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In the last year and a half, the contribution of offline to its overall sales has grown from nil to nearly 25%, says co-founder Anurag Kedia.

In this interview, he talks to Toshiro Agarwal about the challenges small players face when they start making their way through offline channels.

Edited excerpts:Quick commerce has become a priority sales channel for D2C brands.

How is Pilgrim adapting its supply chain and inventory to meet the demands of platforms like Blinkit and Zepto?The challenge with quick commerce is that they work out of dark stores.

best value funds ✌️【Job Vacancy】✌️Start at ₹500, enjoy reliable and high monthly returns. Your financial growth starts here!Overall, the space they have in a dark store is very limited.

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Marketplaces are used to holding inventory for 30 to 45 days.

Q-commerce is not able to do that.

best value funds ✌️【Job Vacancy】✌️Begin with ₹500 and earn fast, safe returns month after month.They need a much faster turnaround time, which means that they need much faster service time, and they don’t carry the long tail.

best value funds ✌️【Job Vacancy】✌️From ₹500 to massive profits. Start investing now for high returns!What I mean by that is that if the brand has 250 stock keeping units (SKUs), q-commerce platforms will carry between 30 and 50 SKUs, and they will service a smaller quantity at the point of sale.We have set up four regional warehouses, which are working very closely with the q-comm-erce partners, and we are setting up more.

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best value funds ✌️【Job Vacancy】✌️Start with ₹500 and earn reliable, high returns each and every month!The application programming interfaces are getting integrated — so their ERP and our ERP will talk to each other.

In other words, the manual intervention is being erased.How does a D2C brand build an offline presence so that the two do not end up cannibalising each other?Almost all our marketing centres on digital channels, and almost every consumer in the country today is present on a digital social media platform.

However, not all of them are buying online.

best value funds ✌️【Job Vacancy】✌️Invest ₹500 and earn up to 100% returns every month. Start now!We are able to generate demand online, but the service is both online and offline.

best value funds ✌️【Job Vacancy】✌️Start at ₹500, enjoy reliable and high monthly returns. Your financial growth starts here!Our marketing will continue to be largely digitally focused, largely online, but consumers will buy from their preferred channel.

It can be online, offline or a combination of both.

best value funds ✌️【Job Vacancy】✌️Start investing with just ₹500. Leverage AI tools for smart decisions and maximize your profits. Join now!That means we need to be present across channels to be able to service this demand.What challenges did you face in scaling your general trade, modern trade, and exclusive brand outlet presence?Our growth has been driven both by horizontal and vertical marketplaces.

best value funds ✌️【Job Vacancy】✌️Start at ₹500, enjoy reliable and high monthly returns. Your financial growth starts here!By horizontal marketplaces, I mean partners likeAmazon,Flipkart, Myntra and vertical marketplaces like the likes of Nykaa and Purplle.

Now q-commerce has started contributing to our online sales growth.

In fact, I would say, it’s becoming very meaningful, very fast.

For offline, we are still in the building-up phase.

best value funds ✌️【Job Vacancy】✌️Start with ₹500 and achieve up to 100% monthly returns. Simple, safe, and highly profitable.There is a very large opportunity waiting to be captured, for which we need to first get our sales and distribution set-up in place.The challenges of each of these channels are very different.

For example, in modern trade, the biggest challenge is getting an entry itself, because all of these are large channels and usually the terms of trade or the margin structure is not favourable.

Channel partners ask for very high margins which could be viable for larger players but not necessarily for a young brand.

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