targeted offers and loyalty rewards rather than blanket discounts.