Quick Commerce Replacing Kirana Sales In FMCG: Report

New Delhi, Apr 1 (KNN) India has witnessed a remarkable shift in consumer shopping behaviour, with online purchases of fast-moving consumer goods (FMCG) increasing over threefold compared to last year.

The rise of q-commerce has gradually impacted traditional trade. Kirana stores, which accounted for 81 per cent of FMCG sales a year ago, saw their share slip to 79 per cent by December 2024, as more shoppers turned to online platforms.

According to Kantar’s Asia Pulse Report, the percentage of online shopping occasions soared to 61 per cent in the October-December 2024 quarter from just 19 per cent a year earlier.

This surge has been primarily fueled by the rapid expansion of quick-commerce platforms, prompting FMCG companies to rethink their sales strategies.

Urban consumers now prioritise convenience over cost, accelerating the adoption of quick commerce. Grocery retailers are responding by offering deeper discounts and enhancing delivery speeds. Meanwhile, q-commerce platforms are streamlining operations to keep up with demand.

Interestingly, this trend diverges from China, where online shopping trips have remained stable at around 12-14 per cent. The Indian market’s shift is largely driven by instant gratification, the report noted.

E-commerce, including q-commerce, grew from 2 per cent to 3 per cent in the same period. However, supermarkets maintained an 8 per cent market share.

Major grocery retailers like DMart, Reliance Retail, and Spencer’s Retail have adapted by launching quick-commerce services and offering competitive pricing.

Traditional FMCG distributors, however, claim that deep discounting by q-commerce platforms is unfairly eroding their market position, prompting them to seek regulatory intervention.

Experts predict that with evolving shopping habits, q-commerce will continue to expand. A Bain & Flipkart report estimates that q-commerce accounted for two-thirds of e-grocery orders in 2024 and is projected to grow over 40 per cent annually through 2030, reshaping India's retail landscape.

(KNN Bureau)