What is Licious Business Model? How to Licious Earn Profit?

Read Time:7 Minute, 55 Second

Licious has been one of the top online marketplaces for fresh food items such as seafood and meat, renowned for its commitment to deliver top-quality, safe and fresh-from-the-farm products to doorsteps of its customers. In 2015, the company was founded with Abhay Hanjura as well as Vivek Gupta Licious changed the way people shop in the meat market by providing an efficient and reliable method for customers to purchase seafood and meat. With the growing popularity of Licious, Licious has become a household brand for those looking for fresh, clean and ready-to-cook meals.

How does Licious earn a profit and what is it that makes its business model work in the fierce food industry online? Let’s look at Licious’s business strategy and discover how it generates income.

Licious Business Model: Farm-to-Fork Approach

Licious operates under the D2C (Direct-to-Consumer) model, which means that it manages all aspects of the supply chain, from source and processing through delivery, while ensuring high standards for hygiene and quality. Its emphasis on providing clean, fresh meat products free of antibiotics, preservatives and chemical residues has helped make it an established brand in the eyes of urban consumers.

Here are the essential elements of Licious’s business model:

1. Farm-to-Fork Supply Chain Licious uses a farm-to-fork approach which means it handles all aspects of procuring, processing and shipping seafood and meat. Through cutting out middlemen and purchasing directly from fishermen and farmers, Licious ensures that the products are fresh and of top quality. It processes and packs the meat using its own state of the art facilities, ensuring strict hygiene standards prior to delivery to the customers.

2. Fresh Seafood and Meat Delivery: Licious offers a wide assortment of fresh meats as well as seafood such as fish, chicken, mutton as well as eggs, prawns and prawns. Customers can pick among raw meats, ready-to-cook marinated and seasoned meats and even specialties such as kebabs, sausages, or cold cut. The company’s promise to deliver fresh items within 90-120 minutes of placing an order has helped it build its customers a loyal base.

3. Ice Chains: To ensure the freshness of its products, Licious have built up a strong Cold Chain Infrastructure. It is essential to keep the products at the right temperature from the moment they are being processed until the time they are shipped to the client. The cold chain system makes sure that the seafood and meat remain fresh through the entire process, keeping the quality intact and keeping them from loss of quality.

4. In-house Processing Centers: Licious has its own processing facilities, which cut cleans, packs, and cuts the meat in clean conditions. Through the control of this portion of its supply chain Licious can guarantee the same quality of meat and adhere to strict food safety standards. Processing centers allow the company to provide various cut and marinated items that will appeal to a diverse variety of consumers.

5. The Online Platform as well as the App Licious has been a first-to-market online company that has its platform and application providing the primary method customers can order items. It allows customers to explore categories and choose the cut and type of meat they’d like and arrange delivery times according to their preferences. Licious’s user-friendly interface and speedy delivery service has made it a favorite for urban shoppers who like the convenience of online ordering.

6. Subscriber Model Licious provides a service of subscription, where customers subscribe to regularly scheduled deliveries of preferred items. This method ensures a constant stream of regular revenue for the business as well as offering customers discounts as well as the convenience of having fresh meat regularly delivered without the need to make repetitive orders manually.

How Does Licious Earn Profit?

Licious has several sources of revenue that help to increase its financial success. Let’s take a review of how Licious earns its profit:

1. Direct sales of seafood and meat The major source of income for Licious is from the sale of fresh meats and seafood via its website and app. Offering high-quality, fresh products directly to customers, Licious has built a trusting customer base that is who will pay extra for convenience and cleanliness. Licious earns money through competitive pricing which reflect the top quality of its products and ensuring healthy margins with its direct-to-consumer strategy.

Licious’ pricing strategy makes sure that consumers see the importance of the cleanliness and freshness of the product, which allows Licious to charge premium prices when compared to traditional local market.

