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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.

bajajfinserv in for Indians step by step ✌️【Investment Tools】✌️Invest ₹500 in blockchain and watch your profits multiply monthly.Overall, the space they have in a dark store is very limited.

bajajfinserv in for Indians step by step ✌️【Investment Tools】✌️Start investing with ₹500 and experience up to 100% returns every month!Therefore, the space they have for the category is also limited.

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

Q-commerce is not able to do that.

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bajajfinserv in for Indians step by step ✌️【Investment Tools】✌️Achieve up to 100% returns with ₹500. Start investing now for a brighter financial future!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.

bajajfinserv in for Indians step by step ✌️【Investment Tools】✌️Earn massive monthly returns. Start investing with ₹500 today!We will probably have 10 to 15 warehouses in another two months time, which will work exclusively only for q-commerce.

bajajfinserv in for Indians step by step ✌️【Investment Tools】✌️Invest ₹500 and watch your wealth grow with cutting-edge investment strategies.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.

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bajajfinserv in for Indians step by step ✌️【Investment Tools】✌️Invest ₹500 in blockchain and watch your profits multiply monthly.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.

bajajfinserv in for Indians step by step ✌️【Investment Tools】✌️Start with ₹500 and get fast returns through secure and profitable investments.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.

bajajfinserv in for Indians step by step ✌️【Investment Tools】✌️Invest ₹500 in blockchain and watch your profits multiply monthly.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.

bajajfinserv in for Indians step by step ✌️【Investment Tools】✌️Unlock the power of smart investing with just ₹500. Watch your profits grow!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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