"Bananas" Quick Commerce Startup Business Approach Amid Post-Pandemic Consumer Shift

Number of players quick commerce In a global out of business, it raises anxiety whether this business model can only operate during a pandemic or it is time to come. Then, the question arises is player quick commerce in Indonesia will have the same fate?

To answer that, #TuesdayStartup this time invited Bananas Co-founder and CEO Mario Gaw.

Mario talks a lot like what Bananas optimism to potential quick commerce and what its position is in the market. For the record, Bananas is one of the players quick commerce new local operation at the beginning of this year.

Bananas Segmentation

Mario explained, like most players quick commerce more, Bananas build dark store (mini warehouse) scattered in dense residential areas in Jakarta. So far there are eight dark store and a distribution center to help with inventory.

However, what differentiates their services is that they serve consumers middle to high. These people have busy lifestyles, such as professionals and career parents who spend a lot of time outside the home. The segmentation was taken thanks to in-depth interviews conducted by the Bananas team in the process product-market-fit.

The products sold now reach 2 thousand SKUs from various categories, especially in fresh products such as eggs, milk, meat, vegetables, and fruits. Then food and soft drinks to household cleaning tools. All of these products are shipped within minutes of arriving at the buyer's location.

By taking this segmentation, he is optimistic that Bananas is here not only to see the latest trends. Consumers like this, he continued, are not the typical opportunists who need to be provoked by discounts or cashback.

“We see that this segment is still very new, they are lazy to spend time on the road, not to mention having to queue at the supermarket and transport their heavy groceries. Angle we are targeting them, not those who should be provoked by promos," said Mario.

Even so, it is still necessary for the company to ask for opinions from consumers on a regular basis so that Bananas becomes a sustainable company. Currently, companies are starting to think about how to increase the average value of groceries and increase GMV.

“What is now important is how we stay focused on user. The trick is to keep talking to them to understand what they need now and what they want in the future. Cause I believe in need groceries it won't go away, but whether you used to buy an expensive brand or not, that's just a question shifting. As players, we have to be able to catch and follow their needs."

This is also a tip from Mario for the fans founder who just started their startup. For him, the biggest mistake he has ever made is not listening to consumers. Only relying on assumptions from research, without looking at conditions directly in the field.

“By listening to consumers a lot, we can understand their pain points better so that we can insight which is more part rather than just theory."

Challenge in quick commerce

Mario also admits that the challenges in quick commerce it's so big. Some say that this business model unites all the complexities in its operations, it has to be built dark store, managing inventory, sourcing the items in which locations sell well or not, that's the hard part.

"So all functions and lines are difficult. Also from marketing for acquisition user at Pondok Indah and Kelapa Gading it might be easier to make event at the mall. But it's not necessarily the same in other locations because of different lifestyles and habits."

In addition, with the increase in fuel prices, Bananas automatically has to rack their brains to keep pressing costs in the midst of a retail business war whose margins are notoriously thin. The solution that is currently being worked on is to develop an algorithm so that the delivery system can be carried out in one batch for one vehicle at a time for one area.

"In every delivery per batchThe driver can deliver to many points for one area. From there we can press cost logistics."

Even though many players online groceries that goes into the solution quick commerce, Mario is not worried about the fierce competition. In this industry, he believes “winner takes all” not applicable. In particular, for quick commerce which is still very new in Indonesia, education is an expensive item which if done alone will not be enough time. That's why players need online groceries others, to undertake similar initiatives together.

“In terms of competition, although the idea is the same, because the ingredients in the company are different, the results of the dishes are also different. Our philosophy is to keep an eye on the industry's movements, but not to be something to be afraid of. So we compete with each other to solve the user, which one is better," he concluded.