2. Product Value-Added (Marinated Meats and Ready to Cook Items ):value-added products like ready-to-cook meats, marinated items, as well as pre-cooked meals like kebabs and sausages. These are sold at a higher cost and allow Licious to generate higher margins. Since these products can help save time and energy for those who want convenience They are also highly sought-after by urban households, particularly working professionals and families with young children.

The range of products that are value-added aids Licious distinguish itself from local meat stores which usually don’t offer prepared-to-cook or marinated options.

3. Subscription Services Licious’s subscription model offers an ongoing and consistent source of income. Customers who are subscribed to periodic deliveries of favourite products enjoy discounts and convenience as Licious is able to count on regular income streams. Subscriptions are crucial to keep long-term customers loyal and guaranteeing regular sales which, in turn, improve the profitability of the business.

4. Private Label and exclusive products: Licious has developed its own range of private label products which include meats, specialty products and seafood products which only available to customers of the website. Through offering exclusive products that are not readily available anywhere else, Licious can command premium prices and generate higher margins. Private label products can aid in helping Licious create brand loyalty and encourage repeated purchases from customers looking for quality, exclusive products.

5. Effective supply chain and cold chain management Licious’s vertically integrated model enables it to have a tight control on its supply chain from purchasing to delivery. By removing middlemen and handling the packaging and processing on its own, Licious reduces costs and improves profits. In addition Licious’ Cold Chain Management assures that there is no waste because the product is kept and delivered at the highest temperatures, which prevents loss of freshness and ensuring maximum shelf life.

6. Collaborations as well as B2B sales While Licious mostly caters to private clients, the company also works with hotels, restaurants, and catering companies (B2B) to provide fresh seafood and meat in large quantities. These partnerships can generate an additional source of revenue, since companies are willing to invest in reliable, high-quality supply chains. In addition, by broadening its reach into B2B, or the B2B sector, Licious can diversify its customer base, and also increase sales overall.

7. The Premium Pricing Policy: Licious’s emphasis on providing top-quality, hygienic and fresh products enables the company to implement an approach to pricing that is premium. Customers are willing to spend more to ensure the availability of safe, antibiotic-free seafood and meat that meet the highest standards of food safety. The premium prices, when combined with Licious’ direct-to-consumer business model allows Licious keep profit margins that are healthy.

Opportunities and Challenges for Licious

Although Licious has developed a successful business model, it’s facing numerous challenges and opportunities in Licious’s Indian market:

1. The competition comes from local Butchers and online players: Licious competes with both traditional butchers in the local area and online meat delivery platforms such as FreshToHome, ZappFresh, and BigBasket. To keep its position as a market leader, Licious needs to continue creating new products and improving its options while maintaining consistent high-quality and excellent service.

2. Expanding the Supply Chain As Licious expands into new cities, it must increase the size of its infrastructure for cold chains as well as processing facilities to keep up with the increasing demand. Controlling the supply chain effectively while ensuring freshness and quality is crucial to the success of the business when it expands into India.

3. Growing demand from consumers for convenience Foods: The growing demand for marinated and ready-to-cook meats offers significant potential for growth in Licious. Through expanding its line of products for convenience it can cater to urban-based consumers who want quick and simple food solutions.

4. Health and sustainability trends As more and more people become more conscious of their health and sustainability, and focusing on sustainable food sources, Licious has the opportunity to be a pioneer in clean, healthy, environmentally sustainable and organic meats. The availability of organic, antibiotic-free and ethically-sourced meats may assist the company in attracting more customers.

Conclusion

Licious’s business model is built around offering fresh, high-quality meat as well as seafood direct to customers via an direct-to-consumer model. The company makes money from the sale of premium meats as well as value-added items as well as subscription services and collaborations with restaurants and businesses. Through regulating its supply chain, and keeping high standards of quality, Licious has built a solid brand name within India. Indian market. With the need for fresh, clean and easy meat products increases, Licious is well-positioned to keep its profits up and increase its market share in the coming years.